Department of Economics, Chrisland University, Abeokuta, Nigeria

Doctor of Philosophy (PhD by publications), {Business Management (Finance)} Norwich Business School (NBS), University of East Anglia, UK. Reference: Abstract Sustainability effect of Informality and Globalisation: Capturing Spatial Spillovers and Threshold effects in African and European Economies. This paper explores the sustainability effect of informality on sustainability. Specifically, the paper adopts a new measure of sustainability, introduce spatial dimensions into the informality-sustainability nexus and explore the interactive effect of globalization in the informality-sustainability nexus, focusing on comparative evidence from African and European emerging economies. Emerging economies play a critical role in global sustainability strategies due to their significant consumption of natural resources and rapid industrialization. Using data of 14 emerging economies: seven African emerging economies from Southern Africa: South Africa, Lesotho, Mozambique, Namibia, Botswana, Zimbabwe, and Zambia; and seven European emerging economies: Bulgaria, Czech Republic, Hungary, Poland, Romania, Slovak Republic, and Slovenia between 1993 and 2018, the study employs spatial econometric models, method of moments quantile regression (MM-QR), and the dynamic panel threshold approach to examine the relationships. Spatial econometric models allow for the consideration of spatial dependencies and interactions among the variables. The method of moments addresses potential endogeneity issues, while the dynamic panel threshold model identifies nonlinear relationships and threshold effects within the data.   The findings indicate a positive relationship between informality and sustainability in African economies, while a negative relationship is observed in European economies. The interactive effect of globalization and informality on sustainability is complementary in both regions, suggesting that globalization can mitigate the adverse effects of informality. Policy recommendations include promoting the formalization of informal economic activities in European region, investing in urban infrastructure, enhancing education and skills training, and fostering international cooperation. The study underscores the importance of tailored policy interventions to address the specific challenges and opportunities in African and European emerging economies, emphasizing the need for sustainable economic development that integrates informal sectors into the global economy. Also, the paper argues for adoption of informal activities threshold to maximise advantages of informal sector while achieving sustainability goals.