article · Journal of Open Innovation Technology Market and Complexity
This empirical investigation examines how foreign direct investment interacts with democracy, corruption, economic growth, and information and communication technology to influence carbon emissions across 37 sub-Saharan African countries from 1970 to 2019. Using Method of Moments Quantile Regression, the analysis reveals that democracy and corruption independently show a negative relationship with emissions across most quantiles. Meanwhile, economic growth, ICT, and foreign direct investment demonstrate a positive relationship with environmental quality, confirming the Pollution Haven Hypothesis for the region. Furthermore, interactions between foreign direct investment and corruption, democracy, and economic development show positive associations with carbon emissions, while the interaction between ICT and foreign direct investment produces an insignificantly negative link. These insights highlight the need for tailored foreign direct investment strategies to advance green development.
Balancing economic development with climate action is a critical regional challenge. By clarifying how foreign direct investment, governance, technology, and economic growth jointly influence carbon emissions, this work helps policymakers design targeted investment frameworks that curb pollution and support sustainable development across sub-Saharan Africa.
The abstract does not indicate an application pathway, as it focuses on macroeconomic and policy analysis rather than a product, service, or commercial technology.
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The study analyses empirically the role of FDI as an interactive factor in the democracy, corruption, economic growth, ICT and carbon emissions nexus in sub-Saharan Africa (SSA). We use the Method of Moments Quantile Regression (MMQR) technique with data from 37 SSA countries covering the period 1970–2019. We find evidence that corruption and democracy create a significantly negative association with carbon emissions across most quantiles for the SSA countries. Conversely, economic growth, ICT and FDI develops a significantly positive relationship with environmental quality. Thus, the paper confirms validity of the Pollution Haven Hypothesis in SSA countries. More results demonstrate that the interaction variables, corruption × FDI, democracy × FDI, economic development × FDI also produces positive and significant links with carbon emissions, but the link between ICT × FDI and emissions is insignificantly negative. In conclusion, our findings indicate the need for a targeted approach towards improving FDI to fight corruption, enhance democracy, ICT and economic growth in pursuit of green economy and sustainable development in SSA.
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DOI: 10.1016/j.joitmc.2024.100324
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