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<p>This paper examines the impact of trade openness on environmental degradation by taking into account the role of institutional quality in a panel sample of 5 Arab Maghreb Union from 1996 to 2021. Six dimensions of institutions quality are introduced in the empirical analysis, namely : Voice and Accountability (VA), Government Effectiveness (GE), Political Stability (PS), Regulatory Quality (RQ), Control of Corruption (CC), Rule of Law (RL). To achieve this goal, we used FMOLS and DOLS approaches to estimate their long run relationships. Two main results can be identified. First, the findings show that trade openness is the cause of environmental degradation in the five Arab Maghreb Union. Second, institutional quality can mitigate the negative impact of trade openness on environmental quality. These findings suggest that the Arab Maghreb Union should strengthen its institutional framework in order to reduce environmental degradation.</p>

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The Relationship Between Trade Openness and Environmental Degradation in Arab Maghreb Union : The Role of Institutional Quality

  • 期刊论文

  • 发表日期：

    2026年3月6日

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  • Besma Bouchoucha,
  • Ismahene Yahyaoui,
  • Najeh Bouchoucha

摘要

This paper examines the impact of trade openness on environmental degradation by taking into account the role of institutional quality in a panel sample of 5 Arab Maghreb Union from 1996 to 2021. Six dimensions of institutions quality are introduced in the empirical analysis, namely : Voice and Accountability (VA), Government Effectiveness (GE), Political Stability (PS), Regulatory Quality (RQ), Control of Corruption (CC), Rule of Law (RL). To achieve this goal, we used FMOLS and DOLS approaches to estimate their long run relationships. Two main results can be identified. First, the findings show that trade openness is the cause of environmental degradation in the five Arab Maghreb Union. Second, institutional quality can mitigate the negative impact of trade openness on environmental quality. These findings suggest that the Arab Maghreb Union should strengthen its institutional framework in order to reduce environmental degradation.