Global Export of Environmental Goods and the Role of Institutional Factors

Document Type : Research Paper


1 PhD student in Economics, Department of Economics, Dehaghan Branch, Islamic Azad University, Dehaghan, Iran

2 Associate Professor of International Economics, Department of Management, Mobarakeh Branch, Islamic Azad University, Mobarakeh, Iran

3 Department of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran

4 Assistant Professor, Department of Management and Economics, Dehaghan Branch, Islamic Azad University, Dehaghan, Iran


During the last two decades, with the increase in international exchange of goods and services, a number of environmental problems, including climate change and global pollution, have increased significantly. In the effort to reduce pollution and green economy, the importance of trade in environmental goods and services has come to the forefront of global negotiations. Many developing and developed countries have taken measures for institutional development, especially in the field of international trade of environmental goods. Investigating the importance and impact of institutional factors the export of environmental goods in developing and developed countries in the framework of the gravity model is one of the main goals of this article. Institutional factors include the variable of strict environmental regulations, the rule of law and improving the quality regulations. To estimate the model, the panel data for the years 1996-2021, a sample of 129 developing countries and 41 developed countries, using the least squares method with fixed effect.
The results show that strict environmental policies and the rule law and the quality of regulations encourage the export of environmental goods in developed countries, but this result is not true for developing countries. While the aforementioned institutional factors are known to be the main driver of the export of environmental goods for the export purposes of the group of countries under study. Therefore, the global effort to improve the standard and effective environmental policy framework and improve the quality of regulations and governance is considered useful for the export of environmental goods.


Articles in Press, Accepted Manuscript
Available Online from 10 December 2022
  • Receive Date: 25 August 2022
  • Revise Date: 13 September 2022
  • Accept Date: 19 September 2022
  • First Publish Date: 10 December 2022