Jurnal Ekonomi dan Studi Pembangunan (JESP)
Vol 17, No 2 (2025)

Environmental Degradation and Economic Growth in African Low-Income Economies

Kehinde Kabir Agbatogun (Tai Solarin University of Education, Ijebu-Ode, Ogun State, Nigeria.)
Adenuga Fabian Adekoya (Lagos State University of Education, Oto / Ijanikin, Lagos State, Nigeria)
Adekunle Ademayowa Adebayo (Lagos State University of Education, Oto / Ijanikin, Lagos State, Nigeria)
Mabayoje Albert Sennuga (Sikiru Adetona College of Education Science and Technology, Omu Ajose, Ogun State, Nigeria)
Adeniyi Marcus Oresanwo (Lagos State University of Education, Oto / Ijanikin, Lagos State, Nigeria.)



Article Info

Publish Date
12 Oct 2025

Abstract

The study investigated the validity of the environmental Kuznets curve hypothesis regarding the relationship between economic growth and environmental sustainability in low-income African economies, emphasising the impact of financial system development on the pace of urbanisation, utilising data from the World Development Indicators, and employing panel ARDL-AMG techniques. The unit root tests indicate that the variables have a different order of integration. The cross-sectional dependency test, on the other hand, confirmed that the sections are dependent on each other across time. The cointegration test showed a long-term relationship across the whole model. This proved that the second-generation panel unit root test worked, which in turn confirmed what the first-generation test had found. After using the AMG method with a mixed integration order and taking into account the cross-sectional dependence issue, the results indicated that the environmental Kuznets curve was supported by the significant positive and negative GDP per capita and GDP per capita squared coefficients. This evidence points to a nonlinear, inverted U-shaped relationship between economic growth and environmental sustainability. In low-income African economies, urbanisation and financial development have the least positive and negative effects, respectively.

Copyrights © 2025






Journal Info

Abbrev

JESP

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi dan Studi Pembangunan focuses on scientific papers related to development economics include critical analysis of economic development issues, local economic development, community economic development, economic growth, international trade and finance, fiscal and monetary policy, ...