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Economic growth, international trade, and environmental degradation in Sub-Saharan Africa

Economic growth, international trade, and environmental degradation in Sub-Saharan Africa This study investigates the relationship between economic growth, international trade, and environmental degradation in Sub-Saharan Africa (SSA), focusing on the validity of the environmental Kuznets hypothesis (EKC), the pollution havens hypothesis (PHH), and the factor endowment hypothesis (FEH).Design/methodology/approachThe study uses annual data for 41 SSA countries between 1990 and 2017 and employs the bias-corrected least square dummy variable (LSDVC) estimation techniques. Environmental degradation is indicated by carbon dioxide (CO2), delicate particulate matter (PM2.5) emissions, and deforestation.FindingsThe results confirm the validity of the EKC hypothesis for PM2.5 emissions and deforestation but not for CO2 emissions. The results also indicate that international trade reduces deforestation and that both the PHH and FEH are valid for CO2 emission but not for PM2.5 emissions and deforestation.Practical implicationsIn this paper, the authors are able to illustrate that both economic growth and international trade can harm the environment if unchecked. Therefore, the conclusion of this study offers policy options through which SSA countries can achieve desired economic growth goals without affecting environmental quality. The study can be a benchmark for environmental policy in the region.Originality/valueThe authors provide an in-depth discussion of the growth-trade-environmental degradation nexus in SSA. The EKC, PHH, and FEH’s validity confirm that economic growth remains a threat to the local natural environment in SSA. Hence, the need for a trade-off between economic growth needs and environmental degradation and understanding where to compromise to achieve SSA's economic development priorities. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Economics and Development Emerald Publishing

Economic growth, international trade, and environmental degradation in Sub-Saharan Africa

Economic growth, international trade, and environmental degradation in Sub-Saharan Africa

Journal of Economics and Development , Volume 24 (4): 16 – Nov 24, 2022

Abstract

This study investigates the relationship between economic growth, international trade, and environmental degradation in Sub-Saharan Africa (SSA), focusing on the validity of the environmental Kuznets hypothesis (EKC), the pollution havens hypothesis (PHH), and the factor endowment hypothesis (FEH).Design/methodology/approachThe study uses annual data for 41 SSA countries between 1990 and 2017 and employs the bias-corrected least square dummy variable (LSDVC) estimation techniques. Environmental degradation is indicated by carbon dioxide (CO2), delicate particulate matter (PM2.5) emissions, and deforestation.FindingsThe results confirm the validity of the EKC hypothesis for PM2.5 emissions and deforestation but not for CO2 emissions. The results also indicate that international trade reduces deforestation and that both the PHH and FEH are valid for CO2 emission but not for PM2.5 emissions and deforestation.Practical implicationsIn this paper, the authors are able to illustrate that both economic growth and international trade can harm the environment if unchecked. Therefore, the conclusion of this study offers policy options through which SSA countries can achieve desired economic growth goals without affecting environmental quality. The study can be a benchmark for environmental policy in the region.Originality/valueThe authors provide an in-depth discussion of the growth-trade-environmental degradation nexus in SSA. The EKC, PHH, and FEH’s validity confirm that economic growth remains a threat to the local natural environment in SSA. Hence, the need for a trade-off between economic growth needs and environmental degradation and understanding where to compromise to achieve SSA's economic development priorities.

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References (79)

Publisher
Emerald Publishing
Copyright
© Daaki Sadat Ssekibaala, Muhammad Irwan Ariffin and Jarita Duasa
ISSN
1859-0020
eISSN
2632-5330
DOI
10.1108/jed-05-2021-0072
Publisher site
See Article on Publisher Site

Abstract

This study investigates the relationship between economic growth, international trade, and environmental degradation in Sub-Saharan Africa (SSA), focusing on the validity of the environmental Kuznets hypothesis (EKC), the pollution havens hypothesis (PHH), and the factor endowment hypothesis (FEH).Design/methodology/approachThe study uses annual data for 41 SSA countries between 1990 and 2017 and employs the bias-corrected least square dummy variable (LSDVC) estimation techniques. Environmental degradation is indicated by carbon dioxide (CO2), delicate particulate matter (PM2.5) emissions, and deforestation.FindingsThe results confirm the validity of the EKC hypothesis for PM2.5 emissions and deforestation but not for CO2 emissions. The results also indicate that international trade reduces deforestation and that both the PHH and FEH are valid for CO2 emission but not for PM2.5 emissions and deforestation.Practical implicationsIn this paper, the authors are able to illustrate that both economic growth and international trade can harm the environment if unchecked. Therefore, the conclusion of this study offers policy options through which SSA countries can achieve desired economic growth goals without affecting environmental quality. The study can be a benchmark for environmental policy in the region.Originality/valueThe authors provide an in-depth discussion of the growth-trade-environmental degradation nexus in SSA. The EKC, PHH, and FEH’s validity confirm that economic growth remains a threat to the local natural environment in SSA. Hence, the need for a trade-off between economic growth needs and environmental degradation and understanding where to compromise to achieve SSA's economic development priorities.

Journal

Journal of Economics and DevelopmentEmerald Publishing

Published: Nov 24, 2022

Keywords: Environmental degradation; Economic growth; Sub-Saharan Africa; Environmental Kuznets curve

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