Institutional transformation as an effective tool for reducing corruption and enhancing economic growth: A panel study of West African countries

Udemba, Edmund Ntom; Onyenegecha, Ifeoma Prisca; Olasehinde‐Williams, Godwin

doi:10.1002/pa.2389

Cited by 6 publications

(5 citation statements)

References 44 publications

(40 reference statements)

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“…Studies have also shown that institutional quality has a significant contribution to carbon emissions. Yang et al (2022) using the Driscoll Kraay method found that improvements in institutional quality, energy consumption, industrialization, trade openness, and economic development significantly increased CO 2 emissions in 42 developing countries over the period 1984-2016. Obobisa, Chen, and Mensah (2022 investigated the impact of institutional quality, economic growth, and fossil fuel energy consumption on carbon emissions in African countries from 2000 to 2018 using a secondgeneration panel approach, AMG, and CCEMG estimators.…”

Section: Effects Of Institutional Quality On Economic Growth and Envi...mentioning

confidence: 99%

RETRACTED: An empirical analysis of FDI and institutional quality on environmental quality and economic growth, evidence from the panel of asian oil-producing and non-oil-producing economies

Yang

Yin

et al. 2023

Front. Environ. Sci.

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This study applies the augmented mean group (AMG) estimation technique to investigate whether institutional quality and FDI contribute to economic growth and environmental quality in emerging Asian oil-producing and non-oil-producing countries during the period 1975–2020. The estimation of AMG strategy indicates that for every 1% increase in FDI, institutional quality and carbon emissions can significantly boost economic growth by 0.882%, 0.659%, and 0.605%, respectively. Likewise, trade liberalization, transport infrastructure and urbanization can significantly boost economic growth. Long-term variable elasticity coefficients based on carbon emissions model suggest that FDI can stimulate carbon emissions, thereby validating the Pollution Heaven Hypothesis (PHH) in selected panel of countries. Institutional quality has a significant negative impact on carbon emissions, while GDP, trade openness, urbanization, and investment in transport infrastructure contribute significantly to carbon dioxide emissions. Country wise estimates of the AMG strategy show that the institutional quality of oil-producing countries has no significant impact on economic growth, but does boost economic growth in non-oil producing countries. The quality of institutions in both non-oil and oil-producing countries can significantly reduce carbon emissions. FDI stimulates economic growth in oil-producing countries compared to non-oil-producing countries. However, FDI contributes significantly to both oil and non-oil-producing CO2 emissions, thus validating PHH. Controlling factors such as economic growth increase significantly to CO2 emissions in oil-producing countries, while, CO2 emissions from petro-states stimulate more to economic growth than non-petroleum states. The impact of trade liberalization on economic growth is significantly positive in both oil and non-oil-producing countries, but the contribution of non-oil-producing economies is higher than that of oil-producing countries. Compared with non-oil producing countries, trade liberalization in oil-producing countries contributes more to carbon emissions. Investment in transportation infrastructure significantly boosted economic growth in both oil and non-oil producing countries, but oil producing countries contributed more than non-oil producing countries. A range of policy proposals were discussed to achieve economic and environmental sustainability.

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Section: Effects Of Institutional Quality On Economic Growth and Envi...mentioning

confidence: 99%

RETRACTED: An empirical analysis of FDI and institutional quality on environmental quality and economic growth, evidence from the panel of asian oil-producing and non-oil-producing economies

Yang

Yin

et al. 2023

Front. Environ. Sci.

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“…Further, activities from the household such as bleaching, dyeing and tanning also contain hazardous substances which contaminate ground water and rivers if not properly disposed. However, recent trends in both theoretical and empirical cycles have shown that the link between shadow economy and environmental quality could be altered in the presence of institutions (Udemba et al , 2020).…”

Section: Introductionmentioning

confidence: 99%

Shadow economy, institutions and environmental pollution: insights from Africa

Dada

Ajide

Sharimakin³

2021

WJSTSD

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PurposeThis study investigates the effect of shadow economy on environmental pollution and the role of institutional quality in moderating the impact in African countries between 1991 and 2015.Design/methodology/approachThe study employs three pollutant variables namely: carbon dioxide emissions per capita, methane emission and nitrous oxide emission as robustness check. Also, battery of methodologies; ordinary least squares, fixed effects and system generalised method of moments are used to drive out the conclusions of this study.FindingsThe findings reveal that shadow economy and institutional quality contribute significantly to environmental pollution in Africa. Further, the interactive effect of shadow economy and institutional quality worsens environmental quality in the region. This reveals that weak institutional quality recorded in the region increases the level of shadow economy, thereby intensifying environmental pollution.Practical implicationsThe study concludes that weak institutional framework in the region reinforces shadow economy and environmental pollution. Hence, findings from this study can help policymakers in the region to better understand the role of institutional quality in reducing shadow economy and environmental pollution.Originality/valueThis study enriches one’s understanding on the role of institutional quality in the relationship between environmental quality and shadow economy in African context. It investigates the direct and indirect impact of institutions and shadow economy on environmental quality. The study also uses three different robust variables to measure environmental pollution (carbon dioxide (CO2) emissions per capita, methane emission and nitrous oxide emission) for sensitivity analysis.

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“…These two key determinants of macroeconomic performance therefore serve as the base regressors in the model used in this study. Moreover, good institutions are also identified in literature as sources of incentives that promote economic improvements (see North 1990;Hall & Jones 1999;Acemoglu & Robinson 2010;Ntom Udemba et al 2022;Balcilar et al 2020;Bekun et al 2023). Institutional quality is therefore also included as one of the regressors in the empirical model.…”

Section: Theoretical Framework and Modelmentioning

confidence: 99%

Carbon pricing and aggregate macroeconomic performance in the Eurozone: a contribution to the climate policy debate using the EU ETS and Macroeconomic Performance Index

Olasehinde-Williams

2024

Environ Sci Pollut Res

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This article contributes to the carbon pricing debate by providing new evidence on the aggregate macroeconomic effect of the European Union Emissions Trading Scheme (EU ETS) in the Eurozone. To this end, a novel macroeconomic performance index is created to capture the overall economic performance of the Eurozone countries. The index is a weighted aggregation of key macroeconomic variables—GDP growth rate, inflation rate, employment rate, exchange rate, and long-term inflation rate—for the 19 member countries of the group. The effect of the EU ETS on this macroeconomic performance index is then empirically examined while controlling for the effects of physical capital accumulation, human capital accumulation and regulatory quality. A panel framework covering the period 2005–2022 is set up to achieve this objective and the relationship is examined using panel method of moments quantile regression with fixed effects, as well as fixed and random effects regressions of Driscoll and Kraay. A number of important revelations are made. Firstly, the behavior of the macroeconomic performance index constructed clearly reflects the economic reality of the Eurozone, with downward spikes visible in periods corresponding with the economic crisis of 2007–2009, the Eurozone debt crisis of 2010/2011, the aftermath of the financial crisis of 2016, and periods around the outbreak of the Coronavirus (COVID-19) pandemic. Hence, a case is made for the use of the macroeconomic performance index as a superior aggregate measure of the overall economic performance in empirical research. Secondly, a statistically significant negative effect of the EU ETS on aggregate macroeconomic performance in the Eurozone is confirmed. This shows that there are significant economic costs associated with the use of carbon pricing as a means of lowering pollution. Thirdly, the findings further show that the negative impact gradually decreases (in absolute values) from lower to higher quantiles. Overall, higher carbon prices cause greater economic disruption when macroeconomic performance is relatively poor but have less damaging effect when aggregate economic performance is relatively strong. Policy recommendations based on the study findings are also provided.

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Institutional transformation as an effective tool for reducing corruption and enhancing economic growth: A panel study of West African countries

Cited by 6 publications

References 44 publications

RETRACTED: An empirical analysis of FDI and institutional quality on environmental quality and economic growth, evidence from the panel of asian oil-producing and non-oil-producing economies

RETRACTED: An empirical analysis of FDI and institutional quality on environmental quality and economic growth, evidence from the panel of asian oil-producing and non-oil-producing economies

Shadow economy, institutions and environmental pollution: insights from Africa

Carbon pricing and aggregate macroeconomic performance in the Eurozone: a contribution to the climate policy debate using the EU ETS and Macroeconomic Performance Index

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