Economic globalisation and Africa's quest for greener and more inclusive growth: The missing link

International Economics Pub Date : 2024-05-15 DOI:10.1016/j.inteco.2024.100509

Isaac K. Ofori , Andreas Freytag , Simplice A. Asongu

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Abstract

This study examines the contingency and threshold effects of economic freedom in the economic globalisation (EG) and inclusive green growth (IGG) relationship. To this end, we apply the fixed-effects generalized method of moments with Driscoll-Kraay standard errors estimator to macro data for the period 2008–2020 for 22 selected African countries. The following findings are established. First, we find that economic freedom reduces the negative effect of EG on IGG. Second, when we disaggregate EG into financial and trade globalisation, we show that the moderating effect of economic freedom on the former is rather striking. Third, our threshold analysis suggests that by improving Africa's unfree economic architecture to 60% (moderately free), the IGG-deteriorating marginal effects of EG are significantly mitigated (but not nullified). We conclude that unless an effort is made to improve economic freedom in Africa, the envisaged IGG gains of economic globalisation might prove elusive.

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经济全球化与非洲对更绿色、更具包容性增长的追求：缺失的环节

本研究探讨了经济自由在经济全球化（EG）和包容性绿色增长（IGG）关系中的偶然效应和门槛效应。为此，我们对选定的 22 个非洲国家 2008-2020 年期间的宏观数据采用了固定效应广义矩方法和 Driscoll-Kraay 标准误差估计法。我们得出了以下结论。首先，我们发现经济自由降低了 EG 对 IGG 的负面影响。其次，当我们将 EG 分解为金融全球化和贸易全球化时，我们发现经济自由对前者的调节作用相当显著。第三，我们的阈值分析表明，通过将非洲不自由的经济结构提高到 60%（适度自由），EG 对 IGG 劣化的边际效应会得到显著缓解（但不会消失）。我们的结论是，除非努力提高非洲的经济自由度，否则经济全球化的 IGG 预期收益可能难以实现。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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