Sustainable Economic Development in Sub-Saharan Africa (SSA) Countries: Implications for Environmental and Social Factors

Abstract

The desired for better enhancement of sustainable economic development in sub-Saharan Africa (SSA) countries has tremendously increased environmental challenges of these region’s economies. Thereby, causing adverse effects on social human behavior despite series of efforts by the successive governments of the regions’. Given the above, this study is out to investigate the interactions among environmental factor, social factor and sustainable economic development in sub-Saharan Africa region. The study used annual time series data spanning from 1980 to 2023 and sourced from regional SSA pooled World Bank, World Development Indicator of 2023 database edition. Vector Autoregressive (VAR) model was used as estimation technique to achieve the objectives of the study. Result of multivariate co-integration test based on Johansen and Juselius co-integration technique, confirms the existence of a long run relationship among the variables in the model. Impulse response function estimates showed that carbon dioxide emissions, Nitro-oxide and poverty rate negatively affect economic development in SSA region and pronouncedly persistent throughout the forecast horizon. Further, the results of forecast error variance decomposition (FEVD) revealed that in the long run, carbon dioxide emissions, Nitro-oxide and poverty rate exerts a greater influence on economic development sustainability over time in SSA region in the 10th period while other variables like population growth rate, literacy and inflation rates relatively exerts low influence in the region. The study concluded that environmental pollution indicators are highly pronounced in the region. Again, poverty and inflation levels as well as overpopulation are very high, thereby needs government intervention and control. This implies that SSA region’s government and policymakers should strengthen more than ever before on environmental regulations so as to improve social aspect life of the people for better improvement of economic development sustainability. The study therefore recommends among others that successive governments in the region should take adequate measure to improve literacy level, reduce both poverty and inflation rates, as well as population growth rate towards adopting birth control measure in the region.