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The quest for the attainment of economic development is sought after by all global economies, which by effect is expected to transcend to improving livelihoods and standard of living. However, several factors hinder the process of achieving sustained economic development, especially in developing countries. In this regard, assessing the extent of economic expansion orchestrated by foreign direct investment (FDI) inflows in vulnerable economies such as Sub-Saharan Africa (SSA), particularly in the face of the significant fall in global FDI inflow, is worthwhile. In essence, this study ascertains the impact of FDI inflows and external debt on economic growth amidst decline in FDI inflows and excessive foreign borrowings. The mixed order of integration from the stationarity test underpins the adoption of autoregressive distributed lag (ARDL) approach for data covering the period 1990 to 2018. The empirical results found FDI inflows play a crucial role in achieving economic expansion in the region. On average, FDI inflows, external debt, and foreign aids are more useful in expanding the economy compared to trade openness and exchange rate. Thus, this study recommends the need for SSA to open its economic borders for external capital, viz. FDI. A peaceful economic and political environment is a pre-condition to attract and maintain potential foreign investors. Stability in exchange rates is critical in achieving growth in FDI and other foreign resources. However, caution is required, especially in administration of external resources. Particularly, contracting external debt must strictly be driven by economic reasons rather than political motivation. Borrowed funds could be injected mainly into productive streams with the highest investment returns to boost economic development.
Udi Joshua; David Babatunde; Samuel Sarkodie. Sustaining Economic Growth in Sub-Saharan Africa: Do FDI Inflows and External Debt Count? Journal of Risk and Financial Management 2021, 14, 146 .
AMA StyleUdi Joshua, David Babatunde, Samuel Sarkodie. Sustaining Economic Growth in Sub-Saharan Africa: Do FDI Inflows and External Debt Count? Journal of Risk and Financial Management. 2021; 14 (4):146.
Chicago/Turabian StyleUdi Joshua; David Babatunde; Samuel Sarkodie. 2021. "Sustaining Economic Growth in Sub-Saharan Africa: Do FDI Inflows and External Debt Count?" Journal of Risk and Financial Management 14, no. 4: 146.
Foreign direct investment (FDI) as a driver of growth is important in today’s globalized economy. It is extremely difficult for economies to grow sustainably without economic interactions outside their borders. However, there has been a debate on the impact of FDI inflow on economic expansion. Hence, this study investigated the influence of FDI on economic growth for a selection of 200 economies around the world for the period 1990–2018. We subdivided the sample into World Bank income group clusters to aid comparison across income blocs. The study employed panel estimation techniques including pooled ordinary least squares (POLS), dynamic panel estimation with fixed-effects and random-effects and generalized method of moments (GMM). The study found that FDI, debt stock and official development assistance are promoters of growth in the selected countries—although debt stock weakly impacts economic growth. In contrast, trade openness and exchange rates had a mixed (negative and positive) influence on economic growth. The study suggests that the creation of a conducive business environment and economic policies will attract FDI inflows. Additionally, borrowing from external sources could be minimized despite its perceived positive influence on growth to achieve financial independence.
Udi Joshua; Mathew Ekundayo Rotimi; Samuel Asumadu Sarkodie. Global FDI Inflow and Its Implication across Economic Income Groups. Journal of Risk and Financial Management 2020, 13, 291 .
AMA StyleUdi Joshua, Mathew Ekundayo Rotimi, Samuel Asumadu Sarkodie. Global FDI Inflow and Its Implication across Economic Income Groups. Journal of Risk and Financial Management. 2020; 13 (11):291.
Chicago/Turabian StyleUdi Joshua; Mathew Ekundayo Rotimi; Samuel Asumadu Sarkodie. 2020. "Global FDI Inflow and Its Implication across Economic Income Groups." Journal of Risk and Financial Management 13, no. 11: 291.
The importance of income to environmental sustainability especially in the perspective of economic development has been rigorously examined in recent times. To further deepened the income-environmental sustainability narrative, the current study explore the cases of income-classified countries vis-à-vis the high-income, low-income, lower middle-income, and the upper middle-income countries and territories. As such, the current study examined the impact of renewable energy and fossil fuel energy consumption and globalization on CO2 emissions over the period of 1970 to 2014 for the case of (1) the panel of income-classified countries and territories and (2) the time series of each of the income-classification. By employing the Pooled Mean Group of the Autoregressive Distributed Lag (ARDL) approach, the study found that fossil fuel consumption in the panel of examined income classification aggravates environmental hazards in both the short–long run, while the share of renewable energy usage improves the environmental quality only in the short run. Like the renewable energy consumption, globalization exacts negative and positive impacts in the short run and long run, respectively. From the second (time series) approach, the study found that fossil fuel energy worsen the environment in each of the fours income-categorized economies. Similarly, renewable energy usage exerts a significant and desirable impact on the environment in all but one (lower middle income) of the four income-categorized economies. However, globalization observably plays a significant and desirable role only in the lower middle-income economies. Hence, the study posits policy guide in the context of increased diversification of energy portfolio for each of the four income-categorized countries and territories especially the lower middle-income economies.
Andrew Adewale Alola; Udi Joshua. Carbon emission effect of energy transition and globalization: inference from the low-, lower middle-, upper middle-, and high-income economies. Environmental Science and Pollution Research 2020, 27, 38276 -38286.
AMA StyleAndrew Adewale Alola, Udi Joshua. Carbon emission effect of energy transition and globalization: inference from the low-, lower middle-, upper middle-, and high-income economies. Environmental Science and Pollution Research. 2020; 27 (30):38276-38286.
Chicago/Turabian StyleAndrew Adewale Alola; Udi Joshua. 2020. "Carbon emission effect of energy transition and globalization: inference from the low-, lower middle-, upper middle-, and high-income economies." Environmental Science and Pollution Research 27, no. 30: 38276-38286.
There are debates regarding the effect of globalization on national economies, and whether or not trade openness has a significant positive or negative influence on economic expansion and development. Thus, this study is aimed at investigating the relationship between trade globalization and Nigeria's economic advancement. The autoregressive distributed lags (ARDL) model was employed for the time series data: real GDP, openness, foreign direct investment, and population growth over the period 1981–2017. The findings of this estimation revealed that population growth is significant but inhibitor of economic prosperity (real GDP) in the short term. However, the significant and long‐run determinants of the real GDP are population growth and trade openness but not foreign direct investment. Furthermore, the Granger Causality test revealed that real GDP granger causes population growth. The study therefore concluded that trade openness and globalization are necessary for Nigeria's economic expansion and development. Consequently, the study opined that the land border closure policy recently implemented by the Nigerian government might necessitate a significant reassessment so that the economic development projections of the country are not hindered.
Udi Joshua; Oladimeji M. Salami; Andrew A. Alola. Toward the path of economic expansion in Nigeria: The role of trade globalization. Journal of Labor and Society 2020, 23, 205 -220.
AMA StyleUdi Joshua, Oladimeji M. Salami, Andrew A. Alola. Toward the path of economic expansion in Nigeria: The role of trade globalization. Journal of Labor and Society. 2020; 23 (2):205-220.
Chicago/Turabian StyleUdi Joshua; Oladimeji M. Salami; Andrew A. Alola. 2020. "Toward the path of economic expansion in Nigeria: The role of trade globalization." Journal of Labor and Society 23, no. 2: 205-220.
Anthropogenic activities in search of livelihood come with its environmental implications. This is in line with the current crusade of the United Nations sustainable development goals (SDGs) target 7 and 13 for effective clean energy access and mitigating the adverse effect of climate change issues. Since the seminal study of Kraft and Kraft (1978) on the nexus between energy and gross national product, there has been no consensus in the extant literature in the last four decades. To this end, the current study applies recent data for the case of Nigeria from 1970 to 2017 on an annual frequency. Modified Wald causality test of Toda-Yamamoto is in conjunction with the recent gradual shift causality test with Fourier approximation for robustness and precision of analysis. Empirical results show the pollutant driven economy as one-way causality is seen running from pollutant emission to economic growth. This suggests that economic growth is driven by dirty energy sources that are from non-renewable energy sources. This is further validated in the pollution haven hypothesis (PHH) confirmed in the study by the causality seen running from foreign direct investment and carbon dioxide emissions. Additionally, the exploration of natural resources also engenders economic expansion in Nigeria. Based on the current study findings, a couple of submissions are made such as the need for a paradigm shift to cleaner energy sources. More so, the need for the adoption of cleaner, eco-system friendlier innovations, and technologies will aid in the attainment of the SDGs of mitigating climate and pollution issues.
Udi Joshua; Gizem Uzuner; Festus Victor Bekun. Revisiting the causal nexus between coal energy consumption, economic growth, and pollutant emission: sorting out the causality. Environmental Science and Pollution Research 2020, 27, 30265 -30274.
AMA StyleUdi Joshua, Gizem Uzuner, Festus Victor Bekun. Revisiting the causal nexus between coal energy consumption, economic growth, and pollutant emission: sorting out the causality. Environmental Science and Pollution Research. 2020; 27 (24):30265-30274.
Chicago/Turabian StyleUdi Joshua; Gizem Uzuner; Festus Victor Bekun. 2020. "Revisiting the causal nexus between coal energy consumption, economic growth, and pollutant emission: sorting out the causality." Environmental Science and Pollution Research 27, no. 24: 30265-30274.
Udi Joshua; Festus Fatai Adedoyin; Samuel Asumadu Sarkodie. Examining the external-factors-led growth hypothesis for the South African economy. Heliyon 2020, 6, 1 .
AMA StyleUdi Joshua, Festus Fatai Adedoyin, Samuel Asumadu Sarkodie. Examining the external-factors-led growth hypothesis for the South African economy. Heliyon. 2020; 6 (5):1.
Chicago/Turabian StyleUdi Joshua; Festus Fatai Adedoyin; Samuel Asumadu Sarkodie. 2020. "Examining the external-factors-led growth hypothesis for the South African economy." Heliyon 6, no. 5: 1.
This study examines the relationship between foreign direct investment inflows and economic growth in a carbon function, by incorporating the role of urbanization, and coal consumption as additional variables to avoid omitted variable bias. The different order of integration from the unit root test suggested the adoption of a dynamic autoregressive distributed lag bounds testing procedure. The results confirmed the existence of a long-run equilibrium relationship between the outlined series within the period under investigation, with a high speed of convergence. The ARDL equilibrium relationship shows that coal consumption is the largest emitter of carbon dioxide emissions in both short- (0.77%) and long-run (0.86%). Economic growth was found to escalate CO2 emission by approximately 0.27% (in the short-run) and 0.19% (in the long-run). The Granger causality test indicates a non-causal effect between FDI inflow and economic expansion in South Africa, which implies that FDI is not a driver of economic advancement. The empirical study shows a bidirectional causal effect between urbanization and foreign direct investment. This suggests that urban development stimulates foreign direct investment in South Africa. The findings reveal a one-way link from GDP to coal consumption, suggesting economic prosperity promotes coal consumption. The study underscores that economic development and the attraction of more economic investments is in part dependent on the conservative policy, development of urban centers through infrastructural improvement, and establishing industrial zones.
Udi Joshua; Festus Victor Bekun; Samuel Asumadu Sarkodie. New insight into the causal linkage between economic expansion, FDI, coal consumption, pollutant emissions and urbanization in South Africa. Environmental Science and Pollution Research 2020, 27, 18013 -18024.
AMA StyleUdi Joshua, Festus Victor Bekun, Samuel Asumadu Sarkodie. New insight into the causal linkage between economic expansion, FDI, coal consumption, pollutant emissions and urbanization in South Africa. Environmental Science and Pollution Research. 2020; 27 (15):18013-18024.
Chicago/Turabian StyleUdi Joshua; Festus Victor Bekun; Samuel Asumadu Sarkodie. 2020. "New insight into the causal linkage between economic expansion, FDI, coal consumption, pollutant emissions and urbanization in South Africa." Environmental Science and Pollution Research 27, no. 15: 18013-18024.
As much as energy supply remains a major challenge in most of the African countries, the compounding environmental effect of energy consumption has continued to be a serious concern to policymakers and environmental stakeholders. On this note, this study seeks to investigate the coal-led growth hypothesis for South Africa by incorporating employment as a control variable for the first time. The incorporation of the employment in investigating the coal-led growth hypothesis especially for the case of South Africa is novel given that the World Coal Association (2016) reported that the country is the sixth largest exporter and seventh largest producer of coal globally. The study implemented an Autoregressive Distributed Lag (ARDL) bound testing to cointegration for the data spanning from 1970 to 2017. As such, the empirical result revealed that coal usage is the highest emitter of carbon, suggesting that a 1% increase in coal consumption account for about 68% emission in the short run, and 56% in the long run, respectively. On the other hand, foreign direct investment (FDI) inflow discourages carbon emission in the short-run and long run so that a 1% increase in FDI inflow causes a reduction in CO2 by about 0.003% and 001%. The novelty of this study is proven in the estimation of the interaction between employment and coal consumption. However, employment induced by economic growth and coal consumption both have significant tendencies of inflicting adverse environmental impacts in the short-run and long run. Thus, this study put forward relevant policy and for onward recommendation for the government to woo new foreign investors and to switch to renewable energy as an alternative sources as a possible approach of energy efficiency and environmental sustainability with a view to achieving sustainable development goals.
Udi Joshua; Andrew Adewale Alola. Accounting for environmental sustainability from coal-led growth in South Africa: the role of employment and FDI. Environmental Science and Pollution Research 2020, 27, 17706 -17716.
AMA StyleUdi Joshua, Andrew Adewale Alola. Accounting for environmental sustainability from coal-led growth in South Africa: the role of employment and FDI. Environmental Science and Pollution Research. 2020; 27 (15):17706-17716.
Chicago/Turabian StyleUdi Joshua; Andrew Adewale Alola. 2020. "Accounting for environmental sustainability from coal-led growth in South Africa: the role of employment and FDI." Environmental Science and Pollution Research 27, no. 15: 17706-17716.
This study examines the role of industrialization in the energy-growth-FDI nexus for the case of South Africa using data over the period 1970 to 2018. The empirical exercise was conducted using Pesaran Autoregressive Distributed Lag (ARDL) bounds testing approach. To accomplish our study objective, we analyze stationarity properties of the series using the unit root test after which we applied Bayer-Hanck (B-H) combined technique to cointegration to assess whether a long-run relationship exists among the series. Empirical results show that a 1% change in FDI account for 0.002% and 0.013% increase in economic expansion in the short- and long- run respectively. Also, a 1% increase in coal consumption influence GDP negatively by 0.083% and 0.207% in the short and long run respectively. Furthermore, a 1% increase in total natural resource rent positively affects GDP by 0.02% and 0.05% respectively in the short and long run. Industrialization, on the other hand, demonstrates a positive and significant impact on the economic growth process both in the short and long run. Industrialization contributes 0.506% and 1.274% to economic expansion both in the short and long run respectively. The causality tests suggest that a one-way causal link running from FDI to industrialization and from industrialization to coal consumption exists. Finally, FDI inflow drives total natural resource rents in South Africa. This study also gives reliable growth and energy policy proposals to policymakers applicable to countries around the globe.
Joshua Udi; Festus Victor Bekun; Festus Fatai Adedoyin. Modeling the nexus between coal consumption, FDI inflow and economic expansion: does industrialization matter in South Africa? Environmental Science and Pollution Research 2020, 27, 10553 -10564.
AMA StyleJoshua Udi, Festus Victor Bekun, Festus Fatai Adedoyin. Modeling the nexus between coal consumption, FDI inflow and economic expansion: does industrialization matter in South Africa? Environmental Science and Pollution Research. 2020; 27 (10):10553-10564.
Chicago/Turabian StyleJoshua Udi; Festus Victor Bekun; Festus Fatai Adedoyin. 2020. "Modeling the nexus between coal consumption, FDI inflow and economic expansion: does industrialization matter in South Africa?" Environmental Science and Pollution Research 27, no. 10: 10553-10564.