Africa as a new potential of the global economy

Aleksandra Milczarek

doi:10.14254/2071-8330.2014/7-2/13

Abstract

The analytical focus in this paper is to determine the tenability of two theoretical concepts of environmental economics in the Slovak Republic: the hypothesis of the environmental Kuznets curve and the hypothesis of Slovakia as a pollution haven. We have chosen to focus on a few selected sources of environmental pollution in the Slovak Republic, specifically greenhouse gas emissions. First we examine the hypothesis of the environmental Kuznets curves in connection with selected greenhouse gas emissions in the Slovak Republic from the years 1993-2011. Next we analyze the possible causal relationship between the net inflows of foreign direct investment and the volume of selected greenhouse gas emissions in the Slovak Republic. The existence of an environmental Kuznets curve was not confirmed. It is also possible to make the same conclusion in the relationships of carbon dioxide, nitrous oxide, and per fluorocarbons emissions and economic growth (GDP per capita). Only in the case of methane was neither a linear nor a cubic relationship confirmed between the variables of interest. A quadratic relationship was confirmed suggesting that this is the only type of greenhouse gas where estimates indicate a relationship which follows an environmental Kuznets curve. Based on the calculated values of the Granger causality test we conclude that the volume of greenhouse gas emissions per capita in the present period and in any of the previous four periods has no effect on the amount of net FDI inflows as a percentage of GDP in the Slovak Republic.

Highlights

Saturation of existing sale markets, considerable grati cation of the consumer needs and a continuously growing strong rivalry mean that manufactures and sellers are continually forced to seek new ways of development, new markets and new purchases
Entities thinking about long-term pro ts and their brands to ensure a stable market position should be included in the African markets, since they will carry out the segmentation of the market and will impact the structure of industries. is will bene t foreign companies and the domestic market, society and economy of Africa, because it will help them and accelerate their development
Europe and the rest of the world should not ignore Africa and its potential because from over ten years the continent is permanently growing and developing at a dynamic pace. e GDP growth rate exceeds the growth in European countries and other highly developed countries. e structure and infrastructure changes are visible and in many ways this area is still unstable and the activity on it is associated with high risk, the global players increasingly take the risk, because the vision is the promise of pro ts. e rst players of this market, foreign investors reap the largest share in the market and will establish appropriate contacts that would later facilitate penetration

Summary

INTRODUCTION

Saturation of existing sale markets, considerable grati cation of the consumer needs and a continuously growing strong rivalry mean that manufactures and sellers are continually forced to seek new ways of development, new markets and new purchases. Ese processes are more and more visible in Europe, North America and Asia, contributing to economic growth and development of the various countries and regions of the world. E purpose of this article is to show the potential of Africa as a determinant for its future socioeconomic development and the prospective source of economic pro ts for investors and exporters from the European Union and many other countries of the world. E economic potential of African countries makes them exceptionally favourable regions for business development and make them targets for growing numbers of investments and international trade. E rst part of this work describes what Africa has to offer to the modern world and what will build its future growth, becoming a major participant of the global market processes. Quantitative data, the comparative method and the description method have been used to analyse the problem in this article

THE ECONOMIC POTENTIAL OF AFRICA

Dynamics GDP growth

Findings

CONCLUSION