Review of International Economic, Taxation, and Regulations
Vol. 1 No. 1 (2025): February

Climate Change and Agricultural Exports in Sub-Saharan Africa: The Mediating Roles of Institutional Capacity

Sunday Osahon Igbinedion (Department of Economics, University of Benin, Benin City, Nigeria)
Ngozi Alison Mokobia (Department of Economics, Dennis Osadebay University, Asaba, Delta State, Nigeria)



Article Info

Publish Date
19 Mar 2025

Abstract

This study investigated the effect of climate change on agricultural exports in Sub-Saharan Africa (SSA) region taking into consideration the mediating effects of four (4) institutional capacity variables. The study covered 29 sampled SSA countries from 2013 to 2022. The study adopts the System Generalized Method of Moments (SGMM) estimation technique.  The System Generalized Methods of Moments (SGMM) reveals that climate change positively influences agricultural exports. However, government effectiveness and accountability had a negative significant effect on agricultural exports. Interaction effects show that government effectiveness, political stability, regulatory frameworks, and accountability positively mediating the effect of climate change on agricultural exports but rule of law has a negative mediating effect. Robustness tests (Hansen J and serial correlation tests) both confirm that the model and instruments are reliable. The study submits that, the SSA region can optimize the benefits of climate change while addressing regulatory and legal constraints by leveraging on effective governance and institutional frameworks. Lastly, the SSA government builds robust, effective institutions to improve governance and accountability.

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Journal Info

Abbrev

rietr

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

Review of International Economic, Taxation, and Regulations (RIETR) is an interdisciplinary publication dedicated to original research and scholarly work in the fields of international economics, taxation systems, and regulatory frameworks. This journal aims to facilitate and promote the ...