Corruption, Trade Openness and Environmental Quality: Evidence from Developing Countries

Abstract

The effects of corruption and trade on environmental quality have significance in open economies. This study has explored the impact of corruption and trade openness on environmental quality in 70 developing countries by using panel GMM technique over the period of 2002 to 2016. To measure the trade openness and environmental quality, various proxies have been used. The results show that the impact of trade openness has mixed findings with environmental quality variables of CO₂ and N₂O emissions. Corruption has a positive effect on CO₂ and N₂O emissions. The study has also suggested some policies to improve the environmental quality.