Institutional quality and CO2 emission–trade relations: evidence from Sub‐Saharan Africa
This paper examines the roles of trade, institutional quality and their interactions in explaining carbon dioxide emissions in a panel sample of 40 Sub‐Sahara African countries using the system generalised method of moments. We find that institutional reforms are unequivocally environmental improvin...
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| Format: | Article |
| Language: | English |
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Blackwell Publishing
2016
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| Online Access: | http://psasir.upm.edu.my/id/eprint/54580/1/Institutional%20quality%20and%20CO2%20emission%E2%80%93trade%20relations.pdf |
| _version_ | 1796976110939930624 |
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| author | Ibrahim, Mansor Law, Siong Hook |
| author_facet | Ibrahim, Mansor Law, Siong Hook |
| author_sort | Ibrahim, Mansor |
| collection | UPM |
| description | This paper examines the roles of trade, institutional quality and their interactions in explaining carbon dioxide emissions in a panel sample of 40 Sub‐Sahara African countries using the system generalised method of moments. We find that institutional reforms are unequivocally environmental improving. Meanwhile, the impacts of trade on the environment tend to depend on the institutional setting of a country. More specifically, trade openness is harmful to the environment in countries with low institutional quality and beneficial to the environment in countries with high institutional quality. This means that institutional reforms are a perquisite for the countries with low institutional quality to actualise the beneficial environment effect of trade. As for the countries with adequate institutional quality, trade and institutions are reinforcing each other in bringing down pollution. From these results, we conclude that trade openness implemented in a sound institutional setting potentially brings better trade, more growth and better environment. |
| first_indexed | 2024-03-06T09:21:05Z |
| format | Article |
| id | upm.eprints-54580 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T09:21:05Z |
| publishDate | 2016 |
| publisher | Blackwell Publishing |
| record_format | dspace |
| spelling | upm.eprints-545802018-04-02T01:09:50Z http://psasir.upm.edu.my/id/eprint/54580/ Institutional quality and CO2 emission–trade relations: evidence from Sub‐Saharan Africa Ibrahim, Mansor Law, Siong Hook This paper examines the roles of trade, institutional quality and their interactions in explaining carbon dioxide emissions in a panel sample of 40 Sub‐Sahara African countries using the system generalised method of moments. We find that institutional reforms are unequivocally environmental improving. Meanwhile, the impacts of trade on the environment tend to depend on the institutional setting of a country. More specifically, trade openness is harmful to the environment in countries with low institutional quality and beneficial to the environment in countries with high institutional quality. This means that institutional reforms are a perquisite for the countries with low institutional quality to actualise the beneficial environment effect of trade. As for the countries with adequate institutional quality, trade and institutions are reinforcing each other in bringing down pollution. From these results, we conclude that trade openness implemented in a sound institutional setting potentially brings better trade, more growth and better environment. Blackwell Publishing 2016-06 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/54580/1/Institutional%20quality%20and%20CO2%20emission%E2%80%93trade%20relations.pdf Ibrahim, Mansor and Law, Siong Hook (2016) Institutional quality and CO2 emission–trade relations: evidence from Sub‐Saharan Africa. South African Journal of Economics, 84 (2). pp. 323-340. ISSN 0038-2280; ESSN: 1813-6982 https://onlinelibrary.wiley.com/doi/abs/10.1111/saje.12095 Trade; Pollution relations; Institutions; Sub-Sahara Africa 10.1111/saje.12095 |
| spellingShingle | Trade; Pollution relations; Institutions; Sub-Sahara Africa Ibrahim, Mansor Law, Siong Hook Institutional quality and CO2 emission–trade relations: evidence from Sub‐Saharan Africa |
| title | Institutional quality and CO2 emission–trade relations: evidence from Sub‐Saharan Africa |
| title_full | Institutional quality and CO2 emission–trade relations: evidence from Sub‐Saharan Africa |
| title_fullStr | Institutional quality and CO2 emission–trade relations: evidence from Sub‐Saharan Africa |
| title_full_unstemmed | Institutional quality and CO2 emission–trade relations: evidence from Sub‐Saharan Africa |
| title_short | Institutional quality and CO2 emission–trade relations: evidence from Sub‐Saharan Africa |
| title_sort | institutional quality and co2 emission trade relations evidence from sub saharan africa |
| topic | Trade; Pollution relations; Institutions; Sub-Sahara Africa |
| url | http://psasir.upm.edu.my/id/eprint/54580/1/Institutional%20quality%20and%20CO2%20emission%E2%80%93trade%20relations.pdf |
| work_keys_str_mv | AT ibrahimmansor institutionalqualityandco2emissiontraderelationsevidencefromsubsaharanafrica AT lawsionghook institutionalqualityandco2emissiontraderelationsevidencefromsubsaharanafrica |