Causality and interdependencies among sustainable development goals: assessing the nexus of agriculture, environment, and finance development.

Abstract

This study examines the causal relationships and interdependencies among three dimensions of sustainable development goals (SDGs) in Africa: environmental factors, agricultural production (for societal aspects), and finance development (for economic aspects). The study focuses on three regions, the whole SSA (Sub-Saharan Africa, excluding the high-income countries), West-Central Africa (W-CA), and South and East Africa (S-EA), and uses data from 1970 to 2018. It uses vector error correction model (VECM), impulse response function (IRF), and analysis of causality direction methods. The findings indicate bidirectional causal effects among the three SDG dimensions in Africa. Finance development factors influence both environmental and agricultural factors, while agro-production factors significantly affect both finance development and environmental factors. This study concludes that bidirectional causal effects exist within these dimensions, confirming their interdependencies and emphasizing the need for integrating these dimensions into African sustainable development goals. Recommendations include incorporating green aspects in financing development plans and establishing regulatory authorities to effectively coordinate and control these sustainable dimensions at both the Sub-Saharan Africa and state levels, ensuring impactful greenhouse and sustainable agriculture development for sustainable food production.