The effects of industry growth and government efficiency on environmental quality : the global perspective

This research uses the panel cointegration and panel-based error correction models to investigate the causality among environmental quality, government efficiency, and industry growth for the period 2002–2020 for 126 countries. The results indicate that a long-term equilibrium cointegrated relationship exists among the variables. Government efficiency has a positive effect on environmental quality, while industry growth only can have a positive effect on EHI. Moreover, the negative influence of industry growth is quite serious in non-OECD countries. Lastly, increases in government efficiency and industry growth in the long run promote environment quality, but in the short run they are not significant.