Globalization, Governance and the Green Economy in Sub-Saharan Africa: Policy Thresholds

Simplice Asongu and Joseph Nnanna ()
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Joseph Nnanna: The Development Bank of Nigeria, Abuja, Nigeria

No 21/015, Working Papers from European Xtramile Centre of African Studies (EXCAS)

Abstract: This study assesses how globalization modulates the effect of governance on CO2 emissions in sub-Saharan African countries. The empirical evidence is based on Generalized Method of Moments. The minimum level (or negative threshold) of FDI required for it to interact with political stability and contribute towards the green economy is 45% of GDP, while 90% of GDP is the maximum level (or positive threshold) required for trade to complement “voice & accountability†in mitigating CO2 emissions. 76 % of GDP and 80 % of GDP are respectively negative trade thresholds for government effectiveness and economic governance. The corresponding negative trade thresholds for the rule of law, corruption-control and institutional governance are respectively, 230% of GDP, 63.5% of GDP and 106.5% of GDP. Actionable openness policy thresholds are provided to inform policy makers on how governance interacts with globalization to promote the green economy.

Keywords: CO2 emissions; Economic development; Africa (search for similar items in EconPapers)
JEL-codes: C52 O38 O40 O55 P37 (search for similar items in EconPapers)
Pages: 28
Date: 2021-01
New Economics Papers: this item is included in nep-ene, nep-env and nep-int
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Citations: View citations in EconPapers (5)

Forthcoming: World Affairs

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http://publications.excas.org/RePEc/exs/exs-wpaper ... olicy-Thresholds.pdf Revised version, 2021 (application/pdf)

Related works:
Journal Article: Globalization, Governance, and the Green Economy in Sub‐Saharan Africa: Policy Thresholds (2021)
Working Paper: Globalization, Governance and the Green Economy in Sub-Saharan Africa: Policy Thresholds (2021)
Working Paper: Globalization, Governance and the Green Economy in Sub-Saharan Africa: Policy Thresholds (2021)
Working Paper: Globalization, Governance and the Green Economy in Sub-Saharan Africa: Policy Thresholds (2021)
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