The influence of democracy, corruption, economic growth and ICT on carbon emissions in Sub-Saharan African countries: Does FDI matter?

Abstract

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.