FDI inflows, energy consumption and sustainable economic growth for ECOWAS countries: the pollution haven hypothesis approach

Halliru, Ahmed Malumfashi; Loganathan, Nanthakumar; Sethi, Narayan; Hassan, Asan Ali Golam

doi:10.1504/ijge.2020.112577

Cited by 10 publications

(4 citation statements)

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“…There are no doubt most developing countries need the revenue and the jobs that FDI creates, but in the quest to ensure their citizens have their "daily bread", keen interest should also be paid to processes that harm the environment. To this end, the findings of this study are in line with (Rafindadi et al 2018;Halliru et al 2020;Muhammad & Khan 2019;and Amoako & Insaidoo 2021). Similarly, economic growth affects the energy consumption of the region.…”

Section: The Effects Of Co 2 Emissions Fdi and Economic Growth On Ene...supporting

confidence: 79%

The Interconnection of Economic Growth, Carbon Dioxide Emission, Foreign Direct Investment and Energy Consumption: Evidence from Sub-Saharan Africa

Boohene

Darkwah

2023

Aswan University Journal of Environmental Studies

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This study examines how economic growth, carbon dioxide (CO 2 ) emissions, foreign direct investment (FDI), and energy consumption relate to each other in Sub-Saharan African (SSA) region by employing the quantile regression model to guesstimate the point coefficients of the explanatory variables on the response variables for a range of quantiles from 0.01 to 0.99. The researchers make use of data from 17 SSA countries, with the years ranging from 1975 to 2018. The study reveals a dynamic result for the estimated regression parameters of the quantile regression models for all the respective explanatory variables at varied quantiles. The effect of FDI inflow on economic growth is statistically significant at quantiles 0.1, 0.4 to 0.8 but not statistically significant at quantiles 0.2, 0.3, and 0.9 at 1% and 5% significance levels. Also, the effects of energy consumption on economic growth and the effect of CO 2 emissions on economic growth are statistically significant at quantiles of 0.1, 0.2, and 0.7 at 1% and 5% significance levels. Furthermore, the result established that the coefficients for FDI inflow, energy consumption, and CO 2 emissions are positive across all the specified quantiles except for quantile 0.1 for FDI inflow, which is negative. Evidently, there exists an asymmetric relationship between economic growth and its explanatory variables (FDI inflow, energy consumption, and CO 2 emissions) at diverse quantile levels in its restrictive distribution. The study recommends that governments in the various regions should authorize the environmental agencies to act within the power given to them by the constitution. Also, less polluting foreign production techniques such as greener energy should also be sought after.

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Section: The Effects Of Co 2 Emissions Fdi and Economic Growth On Ene...supporting

confidence: 79%

The Interconnection of Economic Growth, Carbon Dioxide Emission, Foreign Direct Investment and Energy Consumption: Evidence from Sub-Saharan Africa

Boohene

Darkwah

2023

Aswan University Journal of Environmental Studies

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“…Other empirical works (for example Huynh & Hoang, 2019;Halliru et al, 2020;Yilanci et al, 2020;Kisswani & Zaitouni, 2021) revealed contradictory results. In other words, given the varying effects of FDI on environmental pollution, they either accept or reject the PHH.…”

Section: Literature Reviewmentioning

confidence: 92%

FDI and Environmental Sustainability Nexus: Testing the Pollution Haven Hypothesis in the Presence of Regulatory Quality

2022

IJAREF

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In this study, we examine the relationship between foreign direct investment (FDI) and environmental pollution within the context of the pollution haven hypothesis (PHH) in Ghana. We also investigate the role of regulatory quality in the FDI-pollution linkage. The study employs quarterly data spanning the period 2000Q1-2017Q4 and applies the fully modified least squares (FMOLS) technique. The empirical results show that FDI inflows significantly and positively drive environmental pollution. This result holds in the presence of regulatory quality. Accordingly, we confirm the validity of the pollution haven hypothesis in Ghana. The study also finds that industrialization increases pollution given its significant positive relationship with ecological footprint. We discuss relevant policy implications.

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“…These results can be stemmed from the fact that FDIs that are directed toward research and development, promote modern technological methods that achieve sustainable development of CE. Technological innovation promotes an increase in energy supply through innovation of new sources of renewable energy and improvement of the efficiency of converting raw energy to required forms of end-use, so it reduces economic costs and negative environmental impacts (Samsul et al, 2020;Halliru et al, 2020;Ibrahiem and Hanafy, 2021). Sohag et al (2015) affirm the ability of technological innovation to transform countries that rely heavily on non-renewable energy sources to depend on renewable energy sources.…”

Section: Foreign Direct Investmentmentioning

confidence: 99%

“…Some researchers argue that the presence of plentiful natural endowments was not limited to promoting economic development, but rather considered the abundance of natural resources as the fifth factor of production after land, labor, capital and technology (Cavalcanti et al , 2011; Erdoğan et al , 2020; Redmond and Nasir, 2020). Other scholars have indicated that natural resource abundance is not necessarily an advantage, but can hinder development and economic growth (Behbudi et al , 2010; Ahmed et al , 2016; Gerelmaa and Kotani, 2016; Henri, 2019).…”

Section: Introductionmentioning

confidence: 99%

Financial development and natural resources nexus in Egypt: the role of clean energy sources and foreign direct investment

Ibrahiem

Sameh

2021

IJESM

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Purpose Achieving the goals of the sustainable development strategy and Egypt’s vision 2030 depends mainly on the existence of sources of funds. And since Egypt faces a great challenge in obtaining finance, then analyzing the drivers of financial development is a vital issue and there is a persistent need to shed light on the key obstacles for it. Thus, this paper aims to empirically assess the impact of natural resources, foreign direct investment (FDI) net inflows, education and clean energy sources on financial development in Egypt using the data of the 1971–2014 period. Design/methodology/approach The paper uses auto-regressive distributed lag and Toda-Yamomoto approaches to fulfill the purpose. Findings Empirical results signify that all variables except natural endowments stimulate financial development which can suggest the presence of the natural resources curse in Egypt. Moreover, the feedback effect between financial development and FDI is recognized. Clean energy sources cause financial development and natural endowments. Financial development causes natural endowments and FDI leads to the deployment of more clean energy resources. Practical implications Several crucial policy implications are suggested based upon these results as improving the quality and quantity of education and encouraging both domestic and foreign investors by providing several incentives. Moreover, the government has to enhance green finance through financing solar energy projects and other environmentally friendly projects. Originality/value It is the first research for Egypt that explores natural resource-financial development nexus using time series analysis according to our information, and two important variables are included in the model which is clean energy sources and FDI. Then, although several studies examined the impact of financial development on clean energy no empirical study before assessed the impact of clean energy on financial development.

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FDI inflows, energy consumption and sustainable economic growth for ECOWAS countries: the pollution haven hypothesis approach

Cited by 10 publications

References 0 publications

The Interconnection of Economic Growth, Carbon Dioxide Emission, Foreign Direct Investment and Energy Consumption: Evidence from Sub-Saharan Africa

The Interconnection of Economic Growth, Carbon Dioxide Emission, Foreign Direct Investment and Energy Consumption: Evidence from Sub-Saharan Africa

FDI and Environmental Sustainability Nexus: Testing the Pollution Haven Hypothesis in the Presence of Regulatory Quality

Financial development and natural resources nexus in Egypt: the role of clean energy sources and foreign direct investment

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