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This paper examined the short‐ and long‐run impacts of gasoline price, macroeconomic factors and road length on road traffic crashes, injuries and fatalities in Nigeria. Annual data from 1995 to 2019 and autoregressive distributed lag approach were employed. Results suggest that gasoline price, per capita income, road length and population density significantly influence road safety outcomes. Gasoline price has a positive short‐run impact on crashes, injuries, and fatalities contrary to findings in developed countries. Road crashes tend to decrease when income increases in the short term. Population density leads to improvement in road safety outcomes while road length exacerbates it. Government's policy on gasoline price increase could worsen road safety outcomes unless it is accompanied by improvement in road infrastructure, safe public transport and economic growth, [ABSTRACT FROM AUTHOR]

This paper investigates the effect of financial development on domestic investment in West African countries. The study uses data from 1985 to 2019 and employs the pooled mean group technique. The main finding of the study is that financial development has a positive effect on domestic investment in the long run but an insignificant effect in the short run. Furthermore, remittances, real GDP per capita and trade openness increase investment rate. The results of causality tests support the view that investment is a channel through which financial development stimulates economic growth. Therefore, it is reasonable for the selected countries to formulate policies that promote domestic credit to the private sector in order to ease liquidity constraints and increase investment and economic growth. [ABSTRACT FROM AUTHOR]

A growing body of literature highlights the importance of export sophistication for economic development. Given the newness of the literature on export sophistication, its determinants are under‐exploited. As a pioneer study, this paper attempts to fill this gap in the literature by examining the effect of infrastructure development on export sophistication. Based on a panel of 45 African countries over the period 2003–2016, the results of the different estimations show that infrastructure, including transport, electricity, ICT and access to water and sanitation, improves export sophistication in Africa. Our results also show that the effect of infrastructure varies at different intervals of the export sophistication distribution. Therefore, improved infrastructure would allow African countries to not only improve their export structure but also achieve sustainable and durable growth. [ABSTRACT FROM AUTHOR]

This paper examines the nexus between tourism, financial development and economic growth in 31 African countries using the Dumitrescu–Hurlin Granger non‐causality test that accounts for heterogeneity and cross‐sectional dependence. It also employs the Granger causality test in the frequency domain that distinguishes between temporary and permanent causality for the country‐specific analysis. It shows a cointegration relationship between tourism, financial development and economic growth. It reveals a joint long‐run causality from tourism and financial development to economic growth, and a joint short‐run and long‐run causality from tourism and economic growth to financial development, albeit the joint causality from financial development and economic growth to tourism is tenuous. The individual causality shows a bidirectional causality between tourism and economic growth, between financial development and economic growth, and between tourism and financial development. The country‐specific analysis reveals that tourism is a significant predictor of financial development and economic growth at high frequency rather than at low frequency in most countries. Therefore, African countries should prioritize the policies and programs that can facilitate the development of the tourism and financial sectors in their quest to accelerate economic growth and development. [ABSTRACT FROM AUTHOR]

This paper examines the importance of good institutions in harnessing the growth effects of the bulging economically active population in sub‐Saharan Africa (SSA). The paper utilizes a panel dataset comprising 39 countries over the period 2002–13. Based on the system generalized method of moments estimator, this paper finds that an increase in the relative size of the working‐age population has no direct significant impact on growth, except through the presence of strong and high‐quality institutions. The paper also finds that control of corruption, rule of law and political stability are the specific aspects of institutions that matter the most in reaping the dividend. These results do not only highlight the primacy of strong institutions but also shed light on the key institutional pillars that need to be strengthened to rake in the positive effects of an increasing working age population on economic growth in SSA. [ABSTRACT FROM AUTHOR]

Abstract: Using panel data on 47 African countries from 1980–2013, this paper investigates the effects of aid on Africa's economic growth from the perspective of political stability. We find that international aid can promote economic growth in Africa, but the effectiveness of aid depends on countries’ political stability. Further, the intensity of aid affects its effectiveness. When the aid–GDP ratio is between 0 and 69 per cent, aid can promote economic growth in recipient countries, and when this ratio is 27 per cent, the marginal impact of aid on economic growth is maximized. The findings of this paper suggest that providers of aid should avoid providing a substantial amount of aid to countries at risk of political unrest, and they must determine the optimal scale of aid based on the economic development of recipient countries in order to enable aid to generate better results. Recipient countries should maintain social and political stability and ensure that they do not develop an excessive dependence on aid so that they can achieve the self‐sustainable development of their own economies. [ABSTRACT FROM AUTHOR]

This paper documents stylized facts on agro-manufacturing, especially the food, beverages and tobacco (FBT) manufacturing value added (MVA) in Africa and empirically analyzes its determinants using data for a panel of African countries over the period 1990-2011. We also estimate for the sample of sub-Saharan Africa and North Africa during the same period. The analysis is extended to food and beverages (FB) only MVA. The analyses point to large differences in sector shares both across countries at different levels of economic development. Using a two-stage least squares (2SLS) regression method, it finds that a large proportion of the cross-country variation in FBT MVA and FB MVA can be accounted for by country characteristics, policy and institutional variables. In particular, the paper finds that an inverted U-shaped relationship with real per capita GDP for FBT MVA and FB MVA, except in FB MVA in North Africa where the reverse is true. Key positive drivers of FBT MVA for the entire continent include government consumption expenditure, household consumption expenditure, social globalization, dependence on oil, minerals, natural gas, coal and forest resources, arable land, and renewable electricity output. Major negative drivers are trade openness and population size. The policy implications and lessons of these results for increasing FBT and FB MVA and feeding Africa are discussed. [ABSTRACT FROM AUTHOR]

This paper compares the impact of financial development on economic growth in the Union Économique et Monetaire Ouest Africaine (UEMOA) and non‐UEMOA countries. It also examines the finance‐growth nexus before and after the formation of UEMOA, as well as the indirect effect of economic union on economic growth through the financial sector. The study reveals a significant difference in the finance‐growth nexus between UEMOA and non‐UEMOA countries. Specifically, financial development has a robust positive impact on growth in UEMOA countries, while the impact is tenuous in non‐UEMOA countries. However, we find no remarkable difference in the finance‐growth nexus before and after the formation of UEMOA. We also reveal that economic union has no robust indirect effect on economic growth via the financial sector. The economic implication is that UEMOA could have economic benefits, but financial development is not a channel through which it influences growth. Therefore, it is necessary to reposition the union so that it can enhance the impact of finance on growth. [ABSTRACT FROM AUTHOR]

This study aims to examine and analyze the impact of financial development and foreign bank penetration on African economies. An empirical study for the period 1995–2015 is conducted using the system GMM estimator. Our empirical results indicate that foreign bank entry has a positive and significant impact on economic growth in the countries of North and Southern Africa, while in the other two regions considered in this study (West and Central Africa, East Africa) the impact is negative and rarely significant. In addition, our results show that the development of financial markets has a positive and significant effect on economic growth only in the Southern African region. The paper concludes that policymakers should focus on long‐term policies to strengthen the financial sector to truly meet the needs of African people. [ABSTRACT FROM AUTHOR]

This paper explores the relationship between commodity dependence and human development measured by the human development index (HDI). Commodity dependence negatively affects human development through several channels, including the negative secular terms of trade affecting commodity-dependent developing countries (CDDCs), slow economic growth, high macroeconomic instability, and political instability. The paper finds that although the effect of commodity dependence on human development is negative, on average, this relationship is complex. It changes with the level of dependence as well as the type of commodity a country depends on. This negative effect is strongest in countries where commodities account for more than 60 percent of total merchandise exports. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of financial innovations on the stability of money velocity. The paper contributes to the existing literature in three ways; first, we develop a simple analytical framework for money velocity taking into account the effect of financial innovations. Second, we test the model on Ugandan time series data using the ARDL bounds testing approach. Third, we check for the stability of the long-run money velocity function. Results show significant negative and positive effects of financial innovations on the money velocity in the short and long run, respectively. In addition, the long-run money velocity equation is stable despite the financial innovations that have evolved over time. Furthermore, other macroeconomic determinants of money velocity, including real income, the 91-day treasury bill rates, inflation expectations and the exchange rate exhibited a significant and positive long-run relationship with money velocity except for real income. These results suggest that financial innovations have not altered the long-run stability of money velocity in Uganda. Thus, given the importance of financial innovations in enhancing the access to financial services, we recommend that more technological advances and diversification of financial products should be enhanced so as to improve financial sector development and overall economic growth. [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]

Financial development is influenced by the dynamics of multiple factors which have remained insufficiently explored up to date. In view of this, an attempt is made in this paper to investigate the impact of internet adoption on financial development in sub‐Saharan Africa, using Nigeria and Kenya as case studies. The dynamic ordinary least squares and vector error correction mechanism methods were employed in the study which revealed that the internet, complemented by financial openness, exerted a significant positive impact on financial development in the period 2000–16. The null hypothesis which states that the internet does not encourage financial development is therefore rejected. It follows that the level of financial development in both countries, and indeed most countries in sub‐Saharan Africa, could be enhanced by adopting appropriate policies that encourage more inclusive use of the internet. The policy recommendations of this study therefore include (i) relaxing the stringent requirements for licensing internet operators in order to make more services available for financial transactions, (ii) integrating internet technology into the national infrastructure framework in order to sustain its application, (iii) fostering local skills and expertise that will be maintaining internet infrastructure and (iv) providing a legal framework that protects personal information and ensures responsible usage of internet. [ABSTRACT FROM AUTHOR]

Since the seminal paper by Rajan and Zingales in 2003, a plethora of studies have been motivated to establish whether the simultaneous opening of trade and capital borders leads to financial sector development. We test whether the simultaneous openness hypothesis is valid for Nigeria, with a focus on the banking sector and stock market. Using annual data from 1990 to 2015 and an instrumental variable regression estimation technique, we show that the simultaneous increase of trade and financial openness limits banking sector and stock market development. Thus, there is no empirical evidence to validate the simultaneous openness hypothesis in Nigeria. It also shows that trade openness is more beneficial for banking sector and stock market development in Nigeria than financial openness. [ABSTRACT FROM AUTHOR]

Empirical studies on international trade highlight the role of innovation on international exchange but do not capture the effect of technological innovation when unobservable common factors (UCFs) are considered. This paper examines the long‐run relationship between technological innovation and international exchange using panel data for eight African countries over the period 1981–2013. The non‐stationarity and cointegration between technological innovation, international exchange, public investment, real gross domestic income and foreign direct investment were examined, controlling for cross‐sectional dependence and heterogeneity between countries. The results suggest that technological innovation in Africa remains low after controlling for UCFs, while public investment, real gross domestic product and foreign direct investment have significant impact on international exchange. Moreover, the results from the homogeneous and heterogeneous estimates, with and without UCFs, show that ignoring UCFs is likely to bias the coefficients. These findings reveal that African countries should invest more in public infrastructures and research and development to upgrade their capability To play an active role in the international market. [ABSTRACT FROM AUTHOR]

Financial deepening is universally considered to be one of the vital means to trigger inclusive growth, in economies the world over, Tanzania being no exception. However, the lack of traditional collateral among the poor has made it virtually impossible for them to have access to financial services particularly in the formal financial institutions. It is in this context that the informal financial groups (IFGs) are so crucial in filling the financial inclusiveness gap among the poor in Tanzania. It is thus crucial that the efficacy of IFGs in improving the well‐being of the poor is assessed. It is in this context that the present study employs a quasi‐experiment mixed methodology to answer research questions. Findings have categorically shown that membership to IFGs has a positive and significant impact on various socio‐economic variables. Efforts to intensify education and training activities in IFGs, and their access to loans are some of the key recommendations that this paper suggests. It is hoped that the newly promulgated 2017 National Microfinance Policy shall be implemented to that effect. [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]

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 examines the asymmetric non-linear relationship between insurance and economic growth in Nigeria between 1976 and 2010. Prior studies have examined the direction of causality between insurance and economic growth with mixed conclusions in the insurance-growth literature. Moreover, the majority of these studies assumed symmetric causal relationships by concentrating mainly on testing the supply-leading and demand-following hypothesis. This paper, therefore, contributes to the literature by examining the asymmetric causality test between insurance and economic growth in Nigeria. After the cointegration, the asymmetry causality and the asymmetric impulse responses show a robust significant relationship between high gross domestic product (GDP) and low insurance in the long run. [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 examines urban-rural welfare inequality in Tunisia. Founded on the recentred influence function and quantile regression based counterfactual decomposition, we dissect the gap between the two areas. Results of the present study suggest that the difference between rural poor households and urban poor households is due essentially to characteristic effects; while for wealthier households both characteristic and returns to these characteristic effects (for example, efficiency of educational system) are responsible for this gap. Additionally, the results demonstrate that this is an issue of value, and, more specifically, an economic development fairness conflict. It is suggested that policymakers should address a positive discrimination programme in favour of the marginalized region. [ABSTRACT FROM AUTHOR]

This paper investigates the determinants of educational achievements using household data collected in 2009 and 2010 from six sub-Saharan African countries. The econometric strategy combines estimation of random effect Probit models and variance decompositions to assess the relative contributions of between-family and within-family inequalities in schooling. Whilst the selected countries are rather heterogeneous in terms of economic development and public education expenditures, very similar results are found in five out of the six sub-Saharan countries. More than two-thirds of differences in schooling are explained by educational differences between families and within-household inequalities are very difficult to explain by observed family characteristics. [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]

This paper investigates the link between foreign direct investment (FDI), democracy and economic growth on a panel of eight Southern African countries for 1980-2014 using the system generalized method-of-moment (GMM) estimator. We find that FDI has a direct positive effect on economic growth and that strong democratic institutions are a significant driver of economic growth in the sample countries. The impact of FDI on economic growth is dependent on the level of democracy in the host countries. This implies that countries with strong democratic institutions are better able to absorb the positive spillovers from FDI. In policy terms, Southern African countries should sustain the institutional reform policy agenda already in place in order to benefit more from the significant inflows of FDI. [ABSTRACT FROM AUTHOR]

This paper empirically studies the key drivers of gender equality in youth employment over the period, 1991 and 2011. Using the pooled OLS method with year, sub-regional, and oil fixed-effects, our results suggest that for Africa as a whole and Sub-Saharan Africa (SSA), quadratic levels of real per capita GDP, gender equality in primary education, trade openness, FDI inflows, political globalization, economic growth, urbanization, female population, and being a net oil-exporting country are significantly positively associated with gender equality in youth employment. The level of real GDP per capita, equality in secondary education, gross domestic investment, access to telephone, youth unemployment, and Muslim faith tend to lower it. Government consumption expenditure also lowers it in SSA. However, North Africa is different: the level of real GDP per capita, gender equality in secondary education, and government consumption expenditure tend to increase gender equality in youth employment, while being an oil-exporting country and youth unemployment tend to lower it. [ABSTRACT FROM AUTHOR]

This paper investigates the dynamic effects of external debt on economic growth in Nigeria from 1970 through 2013. We begin by constructing an external debt sustainability index using principal component analysis to capture the overall effects of external debt indicators on economic growth. The empirical analysis is based on the ARDL bound test. The results show a long-run cointegration relationship between the variables. While external debt exerts an adverse effect of −0.069 per cent on growth in the long run, the external debt sustainability index shows a positive effect of 0.072 per cent and 0.024 per cent on growth in the long and short run. The findings suggest the government should reduce its expenditure and mobilize revenue through domestic sources to invest in projects with a high rate of return to enable debt repayment and stimulate growth. To maintain debt ratios within a manageable threshold so as to avoid being debt trapped, foreign loans should only be contracted on concessional terms. [ABSTRACT FROM AUTHOR]

The slow growth of Algeria is analyzed in this paper, by comparing the economic growth between Algeria and South Korea, over the period from 1970 to 2010. Both countries were nearly at the same development level at the beginning of the 1960s. Nevertheless, the South Korean economy was ranked 15th in the world in 2010, while Algeria remained underdeveloped. The results obtained show that human capital and physical capital cause the economic growth in the two countries under study. However, the elasticities of productivity with respect to human and physical capital are higher in South Korea. Human capital elasticity in South Korea is two and a half times higher, whereas the physical capital elasticity is twice as high. [ABSTRACT FROM AUTHOR]

This paper analyzed drivers of foreign direct investments (FDI) to West Africa using a panel dataset from 1970 to 2010. OLS and GMM techniques are used for the estimations. The main results indicate that there is a U-shaped relationship between economic development and FDI inflows to West Africa. In summary: (i) The quadratic element of real per capita GDP, domestic investment, trade openness, first year lag of FDI, natural resources (oil and metals) endowment and exports, and monetary integration have positive and significant effect on FDI inflows to West Africa; and (ii) there is a negative relationship between FDI inflows to the sub-region and loan component of ODA, economic growth, level of economic development (real GDP per capita), life expectancy, and domestic credit to the private sector. [ABSTRACT FROM AUTHOR]

This paper is an extension of the debate on the nexus between the strength of intellectual property rights (IPRs) and prospects for knowledge economy. It assesses the relationships between software piracy and scientific publications in African countries for which data is available. The findings, which reveal a positive nexus, are broadly consistent with the school of thought postulating that the East Asian miracle has been largely due to weaker IPRs regimes at the early stages of development. As a policy implication, less stringent IPRs regimes on scientific-related software (at least in the short run) will substantially boost contributions to and dissemination of knowledge through scientific and technical publications in Africa. IPRs laws (treaties) on scientific-oriented software should be strengthened in tandem with progress in: (a) scientific and technical publications; and (b) knowledge spillovers essential for economic growth and development. More policy implications are discussed. [ABSTRACT FROM AUTHOR]

This paper offers ten guidelines for researchers to improve their analysis of regional integration and their approach to regional integration. By way of analysis, regional integration statistics are often misunderstood or poorly constructed. In one way or another this leads to an oversimplification of their meaning. With respect to the approach taken by policymakers to regional integration, the goals of Africa's regional integration have not been seriously interrogated; nor have the necessary national and regional preconditions for achieving even a minimal form of regional integration that is sustainable. [ABSTRACT FROM AUTHOR]

In this paper, we have presented the patterns of inequality, growth and income inequality in the MENA region. Using a cross-sectional time series data of MENA countries for the period 1985-2009, we have also investigated the effect of income inequality on key societal development, namely economic growth and poverty, in the region. Our empirical results show that income inequality reduces economic growth and increases poverty in the region. Other factors having significant negative effect on economic growth in the MENA region include previous growth rate, exchange rate, government consumption expenditure or government burden, initial per capita GDP, inflation and primary education. On the other hand, variables positively and significantly associated with MENA's economic growth are domestic investment rate, urbanization, infrastructure development, and mineral rent as a percentage of GDP. In addition, apart from income inequality, other factors increasing poverty in the region are foreign direct investment, population growth, inflation rate, and the attainment of only primary education. Poverty-reducing variables in the region include domestic investment, trade openness, exchange rate, income per capita, and oil rents as a percentage of GDP. [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]

The article discusses the aims, scope and author guidelines of the magazine, which is devoted to the study and analysis of development policy in Africa. Topics include the articles related to the economic and social development in Africa, the instructions on the preparation and submission of manuscripts and the Exclusive License Form to be signed by the authors for accepted papers.