IDEAS home Printed from https://ideas.repec.org/a/taf/intecj/v38y2024i2p293-311.html
   My bibliography  Save this article

Shadow Economy and Environmental Pollution Nexus in Developing Countries: What is the Role of Corruption?

Author

Listed:
  • Waqar Ahmad
  • Babar Hussain

Abstract

The objective of this study is to investigate the effects of the shadow economy on environmental pollution and how this effect depends on the levels of corruption. The study utilizes an annual panel dataset of 127 selected developing countries worldwide, spanning from 2002 to 2018, and employs the Generalized Method of Moments (GMM) technique, which effectively addresses potential endogeneity issues in the model. The estimation results reveal that the shadow economy increases the level of environmental pollution. Furthermore, the results indicate that corruption intensifies the impacts of the shadow economy on environmental pollution. This highlights a significant complimentary between the shadow economy and corruption, indicating that an increase in the levels of corruption will lead to an increase the shadow economy and will also strengthen its harmful impact on environmental pollution through the channel of corruption. Additionally, the estimates remain robust when using alternative measure of the shadow economy.

Suggested Citation

  • Waqar Ahmad & Babar Hussain, 2024. "Shadow Economy and Environmental Pollution Nexus in Developing Countries: What is the Role of Corruption?," International Economic Journal, Taylor & Francis Journals, vol. 38(2), pages 293-311, April.
    • Handle: RePEc:taf:intecj:v:38:y:2024:i:2:p:293-311
    DOI: 10.1080/10168737.2024.2331463
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10168737.2024.2331463
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10168737.2024.2331463?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yi Wang & Valentin Marian Antohi & Costinela Fortea & Monica Laura Zlati & Reda Abdelfattah Mohammad & Farah Yasin Farah Abdelkhair & Waqar Ahmad, 2024. "Shadow Economy and Environmental Sustainability in Global Developing Countries: Do Governance Indicators Play a Role?," Sustainability, MDPI, vol. 16(22), pages 1-23, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:intecj:v:38:y:2024:i:2:p:293-311. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RIEJ20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.