ORIGINAL ARTICLE
Trade Openness, Foreign Direct Investment and Environmental Sustainability Nexus In Nigeria
 
More details
Hide details
1
, Canada
 
2
, Nigeria
 
 
Submission date: 2024-01-23
 
 
Final revision date: 2025-06-03
 
 
Acceptance date: 2025-06-04
 
 
Online publication date: 2025-07-17
 
 
Publication date: 2025-07-17
 
 
Corresponding author
Anthony Orji   

Department of Economics,, University of Nigeria, Nsukka, 817 Imoke Street, 410001, Nsukka, Nigeria
 
 
Economic and Regional Studies 2025;18(2):164-176
 
KEYWORDS
JEL CLASSIFICATION CODES
F18
F21
P33
 
TOPICS
ABSTRACT
Subject and purpose of work: This study examines how trade openness and foreign direct investment affect Nigeria's environmental sustainability.In other words, whether, the “Pollution Haven” and “Porter” hypotheses hold for Nigeria. Materials and methods: The variables of interest are total greenhouse gas emissions, foreign direct investment (FDI), trade openness, access to electricity, access to clean fuels and technology, and urban population. The Dynamic Ordinary Least Squares (DOLS) estimation technique was deployed in this study. Results: The study's findings indicate that foreign direct investment (FDI) has a statistically significant negative long-run effect on Nigeria’s overall greenhouse gas (GHG) emissions. This robust result, with a coefficient of -0.10478 and a probability of 0.0012, lends strong support to the Porter Hypothesis. Conclusions: As a result, the report suggests that the Nigerian government supports the creation of compressed natural gas (CNG) stations and the switch to CNG-powered vehicles. The Nigerian government can also promote investment in the green energy industry by offering tax holidays
eISSN:2451-182X
ISSN:2083-3725
Journals System - logo
Scroll to top