Nexus between corruption and regional Environmental Kuznets Curve: the case of South Asian countries

This study attempts to investigate the presence of a regional Environmental Kuznets Curve (EKC) in selected South Asian countries, namely, Pakistan, India, Bangladesh, and Sri Lanka for the period 1984–2008. In addition, it also intends to inspect the impact of corruption on environmental degradation in this region. The Fixed Effect results confirm the existence of the regional EKC in these countries. Furthermore, the results indicate that corruption do affect environment in the manner that it delays the turning point in EKC. It is found that, in the presence of corruption, the per capita GDP at the turning point is USD 998, which is USD 128 higher from the value that would have been in the absence of corruption. Based on these results, the study suggests appropriate policy measures.