Tittle: Unraveling the pollution Haven effects of goods and services trade in African countries
Authors:
- Kabiru Hannafi Ibrahim;
- Rossanto Dwi Handoyo;
- Nur Istifadah; Achmad Solihin;
- Allen Pranata Putra;
- Abdul-Azeez Sani Baraya Department: Department of Sharia Economics Journal Name: Discover Sustainability
Kinds of Journal: Scopus Q3
Keywords: Trade in services; Trade in goods; Pollution-haven hypothesis; EKC hypothesis; Static and dynamic panel; African continent
Abstract::
In the context of 47 African States, this study investigates the effect of goods and services trade on pollution from 2000 to 2022 using random effect and system GMM estimation techniques. The findings show the presence of positive scale and negative technique effects, confirming the environmental Kuznets hypothesis. An increase in foreign trade, both in goods and services, raises CO2 emissions, with goods trade being more polluting than services trade. A nonlinear relationship between trade and emissions is observed across different country groups, with varying threshold levels. Services trade also exhibits nonlinear effects on other pollutants such as GHG, PM2.5, N2O, and F-gases. The results further indicate that trade openness shifts industrial composition toward more polluting sectors, while energy plays a significant role in increasing emissions. The study finds limited evidence that trade contributes to the adoption of energy-efficient technologies. Overall, the findings support the pollution haven and factor abundance hypotheses, suggesting that trade contributes to pollution transfer to African countries, thereby highlighting the need for stronger environmental regulations and policies.
For details: https://doi.org/10.1007/s43621-025-02047-2