Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2022.2106270
The impact of financial development and foreign direct investment on environmental sustainability in Sub-Saharan Africa: using PMG-ARDL approach
Joseph Dery Nyeadi
Sažetak
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.
Ključne riječi
Foreign direct investment; clean energy; carbon emission; financial development; Pooled Mean Group
Hrčak ID:
306618
URI
Datum izdavanja:
30.4.2023.
Posjeta: 167 *