UNIVERSITY OF DAR ES SALAAM
UNIVERSITY OF DAR ES SALAAM SCHOOL OF ECONOMICS (UDSOE)

Announcements

VIVA VOCE PANEL FOR DANIEL OCHUNDI OKELEE 16TH SEPTEMBER, 2022 AT 09:00AM ROOM NO. 210

Prof. S. Maghimbi

Chair

Dr. W. Ngasamiaku

External Examine Representative

Prof. L. Rutasitara

Internal Examiner

Dr. R. Ruhinduka

Supervisor

Dr. A. Hepelwa 

Nominee of the Dean

Dr. J Silas

Co-opted Member

Dr. N. Mamba

Co-opted Member

Dr. G. Kibira

Co-opted Member

Dr. K. Renger

Nominee of the Dean

 

EFFECT OF TRADE OPENNESS OF AGRICULTURAL WATER USE, ECOLOGICAL FOOTPRINT AND NITROUS OXIDE EMISSION IN SUB-SAHARAN AFRICA

Abstract

This dissertation contains three separate studies on the effect of free trade on the environment in Sub-Saharan Africa (SSA).  The first study investigates the effect of trade openness on agricultural water withdrawals in SSA. The study makes use of a panel data of seven five-year period intervals from 37 SSA countries.  The two-step GMM estimation technique is utilized to assess the impact of trade openness on agricultural sector water withdrawals. Results show that increased international trade reduces agricultural water withdrawals. The computed overall short-run elasticity shows that a 1% increase in trade openness causes a 0.012% decrease in agricultural water withdrawals, which shows that trade-induced scale effects are stronger than trade-induced technique effects. This outcome demonstrates the need to improve water use efficiency in the agricultural sector through intensified use of water saving irrigation techniques such as drip irrigation so as to enhance sustainability in the exploitation of the regions scarce water resources. The second paper analyses the effect of trade openness and foreign direct investments net inflows on ecological footprint in SSA. The feasible generalized least squares (FGLS) estimation technique is applied to the 1990-2015 panel data, from 23 SSA countries. The results show that ecological footprint of consumption per capita decreases with increase in trade openness and increases with an increase in foreign direct investment inflows. The results also confirm the presence of an Inverted U-shaped relationship between ecological footprint and GDP per capita. These findings demonstrate the need to utilize trade to avail the much needed clean technologies in the region.  The third paper analyzes the effect of trade openness on nitrous oxide emissions in SSA. The two step GMM technique is applied to a panel data set, covering the years 1986-2008 and 27 countries in the study region. Results show that a 1% increase in trade openness causes a 0.0039% and a 0.0665% increase in emissions in the short run and in the long run respectively. The study finds no evidence supporting the presence of inverted U shaped relationship between per capita GDP and nitrous oxide emissions in the study region. The results reflect the need for investment in pollution reduction technologies and the importance of structural transformation of the economy in desirably affecting the magnitude of nitrous oxide emissions in SSA. Generally, this dissertation has revealed the need to improve production and resource use technologies so as to check on environmental degradation in the region.

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