Economics at your fingertips  

Foreign direct investment and poverty reduction in sub-Saharan Africa: does environmental degradation matter?

James Dada () and Taiwo Akinlo ()
Additional contact information
Taiwo Akinlo: Adeyemi College of Education

Future Business Journal, 2021, vol. 7, issue 1, 1-10

Abstract: Abstract This paper investigates the threshold effect of environmental degradation on the FDI-poverty nexus in sub-Saharan Africa for the period 1986–2018. The study used panel threshold regression for the empirical analysis. The evidence from threshold regression using different measures of poverty and environmental degradation shows that the poverty reduction effect of FDI is not eroded by environmental degradation. The study found overwhelming evidence that at the higher level of environmental degradation, FDI contributes significantly to poverty reduction except when Household final consumption is used to proxy poverty and FDI produces an insignificant effect on poverty reduction at the higher level of methane emissions and nitrous oxide emission. Based on this finding, any attempts to reduce environmental degradation by reducing the inflow of FDI will worsen poverty rates in the region.

Keywords: FDI; Poverty; Threshold regression; Environmental degradation; Sub-Saharan Africa (search for similar items in EconPapers)
JEL-codes: F21 F23 O55 Q53 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

DOI: 10.1186/s43093-021-00068-7

Access Statistics for this article

Future Business Journal is currently edited by Soad Kamel Rizk and Hayam Wahba

More articles in Future Business Journal from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2022-09-14
Handle: RePEc:spr:futbus:v:7:y:2021:i:1:d:10.1186_s43093-021-00068-7