Remittances and deforestation in developing countries: Is institutional quality paramount?

Komivi Afawubo and Yawo Noglo ()

Research in Economics, 2019, vol. 73, issue 4, 304-320

Abstract: This study examines the impact of remittance inflows on deforestation in developing countries. We also investigate the role of institutional quality in enhancing remittances’ effect in reducing deforestation. Our results suggest that overall remittances reduce deforestation. We show that remittances’ reduction effect on deforestation is greater in middle-income countries than in low-income countries. Considering institutional quality, our findings suggest that, for the entire sample, and in low- and middle-income countries, control of corruption, political stability, government effectiveness and rule of law act to reduce deforestation. Moreover, institutional quality enhances the impact of remittances on reducing deforestation in the entire sample and in middle-income countries. In contrast, in low-income countries, institutional quality does not complement remittances to reduce deforestation.

Keywords: Deforestation; Remittances; Institutional quality; Developing countries (search for similar items in EconPapers)
JEL-codes: F24 O10 P37 Q23 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Working Paper: Remittances and deforestationin developing countries: Is institutional quality paramount? (2019)
Working Paper: Remittances and deforestation in developing countries: Is institutional quality paramount? (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reecon:v:73:y:2019:i:4:p:304-320

DOI: 10.1016/j.rie.2019.10.001

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