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Urbanization, Financial Development, and Sustainable Development in West Africa
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Author(s): Samuel Adams (Ghana Institute of Management and Public Administration, Ghana)and Edem Kwame Mensah Klobodu (Ghana Institute of Management and Public Administration, Ghana)
Copyright: 2018
Pages: 23
Source title:
Urbanization and Its Impact on Socio-Economic Growth in Developing Regions
Source Author(s)/Editor(s): Umar Benna (Benna Associates, Nigeria)and Indo Benna (Muhammad Al-Mana College of Health Sciences, Saudi Arabia)
DOI: 10.4018/978-1-5225-2659-9.ch008
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Abstract
This study examines the effect of urbanization and financial development on sustainable development in West Africa over the period 1981-2011. Using seemingly unrelated regression technique to solve our system of equations, the findings of the study show that both urbanization and financial development are positively and significantly related to economic growth and carbon dioxide emissions. A test of equality of parameters, however, suggests that financial development and urbanization are not equal in both equations. This suggests that both urbanization and financial sector liberalization have been pro-growth at the expense of environmental quality. The main implication is that policies must be put in place to control rapid urbanization and liberalization of the economy such that they contribute not just to growth but also environmental sustainability.
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