Economic Impact of Institutional Quality on Environmental Performance in Post-Soviet Countries

Shukrillo Abduqayumov (), Noman Arshed and Samra Bukhari ()

Journal Transition Studies Review, 2020, vol. 27, issue 2, 13-24

Abstract: Maintaining the balance between economic growth and environmental performance is a new trend of challenges for developing countries. The economic impact of institutional quality on environmental performance is analyzed from 2001 to 2017 using multinational panel data for 15 Post Soviet-Countries. The indicators of institutional quality are government effectiveness and regulatory quality and this research is first of its kind utilizing a comprehensive Environmental Performance Index as an empirical paper for post-Soviet-Countries. This study has utilized an instrumental variable method in Generalized Method of Moments, in order to introduce dynamics and then check for endogeneity. Other controlling factors include GDP per capita, industrial manufacturing, energy efficiency, urbanization, and secondary education. The results indicate that institutional quality have a significant positive impact on environmental performance. It is suggested that the post-Soviet-Countries must ensure better institutions in order to sustain an environment for future generations.

Keywords: Panel GMM; Industrialization; Urbanization (search for similar items in EconPapers)
Date: 2020
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