The impact of financial development and foreign direct investment on environmental sustainability in Sub-Saharan Africa
Using PMG-ARDL approach
Bibliographic Data
| ID | 15067082 |
|---|---|
| Authors | Joseph Dery Nyeadi (0000-0003-1481-397X, Department of Banking and Finance, S.D. Dombo University of Business and Integrated Development Studies, Wa, Ghana, corresponding author) |
| Year | 2023 |
| Volume | 36 |
| Issue | 2 |
| Publication date | 2023-07-10 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economic Research-Ekonomska Istraživanja (JOURNAL) |
| Journal identifiers | ISSN: 1331-677X • E-ISSN: 1848-9664 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/1331677x.2022.2106270 |
| OpenAlex | W4289945756 |
| Language | EN |
| Citations received | 4 |
| References cited | 48 |
This study is aimed at establishing the impact of foreign direct investment and financial development on carbon dioxide emission and clean energy using 44 countries in sub-Saharan Africa ranging from 1998 to 2017. Employing a second generation unit root test in conjunction with Pooled Mean Group, the study established that financial development have significant positive impact on clean energy consumption in sub-Saharan Africa. This was found to be consistent in both low-income and middle-income countries in sub-Saharan Africa. Financial development is however found to be significantly negative with carbon dioxide in sub-Saharan Africa and middle-income countries. This relationship is only positive in the low-income countries. Foreign direct investment does not have any significant impact on clean energy consumption in sub-Saharan Africa. A significant impact is noted after the decomposition of the sample into low-income and high-income countries. In low-income countries, foreign direct investment inflows impact positively on clean energy consumption. This relationship is however negative with middle-income countries. The link between foreign direct investment and carbon dioxide is significantly positive in the whole sample and also in low-income countries. These long-run relationships have been confirmed by the causality test
Business · Economics · Foreign direct investment · Macroeconomics · Natural resource economics · Political science · Sustainability · Economic Growth and Development · Energy, Environment, Economic Growth · Natural Resources and Economic Development · Ecology
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| Citations per year | 1.33 |
|---|---|
| Citation span | 2023 - 2026 (4) |
| Highly cited | No |