Search

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]

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]

Over the next two decades, sub-Saharan Africa will face substantial pressure to expand its secondary education system. This is driven by the current low development of secondary education compared to other world regions, continued rapid population growth, the increase in the enrolment and completion rates at the primary education level, and the upsurge in the demand for skills. This paper suggests that in order to help countries respond to these pressures, external partners should now increase their support for secondary education, in terms of academic as well as technical and vocational skills training. Given the attributes of the African economies and the continuing need for foundation skills, this paper argues that in the current situation, particularly the lower secondary level will have to be strengthened, in many cases through a longer basic education cycle for all. The necessary rapid expansion of secondary education will require substantial investments, and this paper discusses how aid allocation can be made more evidence-based and used in a more strategic way to make these investments more effective and sustainable. While aid will continue to have a role to play over the next decade especially in fragile states, in the long run it is African countries' capacity to achieve sustained economic growth which will be the single most important factor determining their ability to meet the financing needs. [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]

In addition to the standard Granger causality, this paper employs the Toda–Yamamoto approach and instantaneous causality test to examine the causal relationship between domestic savings and economic growth in 10 sub-Saharan African countries utilizing time series data. Findings from both the standard Granger causality and Toda–Yamamoto approach are consistent and robust only in five countries where domestic savings and economic growth are completely independent in three countries. For the remaining two, causality runs from savings to growth. However, for the other five countries, findings produced from both causality tests are grossly inconsistent and mixed leaving us under a quandary although the Toda–Yamamoto test is often reliable on account of its ability to avoid misleading results associated with the asymptotic nature of the standard Granger causality test. Our findings further reveal an instantaneous unidirectional causality from domestic savings to economic growth for only Benin, Mali, and South Africa suggesting that savings-led growth is rapid for these countries. We conclude based on our findings that the myriad of ‘evidence’ in earlier studies on savings-growth causality should be treated with caution given that methodological differences can produce misleading results with the potential of misdirecting policy. [ABSTRACT FROM PUBLISHER]

The high failure rate of infrastructures around the world is alarming, most especially when such failures constrain economic growth and development. In most cases, existing institutions or strategies designed to maintain and reproduce effective infrastructures in areas that lack them have been mostly unsuccessful, particularly in sub-Saharan Africa. A carefully conducted survey covering the six geopolitical zones in Nigeria confirms the low-level stability, supply, quality and maintenance of infrastructure and its services. Using the severity index in matrix order model developed in this study, major factors responsible for unsustainable infrastructure delivery and failures are identified. The paper further argues that these major factors are interrelated rather than being peculiar to Nigeria or sub-Saharan Africa. Suffice it to say that the effects of these problems are widespread and of global impact. However, what cuts across all the major factors responsible for unsustainable infrastructure delivery and high failure rates are gross institutional lapses. In view of the fact that sustainable infrastructure is essential for sustainable development, this paper emphasises the uniqueness of the recipients' cultures and values alongside the integration of indigenous communities and infrastructure users: from conceptualisation to delivery within the framework for institutional building and sustainable infrastructure provision. [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]

Regional integration remains an integral part of Africa's development strategy and has underpinned most pan-African development policies for the past 50 years. This paper explores the issue of regional integration in the context of 'development' theory and the neo-patrimonial state system in Africa. A central contention of the paper is that Western, Euro-centric conceptions of regionalism, particularly those centred on the market integration approach, have promoted a very biased understanding of regional integration in many parts of the developing world. Using southern Africa as an exemplar case study, the paper argues that the various meta-theories focused on explaining the political economy of regionalism, often closely allied to a development theory paradigm, fail to account for the nature, character and evolution of regional integration. Regional integration in sub-Saharan Africa has been conceived and analysed in the light of the market-led approach, modernity and development. Thus far, it is has failed. This paper therefore explores why market-led regional integration has failed and why, for the foreseeable future, it will continue to do so. [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]

Summary: Recent signs of increasing agricultural production in a number of countries in sub-Saharan Africa are by some commentators connected to local level differentiation. This paper discusses such interpretations using household level longitudinal data from smallholder households in eight African countries for the period during 2002–2008. The use of a mixed methods social science approach complements traditional economic approaches through adding a spatial perspective. Pro-poor agricultural growth so far is concentrated to particular villages, where it is highly inclusive. The policy challenge remains to devise strategies that can enhance growth also in marginal areas. [ABSTRACT FROM AUTHOR]

Conservation non-governmental organisations (NGOs) have excited a great deal of comment and debate, generally quite divided, in diverse journals. Some advocate them as forces for good, others decry their clumsy dealings with rural peoples and the impoverishment their activities can cause. The debate suffers in two ways. First, it ignores a large parallel literature about the work of development NGOs. Second, there is a paucity of general knowledge about the state of the conservation NGO sector. We do not know where it works, what the main players are doing, or much at all about the extent or activities of the smaller conservation organisations. We do not know how much money the sector spends. In this paper we first briefly outline why work on development NGOs should be applied to conservation NGOs, and then offer an overview of the sector's activities based on a survey of over 280 organisations. We describe some of the basic contours of these activities, and reflect on the implications of our findings for existing writings about conservation NGOs and future research. [ABSTRACT FROM AUTHOR]

Summary: This paper examines the effects of financial and trade liberalization on growth volatility of real output and consumption in Africa. Our results suggest trade liberalization is associated with greater output and consumption growth volatility while financial liberalization increases the efficacy of consumption smoothing and stabilizes income and consumption growth. In addition, we find financial market depth and institutional quality operate jointly with trade and financial openness to reduce volatility in output and consumption growth. There is also evidence that good institutions which foster low inflation levels and volatility promote consumption and output growth stability. [Copyright &y& Elsevier]