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

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. This research investigates the relationship between the indicators of institutional quality as government effectiveness and regulatory quality on environmental performance, and this research is first of its kind utilizing a comprehensive indicator for environmental performance, for example, EPI as an empirical paper for post-Soviet-Countries. We utilize an instrumental variable method in Generalized Method of Moments, in order to introduce dynamics and then check for endogeneity. Two WGI indicators are utilized to find each indicators impact on environmental performance. Also incorporating GDP Per Capita, Industrial Manufacturing, Industry Efficiency, Urbanization, and Secondary Education impact on Environmental Performance. The study results on institutional quality are significant and show a strong positive impact on environmental performance. Economic growth and secondary education show a negative significant association. Industrial manufacturing found to be insignificant, while urbanization shows a strong positive relationship with environmental performance.