Evans Osabuohien

Beyond the Environmental Kuznets Curve in Africa: Evidence from Panel Cointegration

Abstract The main objective of this study is to establish the applicability of the environmental Kuznets curve (EKC) hypothesis in explaining the relationship between environmental pollution and development in Africa. The EKC has been used to explain such relationships in a variety of contexts, yet rarely applied in Africa, despite it hosting both the poorest countries in the world, 60% of those with extreme environmental pollution vulnerability and having a distinct socio-economic and institutional profile that tests the validity of such a model. This paper describes an empirical model that applies the EKC hypothesis and its modifications to 50 African countries, using data from 1995–2010. The empirical analysis suggests that there is a long-term relationship between CO2 and particulate matter emissions with per capita income and other variables, including institutional factors and trade, leading to specific recommendations on future strategies for sustainable development in an African context.

Trade Outcomes in Africa's Regional Economic Communities and Institutional Quality: Some Policy Prescriptions

The global economic crisis of 2007/2008 that threatened the economic/financial fabrics of most countries has brought again the essence of strong institutional quality to the fore. This is particularly interesting as it impacted on trade outcomes in many countries including those in Africa. For instance, merchandize exports as a percentage of GDP for SSA reduced by 17.9% in 2007. Thus, this paper examines the effectiveness of RECs in Africa with respect to trade outcomes using some indicators, which was achieved using data from African Development Indicators, inter alia (1996-2008). Analyzing the data with descriptive and statistical techniques established, among others, that the respective indicators of trade outcomes, institutional quality were rather low and differed markedly across RECs in Africa. The study recommends that improvement of institutional quality in tandem with enhanced infrastructural facilities will play crucial roles in promoting trade outcomes in Africa’s RECs.

External Intrusion, Internal Tragedy: Environmental Pollution and Multinational Corporations in Sub-Saharan Africa

Purpose – This study provides insight on how Sub-Sahara African (SSA) countries can ameliorate the impact of environmental pollution in the face of increasing inflow of multinational corporations (MNCs).Design/methodology/approach – An analytical model describing the role of institutions in reducing the environmental impact of MNCs was formulated and analysed for a sample of 43 SSA countries (1996–2010) using descriptive and the System Generalised Method of Moments techniques.Findings – It was found that the ‘tragedy’ of environmental pollution can be ‘managed’ if there are strong institutional framework especially regulatory quality and government effectiveness that will drive environmental policies and make MNCs to comply to the tenets of corporate social responsibility (CSR) in host countries. The study also established that the environmental hazards in the previous year will occur in the current year, but with strong institutions in place, it will be at a decreasing rate. How increase in trade, inflow of MNCs and population growth affect the current extent of environmental pollution was underscored.Research limitation – Aggregated data on the variables were utilised, and thus the results were dependent on the reliability of the data. Examining how MNCs respond to CSR with respect to environmental issues in SSA can be taken up in future studies using micro-data. This will complement this study and further establish the impact of MNCs activities on the environment in SSA.Originality/value of chapter – The relevance of institutions in regulating the behaviours of MNCs with regards to environmental pollution in SSA was emphasised.

Environment challenges in Africa: further dimensions to the trade, MNCs and energy debate

Purpose – The purpose of this paper is to examine the linkage between environmental challenges, multinational corporations (MNCs) activities, trade and energy in Africa; and further elaborate on the role of institutions, as an intervening variable. Design/methodology/approach – In this study, the authors extended the Environmental Kuznets Curve (EKC) model by including indicators of the presence of MNCs, trade and energy in the basic EKC model that has measures of environmental pollution (CO2), economic growth (gross domestic product per capita) and its squared value. The role of institutions was also considered and included as an inter-mediating variable. This model was tested on a sample of 27 African countries, for the period 1996-2010. The systems GMM was applied for the empirical analysis. This approach was aimed at circumventing the possibility of reverse causality and endogenous explanatory variables-such as institutions. Findings – Trade and MNCs’ activities may not have much contemporaneous impac...

Planning to Fail or Failing to Plan: Institutional Response to Nigeria's Development Question

Despite recent interest in the interplay between institutions and growth, country studies in developing countries particularly relating to planning has not been given considerable attention. This forms the main motivation for this study, which evaluates the economic planning in Nigeria and discusses how institutions play influential roles on the kind of economic outcomes emanating from planning. It draws comparative evidences from Botswana and South Korea based on the fact that Nigeria had similar planning trajectory with them as they all had regular fixed-term development plans in the 1960s and 1970s. Nigeria had her five-year development plans the same time with South Korea starting with the 1st phase (1962-1966). Whereas South Korea’s five-year plans continued that of Nigeria was truncated in 1985 with the advent of Structural Adjustment Programme (SAP). Institutions in Botswana and South Korea have also been noted as key for their economic development. The study underscores the need for Nigeria to pursue the improvement her institutions that will provide supportive role to planning as any planning void of adequate institutional ‘pillars’ will not deliver the expected development outcomes irrespective of the coverage and how well nuanced. Thus, it is not that Nigeria planned to fail nor failed to plan but the critical factor associated with the planning models is weak institutions, among others.

Handbook of Research on In-Country Determinants and Implications of Foreign Land Acquisitions

This chapter explores the land reform-tobacco production-wood resources nexus using a political ecology theoretical framework. It uses secondary data sources, literature review, and onsite expert verification to estimate the quantity of wood resources used by farmers to cure tobacco. The area of forest woodland cleared to cure one hectare of tobacco increased across tobacco farming regions in Zimbabwe. Despite the fact that the country has environmental agencies and departments, farmers continue to use wood to cure tobacco in a typical clientilistic and informalisation of state institutions. The use of firewood to cure tobacco is a long-term threat to ecological sustainability. The Fast Track Land Reform Programme should incorporate sound environmental plans and avoid informalisation of state institutions.

Trade-Exchange Rate Nexus in Sub-Saharan African Countries

This study explores international trade–exchange rate interaction in sub-Saharan African (SSA) countries. Based on partial equilibrium analysis, we develop two equations for export and import in which exchange rate, real gross domestic product (GDP), stock of capital and technology are the independent variables. The results from empirical analyses show that export and import are inelastic to changes in exchange rate. It follows that depreciation of currencies in the region may not have the expected results in view of the structure of the economies and export compositions. In the same vein, depreciation would not depress imports but only aggravate balance of payments. Thus, in the light of the findings, a policy of exchange rate stability that hinges on long-run considerations, capital accumulation and technological capacity as well as the maintenance of comprehensive coherent macroeconomic packages remains a critical factor in ensuring that exchange rate policy performs its central role as a trade facilitation tool.

Financial Development, Trade Costs and Bilateral Trade Flows: Connecting the Nexus in ECOWAS

Financial Development (FD) in both exporting and importing countries would be required to fund production and consumption, respectively. However, the extent to which this affects Economic Community of West African States-ECOWAS intra-regional trade, has not been empirically investigated, which motivates this study. It examines the pattern of trade, provides the level of FD and influence of FD in ECOWAS. It utilises the augmented gravity model of trade to empirically examine the effects of FD on bilateral trade flows in ECOWAS. To achieve the objectives, descriptive and econometric methods of analysis were engaged. Among the findings is that the FD of both exporting and importing countries are significant determinants of bilateral trade flows in ECOWAS. This suggests, among others, that more credit available to the private sector will significantly boost bilateral trade flows.

Manufacturing Export, Infrastructure and Institutions: Reflections from ECOWAS

This study examines the extent of manufacturing export in ECOWAS countries, how it has been affected by the extent of infrastructural development and the distilling role of institutions. In retrospect, we present stylized facts that proves that ECOWAS poor infrastructural development has largely being driven by the poor institutions, which promotes private benefits rather than public good (such as infrastructure). In essence, this has hampered manufacturing export and reduced the extent of competitiveness of these countries.

Economic Integration, Trade Facilitation and Agricultural Exports Performance in ECOWAS Sub-Region

To reduce prices, increase specialization and improve efficiency, income and welfare — including competitiveness in world markets (International Centre for Trade and Sustainable Development — ICTSD, 2011) — regional economic integration (through such things as free trade areas and customs unions) aims to facilitate international trade by reducing transaction costs such as tariff and non-tariff barriers (Dalimov, 2009; Cissokho et al., 2013). The Economic Community of West African States (ECOWAS) was founded in 1975 for this purpose, among others. ECOWAS’ global exports and imports increased during 1999–2009 (Figure 2.1). Statistics also has it that about 20% of its food are imported (ECOWAS Commission, 2010a). With respect to its intra-regional trade (exports and imports),it can be inferred from Figure 2.2 that intraregional imports are quite higher than intra-regional exports with respective maximum values of 20% and 15% between 1999 and 2009. Some ECOWAS countries did less than 1% of their trade with other ECOWAS members (ECOWAS Commission, 2010b).