Skip to main content

Table 4 Results of the dynamic threshold effect of the environmental degradation on foreign direct investment and poverty reduction (dependent variable: human development index)

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    
\(\hat{\gamma }\) 1.819 4.299 3.849
Foreign direct investment    
\(\hat{\beta }_{1}\) 0.0001 (0.737) 0.0001 (0.838) − 0.0005 (0.867)
\(\hat{\beta }_{2}\) 0.001** (0.044) 0.001** (0.044) 0.001** (0.032)
Control variables    
L. Human development index 0.937*** (0.000) 0.936*** (0.000) 0.934*** (0.000)
Inflation − 3.610 (0.720) − 3.611 (0.720) − 3.811 (0.705)
Financial development 0.001** (0.013) 0.001** (0.013) 0.001*** (0.007)
Trade openness 0.0002*** (0.000) 0.0002*** (0.000) 0.0002*** (0.000)
Corruption 0.002 (0.133) 0.002 (0.133) 0.001 (0.237)
\(\hat{\delta }_{1}\) 0.012*** (0.005) 0.012*** (0.005) 0.013*** (0.004)
No. of observation 617 617 617
No. of countries 39 39 39
  1. ***, **,*Implies significance at 1%, 5% and 10%, respectively
  2. The probability values are in parentheses