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Foreign direct investment and inclusive green growth in Africa: Energy efficiency contingencies and thresholds: Comment

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  • Acheampong, Alex O.

Abstract

In this paper, I provide an econometric audit and comment on the paper by Ofori, Gbolonyo, and Ojong (2023), which examined whether there is a synergy between energy efficiency and foreign direct investment in inclusive green growth using panel data for 23 African countries from 2000 to 2020. In their paper, the authors showed that the negative effect of foreign direct investment on environmental quality is reduced when conditioned by energy efficiency. The authors further presented threshold analysis, which showed that improving energy efficiency conditions foreign direct investment to improve inclusive green growth and socioeconomic sustainability. In this paper, I argue that their conditional effect hypothesis results, which are the basis of their paper, hold because of “model misspecification” and the “misreporting of some estimates.” Thus, after correcting for the misspecification, I found no significant synergistic and threshold effect of energy efficiency and foreign direct investment on inclusive green growth and socioeconomic sustainability. I also found evidence during the replication that some variables' coefficients and post-estimation statistics in the authors' paper are inconsistent with what I found. The flaws in the paper suggest that no appropriate conclusion and policy implications can be drawn from the paper.

Suggested Citation

  • Acheampong, Alex O., 2023. "Foreign direct investment and inclusive green growth in Africa: Energy efficiency contingencies and thresholds: Comment," Energy Economics, Elsevier, vol. 126(C).
    • Handle: RePEc:eee:eneeco:v:126:y:2023:i:c:s0140988323005170
    DOI: 10.1016/j.eneco.2023.107019
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    References listed on IDEAS

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    1. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
    2. Brambor, Thomas & Clark, William Roberts & Golder, Matt, 2006. "Understanding Interaction Models: Improving Empirical Analyses," Political Analysis, Cambridge University Press, vol. 14(1), pages 63-82, January.
    3. repec:aen:journl:1980v01-04-a02 is not listed on IDEAS
    4. Ofori, Isaac K. & Gbolonyo, Emmanuel Y. & Ojong, Nathanael, 2023. "Foreign direct investment and inclusive green growth in Africa: Energy efficiency contingencies and thresholds," Energy Economics, Elsevier, vol. 117(C).
    5. Brookes, L. G., 1992. "Energy efficiency and economic fallacies: a reply," Energy Policy, Elsevier, vol. 20(5), pages 390-392, May.
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    Cited by:

    1. Kamguia, Brice & Tadadjeu, Sosson & Ndoya, Hermann & Djeunankan, Ronald, 2025. "Assessing the nexus between industrialization and inclusive green growth in Africa. The critical role of energy efficiency," Ecological Economics, Elsevier, vol. 233(C).
    2. Philémon Votsoma & Sem I-dé Dringa . & Mohammadou Nourou, 2025. "Inclusive green growth in Africa: does institutionalized democracy matter?," Economics Bulletin, AccessEcon, vol. 45(4), pages 1944-1962.
    3. Khalid, Hassam & Ahmad, Khalil & Ali, Amjad, 2025. "The Impact of Information Technology Audits on Audit Efficiency and Effectiveness: Evidence from UK Firms," MPRA Paper 127542, University Library of Munich, Germany.
    4. Gao, Zhiyuan & Zhu, Yingnan & Wei, Yihang & Hao, Yu, 2025. "The green circuit: Tracing digital inclusive finance's role in sustainable urban development," Research in International Business and Finance, Elsevier, vol. 76(C).

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