Table 1

Variable description, measurement and expected sign

VariableMeasurementExpected signSource
TradeTotal Trade (Exports + Imports)/GDP World Bank (WDI)
Environmental taxA composite index of tax rates−/+IMF (Climate data)
Political stabilityPolitical Stability Index+World Bank (WGI)
Government effectivenessGovernment Effectiveness Index+World Bank (WGI)
Control of corruptionControl of Corruption Index–World Bank (WGI)
Rule of lawRule of Law Index+World Bank (WGI)
Regulatory qualityRegulatory Quality Index+World Bank (WGI)
Carbon emission (CO2)Metric tonnes of CO2 emitted per capita or total national emissions–International Energy Agency (IEA)
Energy usageEnergy consumption as a percentage of GDP+International Energy Agency (IEA)
Foreign direct investment (FDI)Net FDI inflows as a percentage of GDP+World Bank (WDI)
Agricultural growthAgricultural value-added as a percentage of GDP+World Bank (WDI)
GDP growthAnnual GDP growth rate (%)+World Bank (WDI)
Source(s): Authors’ construct, 2025

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