Foreign Direct Investment and Carbon Dioxide Emissions in Sub-Saharan Africa: Evidence across Oil-Producing and Income Groups

Le résumé fourni par la source

FDI has become an important key development instrument specifically for Sub-Saharan African (SSA) countries, and the African region as a whole. This study intends to examine the long-run relationship between FDI inflows and CO2 emissions in SSA countries. The study employed Generalized Method of Moments (GMM) and covered the period from 2010 to 2024 for the 41 SSA sample countries. The findings reveal that FDI inflows are significantly associated with an increase in CO2 emissions. Specifically, a percentage point rise in FDI is related to a rise in CO2 emissions by 1.692 percentage points when everything else is kept constant. Further, the findings show that when the SSA region is disaggregated based on income level (lower income group, lower middle income group, and upper middle income group) and suggest that FDI inflows are positive for all income groups. For the above findings, the study proposes that the flowing of FDI inflows should be channeled directly toward the advancement of technological innovation to increase energy efficiency and improve environmental quality.

Ce résumé expose les affirmations des auteurs. BNTIC ne l’interprète pas comme une validation indépendante des résultats.