The impact of innovation on every economy cannot be overemphasized. Hence, this study investigate... more The impact of innovation on every economy cannot be overemphasized. Hence, this study investigates empirically the impact of inward FDI on host firms' innovation in Nigeria and South Africa using the World Bank Enterprise Survey dataset (WBES). In examining this relationship between FDI and firm innovation, two robust instrumental variable estimation techniques (two-stage least squares and limited information maximum likelihood) were employed so as to account for any endogeneity problems. The study establishes that while FDI positively influences firm innovation in Nigeria, it does not have any impact on firm innovation in South Africa. This study thus presents evidence that context is very crucial in the investigation of the link between FDI and innovation in Sub-Saharan Africa. It is thus recommended that FDI attraction into Africa should be selectively done with more focus on inflows from more advanced and innovative economies.
Asian journal of economics, business and accounting, Mar 30, 2020
The global financial sector is undergoing structural reforms and system improvement in their inte... more The global financial sector is undergoing structural reforms and system improvement in their internal operations and activities. These global reforms in the financial sectors have been occasioned by globalization and technology revolution around the world. In view of the rapid changes, institutions both public and private institutions have experienced various limitations in their quest to reach their objectives. This study therefore formulates three objectives to investigate the effects of internal control systems on financial performance of listed banks in Ghana. In this quantitative study, 300 representatives from twelve listed banks were engaged. Descriptive and regression analysis was performed on the field Data. The study result shows that Information and communication have a weak significant effect on financial performance. There was no significant effect between Monitoring and financial performance. The study therefore recommends that managers of listed Banks must invest more on information and communication in order to improve performance.
Purpose The paper aims to investigate empirically the impact of corporate social responsibility (... more Purpose The paper aims to investigate empirically the impact of corporate social responsibility (CSR) on financial performance in South African listed firms. Design/methodology/approach The paper uses panel corrected standard errors to estimate the effect of CSR on firm financial performance and thus addresses contemporaneous cross-correlations across the panel cross sections. The study uses a broad base measure of CSR created by the Public Investment Corporation data set and the combination of accounting and economic means of measuring firm financial performance. Findings CSR is found to have a strong positive impact on firm financial performance in South Africa. When CSR is decomposed further into its major components, governance performance positively impacts a firm’s financial performance with no evidence of any relationship between social components and firm performance and between environmental components and firm performance. The positive impact of CSR on firm performance is greater in big firms. At the industry level, CSR is noticed to impact positively on financial performance in the extractive industry via good governance and responsible environmental behaviors. It however has no impact on firm performance in the financial sector. Research limitations/implications The results should be interpreted with caution and some limitations. Due to the limiting nature of the Public Investment Corporation data set (the survey was carried out on selected firms on the Johannesburg Stock Exchange for three years spanning from 2011 to 2013). This resulted in a sample of 56 firms. It is therefore very problematic to generalize the findings to a larger population over a long period of time. This is more limiting especially on individual sector studies where the sample has further shrunk to a smaller sample. As a result of the smaller sample size, the authors were unable to explore some other sectors which could have given more revealing findings. The authors recommend that future research should explore other data sets or use primary data approach that can allow for more sample size and elongated time period for a more holistic view and for easy generalization of the findings. The authors also identify an important lacuna necessitating further research effort. It would be interesting to empirically examine the threshold point of firms’ size beyond which CSR damages firms’ performance. Knowledge of this will guide managers of firms in their strategic CSR decision. Practical implications This study does not only serve as a reference work for subsequent investigations into the impact of CSR on firm performance in sub-Saharan Africa but also serves as a guide to policymakers on the financial impact of CSR adoption. Originality/value This study is one of the pioneering works that comprehensively examines the effect of CSR on financial performance amongst South African firms via size and sector and also controls for contemporaneous cross-correlation effects from the firms in the panel set.
Advances in finance, accounting, and economics book series, 2022
Being economic boosters, foreign direct investment (FDI) and financial sector development (FSD) a... more Being economic boosters, foreign direct investment (FDI) and financial sector development (FSD) are highly recommended for developing countries. It is therefore critical and important to examine the impact of both FDI and FSD on energy consumption. This chapter examines the link between FDI, FSD, and energy consumption in Africa and also the role of institutional quality in this context. The results establish that both FDI and FSD have a significant positive impact on energy consumption. It is also established that there is an inverse relationship between institutional quality and energy use. Finally, it is proved that quality institutions moderate the link between FDI, FSD, and energy use in Africa.
Abstract This study investigates empirically the impact of inward FDI on host firm Corporate Soci... more Abstract This study investigates empirically the impact of inward FDI on host firm Corporate Social Responsibility (CSR) performance in South Africa. The data used for the study was sourced from the Johannesburg Stock Exchange and the Public Investment Corporation Governance Survey index for a period of 3 years ranging from 2011 to 2013. The study employs Panel Corrected Standard Errors (PCSE) and Seemingly Unrelated Regression (SUR) to estimate the effect of FDI on CSR and thus addresses contemporaneous cross-correlations across the panel cross-sections as well as endogeneity between FDI and CSR. It is established from the study that FDI has a strong positive impact on firm CSR performance. When CSR is decomposed further into its major components, FDI positively impacts social and environmental components but has no impact on governance components.
In recent times, the attraction of foreign direct investment (FDI) into economies has been a majo... more In recent times, the attraction of foreign direct investment (FDI) into economies has been a major task embarked upon by many nations. Though much have been documented on the impact of foreign direct investment inflow to host nations at the macro level, less is known about the impact of foreign direct investment at the firm level, especially in Africa, despite the greater efforts put in place to woo in FDI. This study investigated the link between FDI and firm economic activities in Sub-Saharan Africa (SSA). The study specifically answered the following questions: (1) to what extent does FDI inflow to firms enhance the value of the host firms? (2) Do firms with FDI spend more on CSR than non-FDI owned firms? (3) What impact has FDI got on firm innovation? The outcome of the study has been organized into three empirical essays. The first empirical essay investigates the relationship between Foreign Direct Investment (FDI) and firm value (measured using Tobin's Q and ROA) for selected African firms from Ghana, Nigeria and South Africa for the period of 2008 to 2012. Using the System Generalized Method of Moments, we established that FDI has a positive significant impact on firm value in all the three countries (South Africa, Nigeria and Ghana). This positive relationship between FDI and firm value in the selected countries can be attributed to technological transfer, managerial transfer, innovation transfer and skills transfer in favour of the host firms through inflows of FDI. The second essay investigates empirically the impact of inward FDI on host firm Corporate Social Responsibility (CSR) performance in South Africa. The study employs Panel Corrected Standard Errors (PCSE) and Seemingly Unrelated Regression (SUR) to estimate the effect of FDI on CSR and thus addresses contemporaneous cross-correlations across the panel cross sections as well as endogeneity between FDI and CSR. It is established from the study that FDI has a strong positive impact on firm CSR performance. When CSR is decomposed further into its major components, FDI positively impacts on social and environmental components but has no impact on governance components. The third empirical essay investigates the impact of inward FDI on host firm innovation in Nigeria and South Africa. In examining the relationship between FDI and firm innovation, two robust Instrumental Variable estimation techniques (Two Stage Least Squares and Limited Information Maximum Likelihood) have been employed so as to account for endogeneity problems. While FDI positively influences firm innovation in Nigeria, we found no evidence of any impact of FDI on Stellenbosch University https://scholar.sun.ac.za vi firm innovation in South Africa. This study does not only serve as a reference work for subsequent investigations on the impact of FDI on innovation in Sub-Saharan Africa, but it also serves as a guide to policy makers on trade and investment policies. The contribution of this thesis is in a number of ways. One, it accounts for endogeneity between FDI and firm value and FDI and innovation, an issue often neglected by most studies. It is also the first study to empirically examine the relationship between FDI and CSR in a more encompassing manner by using a unique and comprehensive measure of CSR from the Public Investment Corporation (PIC) Governance Survey in South Africa. Again, unlike previous studies where CSR is measured by using only governance, or only legal or only environmental or only philanthropic issues or the combination of them in a limited manner. In this way new evidence is presented on the FDI effect on CSR. For instance, although the effect of FDI on one dimension of CSR e.g. governance may be insignificant, it does not tell us anything about the importance of social and environmental CSR effects of FDI unless these are equally investigated. The study again presents new evidence that shows that context matters in investigating the innovation impact of FDI. Furthermore, unlike most studies which use R&D and patents to measure innovation we create an innovation index using a multiple correspondent analysis (MCA) approach which captures innovation holistically. This approach captures the time lag problems associated with previous methods.
Migrant remittances to home countries have seen a significant increase over the years, especially... more Migrant remittances to home countries have seen a significant increase over the years, especially in developing countries where due to a lack of jobs or unfavourable working conditions, citizens move to advanced countries to better their economic conditions and their dependents in home countries. This has been facilitated by globalisation in modern times. Whereas most previous studies have delved more into remittances and their impact on economic growth, less studies have examined the link between remittances and domestic investment. This study examined the impact of remittances on domestic investment in Africa using a system GMM econometric estimator. Our study departs from the few studies that examined this link by further investigating the moderating role of banking sector development and quality governance on the link between remittances and domestic investment. Using data from 41 African countries from 2004 to 2018, the study discovered that migrant remittances have a direct ne...
Abstract This study investigates empirically the impact of inward FDI on host firm Corporate Soci... more Abstract This study investigates empirically the impact of inward FDI on host firm Corporate Social Responsibility (CSR) performance in South Africa. The data used for the study was sourced from the Johannesburg Stock Exchange and the Public Investment Corporation Governance Survey index for a period of 3 years ranging from 2011 to 2013. The study employs Panel Corrected Standard Errors (PCSE) and Seemingly Unrelated Regression (SUR) to estimate the effect of FDI on CSR and thus addresses contemporaneous cross-correlations across the panel cross-sections as well as endogeneity between FDI and CSR. It is established from the study that FDI has a strong positive impact on firm CSR performance. When CSR is decomposed further into its major components, FDI positively impacts social and environmental components but has no impact on governance components.
Purpose This study purposely re‐examine the mortgage–finance nexus in Africa. Design/methodology/a... more Purpose This study purposely re‐examine the mortgage–finance nexus in Africa. Design/methodology/approach This study adopted a panel data set spanning over the period 1995–2017 by using system generalized method of moments (GMM) dynamic pooled estimator developed by Arellano and Bond (1991) and Arellano and Bover (1995) involving 51 African countries. Findings The findings discovered that financial development (bank asset) affects mortgage development positively and this effect is highly significant while broad money supply as a measure of financial development impedes mortgage development in Africa. Furthermore, with the introduction of the quadratic term, broad money supply established a U-shaped relationship with mortgage financing indicating that more money in circulation facilitates mortgage development in Africa. However, the shape of the other variables depends largely on the nature of proxy used. Originality/value This study is unique in many aspects. First, examining the ext...
Remittances inflow is one of the major sources of capital flows in the world. Though developing c... more Remittances inflow is one of the major sources of capital flows in the world. Though developing countries and especially Sub-Saharan Africa does not have a bigger share of this capital flow, remittances is noted to be very useful in promoting household welfare and health in developing countries. What is not certain is whether or not remittances lead to economic growth. Set out to investigate the causal link between remittances and economic growth in three of the leading
This paper aims to investigate the impact of exchange rate movement on export growth in Ghana. Th... more This paper aims to investigate the impact of exchange rate movement on export growth in Ghana. The data, made up of secondary sources was extracted from International Monetary Fund (IMF), United Nations Conference of Trade and Development (UNCTAD) and Bank of Ghana websites spanning 22 years from 1990 to 2012. In addition to other controlled variables, exchange rate is used as an independent variable while export growth is the dependent variable. Using the OLS estimator, the study finds that exchange rate has no impact on the export of goods and services in Ghana. The study however finds that Gross Domestic Product, Gross National Saving, Import Growth and Total Investment have significant impact on export. Key words Export Growth, and Exchange Rate Movement
Environmental Science and Pollution Research, 2022
One of the most commonly debated concerns regarding foreign direct investment inflows is the asso... more One of the most commonly debated concerns regarding foreign direct investment inflows is the associated environmental adversities that accompany the influx of foreign funds. As a result, assessing the environmental impacts of foreign direct investment inflows is necessary for achieving environmentally friendly economic growth in the contemporary era. Accordingly, the global economies including the members of the Group of Twenty (G-20) should focus on attracting clean foreign direct investments. Against this backdrop, controlling for energy consumption and urbanization, this extant study scrutinizes the effects of foreign direct investment inflows on the carbon dioxide emission figures of selected G-20 countries between 1992 and 2018. The econometric analysis conducted in this paper involves recently developed methods that are efficient in handling cross-sectionally dependent heterogeneous panel data sets. Besides, the analysis is also conducted for sub-panels of high-, upper-middle-, and lower-middle-income G-20 countries to evaluate the possible heterogeneous environmental effects across the G-20 countries belonging to different income levels. Overall, the results highlight that higher foreign direct investment inflows surge carbon dioxide emissions whereby the pollution haven hypothesis is evidenced to hold for the G-20 nations of concern. Similarly, both at the aggregated and disaggregated levels, greater consumption of energy is witnessed to boost carbon dioxide emissions in the long run. Moreover, urbanization is found to trigger carbon dioxide emissions for the G-20 nations overall and the lower-middle-income G-20 nations. Further, the causality analysis reveals that carbon dioxide emissions have bidirectional causal relationships with foreign direct investment inflows, energy consumption, and urbanization. In line with these major findings, this study recommends that the governments of the G-20 countries inhibit inflows of dirty foreign direct investments, reduce fossil fuel dependency, and adopt green urbanization policies for achieving higher economic growth without marginalizing environmental well-being.
The impact of innovation on every economy cannot be overemphasized. Hence, this study investigate... more The impact of innovation on every economy cannot be overemphasized. Hence, this study investigates empirically the impact of inward FDI on host firms' innovation in Nigeria and South Africa using the World Bank Enterprise Survey dataset (WBES). In examining this relationship between FDI and firm innovation, two robust instrumental variable estimation techniques (two-stage least squares and limited information maximum likelihood) were employed so as to account for any endogeneity problems. The study establishes that while FDI positively influences firm innovation in Nigeria, it does not have any impact on firm innovation in South Africa. This study thus presents evidence that context is very crucial in the investigation of the link between FDI and innovation in Sub-Saharan Africa. It is thus recommended that FDI attraction into Africa should be selectively done with more focus on inflows from more advanced and innovative economies.
Asian journal of economics, business and accounting, Mar 30, 2020
The global financial sector is undergoing structural reforms and system improvement in their inte... more The global financial sector is undergoing structural reforms and system improvement in their internal operations and activities. These global reforms in the financial sectors have been occasioned by globalization and technology revolution around the world. In view of the rapid changes, institutions both public and private institutions have experienced various limitations in their quest to reach their objectives. This study therefore formulates three objectives to investigate the effects of internal control systems on financial performance of listed banks in Ghana. In this quantitative study, 300 representatives from twelve listed banks were engaged. Descriptive and regression analysis was performed on the field Data. The study result shows that Information and communication have a weak significant effect on financial performance. There was no significant effect between Monitoring and financial performance. The study therefore recommends that managers of listed Banks must invest more on information and communication in order to improve performance.
Purpose The paper aims to investigate empirically the impact of corporate social responsibility (... more Purpose The paper aims to investigate empirically the impact of corporate social responsibility (CSR) on financial performance in South African listed firms. Design/methodology/approach The paper uses panel corrected standard errors to estimate the effect of CSR on firm financial performance and thus addresses contemporaneous cross-correlations across the panel cross sections. The study uses a broad base measure of CSR created by the Public Investment Corporation data set and the combination of accounting and economic means of measuring firm financial performance. Findings CSR is found to have a strong positive impact on firm financial performance in South Africa. When CSR is decomposed further into its major components, governance performance positively impacts a firm’s financial performance with no evidence of any relationship between social components and firm performance and between environmental components and firm performance. The positive impact of CSR on firm performance is greater in big firms. At the industry level, CSR is noticed to impact positively on financial performance in the extractive industry via good governance and responsible environmental behaviors. It however has no impact on firm performance in the financial sector. Research limitations/implications The results should be interpreted with caution and some limitations. Due to the limiting nature of the Public Investment Corporation data set (the survey was carried out on selected firms on the Johannesburg Stock Exchange for three years spanning from 2011 to 2013). This resulted in a sample of 56 firms. It is therefore very problematic to generalize the findings to a larger population over a long period of time. This is more limiting especially on individual sector studies where the sample has further shrunk to a smaller sample. As a result of the smaller sample size, the authors were unable to explore some other sectors which could have given more revealing findings. The authors recommend that future research should explore other data sets or use primary data approach that can allow for more sample size and elongated time period for a more holistic view and for easy generalization of the findings. The authors also identify an important lacuna necessitating further research effort. It would be interesting to empirically examine the threshold point of firms’ size beyond which CSR damages firms’ performance. Knowledge of this will guide managers of firms in their strategic CSR decision. Practical implications This study does not only serve as a reference work for subsequent investigations into the impact of CSR on firm performance in sub-Saharan Africa but also serves as a guide to policymakers on the financial impact of CSR adoption. Originality/value This study is one of the pioneering works that comprehensively examines the effect of CSR on financial performance amongst South African firms via size and sector and also controls for contemporaneous cross-correlation effects from the firms in the panel set.
Advances in finance, accounting, and economics book series, 2022
Being economic boosters, foreign direct investment (FDI) and financial sector development (FSD) a... more Being economic boosters, foreign direct investment (FDI) and financial sector development (FSD) are highly recommended for developing countries. It is therefore critical and important to examine the impact of both FDI and FSD on energy consumption. This chapter examines the link between FDI, FSD, and energy consumption in Africa and also the role of institutional quality in this context. The results establish that both FDI and FSD have a significant positive impact on energy consumption. It is also established that there is an inverse relationship between institutional quality and energy use. Finally, it is proved that quality institutions moderate the link between FDI, FSD, and energy use in Africa.
Abstract This study investigates empirically the impact of inward FDI on host firm Corporate Soci... more Abstract This study investigates empirically the impact of inward FDI on host firm Corporate Social Responsibility (CSR) performance in South Africa. The data used for the study was sourced from the Johannesburg Stock Exchange and the Public Investment Corporation Governance Survey index for a period of 3 years ranging from 2011 to 2013. The study employs Panel Corrected Standard Errors (PCSE) and Seemingly Unrelated Regression (SUR) to estimate the effect of FDI on CSR and thus addresses contemporaneous cross-correlations across the panel cross-sections as well as endogeneity between FDI and CSR. It is established from the study that FDI has a strong positive impact on firm CSR performance. When CSR is decomposed further into its major components, FDI positively impacts social and environmental components but has no impact on governance components.
In recent times, the attraction of foreign direct investment (FDI) into economies has been a majo... more In recent times, the attraction of foreign direct investment (FDI) into economies has been a major task embarked upon by many nations. Though much have been documented on the impact of foreign direct investment inflow to host nations at the macro level, less is known about the impact of foreign direct investment at the firm level, especially in Africa, despite the greater efforts put in place to woo in FDI. This study investigated the link between FDI and firm economic activities in Sub-Saharan Africa (SSA). The study specifically answered the following questions: (1) to what extent does FDI inflow to firms enhance the value of the host firms? (2) Do firms with FDI spend more on CSR than non-FDI owned firms? (3) What impact has FDI got on firm innovation? The outcome of the study has been organized into three empirical essays. The first empirical essay investigates the relationship between Foreign Direct Investment (FDI) and firm value (measured using Tobin's Q and ROA) for selected African firms from Ghana, Nigeria and South Africa for the period of 2008 to 2012. Using the System Generalized Method of Moments, we established that FDI has a positive significant impact on firm value in all the three countries (South Africa, Nigeria and Ghana). This positive relationship between FDI and firm value in the selected countries can be attributed to technological transfer, managerial transfer, innovation transfer and skills transfer in favour of the host firms through inflows of FDI. The second essay investigates empirically the impact of inward FDI on host firm Corporate Social Responsibility (CSR) performance in South Africa. The study employs Panel Corrected Standard Errors (PCSE) and Seemingly Unrelated Regression (SUR) to estimate the effect of FDI on CSR and thus addresses contemporaneous cross-correlations across the panel cross sections as well as endogeneity between FDI and CSR. It is established from the study that FDI has a strong positive impact on firm CSR performance. When CSR is decomposed further into its major components, FDI positively impacts on social and environmental components but has no impact on governance components. The third empirical essay investigates the impact of inward FDI on host firm innovation in Nigeria and South Africa. In examining the relationship between FDI and firm innovation, two robust Instrumental Variable estimation techniques (Two Stage Least Squares and Limited Information Maximum Likelihood) have been employed so as to account for endogeneity problems. While FDI positively influences firm innovation in Nigeria, we found no evidence of any impact of FDI on Stellenbosch University https://scholar.sun.ac.za vi firm innovation in South Africa. This study does not only serve as a reference work for subsequent investigations on the impact of FDI on innovation in Sub-Saharan Africa, but it also serves as a guide to policy makers on trade and investment policies. The contribution of this thesis is in a number of ways. One, it accounts for endogeneity between FDI and firm value and FDI and innovation, an issue often neglected by most studies. It is also the first study to empirically examine the relationship between FDI and CSR in a more encompassing manner by using a unique and comprehensive measure of CSR from the Public Investment Corporation (PIC) Governance Survey in South Africa. Again, unlike previous studies where CSR is measured by using only governance, or only legal or only environmental or only philanthropic issues or the combination of them in a limited manner. In this way new evidence is presented on the FDI effect on CSR. For instance, although the effect of FDI on one dimension of CSR e.g. governance may be insignificant, it does not tell us anything about the importance of social and environmental CSR effects of FDI unless these are equally investigated. The study again presents new evidence that shows that context matters in investigating the innovation impact of FDI. Furthermore, unlike most studies which use R&D and patents to measure innovation we create an innovation index using a multiple correspondent analysis (MCA) approach which captures innovation holistically. This approach captures the time lag problems associated with previous methods.
Migrant remittances to home countries have seen a significant increase over the years, especially... more Migrant remittances to home countries have seen a significant increase over the years, especially in developing countries where due to a lack of jobs or unfavourable working conditions, citizens move to advanced countries to better their economic conditions and their dependents in home countries. This has been facilitated by globalisation in modern times. Whereas most previous studies have delved more into remittances and their impact on economic growth, less studies have examined the link between remittances and domestic investment. This study examined the impact of remittances on domestic investment in Africa using a system GMM econometric estimator. Our study departs from the few studies that examined this link by further investigating the moderating role of banking sector development and quality governance on the link between remittances and domestic investment. Using data from 41 African countries from 2004 to 2018, the study discovered that migrant remittances have a direct ne...
Abstract This study investigates empirically the impact of inward FDI on host firm Corporate Soci... more Abstract This study investigates empirically the impact of inward FDI on host firm Corporate Social Responsibility (CSR) performance in South Africa. The data used for the study was sourced from the Johannesburg Stock Exchange and the Public Investment Corporation Governance Survey index for a period of 3 years ranging from 2011 to 2013. The study employs Panel Corrected Standard Errors (PCSE) and Seemingly Unrelated Regression (SUR) to estimate the effect of FDI on CSR and thus addresses contemporaneous cross-correlations across the panel cross-sections as well as endogeneity between FDI and CSR. It is established from the study that FDI has a strong positive impact on firm CSR performance. When CSR is decomposed further into its major components, FDI positively impacts social and environmental components but has no impact on governance components.
Purpose This study purposely re‐examine the mortgage–finance nexus in Africa. Design/methodology/a... more Purpose This study purposely re‐examine the mortgage–finance nexus in Africa. Design/methodology/approach This study adopted a panel data set spanning over the period 1995–2017 by using system generalized method of moments (GMM) dynamic pooled estimator developed by Arellano and Bond (1991) and Arellano and Bover (1995) involving 51 African countries. Findings The findings discovered that financial development (bank asset) affects mortgage development positively and this effect is highly significant while broad money supply as a measure of financial development impedes mortgage development in Africa. Furthermore, with the introduction of the quadratic term, broad money supply established a U-shaped relationship with mortgage financing indicating that more money in circulation facilitates mortgage development in Africa. However, the shape of the other variables depends largely on the nature of proxy used. Originality/value This study is unique in many aspects. First, examining the ext...
Remittances inflow is one of the major sources of capital flows in the world. Though developing c... more Remittances inflow is one of the major sources of capital flows in the world. Though developing countries and especially Sub-Saharan Africa does not have a bigger share of this capital flow, remittances is noted to be very useful in promoting household welfare and health in developing countries. What is not certain is whether or not remittances lead to economic growth. Set out to investigate the causal link between remittances and economic growth in three of the leading
This paper aims to investigate the impact of exchange rate movement on export growth in Ghana. Th... more This paper aims to investigate the impact of exchange rate movement on export growth in Ghana. The data, made up of secondary sources was extracted from International Monetary Fund (IMF), United Nations Conference of Trade and Development (UNCTAD) and Bank of Ghana websites spanning 22 years from 1990 to 2012. In addition to other controlled variables, exchange rate is used as an independent variable while export growth is the dependent variable. Using the OLS estimator, the study finds that exchange rate has no impact on the export of goods and services in Ghana. The study however finds that Gross Domestic Product, Gross National Saving, Import Growth and Total Investment have significant impact on export. Key words Export Growth, and Exchange Rate Movement
Environmental Science and Pollution Research, 2022
One of the most commonly debated concerns regarding foreign direct investment inflows is the asso... more One of the most commonly debated concerns regarding foreign direct investment inflows is the associated environmental adversities that accompany the influx of foreign funds. As a result, assessing the environmental impacts of foreign direct investment inflows is necessary for achieving environmentally friendly economic growth in the contemporary era. Accordingly, the global economies including the members of the Group of Twenty (G-20) should focus on attracting clean foreign direct investments. Against this backdrop, controlling for energy consumption and urbanization, this extant study scrutinizes the effects of foreign direct investment inflows on the carbon dioxide emission figures of selected G-20 countries between 1992 and 2018. The econometric analysis conducted in this paper involves recently developed methods that are efficient in handling cross-sectionally dependent heterogeneous panel data sets. Besides, the analysis is also conducted for sub-panels of high-, upper-middle-, and lower-middle-income G-20 countries to evaluate the possible heterogeneous environmental effects across the G-20 countries belonging to different income levels. Overall, the results highlight that higher foreign direct investment inflows surge carbon dioxide emissions whereby the pollution haven hypothesis is evidenced to hold for the G-20 nations of concern. Similarly, both at the aggregated and disaggregated levels, greater consumption of energy is witnessed to boost carbon dioxide emissions in the long run. Moreover, urbanization is found to trigger carbon dioxide emissions for the G-20 nations overall and the lower-middle-income G-20 nations. Further, the causality analysis reveals that carbon dioxide emissions have bidirectional causal relationships with foreign direct investment inflows, energy consumption, and urbanization. In line with these major findings, this study recommends that the governments of the G-20 countries inhibit inflows of dirty foreign direct investments, reduce fossil fuel dependency, and adopt green urbanization policies for achieving higher economic growth without marginalizing environmental well-being.
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