Search results

With the rising global emphasis on sustainable development (SD) and the attendant race to attain the sustainable development goals (SDGs), this study empirically examines the effect of the finance–economic growth nexus on SD in West Africa for the period 1970 to 2020.

The study adopted the panel autoregressive distributive lag (PARDL) and rests on the estimates of the pooled mean group (PMG) model in line with the outcome of the Hausman test.

The result indicates that financial development reinforces the positive influence of economic growth on SD in addition to the direct incremental impact they wield on SD. This suggests that financial development is one of the “influencing factors” and is positioned to potentially improve the relationship between economic growth and SD in West Africa. Findings further reveal that foreign direct investment (FDI) enhances the achievement of SD in West Africa whereas carbon dioxide (CO₂) emissions and natural resource rent (NRR) are found to exert a deteriorating impact.

Since financial development is found to enhance the growth–SD relationship, it is crucial to pursue domesticated, inclusive and self-sustaining growth policies as well as promote financial inclusion, remove bottlenecks and inefficiencies in the financial system and adopt the principles of the 3 Rs - “reduce, reuse and recycle.”

Compared to previous studies that examined the effect of financial development and growth on SD separately, the present study interacted both to see how financial development can influence the economic growth–SD nexus.

This study examines the roles of poverty reduction and social inclusion as socioeconomic factors in achieving sustainable development (SD) in Nigeria from 1970 to 2019.

Vector error correction model (VECM) is adopted as the analytical technique. Three groups of factors are employed when determining SD: economic (per capital gross domestic product [GDP] and the inflow of foreign direct investment [FDI]), social (life expectancy, school enrollment, poverty and the proportion of women in parliament) and environmental (CO₂ emission and natural resource endowment).

The findings reveal that the economic factors (GDP per capita and the inflow of FDI to the GDP ratio) and two of the social determinants (life expectancy and school enrollment) have a positive effect on SD while the remaining two social determinants (poverty gap and the proportion of women in parliament) and the environmental determinants (CO₂ emission and natural resource endowment) have a negative influence on SD in Nigeria during the period under study.

First, this study integrates social inclusion into the poverty–SD nexus in the same study framework for a thorough analysis given that social inclusion has been identified as one of the leading variables affecting sustainability. Second, this study fills a gap in the literature by accounting for economic, social and environmental factors that influence SD, as opposed to the majority of existing studies that only employed environmental variables when examining the relationship between poverty and sustainability.