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Foreign Direct Investment, Institutional and Environmental Quality: An Empirical Analysis of the Sub-Saharan African Region

Year: 2025

Type: article

Abstract: This paper examines the impact of foreign direct investment (FDI), trade openness, institutional quality, and other independent variables on environmental quality in 37 sub-Saharan African countries observed between 2012 and 2021. The results reveal that trade openness relates to a decrease in carbon emissions, while FDI has a negative effect on these emissions. The study highlights the importance of institutions, recommending countries to focus on improving rule of law and political stability to achieve a higher environment quality. Furthermore, promoting renewable energy consumption is recommended. These conclusions suggest that trade-friendly policies, foreign direct investment (FDI), and institutional reforms are prerequisites to guide countries towards sustainable development and an improvement in environment quality.

Source: Journal of Ecohumanism

DOI: 10.62754/joe.v4i1.6482

Authors: Mohamed Ghofrane Benhrouz, Taha Smaali, Sabrina Hidri, Sami Mensi

Institutions: Manouba University, University of Sfax, Faculty of Economics and Management of Sfax

Language: English

Topic: Energy, Environment, Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Climate action, Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: hybrid

OpenAlex ID: W4407850798

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