Examine the Ecological Footprint through the Lens of Remittances and Governance: A Panel MMQR Approach for Top Remittance-Receiving Economies

Kiran Jameel

Ph.D., Assistant Professor, Institute of Business Management, Karachi, Pakistan

Kiran.jameel@iobm.edu.pk

Laeeq Razzak Janjua

Ph. D., Lecturer, WSB University, Poland

laeeq.janjua@wsb.edu.pl

 

Abstract

This paper investigates the complex interaction among remittance inflows, governance quality, and environmental sustainability by evaluating their combined impact on the ecological footprint of the top 20 remittance-receiving economies from 2000 to 2023. In contrast with the conventional environmental research in which only economic growth or globalization was effectively allocated. This research involves not only economic and globalization but also institutional and financial dimension to better understand the pattern of environmental degradation in the remittance-dependent countries. The Study applied a Method of Moments Quantile Regression (MMQR) panel estimation allowing for country effects and quantile-dependent effects. Explaining more than mean-based estimates, this approach helps to illuminate how the relationship between remittances, governance and ecological footprint vary across different levels of environmental pressure. This research found that remittances have a double effect, it improves household welfare and development but also increase ecological footprint, particularly in lower and middle quantile where environmental deterioration is more clear. Environmental impact is mitigated by stronger governance quality than at higher quantiles, particularly in regulatory quality, corruption control, and government efficiency. Strong institutions can considerably lower the environmental risks associated with remittance-fueled investment and consumption because of the relationship between remittances and governance. These findings highlight the necessity of strong institutions to guarantee environmental sustainability in remittance-receiving nations. To assurance that remittances support opportunities for green development, policy recommendations emphasize the necessity of integrating governance reforms with environmental regulations and immigrants engagement programs.

Keywords:  Ecological Footprint, Remittances, Governance, Environmental Sustainability, Panel MMQR, Institutional Quality, Top Remittance-Receiving Countries

JEL: F24, Q56, Q58, O44

DOI:  10.52244/c2025.7

Article

 

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