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Institutional quality and environmental pollution: MENA countries versus the rest of the world

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  • Goel, Rajeev K.
  • Herrala, Risto
  • Mazhar, Ummad

Abstract

Using data for over 100 nations over the years 2004–2007, this study examines the effect, of institutional quality on environmental pollution, focusing primarily on influences of corruption, and the shadow economy, and paying special attention to MENA countries. Controlling for a, number of factors, results show that both more corrupt nations and nations with large shadow sectors have qualitatively and quantitatively similar effects in yielding fewer (recorded) emissions; however, MENA nations have higher pollution rates. Policy implications are noted.

Suggested Citation

  • Goel, Rajeev K. & Herrala, Risto & Mazhar, Ummad, 2013. "Institutional quality and environmental pollution: MENA countries versus the rest of the world," Economic Systems, Elsevier, vol. 37(4), pages 508-521.
    • Handle: RePEc:eee:ecosys:v:37:y:2013:i:4:p:508-521
    DOI: 10.1016/j.ecosys.2013.04.002
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    More about this item

    Keywords

    Environment; Pollution; Institutions; Shadow economy; Corruption; MENA;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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