This paper contributes to the understanding of the other neglected effects of financial development by investigating the relationship between financial development and the size of the informal economy using an unbalanced panel data of 41 Sub Saharan African countries over the period 1991-2015. Empirical evidence is based on Ordinary Least Squared, Fixed effects and system Generalized Method of moment. The results show that financial development measured by broad money and domestic credit to private sector have a negative and statistically significant effect on the informal economy. This clearly suggests that financial development reduces the size of the informal economy.

The main objectives of this work are two‐fold: we seek first to specify the relationship between agricultural productivity and non‐agricultural employment and second to assess the effect of productivity growth on the employment of the off‐farm sector in the long run. The econometric results of our panel vector autoregressive depict a causal relationship with single direction from agricultural productivity to non‐agricultural employment. Between productivity and inequalities, causality seems to function only from productivity to inequalities. This explains the fact that productivity growth generates significant inequalities in the distribution of income, which is necessary to enhancing investments in the agricultural sector. © 2019 John Wiley & Sons, Ltd.

This study investigates the effect of energy consumption on greenhouse gas (GHG) emissions in 33 African countries from 1995–2017. It contributes to the literature by investigating the effect of disaggregated measures of energy consumption (coal, oil and other liquids, renewable energy, and electricity) on GHG emissions (CO2, N2O, CH4, and total GHG emissions) in Africa and identifies the transmission channels through which energy consumption affects GHG emissions. The system GMM is used in the study as it accounts for possible endogeneity and the potential correlation between the error term and the country fixed effects. The results show that coal consumption significantly increases CO2, CH4, and total GHG emissions and reduces N2O emissions. Oil consumption increases CO2 and total GHG emissions but reduces N2O and CH4 emissions. Renewable energy consumption reduces CO2 and CH4 emissions but increases N2O emissions. Finally, electricity consumption promotes CO2, N2O, CH4 and total GHG emissions in Africa. Further analyses show that foreign trade and economic growth are the channels through which oil consumption increases GHG emissions. The adverse effect of electricity is through urbanization. Renewable consumption could decrease GHG emissions through sustainable urbanization and trade policies. The findings suggest that countries should gradually reduce coal consumption and encourage renewable energy consumption, which has the lowest impact on the environment.

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