Journal of Business & Economic Policy

Trade Openness, Public Sector Corruption, and Environment: A Panel Data Analysis for Asian Developing Countries
Faiza Umer, Muneeb Khoso, Shaista Alam

Abstract
The objective of this present study is to investigate the effect of trade openness and public sector corruption on environment for a panel of 12 developing countries from 1995 to 2012. The study used panel OLS, fixed and random effects models to check the effect of trade openness and public sector corruption on the environment. Government effectiveness used as the measure of public sector corruption. CO2 and methane gas emissions used as the measure of environmental degradation in this paper. Different specification tests, such as F-test and Hausman specification test are used to make selection among ordinary least square, fixed effect and random effect model. Random effect model seems best to handle such situation.

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