Globalization and environmental quality : insights from 128 countries

Abstract

This study examines the nexus between globalization and environmental degradation for a global sample of 128 countries during the period 2001-2014. Four dimensions of globalization and six indicators of environmental quality are considered for comparison and completeness. Fixed Effects (FE) is employed as the main estimation technique while panel Ordinary Least Squares (OLS), Feasible Generalized Least Squares (FGLS) and Driscoll-Kraay (D-K) standard errors estimations are employed as robustness check. The results indicate that while international integration has a detrimental impact on most components of the ecosystem, effect varies across income groups. The findings emphasize the importance of an integrated approach in designing consensus policies and treaties to address conflict of interests between nations in order to tackle environmental challenges in this age of escalating globalization.