Foreign Direct Investments and environment in Sub-Saharan Africa
an empirical examination of the pollution haven hypothesis
DOI:
https://doi.org/10.59051/joaf.v10i2.331Keywords:
Pollution haven; Foreign Direct Investments; environment; panel; Sub-Saharan Africa.Abstract
The objective of this paper is to verify the pollution haven hypothesis in the Sub-Saharan Africa. The data come from the World Bank (Africa Development Indicators, 2017). The study period goes from 1980 to 2016 (37 years) and the sample contains 25 Sub-Saharan Africa countries. The generalized least squares method is used to value the parameters of a multiple regression model developed by York and al. (2003). The results show that the Sub-Saharan Africa is a pollution haven because their Foreign Direct Investments induce the deterioration of the environmental quality in this subregion.
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References
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Cole, M. A. and Elliot, R. J. R., 2003, “Determining the trade-environment composition effect: the role of capital, labor and environmental regulations”, Journal of environmental economics and management, 46, 3, pp. 363-383.
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Kaufmann, R. K., Davidsdottir, B., Garnham, S. and Pauly, P., 1998, “The determinants of atmospheric SO2 concentrations: reconsidering the Environmental Kuznets Curve”, Ecological Economics, 25, 2, pp. 209-220.
Koop, G. and Tole, L., 1999, “Is there an Environmental Kuznets Curve for deforestation?”, Journal of development economics, 58, pp. 231-244.
Kuznets, S., 1955, “Economic growth and income equality”, American economic review, 45, 1, pp. 1-28.
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Managi, S., Hibiki, A. and Tsurumi, T., 2008, “Does trade liberalization reduce pollution emissions?”, Research institute of economy, Trade and industry, Discussion Paper, Series 08-E-013.
McCarney, G. and Adamowicz, V., 2005, “The effects of trade liberalization on the environment: an empirical study”, selected paper prepared for presentation at the Canadian agricultural economics society, annual meeting 6-8 July, San Francisco, California.
Nkwenka, N. P. G., 2018, « Investissements Directs Etrangers, croissance économique et environnement en Afrique Subsaharienne », Thèse de Doctorat en Sciences Economiques soutenue en 2018, Université de Dschang au Cameroun.
OCDE, 2002, “Foreign Direct Investment for development: maximizing benefits, minimizing costs”, OECD publishing, Paris.
Odhiambo, N. M., 2011, “Economic growth and carbone emissions in South Africa: an empirical investigation”, International Business and Economic Research Journal, 10, 7.
Roberts, J. and Grimes, P., 1997, “Carbon intensity and economic development 1962-1991: a brief exploration of the EKC”, World Development, 25, 2, pp. 191-198.
Romer, P., 1993, “Ideas gaps and object gaps in economic development”, Journal of monetary economics, 32, 3, pp. 543-573.
Sevestre, P., 2002, Econométrie des données de panel, Dunod, Paris, France.
Sharma, S. S., 2010, “Determinants of carbon dioxide emissions: empirical evidence from 69 countries”, Applied Energy, pp. 376-382.
Wheeler, D., 2001, “Racing to the Bottom? Foreign Investment and Air Pollution in Developing Countries”, World Bank Development Research Group, working paper n° 2524.
York, R., Rosa, E. and Dietz, T., 2004, “STIRPAT, IPAT and impact: analytic tools for unpacking the driving forces of environmental impact”, Ecological economics, 46, pp. 351-365.
Agrawal, G. and Khan, M. A., 2011, “Impact of FDI on GDP Growth: A panel data study”, European Journal of Research, 57, 2, pp. 257-264.
Antweiler, W., Copeland, B. R. and Taylor, M. S., 2001, “Is free trade good for the environment?” American economic review, 91, 4, pp. 877-908.
BAD, OCDE, PNUD et CEA, 2012, Perspectives économiques en Afrique 2012, Paris et Tunis, BAD et OCDE.
Borensztein, E., De Gregorio, J. and Lee, J. W., 1998, “How does foreign direct investment affect economic growth?”, Journal of international economics, 45, 1, pp. 115-135.
CNUCED, 2013, World Investment Report, CNUCED, New York et Genève.
Cole, M. A. and Elliot, R. J. R., 2003, “Determining the trade-environment composition effect: the role of capital, labor and environmental regulations”, Journal of environmental economics and management, 46, 3, pp. 363-383.
Cropper, M. and Griffiths, C., 1994, “The Interaction of population growth and environmental quality”, American economic review, 82, pp. 250-254.
Ernst et Young, 2012, « Attractivité de l’Afrique 2012 : un pont entre les deux rives », 2 ed.
Frankel J. A. and Rose A. K., 2005, “Is Trade good or bad for the environment? Sorting out the causality”, Review of economics and statistics, 87, 1, pp. 85-91.
Grossman, G. M. and Krueger, A. B., 1991, “Environmental impacts of the North American Free Trade Agreement”, NBER Working Paper 3914.
Halicioglu, F., 2008, “An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey”, Yedipete University, MPRA.
Kaffo, H., 2013, Effets de la croissance économique sur la qualité de l’environnement : cas des émissions de CO2 au Cameroun, Mémoire pour le Master en Sciences Economiques présenté et soutenu en 2013, Université de Dschang au Cameroun.
Kaufmann, R. K., Davidsdottir, B., Garnham, S. and Pauly, P., 1998, “The determinants of atmospheric SO2 concentrations: reconsidering the Environmental Kuznets Curve”, Ecological Economics, 25, 2, pp. 209-220.
Koop, G. and Tole, L., 1999, “Is there an Environmental Kuznets Curve for deforestation?”, Journal of development economics, 58, pp. 231-244.
Kuznets, S., 1955, “Economic growth and income equality”, American economic review, 45, 1, pp. 1-28.
Malthus, R., 1798, An essay on the principle of population, Cambridge Press.
Managi, S., 2005, “Trade liberalization and the environment: carbon dioxide for 1960-1999”, Economics Bulletin, 17, 1, pp. 1-5.
Managi, S., Hibiki, A. and Tsurumi, T., 2008, “Does trade liberalization reduce pollution emissions?”, Research institute of economy, Trade and industry, Discussion Paper, Series 08-E-013.
McCarney, G. and Adamowicz, V., 2005, “The effects of trade liberalization on the environment: an empirical study”, selected paper prepared for presentation at the Canadian agricultural economics society, annual meeting 6-8 July, San Francisco, California.
Nkwenka, N. P. G., 2018, « Investissements Directs Etrangers, croissance économique et environnement en Afrique Subsaharienne », Thèse de Doctorat en Sciences Economiques soutenue en 2018, Université de Dschang au Cameroun.
OCDE, 2002, “Foreign Direct Investment for development: maximizing benefits, minimizing costs”, OECD publishing, Paris.
Odhiambo, N. M., 2011, “Economic growth and carbone emissions in South Africa: an empirical investigation”, International Business and Economic Research Journal, 10, 7.
Roberts, J. and Grimes, P., 1997, “Carbon intensity and economic development 1962-1991: a brief exploration of the EKC”, World Development, 25, 2, pp. 191-198.
Romer, P., 1993, “Ideas gaps and object gaps in economic development”, Journal of monetary economics, 32, 3, pp. 543-573.
Sevestre, P., 2002, Econométrie des données de panel, Dunod, Paris, France.
Sharma, S. S., 2010, “Determinants of carbon dioxide emissions: empirical evidence from 69 countries”, Applied Energy, pp. 376-382.
Wheeler, D., 2001, “Racing to the Bottom? Foreign Investment and Air Pollution in Developing Countries”, World Bank Development Research Group, working paper n° 2524.
York, R., Rosa, E. and Dietz, T., 2004, “STIRPAT, IPAT and impact: analytic tools for unpacking the driving forces of environmental impact”, Ecological economics, 46, pp. 351-365.
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Published
2019-12-30
How to Cite
NKWENKA NYANDA, patrick geoffroy. (2019). Foreign Direct Investments and environment in Sub-Saharan Africa: an empirical examination of the pollution haven hypothesis. Journal of Academic Finance, 10(2), 69–83. https://doi.org/10.59051/joaf.v10i2.331
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