Unravelling the Link Between Bilateral Investment Treaties and Environmental Sustainability in Sub-Saharan African Countries

IF 0.8 Q2 AREA STUDIES
Luqman Afolabi, Patrick Efe Ejumedia, Adebunmi Olusola Oduyoye-Ejumedia, Richard Kabanda, Nnamdi O Madichie
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引用次数: 0

Abstract

This study investigates the practical relationship between foreign direct investments (FDI), bilateral investment treaties (BITs), income, energy consumption and CO2 emissions in sub-Saharan African (SSA) countries between 2000 and 2020. To address the challenges of heterogeneity, non-stationarity and cross-sectional dependence, we employed the dynamic common-correlated effects estimation method introduced by Chudik and Pesaran. This methodology provides reliable results for panel datasets of significant to moderate size. The results indicate a direct connection between FDI and CO2 emissions, providing evidence for the pollution haven theory. Notably, BITs also have a favourable and substantial impact on environmental degradation in SSA countries. These findings emphasise the need for effective environmental regulatory frameworks and management techniques. Achieving sustainable growth and economic development in SSA countries requires prioritising the adoption and implementation of carbon reduction strategies. SSA countries can attain balanced growth between economic progress and environmental preservation by reducing the negative effects of FDI inflows and BITs on environmental sustainability. This study expands the current knowledge base by providing insights into the complex relationship between FDI inflows, BITs, income, energy consumption and CO2 emissions in SSA countries. The findings offer valuable guidance to policymakers and stakeholders in formulating and executing effective environmental policies and regulations to promote sustainable development in the area.
揭示双边投资条约与撒哈拉以南非洲国家环境可持续性之间的联系
本研究探讨了 2000 年至 2020 年撒哈拉以南非洲(SSA)国家的外国直接投资(FDI)、双边投资条约(BIT)、收入、能源消耗和二氧化碳排放之间的实际关系。为了解决异质性、非平稳性和横截面依赖性等难题,我们采用了 Chudik 和 Pesaran 提出的动态共同相关效应估计方法。该方法可为中等规模的面板数据集提供可靠的结果。结果表明,外国直接投资与二氧化碳排放之间存在直接联系,为污染天堂理论提供了证据。值得注意的是,双边投资条约也对撒哈拉以南非洲国家的环境退化产生了有利的实质性影响。这些发现强调了建立有效的环境监管框架和管理技术的必要性。要实现撒哈拉以南非洲国家的可持续增长和经济发展,就必须优先采用和实施碳减排战略。通过减少外国直接投资流入和双边投资条约对环境可持续性的负面影响,撒哈拉以南非洲国家可以在经济进步和环境保护之间实现平衡增长。本研究对撒哈拉以南非洲国家的外国直接投资流入、双边投资条约、收入、能源消耗和二氧化碳排放之间的复杂关系进行了深入分析,从而扩展了现有的知识库。研究结果为政策制定者和利益相关者提供了宝贵的指导,帮助他们制定和执行有效的环境政策和法规,促进该地区的可持续发展。
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来源期刊
Insight on Africa
Insight on Africa AREA STUDIES-
CiteScore
1.80
自引率
0.00%
发文量
9
期刊介绍: nsight on Africa is a biannual peer-reviewed academic journal covering contemporary African affairs and issues of policy relevance. It focuses on, though not confined to, foreign policies and developmental issues of African countries. The journal specially encourages article submission on issues related to emerging powers in Africa, BRICS in Africa and Afro-Asian relations. The journal is owned by African Studies Association of India (ASA India) located at Centre for African Studies, Jawaharlal Nehru University, New Delhi and its publication is managed by Policy Research Institute of African Studies Association (PRIASA) based in New Delhi.
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