The study aims to address the dynamic common correlated effects of trade openness, FDI, and institutional performance on environmental quality in OIC countries. Mostly, pollutants like CO2 and SO2 emissions are considered as the environmental indicators. However, for this study, we have selected ecological footprint as the indicator of environmental quality. The new econometric approach Dynamic Common Correlated Effects (DCCE) by Chudik and Pesaran (2015) has been used to measure the cross-sectional dependence among cross-sectional units. Results confirm that previous techniques for long panel data, like MG and PMG, give ambiguous outcomes in the presence of cross-sectional dependence. According to DCCE estimation, trade openness, FDI, and urbanization have a positive and significant relationship with ecological footprint while a significant and negative association is found between institutional performance and ecological footprint. The OIC countries must encourage green technology, clean production, and improved institutions for sustainable development and better environmental quality.

中文翻译：

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贸易开放度，外国直接投资和机构绩效对环境质量的动态共同相关影响：来自伊斯兰会议组织国家的证据。

该研究的目的是解决贸易开放性，外国直接投资和机构绩效对伊斯兰会议组织国家环境质量的动态共同相关影响。在大多数情况下，CO2和SO2排放等污染物被视为环境指标。但是，在本研究中，我们选择了生态足迹作为环境质量的指标。Chudik和Pesaran（2015）的新计量经济学方法动态共同相关效应（DCCE）已用于测量横截面单元之间的横截面依赖性。结果证实，在存在横断面依赖性的情况下，用于长面板数据的先前技术（如MG和PMG）会产生不明确的结果。根据DCCE的估计，贸易开放度，外国直接投资，城市化与生态足迹之间存在正向和显着的关系，而制度绩效与生态足迹之间存在显着和负向的联系。伊斯兰会议组织国家必须鼓励绿色技术，清洁生产和改进机构，以实现可持续发展和改善环境质量。