Environmental Degradation and Economic Growth in African Low-Income Economies

Authors

Kehinde Kabir Agbatogun, Department of Economics, Tai Solarin University of Education, Ijagun, Ogun State, NigeriaFollow
Adenuga Fabian Adekoya, Department of Economics, Lagos State University of Education, Oto / Ijanikin, Lagos State, NigeriaFollow
Adekunle Ademayowa Adebayo, Department of Economics, Lagos State University of Education, Oto / Ijanikin, Lagos State, NigeriaFollow
Mabayoje Albert Sennuga, Department of Economics, Sikiru Adetona College of Education Science and Technology, Omu Ajose, Ogun State, NigeriaFollow
Adeniyi Marcus Oresanwo, Department of Economics, Lagos State University of Education, Oto / Ijanikin, Lagos State, NigeriaFollow

Abstract

The paper examined the validation of the environmental Kuznets curve hypothesis on the relationship between economic growth on environmental sustainability in African low-income economies, with a focus on the influence of financial system development and the speed of urbanization in the classification, using data from the World Development Indicator on panel ARDL-AMG techniques. The results of the unit root tests indicate that the variables are of mixed integration order, while the cross-sectional dependency test established the existence of cross-sectional dependence among the cross sections. The results of the cointegration test revealed the presence of a long-run relationship in the overall model, which further justifies the adoption of the panel second-generation unit root test, which also showed a consistent conclusion with the first generation. Following this mixed integration order and the treatment of cross-sectional dependence problem, the results of the adopted AMG technique adopted to analyze these relationships showed that environmental Kuznets curve was validated by the significant positive and negative values of GDPpc and GDPpc squared respectively suggesting an inverted U- shape nonlinear connection between economic growth and environmental sustainability, with negligible positive and negative contributions from urbanization and financial development respectively in low-income Africa economies.

First Page

89

Last Page

100

Recommended Citation

Agbatogun, Kehinde Kabir; Adekoya, Adenuga Fabian; Adebayo, Adekunle Ademayowa; Sennuga, Mabayoje Albert; and Oresanwo, Adeniyi Marcus (2025) "Environmental Degradation and Economic Growth in African Low-Income Economies," Jurnal Ekonomi dan Studi Pembangunan: Vol. 17: No. 2, Article 5.
Available at: https://citeus.um.ac.id/jesp/vol17/iss2/5