To what Extent Does Globalization Influence Climate Change Sensitivity in Sub-Saharan Africa Countries: Evidence from DCCE-MG Approach

Sahar Aghazadeh, Jamiu Adetola Odugbesan and Aliakbar Saei

Business and Economic Research, 2023, vol. 13, issue 2, 112-137

Abstract: Though, the issue of climate change is a global challenge that has attracted the attention of various stakeholders, but the understanding of various contributing factors to address the challenge still remains a moot topic. Thus, this study investigates the sensitivity of climate change in Sub-Saharan Africa (SSA) countries to overall globalization, dejure and defacto globalization, population, urbanization and economic growth using a panel data covering the period from 1990-2018. The estimations were performed using the novel Westerlund and Erdgerton panel cointegration approach to estimate the co-movement of the variables in the long run, while the long-run relationship was estimated using the "Dynamic Common Correlated Effect-Mean Group" (DCCE-MG) techniques and used the "Dynamic OLS" and "Fully Modified OLS" for robustness check. Empirical findings reveal the long-run relationship between the variables of interest. In addition, our study shows a significant and positive influence of overall globalization, dejure and defacto globalization, economic growth and urbanization on climate change in SSA countries in the long-run, while population was found to have a negative and significant long-run relationship with climate change. Finally, the findings implications and suggestions for policy makers in SSA countries were presented.

Date: 2023
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