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This paper examines the nature and origins of state-society relations in sub-Saharan Africa ( SSA). It traces the region's predatory state-society relations to slavery and colonialism and the concomitant extractive institutions, which are not conducive to sustainable economic development. Consequently, attempts to achieve sustainable development have been largely futile. The paper proposes a strategy for transforming the region's economic and governance institutions for inclusive and enduring growth and development. This strategy includes the promulgation and enforcement of coherent international codes and guidelines for state-society relations. [ABSTRACT FROM AUTHOR]

The paper empirically analyzes the financial development (FD)-growth nexus, and the financial development-total factor productivity (TFP) link in sub-Saharan Africa. The study is based on a VAR approach: Johansen cointegration tests and error correction models. The sample includes 22 countries over the period from 1960 to 2002. Results suggest that FD and economic growth and, FD and TFP are cointegrated for many countries. Moreover, in many cases, the relationship between FD and growth is characterized by bidirectional causality in the Granger sense, whereas the relation between FD and TFP is characterized by a unidirectional causality running from FD to TFP. With few exceptions, it appears that financial development spurs economic growth in countries where that growth is supported by technological progress. The implication of the findings is that any reform that causes betterment in the financial sector will foster economic growth through a sharp increase in technological progress. [ABSTRACT FROM AUTHOR]

This paper provides an empirical assessment of the driving forces behind structural transformation in sub-Saharan Africa, and to further access the role of structural reforms in accounting for cross-country differences in transformation. Evidence from this paper reveals that country specific fundamentals, institutions and policy reforms as well as governance and fiscal reforms are the key drivers of transformation in the region. A set of policy strategies is proposed to engender sustained transformation and development in the region. [ABSTRACT FROM AUTHOR]

This paper examines the long-run relationship between financial globalization and economic growth in sub-Saharan Africa using panel unit root tests, panel cointegration tests and panel multivariate ECM. The study finds that the variables are stationary at first difference - I(1). Also, the results reveal that all the variables are cointegrated, that is, they are related in the long run. The results of the ECT test within the framework of panel multivariate ECM confirm the cointegration tests. The paper concludes that there is a long-run relationship between financial globalization and economic growth in sub-Saharan Africa. The paper argues that sub-Saharan African economies will benefit from the era of financial globalization in the long run in as much as the governments promote and encourage sound macroeconomic policies and strong institutions. [ABSTRACT FROM AUTHOR]

This paper argues that food security and human development are intricately linked, and that meaningful progress on the one cannot be sustained without concomitant progress on the other. The paper surveys recent research on various aspects of the linkages between food security and human development and highlights areas where further research would enrich our understanding of the complex interactions and synergies between the two. It concludes by calling for a more systematic investigation of the human development-food security nexus with a view to generating new and practical insights for improving food security and advancing human development in sub-Saharan Africa. [ABSTRACT FROM AUTHOR]

Abstract: This paper explores the moderating effects of absorptive capacity on the role of technology transfer in explaining cross‐country differences in national efficiency. We used data from 18 sub‐Saharan Africa countries over the period 1970–2010 and adopted a stochastic frontier approach. The empirical results show that the coefficients of the interaction terms for measures of technology transfer (trade and machinery imports) and absorptive capacity (relative R&D) are negative and statistically significant. This suggests that absorptive capacity positively influences the degree to which technology transfer affects the efficiency of countries in sub‐Saharan Africa. [ABSTRACT FROM AUTHOR]

Nothwithstanding crisis and critique, development remains an enduring frame within which much social and economic transformation is interpreted and envisaged. In the context of arguments about the need for a nuanced spatial vantage point on development, this paper asks what this means in the context of new conjunctures and constellations? It focuses on intensified processes and patterns of uneven development manifest as enclaves. The paper explores these drawing on literatures about Southeast Asia, sub-Saharan Africa and the Gulf. [ABSTRACT FROM AUTHOR]

The paper examines the dynamically evolving triangular relationships between institutions, growth and inequality in the process of economic development, in order to deepen the understanding of institutional conditions for pro-poor growth and shared growth. In this context, the paper discusses the institutional conditions found in sub-Saharan Africa, which may have produced the growth pattern that is unequal and against the poor. The analysis shows that sub-Saharan African countries require transforming institutions for embarking upon and sustaining a development path which would ensure shared growth in years to come. The paper first evaluates the growth-inequality-poverty nexus, as found in the recent literature, which increasingly challenges the trade-off between growth and equity, as postulated in the traditional theories. Various definitions of pro-poor growth are discussed and a sharper definition of the concept of ‘shared’ growth is provided. Definitions of institutions are then examined, as well as the triangular inter-relationships between institutions, inequality and poverty. The paper finally analyses specific institutional conditions found in sub-Saharan Africa that prevent economies from emerging out of low-equilibrium poverty traps that are characterized by low economic growth, unequal distribution of income and wealth as well as unequal access to resources and power. [ABSTRACT FROM AUTHOR]

Abstract: This paper studies the role played by the quality of property rights in the linkages of international capital flows into sub‐Saharan African (SSA) economies. Using panel data of 36 SSA countries over the period 1996–2015 and the ARDL procedure with the Pooled Mean Group regression method appropriate for non‐stationary panel data estimation, we account for the joint effects of property rights quality and openness to foreign capital flows on economic growth. We uncover the existence of a property rights quality threshold beyond which property rights either amplifies the spillovers effects or attenuates the negative effect of capital flows on economic growth. For instance, it takes a level of property rights of at least 60 to have a positive long‐term impact of capital flows on economic growth in natural resource‐poor African countries. The quality of property rights matters more to obtain spillover effects of capital flows on growth in natural resource‐poor countries than in their peer natural resource‐rich countries. Finally, with regard to the countries' income levels, capital flows have significant long‐term spillovers effects on economic growth in advanced African economies than in their low‐income peers. [ABSTRACT FROM AUTHOR]

This paper explores the impact of the institutional environment on the performance of 291 microfinance institutions in 34 sub-Saharan Africa countries during the period 2006 to 2014, by analysing the unbalanced panel data using fixed effects and generalized method of moments (GMM) estimation techniques. The panel regression results demonstrate strong evidence that a strong institutional environment has a positive effect on the performance of microfinance institutions in sub-Saharan Africa. More specifically, the findings reveal a positive and significant relationship between business freedom and microfinance performance in sub-Saharan Africa. These vital findings not only provide useful information to policy makers and key microfinance industry players, but also highlight the impact that institutional qualities have on microfinance performance. [ABSTRACT FROM AUTHOR]

Commodity price shocks are an important type of external shock and are often cited as a problem for economic growth in Sub-Saharan Africa. We choose nine Sub-Saharan African countries that are heavily dependent on a single agricultural commodity for a significant portion of their income. This paper quantifies the impact of agricultural commodity price shocks using a structural non-linear dynamic model. The novel aspect of this study is that we determine whether the response of per capita GDP for the selected Sub-Saharan African countries is different to unexpected increases in agricultural commodity prices as opposed to decreases in prices. We conclude that there is very little evidence that an unanticipated price increase (decrease) will lead to a significantly different response in per capita incomes. [ABSTRACT FROM AUTHOR]

To the extent that in utero and childhood malnutrition negatively affects later stage mental and physical health, it can possibly constrain later stage human capital acquisition, which is an important driver of economic growth. This paper considers the impact of famine on aggregate adolescent human capital formation in sub-Saharan Africa. We parameterize a joint adolescent human capital and food nutrition production function to estimate the effects of famine on years of primary school completed by individuals aged 15-19. Mixed fixed and random coefficient parameter estimates for 32 sub-Saharan African countries between 1980 and 2010 reveal that years of primary school completed by adolescents is proportional to the quantity of food and nutrition produced during childhood and in utero. This suggests that declines in food production and nutrition associated with famine in sub-Saharan Africa have large negative effects on the acquisition of human capital by adolescents and on long-run material living standards. Our findings show that there is yet another consequence to famine, a long-run reduction in adolescent human capital, and this should reinforce the case for strong food security programmes in sub-Saharan Africa. [ABSTRACT FROM AUTHOR]

This paper re-examines the long-run finance-growth nexus in sub-Saharan Africa (SSA) using data from 17 countries over the period 1975-2005. We apply error correction-based panel cointegration tests that take into account cross-sectional dependence among countries. Our results - unlike a previous study using the same data - indicate the existence of a long-run relationship between financial and economic development in SSA countries. Moreover, our results clearly show that the long-run causality runs from financial to economic development, although a muted support for the reverse causal impact is observed when financial development is measured by the percentage of liquid liabilities in GDP. The estimated long-run parameters measuring the finance-growth link are positive and statistically significant. Therefore, our results strongly support policies aimed at developing the financial sector in SSA in order to promote long-run economic development. [ABSTRACT FROM AUTHOR]

Exercising fiscal prudence in periods of deteriorating fiscal balance requires sound policies which promote debt sustainability. This paper estimates a dynamic cross-country model and investigates the impact of domestic debt on economic growth and private sector credit in a panel of 21 sub-Saharan African (SSA) countries over the period 1985 to 2010. System-GMM results reveal a non-linear relationship between domestic debt and economic growth, characterized by a maximum turning point of 11.4 per cent of GDP. In addition, domestic debt is found to crowd out private sector credit by an elasticity of negative 0.3 per cent of GDP, deterring capital accumulation and private sector growth. These findings underscore the need for effective debt management strategies which incorporate debt ceiling to limit domestic indebtedness, as well as the design of financial policies which enhance credit availability, promote fiscal discipline and deepen domestic debt markets on the continent. [ABSTRACT FROM AUTHOR]

Investment is a crucial factor determining economic performance at the firm as well as the country level. In this paper I identify the determinants of the decision to invest in new plant and equipment as well as the determinants of the level of such investment for a sample of firms in 19 sub-Saharan African countries. In particular, I concentrate on the role of property rights, external finance, trade status and firm ownership on investment. Results indicate that internationally trading firms, foreign owned firms and firms with better access to sources of external finance tend to be more likely to invest and to invest more, with little role for indicators of property rights in influencing investment decisions found. [ABSTRACT FROM AUTHOR]

As Africa's foremost 'emerging market' Angola is receiving increasing recognition for its oil wealth, leading to attempts to engage it as a strategic partner, especially amongst the 'rising powers'. In particular, there has been considerable escalation in development cooperation between Angola and China recently, though relatively little is known about the precise terms of this 'partnership' despite China's key role in Angola's post-conflict reconstruction. The growing importance of Chinese credit lines and increasing presence of Chinese corporate agencies across Angolan territory raise important questions about development, poverty reduction and inequality; governance and labour relations; and Angola's institutional capacity and the social structure of its cities. This paper critically examines the specific outcomes of Angola's 'partnership' with China along with the hybrid conceptions and tangled geographies of 'development' produced as a result. In particular, it seeks to interrogate the visions of Angola's future articulated by the Angolan state and the reference points and 'models' of development that they draw upon. [ABSTRACT FROM AUTHOR]

This paper uses the bias-corrected least-squares dummy variable (LSDV) estimator to examine the relationship between economic growth and four different types of private capital inflows (cross-border bank lending, foreign direct investment (FDI), bonds flows and portfolio equity flows) on a sample of 15 selected sub-Saharan African countries over the period 1980–2008. Our results show that FDI and cross-border bank lending exert a significant and positive impact on sub-Saharan Africa's growth, whereas portfolio equity flows and bonds flows have no growth impact. Our estimates suggest that a drop by 10 per cent in FDI inflows may lead to a 3 per cent decrease of income per capita growth in sub-Saharan Africa, and a 10 per cent decrease in cross-border bank lending may reduce growth by up to 1.5 per cent. Therefore, the global financial crisis is likely to have an important effect on sub-Saharan Africa's growth through the private capital inflows channel. [ABSTRACT FROM AUTHOR]

The paper conducts an empirical investigation into the effects of financial liberalization policies on the growth of 19 countries in sub-Saharan Africa (SSA). Two indexes are constructed which measure the gradual progression and institutional changes involved in financial liberalization. Because these indexes track specific financial liberalization policies, they provide better measures of financial liberalization than the indicators of financial development often used in the literature. Panel data estimates show a significant positive relationship between economic growth and financial liberalization policies. Our results are robust to alternative specifications of the model, and also across slow- and fast-growing countries. [ABSTRACT FROM AUTHOR]

Sub-Saharan Africa continues to face the daunting challenge of alleviating poverty due to slow economic growth. In southern Africa, most countries are adopting policies that promote the integration of biodiversity conservation and rural development to contribute to rural poverty alleviation. Numerous approaches have been undertaken in this endeavour, including Transfrontier Parks (TFPs) and Transfrontier Conservation Areas (TFCAs). This paper discusses some of the limitations of the TFPs. In conclusion I posit that unlike TFPs, which are state controlled and managed, TFCAs, which promote multi-land use and multi-stakeholder participation are attainable and have a higher probability of sustaining biodiversity conservation and contributing to the alleviation of rural poverty, if: (i) areas of high biodiversity conservation within communal areas can be identified, zoned and leveraged to biodiversity conservation and managed in partnership between the communities and the private sector; (ii) local communities can secure legal rights to their customary land being devoted to biodiversity conservation and use such pieces of land as collateral in negotiating partnerships with the private sector in developing conservation-based enterprises; (iii) functional community natural resource governance institutions can be established and empowered to represent their constituencies in securing fair equity from profits made from sustainable use of the conserved biodiversity assets and tourism businesses; (iv) concerted effort can be invested in developing and implementing family planning and fertility reduction strategies that would slow down human population growth to levels that can be sustained by the available natural resources; and (v) if sustainable financing mechanisms can be developed, and the governance of protected areas occurring in the TFCAs can be broadened to include other stakeholders. [ABSTRACT FROM AUTHOR]

In this paper it is argued that political development is the key to long-run growth in developing nations. Political development is seen to be dependent on the extent to which a state or ruling elite's income is earned or unearned. The availability of earned income is linked to the structure and productivity of the agricultural sector. Applying the analysis to the sub-Saharan African experience involves taking into account three factors: the international environment, the ethnic division of societies as a result of colonization, and the urban bias which characterized the economic strategy of the newly independent African states. As a result, agriculture collapsed, the ruling elite became increasingly dependent on unearned income, political underdevelopment occurred. The collapse of state authority significantly impoverished the region and resulted in significant civil conflict. Any long-run solution must incorporate a broad-based expansion in agricultural productivity. [ABSTRACT FROM AUTHOR]

Despite rapid economic growth and massive inflows of aid, rural poverty in Mozambique is worsening. Agricultural production and productivity have not increased in the last decade. Use of chemical fertilizers and other modern technology is at a low level and decreasing. The present development model emphasizes that the role of government and donors is to provide human capital and infrastructure, while the private sector is responsible for economic development and ending poverty. The most recent national surveys confirm what is being seen elsewhere in Africa - that this non-interventionist strategy does not raise agricultural productivity or reduce poverty. While 80 per cent of Mozambique's population is engaged in agriculture, this sector contributes only 20 per cent of GDP. This suggests that investments in agriculture are likely to generate pro-poor growth, both to rural and urban dwellers. This policy failure is increasingly recognized, but donors and government have invested too much political capital in the current policy to change easily. [ABSTRACT FROM AUTHOR]