Investigation of the Relationship between Economic Growth, Trade Openness and Environmental Pollution: A Review of Selected Countries in the Middle East

Trade openness, economic growth and environment are known as the major issues in recent decads. We considered the effect of expanding trade and economic growth on environmental quality for 11 country in the Middle East during the period of 1980 to 2010. Panel data econometric method and STATA software were used. Econometric tests confirmed fixed effects model among the pooled, fixed and random effects models. Each Arellano-Bond GMM regression model and Newey- West with 5 lags allowed were estimated beacuase of dynamic panel data and their results were compared with the results of fixed effects model and then were evaluated. We found per capita income has a significant positive impact on environmental pollution but further rise in income will reduce environmental pollution. Trade openness has negative effect and there is a non-significant effect on environmental pollution