Internaonal Journal of Scienfic Research and Engineering Development-– Volume 7 Issue 6, Nov-Dec 2024
Available at www.ijsred.com
ISSN: 2581-7175 ©IJSRED: All Rights are Reserved Page 822
GLOBALIZATION, GREEN FINANCE AND SUSTAINABLE
DEVELOPMENT IN NIGERIA
Dare, Funso David (PhD)
1
. Otapo, Toyin Waliu
2
. Demehin, James Adeniyi
3
& Ushie, Paul
Obogo
4
Department of Finance, Adekunle Ajasin University, Akungba Akoko Ondo State
* Email: funso.dare@aaua.edu.ng,** Email: toyin.otapo@aaua.edu.ng ,***Email: james.demehin@aaua.edu.ng ,
****Email: paul.ushie@aaua.edu.ng
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ABSTRACT
The United Nations, General Assembly, in September 2015 adopted a 17-point Sustainable Development
Goals (SDG), tagged the 2030 Agenda. The attainment of the SDG is, however, dependent on various
economic, social and political factors part of which are globalization and finance. This study examined the
contributions of globalization and green finance to the attainment of the SDG from two perspectives, namely,
environmental (CO2 emission) and social (life expectancy) from 2012 to 2022.
The study employed the Generalized Method of Moments (GMM) technique to determine the effect of three
globalization (trade openness, net foreign direct investment and net foreign portfolio investment) and three
green finance (green bonds, renewable energy investment and credit to agriculture) variables and the Gross
Domestic Product (control variable) on CO2 emission and life expectancy.
Findings from the study revealed that among the globalization variables, none have a significant effect on
CO2 emission while one of them, net foreign portfolio investment does (coefficient = 0.000135; p =
0.0002<0.05 level of significance - LOS). Two green finance variables, green bonds and renewable energy
investment have reducing and significant effect on CO2 emission (coefficient = -0.000189, p = 0.0000<0.05
LOS and coefficient = -0.00000197, p = 0.0000<0.05 LOS respectively). Only one green finance variable,
credit to agricultural sector had a positive and significant effect on life expectancy (coefficient = -0.0000197,
p = 0.00327 LOS).
Based on these findings, this study recommends that authorities should identify globalization variables
significantly reduce CO2 emissions and prioritize policies on them, there should be policy diversification
approaches that include both globalization and non-globalization strategies for a more comprehensive plan to
reduce CO2 emissions, encouragement of increased public and private sector investments in renewable energy
projects and green bonds and tailoring of globalization and green finance policies to have a positive impact on
life expectancy.
Keywords: Globalization, Green Finance, Sustainable Development, GMM
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I. Introduction
Globalization has transformed economies worldwide, bringing opportunities for growth and development but
also posing challenges related to environmental sustainability (Okeke, 2020). Nigeria, as Africa's most
populous country and largest economy, is particularly affected by these global dynamics. The integration of
Nigeria into the global economy has brought both benefits and challenges, especially concerning sustainable
development and environmental preservation. Her economy has been significantly influenced by
globalization, primarily through increased trade, foreign direct investment (FDI), and technological
advancements. The country's oil wealth has played a central role in its integration into the global economy,
making it vulnerable to fluctuations in global oil prices. Despite economic growth fueled by oil revenues, the
RESEARCH ARTICLE OPEN ACCESS