Document Type : ORIGINAL ARTICLE

Authors

• Mohammad Hassan Fotros ¹
• Ghlamali Haji ²

¹ Emeritus professor، Bu-Ali Sina University

² Associate Professor, Department of Economics, Faculty of Management, Islamic Azad University, Arak Branch

Abstract

The present study aims to model the dynamic relationship between institutional indicators, environmental pollution, economic development, and public health in MENA member countries. This applied research covers the period from 2010 to 2023. To model the dynamic relationships between the variables, the Time-Varying Parameter Panel Factor-Augmented Vector Autoregression (TVP-PFAVAR) approach has been employed.
The results indicate the presence of a nonlinear dynamic behavior among the study variables. Accordingly, the TVP-PFAVAR model was used instead of traditional panel vector autoregressive models. Based on the findings, institutional indicators have a positive effect on economic development and public health while reducing environmental pollution. Additionally, economic development positively and increasingly influences institutional indicators, public health, and environmental pollution. The results further reveal that public health has a positive impact on institutional indicators and economic development, but a negative effect on environmental pollution. Moreover, environmental pollution negatively affects all three indicators.
It is noteworthy that, in general, the long-term trends of the variables had a stronger impact on each other compared to their short-term trends, reflecting the Le Chatelier principle among MENA countries. According to this principle, variables have more opportunities to influence one another over the long run.

Keywords

• Institutions
• Environmental Pollution
• Economic Development
• Public Health
• TVP-PFAVAR

Main Subjects

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