Does Green Investment raise Productivity?
Salifou Issoufou, International Monetary Fund and Nama Ouattara, Université Paris-Sud 11
Applying the Arellano and Bond (year) dynamic generalized method of moments estimator to a panel of 46 African countries over the period of 1985 through 2007, we find that green investment lowers aggregate productivity growth. Indeed, on average, a one percent increase in our measure of green investment is associated with a 0.23 percentage point decline in productivity growth. To the best of our knowledge, this paper is the first to present aggregate evidence of the impacts of green investment on productivity.