Study of Good Governance Effect on Environment Quality Index in Selected Developing Countries

Considering the importance of environmental degradation and pollution problems all countries attempt to schematize and apply appropriate procedures to achieve their economical goal and mimimize the environmental destructions. Environmental degradation and environment quality are affected by many factors. The aim of this study is to investigate the effect of good governance indexes on environment quality in some selected developing countries. Using the panel data model during 2000-2010, the impact of good governance on environmental quality in developing countries was examined by a series of related variables. The results showed that the mean good governance indexes has a direct and significant effect on the environment quality. Indeed, improvement of good governance index reduced the environmental degradation and increased the environment quality. Per capita gross domestic production and trade have a positive and significant effect on the environment quality. On the other hand, per capita energy consumption and foreign direct (FDI) investment affected the environment quality negatively, though the effect of FDI was not statistically significant. Thus improvement of good governance can increase the environment quality in developing countries