scholarly journals Foreign direct investment and poverty reduction in sub-Saharan Africa: does environmental degradation matter?

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
James Temitope Dada ◽  
Taiwo Akinlo
Keyword(s):  
Environmental Degradation ◽  
Poverty Reduction ◽  
Threshold Effect ◽  
Sub Saharan Africa ◽  
Threshold Regression ◽  
Overwhelming Evidence ◽  
Sub Saharan ◽  
Reduction Effect ◽  
The Empirical Analysis ◽  
Panel Threshold Regression

AbstractThis paper investigates the threshold effect of environmental degradation on the FDI-poverty nexus in sub-Saharan Africa for the period 1986–2018. The study used panel threshold regression for the empirical analysis. The evidence from threshold regression using different measures of poverty and environmental degradation shows that the poverty reduction effect of FDI is not eroded by environmental degradation. The study found overwhelming evidence that at the higher level of environmental degradation, FDI contributes significantly to poverty reduction except when Household final consumption is used to proxy poverty and FDI produces an insignificant effect on poverty reduction at the higher level of methane emissions and nitrous oxide emission. Based on this finding, any attempts to reduce environmental degradation by reducing the inflow of FDI will worsen poverty rates in the region.

Growth threshold-effect on renewable energy consumption in major oil-producing countries in sub-Saharan Africa: a dynamic panel threshold regression estimation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Idris Abdullahi Abdulqadir
Keyword(s):  
Energy Consumption ◽  
Threshold Effect ◽  
Sub Saharan Africa ◽  
Threshold Regression ◽  
Renewable Energy Consumption ◽  
Dynamic Panel ◽  
Content Type ◽  
Sub Saharan ◽  
Panel Threshold Regression ◽  
Growth Threshold

Purpose This study aims to explore the relationship between the growth threshold effect on renewable energy consumption (REC) in the major oil-producing countries in sub-Saharan Africa (SSA) over the period 1990–2018. Design/methodology/approach This article used a dynamic panel threshold regression model introduced by Hansen (1996, 1999 and 2000) threshold (TR) models. The procedure is achieved using 5,000 bootstrapping replications and the grid search to obtain the asymptotic distribution and p-values. For the long-run relationship among our variables, the author followed the process in Pesaran et al. (1999) pooled mean group (PMG) for heterogeneous panels. Furthermore, for the robustness of our empirical results due to the sensitivity of the results to outliers, the author used the approach by Cook (1979) distance measure. The author applied quantile (QR) regression to explore the distribution of dependent variables following Bassett and Koenker (1982) and Koenker and Bassett (1978) approaches. Findings The results from the threshold effect test and threshold regression revealed a significant single threshold effect of growth level on REC. Furthermore, the result from the PMG estimation showed the growth of the variable, energy intensity, consumer prices and CO2 emissions play a significant role in REC in major oil-producing countries in SSA. The growth threshold estimation results indicated one significant threshold value of 1.013% at one period lagged of real growth. The outlier’s sensitivity detention greatly influenced our empirical results. Originality/value The article filled the literature gap by applying a combined measure that is robustness to detect outliers in the data, which none of the studies in the literature addresses hitherto. Further, the article extends the quantile regression to growth – REC literature.

scholarly journals Can Health Human Capital Help the Sub-Saharan Africa Out of the Poverty Trap? An ARDL Model Approach

2021 ◽  
Vol 9 ◽  
Author(s):  
Qiu-Su Wang ◽  
Yu-Fei Hua ◽  
Ran Tao ◽  
Nicoleta-Claudia Moldovan
Keyword(s):  
Human Capital ◽  
Economic Development ◽  
Poverty Reduction ◽  
Health Care Expenditure ◽  
Threshold Effect ◽  
Sub Saharan Africa ◽  
Poverty Trap ◽  
Healthy Human ◽  
Sub Saharan ◽  
The Impact

This article explores the impact of health human capital on the poverty trap in Sub-Saharan Africa by autoregressive distribution lag model. In the long run, there is no evidence that health human capital can help the Sahara out of the poverty trap. While health human capital has a significant effect on poverty reduction in the short term. There is a threshold effect in the poverty reduction model of healthy human capital. When the economic development level reaches the threshold, the effect of poverty reduction is more obvious and deeper. The extended Solow economic growth model also proved that if the external human capital breaks through the threshold, it can make developing countries get rid of the poverty trap. Therefore, the economic development brought about by health care expenditure must benefit the poor in Sub-Saharan Africa and allow them to enjoy the welfare of social security.

The Urban Transition in Sub-Saharan Africa: Challenges and Opportunities

10.1068/c3p ◽  
2007 ◽  
Vol 25 (4) ◽  
pp. 466-485 ◽  
Author(s):  
Christine Kessides
Keyword(s):  
Urban Areas ◽  
Local Governments ◽  
Poverty Reduction ◽  
National Development ◽  
Favourable Outcome ◽  
Sub Saharan Africa ◽  
Urban Transition ◽  
Energy Needs ◽  
Challenges And Opportunities ◽  
Sub Saharan

In this paper I ask how the ongoing processes of urban and local government development in Sub-Saharan Africa can and should benefit the countries, and what conditions must be met to achieve this favourable outcome. The region faces close to a doubling of the urban population in fifteen years. This urban transition poses an opportunity as well as a management challenge. Urban areas represent underutilised resources that concentrate much of the countries' physical, financial, and intellectual capital. Therefore it is critical to understand how they can better serve the national growth and poverty reduction agendas. The paper challenges several common ‘myths’ that cloud discourse about urban development in Africa. I also take a hard look at what the urban transition can offer national development, and what support cities and local governments require to achieve these results. I argue that, rather than devoting more attention to debating the urban contribution to development in Africa, real energy needs to be spent unblocking it.

scholarly journals Towards the attainment of sustainable development goal 7: what determines clean energy accessibility in sub-Saharan Africa?

Green Finance ◽  
2021 ◽  
Vol 3 (3) ◽  
pp. 268-286
Author(s):  
Paul Adjei Kwakwa ◽  
◽  
Frank Adusah-Poku ◽  
Kwame Adjei-Mantey ◽  
◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Poverty Reduction ◽  
Random Effect ◽  
Clean Energy ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Sub Saharan Africa ◽  
Political Regime ◽  
Sub Saharan

<abstract> <p>Access to clean energy is necessary for environmental cleanliness and poverty reduction. That notwithstanding, many in developing countries especially those in sub-Saharan Africa region lack clean energy for their routine domestic activities. This study sought to unravel the factors that influence clean energy accessibility in sub-Saharan Africa region. Clean energy accessibility, specifically access to electricity, and access to clean cooking fuels and technologies, were modeled as a function of income, foreign direct investment, inflation, employment and political regime for a panel of 31 sub-Saharan countries for the period 2000–2015. Regression analysis from fixed effect, random effect and Fully Modified Ordinary Least Squares show that access to clean energy is influenced positively by income, foreign direct investment, political regime and employment while inflation has some negative effect on its accessibility. The policy implications from the findings among other things include that expansion in GDP per capita in the sub-region shall be helpful in increasing accessibility to clean energy. Moreover, strengthening the democratic institutions of countries in the region shall enhance the citizens' accessibility to clean energy. Ensuring sustainable jobs for the citizens is necessary for access clean energy.</p> </abstract>

scholarly journals Higher Education and Economic Growth in Africa

2014 ◽  
Vol 1 (1) ◽  
Author(s):  
David E. Bloom ◽  
David Canning ◽  
Kevin Chan ◽  
Dara Lee Luca
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
International Development ◽  
Poverty Reduction ◽  
Tertiary Education ◽  
Sub Saharan Africa ◽  
Public And Private ◽  
Sub Saharan ◽  
Développement Économique ◽  
Education And Economic Growth

Enrollment rates for higher education in Sub-Saharan Africa are by far the lowest in the world at 6%. Yet because of conventional beliefs that tertiary education is less important for poverty reduction, the international development community has encouraged African governments’ relative neglect of higher education. This article challenges beliefs that tertiary education has little role in promoting economic growth and alleviating poverty. First, we review recent evidence that higher education can produce significant public and private benefits. Next, we analyze the relationship between tertiary education and economic growth. We find evidence that tertiary education improves technological catch-up and, in doing so, may help to maximize Africa’s potential to achieve more rapid economic growth given current constraints. Investing in tertiary education in Africa may accelerate technological diffusion, which would in turn decrease knowledge gaps and help reduce poverty in the region. We also review new developments and trends in the higher education scene in Africa. Le taux d’inscription dans l’enseignement supérieur en Afrique sub-saharienne est de loin le plus faible du monde, atteignant seulement 6%. Pourtant, parce que l’enseignement supérieur est perçu comme moins important que les enseignements primaire et secondaire pour lutter contre la pauvreté, la communauté internationale a encouragé les gouvernements africains à moins y prêter attention. Cet article conteste l’idée que l’enseignement supérieur joue un rôle peu important dans le développement économique et la lutte contre la pauvreté. Tout d’abord, nous nous intéressons à de récents résultats qui montrent que l’enseignement supérieur crée des bénéfices publics et privés. Ensuite, nous analysons la relation entre l’enseignement supérieur et la croissance économique. Nous montrons que l’enseignement supérieur permet de rattraper le retard technologique et, ce faisant, pourrait aider l’Afrique à maximiser sa capacité à accélérer sa croissance économique dans les conditions actuelles. Investir dans l’enseignement supérieur en Afrique pourrait permettre une diffusion plus rapide des avancées technologiques, qui pourrait à son tour réduire la disparité de savoir et participer à la réduction de la pauvreté dans la région. Nous passons aussi en revue les nouveautés et tendances dans l’enseignement supérieur africain.

Stigma and Misconceptions of Poverty Reduction

2022 ◽  
pp. 57-78
Keyword(s):  
Poverty Reduction ◽  
Sub Saharan Africa ◽  
Rural Poor ◽  
Historical Discourse ◽  
Daunting Task ◽  
Negative Perceptions ◽  
Sub Saharan

This chapter examines the notions of stigma, bias, and myth of poverty reduction and focuses specifically on rural poor populations in nations that fell behind in implementing the global targets of poverty reduction, the majority of them in Sub-Saharan Africa. The task is to examine various characterizations of myth and stigma in historical discourse and explain the processes and mechanisms by which myth and stigma function as a mediator of various tensions within historical discourse. First, this chapter describes the characterizations of stigma and the misconceptions of poverty; second, it explains the barriers and the daunting task of poverty reduction; and third, it shows how negative perceptions of poverty ultimately complicate the implementation of the poverty reduction agenda.

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