Artur Tamazian|B. Bhaskara Rao
Do economic, financial and institutional developments matter for environmental degradation? Evidence from transitional economies
Universidade de Santiago de Compostela|Western Sydney University
several studies examined relationship environmental degradation economic growth however take account financial developments institutional quality moreover stern stern 2004 rise fall environmental kuznets curve world development 328 14191439 noted important econometric weaknesses earlier studies endogeneity heteroscedasticity omitted variables etc purpose paper fill gap literature investigating linkage economic development environmental quality also financial development institutional quality employ standard reducedform modelling approach control countryspecific unobserved heterogeneity gmm estimation control endogeneity study considers 24 transition economies panel data 19932004 results support ekc hypothesis confirming importance institutional quality financial development environmental performance also found financial liberalization may harmful environmental quality accomplished strong institutional framework