Foreign Investment, International Trade and Environmental Sustainability: Exploring Ecological Footprints in 37 African Countries

Chimere Iheonu (), Ekene Emeka (), Simplice Asongu and Princewill Okwoche
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Chimere Iheonu: University of Nigeria, Nsukka, Nigeria
Ekene Emeka: University of Nigeria, Nsukka, Nigeria

No 23/053, Working Papers from European Xtramile Centre of African Studies (EXCAS)

Abstract: This study complements existing literature by examining the short-run heterogeneous and long-run homogeneous impacts of foreign direct investment (FDI) and international trade on ecological footprints in 37 African countries for the period 1990 to 2019. Utilizing the pooled mean group estimator, our findings show considerable heterogeneity in the impact of FDI and international trade on ecological footprints in the short run. In particular, the findings revealed that while FDI increases ecological footprints in Botswana, Egypt, and Mauritania, it reduces ecological footprints in Algeria, Comoros, Gambia, and Togo. Furthermore, the findings revealed that international trade increases ecological footprints in Cameroon, Cote d'Ivoire, and Eswatini but reduces ecological footprints in Algeria, Mauritania, and Morocco. Nonetheless, the study finds that in the long run, FDI significantly reduces ecological footprints while international trade has no significant influence on the environment. The study further finds economic growth and population to be significant in propping up ecological footprints in the long run. Policy recommendations based on these findings are discussed.

Keywords: Foreign Direct Investment, International Trade; Environmental Sustainability; Ecological Footprints; Pooled Mean Group (search for similar items in EconPapers)
JEL-codes: C33 F18 F21 (search for similar items in EconPapers)
Pages: 31
Date: 2023-01
New Economics Papers: this item is included in nep-afr, nep-env and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Forthcoming: Environmental Processes

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http://publications.excas.org/RePEc/exs/exs-wpaper ... frican-Countries.pdf Revised version, 2023 (application/pdf)

Related works:
Working Paper: Foreign Investment, International Trade and Environmental Sustainability: Exploring Ecological Footprints in 37 African Countries (2023)
Working Paper: Foreign Investment, International Trade and Environmental Sustainability: Exploring Ecological Footprints in 37 African Countries (2022)
Working Paper: Foreign Investment, International Trade and Environmental Sustainability: Exploring Ecological Footprints in 37 African Countries (2022)
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