Foreign investment, international trade and environmental sustainability: Exploring ecological footprints in 37 African countries

Arbeitspapier

This study complements existing literature by examining the short-run heterogeneous and longrun 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: AGDI Working Paper ; No. WP/22/068

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models ; Trade and Environment ; International Investment; Long-term Capital Movements
• Subject: Foreign Direct Investment, International Trade ; Environmental Sustainability ; Ecological Footprints ; Pooled Mean Group

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Iheonu, Chimere Okechukwu ; Emeka, Ekene ; Asongu, Simplice ; Okwoche, Princewill U.
• Event: Veröffentlichung
• (who): African Governance and Development Institute (AGDI)
• (where): Yaoundé
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/269085
• Last update: 10.03.2025, 11:44 AM CET