Financialisation and Industrial Output Growth in West Africa: Moderating Effect of Environmental Regulation

dc.contributor.authorOluwafemi Emmanuel Adewumi, Sodiq Olaiwola Jimoh, Lukman Shehu Adam, Adamu Muktar Sabi & Amina Mama Usman
dc.date.accessioned2026-05-16T07:46:43Z
dc.date.available2026-05-16T07:46:43Z
dc.date.issued2026-02-23
dc.descriptionThe article is authentic and published
dc.description.abstractThe industrial sector in West Africa has faced persistent volatility arising from macroeconomic instability, infrastructural gaps, and external shocks, limiting sustained industrial growth. Despite regional initiatives such as the African Continental Free Trade Area, challenges related to production costs, access to finance, and governance continue to constrain industrial performance. This study examines the relationship between environmental regulation, financialization, and industrial output growth in 16 West African countries from 1990 to 2023. Using panel data techniques and the Pooled Mean Group (PMG) estimator, the study assesses both the direct effect of financializationand the moderating role of environmental regulation. The results show that financializationis associated with lower industrial output growth, indicating a shift of resources away from productive industrial activities. In contrast, effective environmental regulation improves industrial performance by reducing the adverse influence of financialisation. Countries with stronger regulatory frameworks record relatively higher industrial growth outcomes. The findings further suggest that poorly regulated financial liberalisationcan weaken industrial development, particularly for small and medium-sized enterprises. The study emphasisesthe need for coordinated policies that strengthen environmental regulation, improve financial sector governance, and support long-term industrial investment to achieve sustainable industrial development in West Africa.
dc.description.sponsorshipAuthors
dc.identifier.citation.
dc.identifier.issn2734-2670
dc.identifier.urihttps://kwasuspace.kwasu.edu.ng/handle/123456789/7217
dc.language.isoen
dc.publisherAL-Hikmah Journal of Economics (AJEC)
dc.relation.ispartofseries6; 2
dc.titleFinancialisation and Industrial Output Growth in West Africa: Moderating Effect of Environmental Regulation
dc.typeArticle
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