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

Ssekibaala, Daaki Sadat and Ariffin, Muhammad Irwan and Duasa, Jarita (2022) Economic growth, international trade, and environmental degradation in Sub-Saharan Africa. Journal of Economics and Development, 24 (4). pp. 293-308. ISSN 1859-0020 E-ISSN 2632-5330

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Abstract

Purpose 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/approach The 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. Findings The 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 implications In 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/value The 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.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Environmental degradation, Economic growth, Sub-Saharan Africa, Environmental Kuznets curve
Subjects:	H Social Sciences > HC Economic History and Conditions > HC79.E5 Environmental policy and economic development. Sustainable development. Sustainability. H Social Sciences > HC Economic History and Conditions > HC94 By region or country H Social Sciences > HD Industries. Land use. Labor > HD75.6 Economic development. Environmental aspects
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User:	Muhammad Irwan Ariffin
Date Deposited:	13 Dec 2022 13:04
Last Modified:	13 Dec 2022 13:04
URI:	http://irep.iium.edu.my/id/eprint/100469

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