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Trade and Environmental Quality in African Countries: Do Institutions Matter?

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  • Mina Baliamoune-Lutz

    (University of North Florida)

Abstract

We examine the impact of trade and political institutions on environmental quality in Africa and explore whether political institutions matter to the trade–environment relationship. We use data from a large group of African countries, covering the period 1990–2008 and two indicators of environmental quality: net forest depletion and CO2 emissions. Results from GMM-SYS estimates suggest that political institutions influence the relationship between trade and environmental quality only in the case of CO2 emissions. Interestingly, we find that polity has a U relationship with net forest depletion. In addition, the results are in favor of an environmental Kuznets curve in the case of pollution but not in the case of net forest depletion. Finally, the results suggest that urbanization has a positive and linear impact on CO2 emissions, while it has a U-shaped relationship with deforestation. We discuss the policy implications of these findings.

Suggested Citation

  • Mina Baliamoune-Lutz, 2017. "Trade and Environmental Quality in African Countries: Do Institutions Matter?," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 43(1), pages 155-172, January.
    • Handle: RePEc:pal:easeco:v:43:y:2017:i:1:d:10.1057_s41302-016-0076-8
    DOI: 10.1057/s41302-016-0076-8
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    More about this item

    Keywords

    Africa; environmental quality; deforestation; CO2 emissions; trade; institutions;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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