NEXUS BETWEEN INSTITUTIONAL QUALITY, EMPLOYMENT, TRADE OPENNESS & CO2 EMISSIONS: A PANEL ARDL ANALYSIS

Abstract

This study employs a panel autoregressive distributed lag (ARDL) approach to investigate the relationships between employment, institutional quality, trade openness, and carbon dioxide (CO2) emissions. The analysis focuses on period from 2002 to 2021, encompassing top ten CO2-emitting countries: the United States, China, India, Japan, Russia, Iran, Germany, Saudi Arabia, South Korea, and Indonesia. Study explores how institutional frameworks, in conjunction with economic factors impact environmental outcome. Research emphasizes the potential of strong institutional quality to stimulate the trade, economic growth, and improvements in quality of life. Models developed in study predict an increase in CO2 emissions linked with higher institutional quality, economic development, energy consumption, industrialization, and trade openness. The findings highlight a significant correlation between the variables of institutional quality (IQ), employment (EMP), & trade openness (IMP) and CO2 levels over the long term. By employing a comprehensive panel ARDL approach, this study provides valuable insights into intricate relationships between institutional quality, employment, trade openness, & CO2 emissions.