The Impact of Institutional Factors and Shadow Economy on Pollution in Selected Persian Gulf Countries

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Tavakolian Hasan; Montazerhojat Amirhosein; Andayesh Yaghoub

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Journal Paper

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Journal: Journal of Environmental Studies Year:2024 | Volume:50 | Issue:3 Page(s): 293-310

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Title

The Impact of Institutional Factors and Shadow Economy on Pollution in Selected Persian Gulf Countries

Author(s)

Tavakolian Hasan | Montazerhojat Amirhosein | Andayesh Yaghoub | Issue Writer Certificate

Keywords

corruptionQ4

Environmental PollutionQ4

Political StabilityQ4

Rule of LawQ4

Shadow EconomyQ4

Abstract

Today, Environmental Pollution is one of the basic problems in many countries, especially in developing countries that possess natural resources. Therefore, identifying factors affecting pollution in these countries has particular importance. In many studies, the Environmental Kuznets Curve has been used to investigate the factors affecting pollution. In this hypothesis, the emission of pollution is a function of per capita income as the level of development. This study, taking into account the framework of Kuznets theory and considering institutional factors and the shadow sector, seeks to find a suitable answer to the question of what effect the Shadow Economy has on Environmental Pollution in the group of selected countries of the Persian Gulf, along with institutional factors. In this study, the variables of Rule of Law, corruption control and Political Stability have been applied as institutional factors. Using the panel data technique in the framework of the Environmental Kuznets Curve during the years 2009 to 2020, the results have shown that the Shadow Economy has a positive and significant effect on Environmental Pollution. Also, the results indicate that the effect of Political Stability and the Rule of Law on Environmental Pollution was negative and significant, while corruption control had a positive and significant effect on Environmental Pollution. In addition, the findings confirm the Kuznets hypothesis for the selected countries of the Persian GulfIn this research, the variables of Rule of Law, corruption control and Political Stability have been used as institutional factors. Using the panel data technique in the framework of the environmental Kuznets curve during the years 2009 to 2020, the results have shown that the Shadow Economy has a positive and significant effect on Environmental Pollution. Also, the results indicate that the effect of Political Stability and Rule of Law on Environmental Pollution was negative and significant, while corruption control had a positive and significant effect on Environmental Pollution. Also, the results confirm the Kuznets hypothesis for the selected countries of the Persian Gulf..

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