IDEAS home Printed from https://ideas.repec.org/a/wsi/cjuesx/v12y2024i01ns2345748124500039.html
   My bibliography  Save this article

Industrialization, FDI Inflow and Climate Change in Africa: A Scenario Analysis

Author

Listed:
  • Muhammad ALI

    (Department of Economics, Prince Abubakar Audu University (PAAU), P.M.B 1008, Ayingba, Kogi State, Nigeria)

  • Emmanuel O. AWE

    (Department of Economics, Faculty of Art and Social Sciences, Nile University, Plot 681, Research and Institutions Area, Airport Road, Jabi 900108, Abuja, Nigeria)

  • Salam S. MOHAMMED

    (Department of Economics, Prince Abubakar Audu University (PAAU), P.M.B 1008, Ayingba, Kogi State, Nigeria)

  • Kazeem O. ISAH

    (Department of Economics, University of KwaZulu-Natal, University Road, Westville, Private Bag X 54001, Durban, South Africa)

Abstract

Despite their promises of wealth creation, productivity increase, and improved living circumstances in Africa, industrialization, and foreign direct investment (FDI) inflows have the potential to endanger the continent’s climate, particularly given the nature of energy intensity and associated emissions connected with their expansion. Thus, this study empirically examined the extent to which industrialization and FDI inflows contribute to the predictability of climate change in Africa, focusing on the top 10 greenhouse gas (GHG) emitting countries on the continent with data spanning from 1990 to 2023. Employing a bias-adjusted ordinary least square estimation technique, we considered both in-sample and out-of-sample forecasts that include several scenario analyses. We reveal both industrialization and FDI inflows as significant predictors of climate change in Africa but with varying degrees of environmental threats. This provides the foundation for, among other things, the suggestion that African continental and sub-regional bodies consider the need for differences in climate commitment strategies across the region based on the varying nature and magnitude of manufacturing intensity and FDI inflows, as well as associated GHG emissions and the nature of climate change vulnerability.

Suggested Citation

  • Muhammad ALI & Emmanuel O. AWE & Salam S. MOHAMMED & Kazeem O. ISAH, 2024. "Industrialization, FDI Inflow and Climate Change in Africa: A Scenario Analysis," Chinese Journal of Urban and Environmental Studies (CJUES), World Scientific Publishing Co. Pte. Ltd., vol. 12(01), pages 1-20, March.
  • Handle: RePEc:wsi:cjuesx:v:12:y:2024:i:01:n:s2345748124500039
    DOI: 10.1142/S2345748124500039
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S2345748124500039
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1142/S2345748124500039?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:cjuesx:v:12:y:2024:i:01:n:s2345748124500039. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/cjues/cjues.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.