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Open AccessArticle

Corruption, Hidden Economy and Environmental Pollution: A Spatial Econometric Analysis Based on China’s Provincial Panel Data

by 1,2,3, 1 and 4,*
1
School of Economics and Finance, Xi’an International Studies University, Xi’an 710128, China
2
Institute of International Public Opinion and International Communication, Xi’an International Studies University, Xi’an 710128, China
3
“One Belt One Road” Economic and Trade Cooperation Innovation Team, Xi’an International Studies University, Xi’an 710128, China
4
School of Foreign Studies, Xi’an Jiaotong University, Xi’an 710049, China
*
Author to whom correspondence should be addressed.
Int. J. Environ. Res. Public Health 2019, 16(16), 2871; https://doi.org/10.3390/ijerph16162871
Received: 12 July 2019 / Revised: 8 August 2019 / Accepted: 8 August 2019 / Published: 11 August 2019
Previous studies show that the environmental quality is significantly influenced by corruption and the hidden economy separately. However, what is the impact of their interaction effect on environmental quality? Based on Multiple Indicators Multiple Causes (MIMIC) model, this study calculates the scale of hidden economy in Chinese provinces firstly. Then, we apply the method of spatial econometrics to analyze the interaction effect of corruption and the hidden economy on environmental pollution with China’s provincial panel data from 1998 to 2017. The results indicate that the interaction effect between corruption and hidden economy significantly increases pollutant discharge, suggesting that both anti-corruption and control of the hidden economy may improve environmental quality directly and indirectly. View Full-Text
Keywords: environmental pollution; corruption; hidden economy; spatial econometric analysis environmental pollution; corruption; hidden economy; spatial econometric analysis
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Wang, S.; Yuan, Y.; Wang, H. Corruption, Hidden Economy and Environmental Pollution: A Spatial Econometric Analysis Based on China’s Provincial Panel Data. Int. J. Environ. Res. Public Health 2019, 16, 2871.

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Int. J. Environ. Res. Public Health, EISSN 1660-4601, Published by MDPI AG
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