Analysis of the impact of natural resources and globalization on environmental quality and economic growth: The study of SANE nations

Titolo Rivista ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT
Autori/Curatori Charles Ayobola Olufolake, Anthony Onogiese Osobase, Wilson Friday Ohioze, Samuel Olayinka Musa, Tope Joshua Ojo
Anno di pubblicazione 2023 Fascicolo 2022/2
Lingua Inglese Numero pagine 17 P. 219-235 Dimensione file 150 KB
DOI 10.3280/EFE2022-002010
Il DOI è il codice a barre della proprietà intellettuale: per saperne di più clicca qui

Qui sotto puoi vedere in anteprima la prima pagina di questo articolo.

Se questo articolo ti interessa, lo puoi acquistare (e scaricare in formato pdf) seguendo le facili indicazioni per acquistare il download credit. Acquista Download Credits per scaricare questo Articolo in formato PDF

Anteprima articolo

FrancoAngeli è membro della Publishers International Linking Association, Inc (PILA)associazione indipendente e non profit per facilitare (attraverso i servizi tecnologici implementati da CrossRef.org) l’accesso degli studiosi ai contenuti digitali nelle pubblicazioni professionali e scientifiche

The outcome of resources and globalization on growth and the quality of the environment among SANE (South Africa, Algeria and Nigeria) nations from 1990 to 2020 was investigated in this study. Economic growth and environmental degradation are the dependent variables, whereas the independent variables are natural resources, population, foreign direct invest- ment, trade openness, globalization, domestic credit to private sector by banks and investment. The study utilizes FMOLS and Granger Causality estimation procedure. Findings from the environmental degradation outcome suggest that per capita gross domestic product, gross fixed capital formation and globalization have positive significant impact on the regressand while trade openness has adverse significant impact on environmental degradation. The result from the economic growth model indicates that natural resources and total population posi- tively and significantly influence per capita gross domestic product. The Granger causality outcome predicts a uni-directional relationship that runs from environmental degradation to globalization, and a one-way causality from globalization to per capita gross domestic prod- uct. Also, a uni-directional causal relationship was observed from natural resources to glob- alization. Based on the outcome, the study recommends that investment in clean technologies should be given high precedence, and since these greener technologies are capital intensive, there is a need for the provision of adequate finance to the private sector to procure these technologies as these would help to alleviate the challenge of degradation of the environment, and increase the value of the environment in the SANE nations.

Keywords:environmental quality, economic growth, natural resources, globalization.

Jel codes:F6, P28, Q3, Q5

  1. Ahad, M., Khan, W. (2016). Does globalization impede environmental quality in Bangladesh? The role of real economic activities and energy use. Bulletin of Energy Economic, 4(3): 258-279.
  2. Awan, A. M., Azam, M., Saeed, I. U., Bakhtyar, B. (2020). Does globalization and financial sector development affect environmental quality? A panel data investigation for the Mid- dle East and North African countries. Environmental Science and Pollution Re- search, 27(36): 45405-45418.
  3. Baloch, M. A., Mahmood, N., Zhang, J. W. (2019). Effect of natural resources, renewable energy and economic development on CO2 emissions in BRICS countries. Science of the Total Environment, 678: 632-638.
  4. Barry, H. (2010). Globalization and economic growth in Sub-Saharan Africa. Gettysburg Economic Review, 4(1), 4.
  5. Bekun, F. V., Alola, A. A., Sarkodie, S. A. (2019). Toward a sustainable environment: Nexus between CO2 emissions, resource rent, renewable and nonrenewable energy in 16-EU countries. Science of the Total Environment, 657: 1023-1029.
  6. Charles, A., Mesagan, E., Saibu, M. (2018). Resource endowment and export diversification: implications for growth in Nigeria. Studies in Business & Economics, 13(1).
  7. Coulibaly, I. (2013). Long term economic impact of the natural resources and human capital on the growth rate. Research Papers, paper, 399: 1-37.
  8. Dreher, A. (2006). Does globalization affect growth? Evidence from a new index of globali- zation. Appliedeconomics, 38(10): 1091-1110. DOI: 10.1080/00036840500392078
  9. Gygli, S., Haelg, F., Potrafke, N., Sturm, J. E. (2019). The KOF globalisation index-revisited. The Review of International Organizations, 14(3): 543-574.
  10. Hassan, S. T., Xia, E., Huang, J., Khan, N. H., Iqbal, K. (2019a). Natural resources, globali- zation, and economic growth: evidence from Pakistan. Environmental Science and Pollu- tion Research, 26(15): 15527-15534.
  11. Hassan, S. T., Xia, E., Khan, N. H., Shah, S. M. A. (2019b). Economic growth, natural re- sources, and ecological footprints: evidence from Pakistan. Environmental Science and Pollution Research, 26(3): 2929-2938.
  12. Haseeb, A., Xia, E., Baloch, M. A., Abbas, K. (2018). Financial development, globalization, and CO2 emission in the presence of EKC: evidence from BRICS countries. Environmen- tal Science and Pollution Research, 25(31): 31283-31296.
  13. Haseeb, A., Xia, E., Saud, S., Ahmad, A., Khurshid, H. (2019). Does information and com- munication technologies improve environmental quality in the era of globalization? An empirical analysis. Environmental Science and Pollution Research, 26(9): 8594-8608.
  14. IMF (International Monetary Fund). International monetary fund. -- http://data.imf.org/?sk¼F8032E80-B36C-43B1-AC26-493C5B1CD33B. [Accessed 22nd March 2020].
  15. Islam, M., Ali, M., Ceh, B., Singh, S., Khan, M. K., Dagar, V. (2022). Renewable and non- renewable energy consumption driven sustainable development in ASEAN countries: do financial development and institutional quality matter?. Environmental Science and Pol- lution Research, 1-17.
  16. Jotia, A. L., Ntheetsang, F. (2011). Globalization: A multi-faceted terrain. LWATI: A Journal of Contemporary Research, 8(2).
  17. Karataş, A. (2016). Environmental impacts of globalization and a solution proposal. American International Journal of Contemporary Research, 6(2): 64-70.
  18. Kasekende, L., Oshikoya, T., Ondiege, P., and Dasah, B. (2007). Competitveness and Investment Climate in SANE Economies. Available at -- www.weforum.org/pdf/ger/africa/1.3.pdf.
  19. Koubi, V. (2019). Sustainable development impacts of climate change and natural disas- ter. Background Paper Prepared for Sustainable Development Outlook.
  20. Latif, Z., Latif, S., Ximei, L., Pathan, Z. H., Salam, S., Jianqiu, Z. (2018). The dynamics of ICT, foreign direct investment, globalization and economic growth: Panel estimation ro- bust to heterogeneity and cross-sectional dependence. Telematics and Informatics, 35(2): 318-328.
  21. Lv, Z., Xu, T. (2018). Is economic globalization good or bad for the environmental quality? New evidence from dynamic heterogeneous panel models. Technological Forecasting and Social Change, 137: 340-343.
  22. Manisalidis, I., Stavropoulou, E., Stavropoulos, A., Bezirtzoglou, E. (2020). Environmental and health impacts of air pollution: A Review. Frontiers in public health, 14.
  23. Meraj, M. (2013). Impact of globalization and trade openness on economic growth in Bang- ladesh. Ritsumeikan Journal of Asia Pacific Studies, 32: 40-50.
  24. Mesagan, E. P., Ajide, K. B., Vo, X. V. (2021). Dynamic heterogeneous analysis of pollution reduction in SANEM countries: lessons from the energy-investment interaction. Environ-
  25. mental Science and Pollution Research, 28(5): 5417-5429.
  26. Miao, C., Fang, D., Sun, L., Luo, Q. (2017). Natural resources utilization efficiency under the influence of green technological innovation. Resources, Conservation and Recycling, 126: 153-161.
  27. Muhammad, B., Khan, M. K., Khan, M. I., Khan, S. (2021). Impact of foreign direct invest- ment, natural resources, renewable energy consumption, and economic growth on envi- ronmental degradation: evidence from BRICS, developing, developed and global coun- tries. Environmental Science and Pollution Research, 28(17): 21789-21798.
  28. Nathaniel, S. P. (2021). Environmental degradation in ASEAN: assessing the criticality of natural resources abundance, economic growth and human capital. Environmental Sci- ence and Pollution Research, 28(17): 21766-21778.
  29. (PJES), 2(2): 155-172.
  30. Oberle, B., Bringezu, S., Hatfield-Dodds, S., Hellweg, S., Schandl, H., Clement, J., Zhu, B. (2019). Global resources outlook 2019: natural resources for the future we want.
  31. OECD. (2011). The economic significance of natural resources: key points for reformers in Eastern Europe, Caucasus and Central Asia. Retrieved 30th April, 2022 from -- https://www.oecd.org/env/outreach/2011_AB_Economic%20significance%20of%20NR%20in%20EECCA_ENG.pdf.
  32. OPEC (2019). Nigeria Facts and Figures. Available at: -- https://www.opec.org/opec web/en/aboutus/167.thm. Accessed on 01/09/2020.
  33. Otenyo, E. E. (2004). Local governments connecting to the global economy: Globalization as catalyst in governance of East African cities. Public Organization Review, 4(4), 339-360.
  34. Pedroni, P. (1999). Critical values for cointegration tests in heterogeneous panels with multi- ple regressors. Oxford Bulletin of Economics and Statistics, 61: 653-670.
  35. Pedroni, P. (2000). Fully modified OLS for heterogeneous cointegrated panels. Advances in Econometrics, 15: 93-130.
  36. Redmond, T., Nasir, M. A. (2020). Role of natural resource abundance, international trade and financial development in the economic development of selected countries. Resources Policy, 66, 101591.
  37. Robinson, W. I., Harris, J. (2000). Towards a global ruling class? Globalization and the trans- national capitalist class. Science & Society, 11-54.
  38. Saleh, H., Surya, B., Annisa Ahmad, D. N., Manda, D. (2020). The role of natural and human resources on economic growth and regional development: With discussion of open inno- vation dynamics. Journal of Open Innovation: Technology, Market, and Complexity, 6(4),103.
  39. Shahbaz, M., Shahzad, S. J. H., Mahalik, M. K., Hammoudeh, S. (2018). Does globalisation worsen environmental quality in developed economies? Environmental Modeling & As- sessment, 23(2): 141-156.
  40. Shahbaz, M., Mallick, H., Mahalik, M. K., & Loganathan, N. (2015). Does globalization im- pede environmental quality in India? Ecological Indicators, 52: 379-393.
  41. Shabbir, A., Kousar, S., Kousar, F. (2020). The role of natural resources in economic growth: new evidence from Pakistan. Journal of Economics, Finance and Administrative Science.
  42. Tahir, T., Luni, T., Majeed, M. T., Zafar, A. (2021). The impact of financial development and globalization on environmental quality: evidence from South Asian economies. Environ- mental Science and Pollution Research, 28(7): 8088-8101.
  43. Toman, M. (2003). The roles of the environment and natural resources in economic growth analysis (No. 1318-2016-103153).
  44. Twerefou, D. K., Danso-Mensah, K., Bokpin, G. A. (2017). The environmental effects of economic growth and globalization in Sub-Saharan Africa: A panel general method of moments approach. Research in International Business and Finance, 42: 939-949.
  45. Usman, M., Jahanger, A., Makhdum, M. S. A., Balsalobre-Lorente, D., Bashir, A. (2022). How do financial development, energy consumption, natural resources, and globalization affect Arctic countries’ economic growth and environmental quality? An advanced panel data simulation. Energy, 241, 122515.
  46. World Atlas (2020). What are the major natural resources of South Africa?. Available on -- https://www.worldatlas.com/articles/what-are-the-major-natural-resources-of-south-africa. html. Retrieved on 01/09/2020.
  47. World Bank (2022). Global gas flaring data. Available at: -- https://www.worldbank.org/ en/programs/gasflaringreduction/global-flaring-data. Accessed 21st May, 2022.
  48. WDI (2021) (World Development Indicators). World Bank. -- https://databank.worldbank. org/source/world-development-indicators# Accessed 07-Apr-2022),
  49. World Health Organization. (2019). Health emergency risk management: fact sheet on Sus- tainable Development Goals (SDGs): health targets (No. WHO/EURO: 2019-2378- 42133-58035). World Health Organization. Regional Office for Europe.
  50. Yameogo, C. E., Omojolaibi, J. A., Dauda, R. O. (2021). Economic globalisation, institutions and environmental quality in sub-Saharan Africa. Research in Globalization, 3, 100035.
  51. Ying, Y. H., Chang, K., Lee, C. H. (2014). The impact of globalization on economic growth. Romanian Journal of Economic Forecasting, 17(2): 25-34.
  52. Zafar, M. W., Saud, S., Hou, F. (2019). The impact of globalization and financial development on environmental quality: evidence from selected countries in the Organization for Eco- nomic Co-operation and Development (OECD). Environmental science and pollution re- search, 26(13): 13246-13262.

  • Apertura comercial y calidad ambiental, una revisión sistemática Débora Eunice Flores Salazar, Ramón Alberto Diez Matallana, Hugo Ibrahim Luna Astorga, Alberto Valdez Barboza, Raquel Margot Gómez Oscorima, in LATAM Revista Latinoamericana de Ciencias Sociales y Humanidades /2024
    DOI: 10.56712/latam.v5i6.3058

Charles Ayobola Olufolake, Anthony Onogiese Osobase, Wilson Friday Ohioze, Samuel Olayinka Musa, Tope Joshua Ojo, Analysis of the impact of natural resources and globalization on environmental quality and economic growth: The study of SANE nations in "ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT" 2/2022, pp 219-235, DOI: 10.3280/EFE2022-002010