Examining the Threshold Effects of Government Governance on the Relationship Between Globalization, Government Effectiveness, and Environmental Pollutant Quality in Selected Developing Countries
Keywords:
Government governance, globalization, government effectiveness, environmental pollutants, selected developing countriesAbstract
Given the significance of the topic and the undeniable role of the environment in human life, this study seeks to examine the threshold effects of government governance on the relationship between globalization, government effectiveness, and the quality of environmental pollutants in selected developing countries during the period 2005 to 2023, using the Panel Smooth Transition Regression (PSTR) model. The research sample includes selected MENA and Middle Eastern countries, namely Saudi Arabia, Qatar, Pakistan, the United Arab Emirates, Algeria, Kuwait, Iran, Egypt, Oman, Morocco, Libya, Yemen, and Sudan. The findings reveal that by employing a PSTR model in which the transition variable is trade volume (EG) in the first model and government governance (INST) in the second model, the functional relationship between economic globalization and environmental quality can be modeled. The estimated results for the linear part of the first and second models (Regime 1) indicate that trade volume (EG) and gross domestic product (GDP) have a positive relationship with nitrogen dioxide (NO₂) emissions. Specifically, a one-unit increase in trade volume and GDP leads to an increase of 0.21 and 0.22 units in greenhouse gas emissions, respectively, in the first model. Furthermore, the variable of governance quality (INST) in the second model results in a reduction of 0.12 units in nitrogen dioxide (NO₂) emissions, and the interaction term of government governance with trade volume (INST × EG) reduces NO₂ emissions by 0.11 units. Additionally, the estimated results for the nonlinear part of the first and second models (Regime 2) confirm the presence of a positive relationship between trade volume (EG) and gross domestic product (GDP) with nitrogen dioxide (NO₂) emissions.
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Copyright (c) 2025 Mohamadamin Talebi (Author); Mahnaz Rabiei; Fatemeh Zandi, Mohammad Khezri (Author)
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