scholarly journals Examining the Impact of Foreign Direct Investment (FDI) on Offshore CO2 in the Sub-Sahara

Author(s):  
Josiah Chukwuma Ngonadi ◽  
Sun Huaping ◽  
Joy Okere ◽  
Chuks Oguegbu

This study examined the relationship between Foreign Direct Investment (FDI) and the emission of CO2 in the Sub Saharan Africa. The literature focuses on foreign direct investments and C02 emission studies in various countries. Data was obtained for the World Bank database from 2004 to 2015, the general method of moment (GMM) model was used for estimating parameters with endogenous regressions in the panel data model to analyze our data. We found out that FDI has significantly influenced the emission of CO2 in the Sub Saharan Africa. The results demonstrated the heterogeneity of the effects of foreign direct investment on CO2 emissions, the impact of foreign direct investment on CO2 emissions is negative and significant. However, the general environmental impact of foreign direct investment is determined by indirect effects and appears to be positive. Moreover, natural resources endowment seemed not to play a key role in this relationship. Recommendations were given to ensure the usage of renewable energy by ensuring a sustainable economic growth.

Author(s):  
Rhys Jenkins

The chapter documents the growth of economic relations between China and Sub-Saharan Africa (SSA), focussing on trade, foreign direct investment, Chinese construction and engineering projects, loans, and aid. The chapter highlights the way in which these are sometimes combined in resources-for-infrastructure deals. It shows the variety of different actors involved in these relationships, including state and non-state actors, on both the Chinese and African sides. It then discusses the role of strategic diplomatic, strategic economic, and commercial objectives in the growing Chinese involvement in SSA. It also addresses questions of African agency and the interests of African actors in economic relations with China. The impact of political, strategic economic and commercial factors on different types of economic relations is then analyzed econometrically.


Author(s):  
Yao HongXing ◽  
Winfred Okoe Addy ◽  
Samuel Kofi Otchere ◽  
Robert Yao Aaronson ◽  
Jean-Jacques Dominique Beraud

The study aims to assess the impact of terrorism activities on foreign direct investment in a panel study of 33 Sub-Saharan African countries. In order to achieve the objective of the study, it employed panel data methodologies such as GLS random-effect, ML random-effect, fixed effect regression, generalized linear model and multivariate regression methods to enable it make statistically and robust inference or conclusion. However, the study found that there is an inverse linear relationship or impact on foreign direct investment in Sub-Saharan Africa. Also, the study found out that economic growth and foreign direct investment are inversely related and corruption control has positive and direct linear relationship with foreign direct investment. As the study focused on the linear relationship of terrorism activities and foreign direct investments, it recommends further studies into the subject-matter by employing the non-linear approaches to ascertain the non-linear relationship between the two.


2016 ◽  
Vol 38 (2) ◽  
pp. 193-217
Author(s):  
Nurudeen Abu ◽  
Mohd Zaini Abd Karim

Despite the large body of research on foreign direct investment, domestic savings, domestic investment and economic growth, little has been done to investigate the relationships among them. This paper examines the relationships among foreign direct investment, domestic savings, domestic investment, and economic growth in 16 Sub-Saharan African (SSA) countries from 1981 to 2011, using various techniques. The results of VAR estimation and Granger causality tests demonstrate that there is a unidirectional causality from foreign investment to growth and domestic investment, savings to growth, and a bidirectional causality between growth and domestic investment as well as savings and domestic investment. The results of the variance decomposition analysis reveal that foreign investment exerts more influence on growth. Savings are more important in explaining domestic investment, growth is more important in explaining foreign investment, and domestic investment is more important in explaining savings. Based on the results of the impulse response analysis, there is a positive unidirectional causality from foreign investment to growth and domestic investment, savings to growth, and a positive bidirectional causality between savings and domestic investment, both in the short and long-run. Although there is feedback causality between domestic investment and growth, the impact from investment is negative in the short-run and positive in the long-run. Thus, policies that encourage foreign investment and savings are required to boost domestic investment and promote growth, and policies that raise domestic investment will lead to higher savings and growth in SSA.


2021 ◽  
Vol 12 (2) ◽  
pp. 389
Author(s):  
Folasade Bosede Adegboye ◽  
Olumide Sunday Adesina ◽  
Felicia Omowunmi Olokoyo ◽  
Stephen Aanu Ojeka ◽  
Victoria Abosede Akinjare

The sub-Saharan African region is characterized by a high relative degree of openness to trade. The region is also identified with increased inflows of foreign investments with no significant welfare improvement. Economic development emphasizes that the lack of domestic investment in the developing economies could be boosted by trade openness and inflow of Foreign Direct Investment (FDI) for impactful enhancement of capital formation. In this article, the impact of trade openness and foreign capital inflow on economic welfare was examined on a sub-regional analysis for sub-Saharan Africa. The study also appraised the effect of openness to trade and FDI inflow on the region's economic welfare. The data for 30 countries from 2000 to 2018 were collected and analyzed, with the Generalized Least Square (GLS) technique to fit the model developed. The study showed that openness to trade has a significant impact on economic welfare for all sub-Saharan Africa regions, while FDI is only significant for the Western sub-region. Hence, the study recommends that the government of the countries in the sub-Saharan Africa region should boost trade openness to enhance efficiency in productivity, and improve industrial development.


Author(s):  
Daniel Kwabena Twerefou ◽  
Emmanuel Abbey ◽  
Emmanuel A. Codjoe ◽  
Peter Saitoti Ngotho

This paper examines the impact of stock market development on economic growth in Sub‑Saharan Africa using a balanced panel data of five selected countries over the period 1993 – 2013 and the system generalised method of moments dynamic panel estimation framework. The paper finds a positive impact of stock market development proxied by the turnover ratio of domestic shares and market capitalization on economic growth though minimal. Furthermore, investment, lagged gross domestic product and human capital were found to have a significantly positive impact on growth while trade and foreign direct investment negatively impacted on growth, even though the results for foreign direct investment is not significant in all the models and consequently, not very robust. There should be policy measures aimed at enhancing economic growth using the development of the stocks market as a channel. Such policies should focus on developing the appropriate mix of taxation of investors as well as the development of requisite technology, institutional and regulatory framework that will facilitate an increase in the size and liquidity of the market in the sub‑region.


2016 ◽  
Vol 21 (1) ◽  
pp. 9-20
Author(s):  
Ersalina Tang

The purpose of this study is to analyze the impact of Foreign Direct Investment, Gross Domestic Product, Energy Consumption, Electric Consumption, and Meat Consumption on CO2 emissions of 41 countries in the world using panel data from 1999 to 2013. After analyzing 41 countries in the world data, furthermore 17 countries in Asia was analyzed with the same period. This study utilized quantitative approach with Ordinary Least Square (OLS) regression method. The results of 41 countries in the world data indicates that Foreign Direct Investment, Gross Domestic Product, Energy Consumption, and Meat Consumption significantlyaffect Environmental Qualities which measured by CO2 emissions. Whilst the results of 17 countries in Asia data implies that Foreign Direct Investment, Energy Consumption, and Electric Consumption significantlyaffect Environmental Qualities. However, Gross Domestic Product and Meat Consumption does not affect Environmental Qualities.


2021 ◽  
Vol 13 (4) ◽  
pp. 1780
Author(s):  
Chima M. Menyelim ◽  
Abiola A. Babajide ◽  
Alexander E. Omankhanlen ◽  
Benjamin I. Ehikioya

This study evaluates the relevance of inclusive financial access in moderating the effect of income inequality on economic growth in 48 countries in Sub-Saharan Africa (SSA) for the period 1995 to 2017. The findings using the Generalised Method of Moments (sys-GMM) technique show that inclusive financial access contributes to reducing inequality in the short run, contrary to the Kuznets curve. The result reveals a negative effect of financial access on the relationship between income inequality and economic growth. There is a positive net effect of inclusive financial access in moderating the impact of income inequality on economic growth. Given the need to achieve the Sustainable Development Targets in the sub-region, policymakers and other stakeholders of the economy must design policies and programmes that would enhance access to financial services as an essential mechanism to reduce income disparity and enhance sustainable economic growth.


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