Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/298187 
Year of Publication: 
2022
Series/Report no.: 
AGDI Working Paper No. WP/22/089
Publisher: 
African Governance and Development Institute (AGDI), Yaoundé
Abstract: 
Despite the growing number of empirical studies on foreign direct investment (FDI) and energy efficiency (EE) as they relate to green growth, there remains an empirical research gap with respect to whether EE can engender positive synergy with FDI to foster inclusive green growth (IGG) in Africa. Also, little has been done to show the IGG gains from improving EE in both the short and long terms. Thus, this paper aims to investigate whether there exists a relevant synergy between EE and FDI in fostering IGG in Africa by using macrodata for 23 countries from 2000 to 2020. According to our findings, which are based on dynamic GMM estimator, FDI hampers IGG in Africa, while EE fosters IGG. Notably, in the presence of EE, the environmental-quality-deterioration effect of FDI is reduced. Additional evidence by way of threshold analysis indicates that improving EE in Africa generates positive sustainable development gains in both the short and long terms. This study suggests that a country's drive to attract FDI needs to be accompanied by appropriate policy options to promote energy efficiency.
Subjects: 
Africa
Energy efficiency
FDI
Inclusive Green Growth
Greenhouse Gases
Environmental Sustainability
JEL: 
F2
F21
O11
O44
O55
Q01
Q43
Q56
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.