Abstract:

Globalization is an important factor that creates socio-economic and political effects for both developed countries and developing, underdeveloped countries. Economic mobility which increased with disappearance of the borders between countries, ensured increasing in global production level. However, it also caused negative consequences in terms of sustainability of natural resources and environmental factors. This has increased the interest of countries in socio-economic policies that consider the sustainability and environmental quality. In this context, this paper aims to examine the dynamic relationship between environmental quality, globalization and institutions for G-20 countries. The study examines validity and direction of the relationship between environmental quality, globalization, institutions, renewable energy and economic growth for these 19 countries covering the period of 1990-2018 by using panel causality and panel cointegration methods. According to the results of the study, in the long term, it is determined that while there is a causal relationship between environmental quality and globalization, there is no causality relationship between environmental quality and institutions. On the other hand, the extent of the relationship of variables differs across countries.

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