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Table 2 Results of the dynamic threshold effect of the environmental degradation on foreign direct investment and poverty reduction (dependent variable: household final consumption expenditure)

From: Foreign direct investment and poverty reduction in sub-Saharan Africa: does environmental degradation matter?

 

Carbon dioxide emission (CO2)

Methane emission

Nitrous oxide emission

Threshold estimates

   

\(\hat{\gamma }\)

1.105

3.720

3.197

Foreign direct investment

   

\(\hat{\beta }_{1}\)

− 3.145 (0.196)

9.832** (0.038)

13.530 (0.160)

\(\hat{\beta }_{2}\)

36.745*** (0.000)

− 2.126(0.498)

0.363 (0.900)

Control variables

   

L. Household final consumption expenditure

0.874* (0.072)

0.877***(0.000)

0.881*** (0.000)

Inflation

0.002 (0.859)

0.002(0.829)

0.002 (0.811)

Financial development

3.351*** (0.000)

3.965***(0.000)

3.922*** (0.000)

Trade openness

1.602*** (0000)

1.869***(0.000)

1.912*** (0.000)

Corruption

15.356 (0.145)

11.360(0.322)

11.553 (0.316)

\(\hat{\delta }_{1}\)

61.745* (0.072)

83.380**(0.027)

91.353** (0.015)

No. of observation

503

451

451

No. of countries

39

39

39

  1. ***, **, *Implies significance at 1%, 5% and 10%, respectively
  2. The probability values are in parentheses