Department of Economics

Permanent URI for this communityhttp://itsupport.cu.edu.ng:4000/handle/123456789/28765

Welcome to the research page of the Department of Economics

Browse

Filters

2025 - 20263

Settings

Start date: 2025Subject: search.filters.subject.Sub-Saharan Africa

Search Results

Now showing 1 - 3 of 3
  • No Thumbnail Available
    Item
    EFFECTS OF PROFIT SHIFTING, TAX HAVEN AND FISCAL SPACE IN DEVELOPING ECONOMIES: EVIDENCE FROM SELECTED SUB-SAHARAN AFRICA
    (Covenant University, Ota, 2026-08) PAUL, Samuel Micheal; Covenant University, Dissertation
    Losses of domestic revenue and fiscal sustainability have become more critical areas of concern in Sub-Saharan Africa (SSA) as the use of tax haven jurisdictions by enterprises becomes more prevalent and the number of multinational corporations (MNCs) operating in the region grows. Increased demands for expenditure have been met by limited fiscal space available for developing governments to pursue developmental priorities in the face of these challenges. While there is a wealth of literature on tax avoidance in the rest of the world, literature to date on implications for fiscal space in SSA is still limited, with only a few empirical pieces trying to come to terms with the institutional and macroeconomic factors. In this study, hence, the impact of profit shifting and tax haven exposure on fiscal space in selected Sub-Saharan African economies was therefore examined. Specifically, the study looked at the impact of profit shifting on fiscal space, the impact of tax haven exposure on fiscal space, and the effect of government strength, trade openness, resource dependence, and income levels (GDP per capita) on fiscal space. The study employed an unbalanced panel dataset comprising fourteen selected Sub-Saharan African economies over the period 2000–2024. Secondary data were gathered from well-known macroeconomic and fiscal databases from international institutions. For the analysis, descriptive statistics, correlation analysis, Panel unit root tests, the Pedroni cointegration test, the Hausman specification test and the Random Effects estimation technique were utilized. The results indicated that there is a strong impact of profit shifting and tax haven exposure on fiscal space in the economies under study. There was also positive impact of trade openness and a small positive impact of resource dependence on fiscal space. On the other hand, the impact of governances quality and GDP per capita was not statistically strong during the study period. The results indicate that fiscal consequences of international tax practices depend on the institutional capabilities and economic systems of countries. The study builds on the existing literature by offering a long-run panel based evidence on the profit shifting–tax haven–fiscal space nexus in Sub-Saharan Africa. The findings underline the need for country-specific transfer pricing law and tax transparency and for a more strengthened tax cooperation in the region, as well as for country-specific fiscal reform that can contribute to sustainable domestic resource mobilisation and fiscal space for long-term development, from a policy perspective.
  • No Thumbnail Available
    Item
    EFFECT OF DIGITAL INFRASTRUCTURE AND GREEN INNOVATION ON ENVIRONMENTAL OUTCOMES IN SUB-SAHARAN AFRICA
    (Covenant University, Ota, 2026-08) Obi, Chibuzor Happiness; Covenant University Dissertation
    Digital infrastructure has been seen as a force of change for sustainable development, but in Sub-Saharan Africa, the environmental impact of digital infrastructure is poorly understood. This study investigates the impact of digital infrastructure on environmental outcomes in Sub-Saharan Africa, focusing on the potential intermediate path of green innovation, but also identifying threshold conditions where digital growth can foster emissions reductions. The study employs a balanced panel of 40 Sub-Saharan African countries from 2001 to 2022 and uses a dynamic panel-data framework to examine how digital infrastructure is linked to carbon dioxide emissions. It also applies mediation analysis to test whether green innovation mediates the impact of digital infrastructures on environmental outcomes, and threshold analysis to see if such impact is different after a specific level of connectivity is attained. The composite index of key information and communication technology indicators is used to measure digital infrastructure. The main environmental indicator is CO2 emissions per capita, with wider environmental indicators also checked. Renewable energy use as a percentage of total final energy use serves as a proxy for green innovation, as well as renewable electricity output as a percentage of total electricity generation. The study demonstrates that digital infrastructure can have a positive impact on environmental effects, but its effectiveness is conditioned on the quality of connectivity, how much digital infrastructure expansion can foster green innovation, and the availability of cleaner energy systems. An important point to emphasize, however, is the need for suitable green innovation indicators in low-income settings, as traditional use of biomass does not necessarily indicate modern use of clean energy. The study adds to the literature by bringing together direct, mediation and threshold approaches under one umbrella and offers policy recommendations for digital economy planning, climate finance, clean energy investment and sustainability measurement in Sub-Saharan Africa
  • No Thumbnail Available
    Item
    IMPACT OF FINANCIAL INCLUSION AND ENERGY CONSUMPTION ON ENVIRONMENTAL QUALITY IN SELECTED SUB-SAHARAN AFRICAN COUNTRIES
    (Covenant University Ota, 2025-08) OLAOYE, Olugbenga Olaposi; Covenant University Dissertation
    Sub-Saharan Africa (SSA) faces a pressing development dilemma: rising energy demand, weak financial inclusion, and worsening environmental degradation. The region’s reliance on fossil fuels such as coal, gas, and oil has intensified carbon emissions and undermined environmental sustainability, while the exclusion of a significant share of the population from formal financial systems constrains their ability to invest in clean energy and sustainable practices. Despite growing global advocacy for inclusive finance and clean energy adoption, existing research provides limited evidence on how financial inclusion moderates the energy–environment nexus, particularly within SSA. Furthermore, the potential influence of structural breaks—such as global financial crises, international climate agreements, and pandemics—on this relationship remains underexplored. These gaps informed the motivation for this study. This research examined the impact of financial inclusion on the relationship between energy consumption and environmental quality across 38 low- and middle-income SSA countries between 1991 and 2022. Anchored on the Environmental Kuznets Curve (EKC) hypothesis, the study employed annual secondary data sourced from the World Bank’s World Development Indicators. The Cross-Sectional Autoregressive Distributed Lag (CS-ARDL) model was the principal estimation technique, as it accounts for cross-sectional dependence and heterogeneity while capturing both short- and longrun dynamics. To ensure robustness, the Pooled Mean Group (PMG) estimator was also applied. The empirical results show that energy consumption significantly worsens environmental quality across the region, with middle-income countries exhibiting a stronger positive association between energy use, capital investment, and carbon emissions. Real GDP and gross capital investment further contributed to emissions, reflecting the industrial expansion of African economies. In contrast, the quality of environmental regulation was negatively associated with emissions, indicating its mitigating role, though implementation remains uneven across countries. Financial inclusion was found to be a critical determinant of environmental outcomes: in middle-income economies, greater inclusion significantly reduced emissions by enabling access to credit, green finance, and adoption of cleaner technologies. However, in low-income countries, the short-term effects of financial inclusion on environmental quality were positive but statistically insignificant, reflecting structural constraints in their financial systems. The study concludes that financial inclusion can serve as a viable policy instrument for environmental sustainability in SSA. Expanding inclusive finance, strengthening regulatory enforcement, and aligning financial innovations with Nationally Determined Contributions (NDCs), the Sustainable Development Goals (SDGs), and Africa’s Agenda 2063 are vital for promoting clean energy adoption and building climate-resilient economies.