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

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  • Mina Baliamoune-Lutz

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This paper examines the impact of trade and political institutions on environmental quality in Africa and explores 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. The 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 (CO2 emissions) but not in the case of net forest depletion (deforestation). We discuss the policy implications of these findings.

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File URL: http://www.biblioecon.unito.it/biblioservizi/RePEc/icr/wp2012/ICERwp14-12.pdf
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Paper provided by ICER - International Centre for Economic Research in its series ICER Working Papers with number 14-2012.

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Length: 21 pages
Date of creation: Oct 2012
Handle: RePEc:icr:wpicer:14-2012
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