The impacts of governance on Environmental Pollution in some countries of Middle East and sub-Saharan Africa: The Evidence from panel Quantile Regression and Causality

Abstract In some countries of the Middle East and sub-Saharan Africa, it was studied the impacts of governance and FDI on environmental pollution over the period of 1996–2018 by the Panel Quantile and Granger causality methods. The countries were selected by considering two different measurements, EPI (2020) and governance index (2020). Accordingly EPI(2020), these countries have low scores in terms of environmental quality and in governance index(2020), they have bad governance scores because of inefficient regulatory structures, government bureaucracy, weak law enforcement, etc. Panel Quantile regression revealed the evidence of the long-run relation among the environmental pollution, the governance and FDI. Accordingly Quantile regression results, governance has the greatest positive effect on CO2 emission. Both traditional and Dumitrescu-Hurlin (DH) causality methods found the evidence of causality among governance and environmental pollution in the context of two parameters of governance, as the evidences of unidirectional causal nexus from political governance and FDI to environmental pollution and from economic governance, and FDI to environmental pollution.