Informal economy and ecological footprint: the case of Africa

Dada, James Temitope; Olaniyi, Clement Olalekan; Ajide, Folorunsho M.; Adeiza, Adams; Arnaut, Marina

doi:10.1007/s11356-022-20919-2

Cited by 38 publications

(20 citation statements)

References 88 publications

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“…Financial resources have not been allocated to the agricultural sector, which has the potential to reduce environmental degradation. Despite association with earlier studies (Dada et al , 2022b; Khalid et al , 2021; Baloch et al , 2019), this empirical result differs from that of Dada et al (2022b).…”

Section: Resultscontrasting

confidence: 98%

“…However, the nascent empirical research on the joint impact of the shadow economy and income inequality on environmental sustainability allows us to extend the frontier of empirical knowledge. Prior studies have examined the nexus between income inequality and environment (Chen et al, 2020b;Langnel et al, 2021) or the link between the shadow economy and environmental quality (Biswas et al, 2012;Dada et al, 2022aDada et al, , 2022b) without looking at the interactions among the three variables. Also, majority of these studies used carbon dioxide emissions as a proxy for environmental degradation which measures only air pollution.…”

Section: Introductionmentioning

confidence: 99%

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Income inequality, shadow economy and environmental degradation in Africa: quantile regression via moment’s approach

Dada

Ajide

Arnaut

2023

IJDI

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Purpose The purpose of this examine the impact of income inequality and shadow economy on environmental degradation given the growing income inequality, shadow economy and ecological degradation in developing countries. Thus, this study is motivated to offer empirical insight into how income inequality and shadow economy influence the environment in African countries. Design/methodology/approach Data from 29 countries in Africa between 2000 and 2017 were used, while the novel method of moments quantile regression of Machado and Silva (2019) and Dumitrescu and Hurlin (D-H) (2012) granger causality is used as the estimation techniques. Findings The results established the presence of cross-sectional dependence and slope heterogeneity in the panel, while Westerlund panel cointegration confirmed the long-run cointegration among the variables. The results from the quantile regression suggest that income inequality increases environmental degradation from the 5th to the 30th quantiles, while from the 70th quantiles, income inequality reduces ecological degradation. The shadow economy negatively influences environmental degradation across the quantiles, strengthening environmental quality. Per capita income (economic growth) and financial development positively impact environmental degradation throughout the quantiles. However, urbanization reduces environmental degradation from 60th to 95th quantiles. The D-H causality established a two-way relationship between income inequality and environmental degradation, while one-way from shadow economy, per capita income and urbanization to environmental degradation were established. Originality/value This study provides fresh insights into the nexus between shadow economy and environmental quality in the presence of higher levels of income inequality for the case of African region. The study applies quantile analysis via moment proposed by Machado and Silva (2019). This technique shows that the impact of income inequality and shadow economy on environmental degradation is heterogeneous across the quantiles of ecological footprints in Africa.

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Section: Resultscontrasting

confidence: 98%

Section: Introductionmentioning

confidence: 99%

Income inequality, shadow economy and environmental degradation in Africa: quantile regression via moment’s approach

Dada

Ajide

Arnaut

2023

IJDI

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“…(2022c) for Pakistan, Usman et al . (2020) for Africa and America, Gozgor (2017) for five Organizations for Economic Cooperation and Development (OECD) countries and Dada et al . (2022b) for Africa.…”

Section: Literature Reviewmentioning

confidence: 99%

“…(2017) for ten newly industrialized countries,Usman et al (2022c) for Pakistan,Usman et al (2020) for Africa and America,Gozgor (2017) for five Organizations for Economic Cooperation and Development (OECD) countries andDada et al (2022b) for Africa. In contrast, the adverse effect of trade on CO 2 emissions was disentangled by EddineChebbi et al (2011).…”

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confidence: 99%

The dynamic link between eco-innovation and ecological footprint in India: does the environmental Kuznets curve (EKC) hold?

Wang¹,

Villanthenkodath

Haseeb³

2023

MEQ

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PurposeThe eco-innovation is considered one of the possible ways to tackle climate change. However, the conflicting empirical evidence related to the role of eco-innovation on environmental quality becomes a motivation to explore the effect of eco-innovation on environmental degradation proxied by ecological footprint. Besides, it controls economic growth, remittance inflows, trade openness and total energy consumption in the environmental degradation function.Design/methodology/approachUses the Augmented Auto Regressive Distributed Lag (AARDL) approach to examine the cointegration relation among the series during the period ranging from 1975 to 2017 for India within the environmental Kuznets curve (EKC) framework.FindingsThe result suggests that eco-innovation can mitigate climate change by reducing the ecological footprint. Similarly, economic growth reduces the ecological footprint in the short- and long-run. However, the square of economic growth is positive and significant. Thus, it shows evidence against the conventional EKC hypothesis. The results also reveal that remittance inflows have an insignificant negative role on the ecological footprint, while total energy consumption and trade openness harm the environment by enhancing the ecological footprint.Practical implicationsThis study provides important implications for climate change mitigation. Thus, the government should promote eco-innovation to mitigate climate change by offering a favorable legal environment to the firms to adopt the same in their production and consumption activities. It also suggests that initiatives like green strategies should give serious attention while incurring research expenditure.Originality/valueNo prior studies assess the impact of eco-innovation on the ecological footprint for the period of 1975–2017 in India.

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“…Interdependence and interconnectivity of listed firms are rules rather than exceptions. Accounting for cross‐sectional dependence in panel data analysis is gradually becoming a norm in recent studies (Dada et al , 2022; Olaniyi, 2022).…”

Section: Introductionmentioning

confidence: 99%

Do business strategies vary across firms in the banking industry? New perspectives from the bank size–profitability nexus

Olaniyi

Al‐Faryan

2022

Manage Decis Econ

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This study examines the roles of interdependence and policy variations across firms in the causality between bank size and profitability in Nigeria, using secondgeneration estimators and the Dumitrescu-Hurlin panel Granger non-causality test.The findings support different business strategies and policy variances across banks.Causality is found non-existent in the cases of 11 banks. A unidirectional causality from size to profitability is established in two banks while evidence of a unidirectional causality is established from profitability to bank size in the other two banks. This study concludes that cross-sectional dependence and policy variations across firms matter in the bank size-profitability nexus.

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Informal economy and ecological footprint: the case of Africa

Cited by 38 publications

References 88 publications

Income inequality, shadow economy and environmental degradation in Africa: quantile regression via moment’s approach

Income inequality, shadow economy and environmental degradation in Africa: quantile regression via moment’s approach

The dynamic link between eco-innovation and ecological footprint in India: does the environmental Kuznets curve (EKC) hold?

Do business strategies vary across firms in the banking industry? New perspectives from the bank size–profitability nexus

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