120 results
Search Results
2. Competitiveness and diversification of services exports in sub‐Saharan Africa.
- Author
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Were, Maureen and Odongo, Maureen
- Subjects
ECONOMIC development ,CUSTOMS unions ,CULTURAL pluralism ,COMPARATIVE method ,COMPARATIVE advantage (International trade) ,INTERNATIONAL trade - Abstract
Trade in services has become the most dynamic segment of international trade. This paper examines the competitiveness of services exports in sub‐Saharan Africa (SSA) for the period 2005–2019 using revealed comparative advantage approach. The analysis shows that although SSA has a comparative advantage in traditional services, that is travel and transport, it has remained less competitive compared to other regions globally, and its share of world services exports is negligible. Moreover, SSA has not developed competitiveness in modern commercial services and, hence, continue to perform poorly. The results suggest only Nigeria and Kenya have so far developed comparative advantage in financial services. SSA's dismal performance of services exports can be attributed to various factors such as technological and infrastructure constraints, protectionist and regulatory barriers. There is need to rethink strategies of revamping and diversifying services esports to spur Africa's trade and economic transformation. These include leveraging the opportunities availed by the African Continental Free Trade Area (AfCFTA). Unexploited opportunities include Africa's rich cultural diversity, recreation, business and conferencing services. [ABSTRACT FROM AUTHOR]
- Published
- 2023
- Full Text
- View/download PDF
3. Financial Globalization and Economic Growth in Sub-Saharan Africa: Evidence from Panel Cointegration Tests.
- Author
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Egbetunde, Tajudeen and Akinlo, Anthony Enisan
- Subjects
FINANCIAL globalization ,ECONOMIC development ,COINTEGRATION ,MULTIVARIATE analysis - Abstract
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]
- Published
- 2015
- Full Text
- View/download PDF
4. State-Society Relations, Institutional Transformation and Economic Development in sub-Saharan Africa.
- Author
-
Kalu, Kenneth
- Subjects
SUSTAINABLE development ,PROMULGATION (Law) ,COLONIES ,ECONOMIC development - Abstract
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]
- Published
- 2017
- Full Text
- View/download PDF
5. What Drives Structural Transformation in Sub-Saharan Africa?
- Author
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Mensah, Justice Tei, Adu, George, Amoah, Anthony, Abrokwa, Kennedy Kwabena, and Adu, Joseph
- Subjects
RESOURCE allocation ,ECONOMIC development ,URBAN planning ,ECONOMIC reform ,URBAN growth ,ECONOMIC policy - Abstract
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]
- Published
- 2016
- Full Text
- View/download PDF
6. Institutions and economic performance: Implications for African development.
- Author
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LUIZ, JOHN M.
- Subjects
ECONOMIC development ,STATICS & dynamics (Social sciences) ,POVERTY ,WEALTH - Abstract
The recent economic performance of Sub Saharan Africa has been very disappointing. Its poverty has many dimensions and causes, both internal and external. This paper focuses on the role of institutions in promoting or hindering economic development in Africa and the implications for doing business on the continent. It questions our understanding of institutions and how they develop and warns against simplistic assumptions in this regard. The paper examines how it is that institutions come to affect economic growth and the characteristics of what makes for good institutions. Copyright © 2008 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]
- Published
- 2009
- Full Text
- View/download PDF
7. Institutional Foundations for Shared Growth in Sub-Saharan Africa.
- Author
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Nissanke, Machiko and Sindzingre, Alice
- Subjects
ECONOMIC development ,ECONOMIC policy ,INCOME inequality ,DISTRIBUTION (Economic theory) ,HUMAN capital - Abstract
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]
- Published
- 2006
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8. Technology Transfer and National Efficiency: Does Absorptive Capacity Matter?
- Author
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Danquah, Michael, Ouattara, Bazoumana, and Quartey, Peter
- Subjects
TECHNOLOGY transfer ,ABSORPTIVE capacity (Economics) ,ECONOMIC development ,EMPIRICAL research - Abstract
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]
- Published
- 2018
- Full Text
- View/download PDF
9. Financial development and economic growth: Empirical evidence from Sub‐Saharan Africa.
- Author
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Yusheng, Kong, Bawuah, Jonas, Nkwantabisa, Agyeiwaa O., Atuahene, Samuel O. O., and Djan, George O.
- Subjects
ECONOMIC development ,ECONOMIC expansion ,ECONOMIC indicators ,PRINCIPAL components analysis ,HUMAN capital ,PRIVATE banks ,FINANCE - Abstract
This paper evaluates the impact of financial development on economic growth in a sample of 32 Sub‐Saharan Africa (SSA) countries. The countries were grouped into four sub‐regions, and data were collected for the period 1990–2016 on finance and growth indicators on an annual basis. In the estimation procedure, panel estimation and dynamic panel techniques were used. When the disaggregated components of financial development variables were used, findings, among others, reveal the role of credit to the private sector by banks (CPB) even though mixed, to have more impact on growth followed by broad money (BM) and liquidity liability (LL). However, an aggregated index of the financial development indicators via principal component analysis and their simultaneous interaction with human capital improvement brought about a greater positive impact on growth throughout the sub‐regions and the entire SSA. [ABSTRACT FROM AUTHOR]
- Published
- 2021
- Full Text
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10. JID 'Long run effects of Covid‐19 on developing countries' Special Issue Editorial Introduction.
- Author
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Bandyopadhyay, Sanghamitra and Vadlamannati, Krishna
- Subjects
DEVELOPING countries ,COVID-19 pandemic ,COVID-19 ,PANDEMICS ,ECONOMIC development - Abstract
The developing world has experienced unprecedented effects of the Covid‐19 pandemic. The devastating effects of this major crisis are felt in all possible spheres of the developing world and with a serious impact on social and economic development in developing countries. The spread of Covid‐19, which has brought the world to a near standstill, has given rise to the question on the socioeconomic effects of the pandemic. The special issue on Covid‐19 at JID aims to bring together contemporary research on several aspects of how the devastating effects of the pandemic have panned out in different spheres of life, particularly, in the developing world. This special issue has 10 papers with a particular emphasis on evidence of the impact of the Covid‐19 pandemic in Sub‐Saharan Africa and South America. The volume documents studies on the effects of the pandemic at the macro‐level, for economy wide effects, the impact of the pandemic on firms and on its effects on households. [ABSTRACT FROM AUTHOR]
- Published
- 2022
- Full Text
- View/download PDF
11. THE IMPACT OF THE 2008-2009 CRISIS ON COMMODITY-DEPENDENT LOW-INCOME AFRICAN COUNTRIES: CONFIRMING THE RELEVANCE OF THE CONCEPT OF POVERTY TRAP?
- Author
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Sindzingre, Alice
- Subjects
GLOBAL Financial Crisis, 2008-2009 ,COMMERCIAL products ,LOW-income countries ,POVERTY ,ECONOMIC development - Abstract
Focusing on low-income commodity-dependent sub-Saharan African countries, the paper argues that the impact of the 2008-2009 crisis, and more generally, these countries' growth trajectories, can be explained by the concept of the poverty trap. This is not trivial, because commodity-based traps remain debated: some countries have grounded their growth on the export of commodities, and the impact of commodity price fluctuations may be analysed through other concepts (such as cycles). Against these views, it shows that these countries' growth trajectories exhibit the three key theoretical features of poverty traps: threshold effects, cumulative causation and low equilibria. Copyright © 2012 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]
- Published
- 2012
- Full Text
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12. Institutional Environment and Microfinance Performance in Sub-Saharan Africa.
- Author
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Chikalipah, Sydney
- Subjects
MICROFINANCE ,SMALL business finance ,ECONOMIC development ,GENERALIZED method of moments ,ECONOMIC conditions in Africa, 1960- ,ECONOMIC conditions in Africa - Abstract
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]
- Published
- 2017
- Full Text
- View/download PDF
13. Food Security and Human Development in Africa: Strategic Considerations and Directions for Further Research.
- Author
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Conceição, Pedro, Fuentes-Nieva, Ricardo, Horn-Phathanothai, Leo, and Ngororano, Anthony
- Subjects
FOOD security ,FOOD supply ,ECONOMIC development ,PROGRESS ,PUBLIC health - Abstract
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]
- Published
- 2011
- Full Text
- View/download PDF
14. Développement financier, croissance économique et productivité globale des facteurs en Afrique Sub-saharienne*.
- Author
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Aka, Brou Emmanuel
- Subjects
FINANCE ,ECONOMIC development ,TECHNOLOGY & economics ,CREATIVE ability in technology - Abstract
Copyright of African Development Review / Revue Africaine de Développement is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2010
- Full Text
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15. Public sector efficiency, foreign aid and small island developing states.
- Author
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Feeny, Simon and Rogers, Mark
- Subjects
SMALL state economy ,PUBLIC spending ,INTERNATIONAL economic assistance ,ECONOMIC development ,LIFE expectancy - Abstract
This paper examines the efficiency of public sector expenditures and foreign aid at achieving social sector outcomes in Small Island Developing States (SIDS). Efficiency is estimated using a Stochastic Production Function (SPF) approach and panel data since 1990. A second stage of the analysis examines the determinants of efficiency. Results indicate that the efficiency of aid and public sectors at improving life expectancy has deteriorated during the 1990s but efficiency at improving school enrolments has increased. Higher levels of governance are associated with higher efficiency. There is also evidence to suggest that efficiency is lower in SIDS, as well as in Sub-Saharan Africa. Copyright © 2008 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]
- Published
- 2008
- Full Text
- View/download PDF
16. Enclave space: a new metageography of development?
- Author
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Sidaway, James D.
- Subjects
DEVELOPMENT economics ,SOCIAL development ,ECONOMIC development ,EXCLAVES ,SOVEREIGNTY ,SOCIAL change ,SOCIAL dynamics - Abstract
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]
- Published
- 2007
- Full Text
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17. The anatomy of fragile states in Sub‐Saharan Africa: Understanding the interrelationship between fragility and indicators of wellbeing.
- Author
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McKay, Andy and Thorbecke, Erik
- Subjects
ANATOMY ,WELL-being ,ECONOMIC development - Abstract
According to most classifications, Sub‐Saharan Africa is the region of the world with the highest presence of fragile states. In this paper we examine the relationship between fragility and poverty, suggesting that countries may become trapped in a vicious circle of fragility and low levels of wellbeing. We consider fragility as a continuum and begin by reviewing available measures. These show the high presence of fragility in Sub‐Saharan Africa and allow the more fragile countries to be identified. There is seen to be a strong association between fragility, poor growth performance, and lower wellbeing in Sub‐Saharan Africa. Building on the strong evidence for the two‐way relationship between economic growth and poverty, we present an analysis of how the vicious circle linking poorer welfare outcomes and fragility may be able to be broken. We argue that building successful institutions is key here, and this can be enabled by specific policy interventions that are both poverty reducing and productive. [ABSTRACT FROM AUTHOR]
- Published
- 2019
- Full Text
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18. Agricultural Commodity Price Shocks and Their Effect on Growth in Sub-Saharan Africa.
- Author
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Addison, Tony, Ghoshray, Atanu, and Stamatogiannis, Michalis P.
- Subjects
PRICE increases ,FARM produce sales & prices ,ECONOMIC development ,PRODUCE trade ,AGRICULTURAL economics ,AGRICULTURAL industries - Abstract
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]
- Published
- 2016
- Full Text
- View/download PDF
19. External Debt, Labour Productivity Growth and Convergence: Evidence from Sub-Saharan Africa.
- Author
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Wamboye, Evelyn and Tochkov, Kiril
- Subjects
EXTERNAL debts ,LABOR productivity ,ECONOMIC convergence ,ECONOMIC development ,HISTORY ,ECONOMIC conditions in Africa - Abstract
Sub-Saharan Africa ( SSA) has long suffered from lagging productivity and excessive levels of indebtedness. Using both parametric and non-parametric techniques, this paper examines the impact of external debt on labour productivity growth and convergence across SSA economies over the period 1970-2010. The results indicate the presence of debt-overhang effects, regardless of model and sample specification. Debt reduction through the Heavily Indebted Poor Countries and Multilateral Debt Relief initiatives enhanced growth but was not successful in offsetting the debt-overhang effects. Moreover, excessive levels of external debt were responsible for divergence in output per worker over the early 1990s. Although this trend was reversed over the 2000s, reduction in debt through the debt relief initiatives seems to have been insufficient in helping heavily indebted countries in SSA catch up with the labour productivity levels of the best-performing economies in the region. [ABSTRACT FROM AUTHOR]
- Published
- 2015
- Full Text
- View/download PDF
20. Structural transformation and its relevance for economic growth in Sub‐Saharan Africa.
- Author
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Busse, Matthias, Erdogan, Ceren, and Mühlen, Henning
- Subjects
ECONOMIC development ,AGRICULTURAL industries ,LABOR supply ,ECONOMIC structure ,ECONOMIC conditions in Africa - Abstract
In this paper, we analyze the role of structural transformation in view of the remarkable growth performance of Sub‐Saharan African countries since the late 1990s. Our analysis covers 41 African countries over the period 1980 to 2014 and accounts for structural transformation by employing the analytical frameworks of (1) growth decomposition and (2) growth regression. Even though the low‐productive agricultural sector continues to employ most of the African workforce, our results reveal that structural transformation has taken place and that it has contributed significantly to African growth in the period 1980‐2014. [ABSTRACT FROM AUTHOR]
- Published
- 2019
- Full Text
- View/download PDF
21. Science Diplomacy, Epistemic Communities, and Practice in Sub‐Saharan Africa.
- Author
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Hornsby, David J. and Parshotam, Asmita
- Subjects
DIPLOMACY ,FOOD standards ,ECONOMIC development ,INTERNATIONAL relations - Abstract
For many states in Sub‐Saharan Africa, the capacity to participate in the international food standard setting process continues to be a challenge. The scientific and technical capacity for many states in this region remains low. This has consequences for African states beyond international food standard setting but for trade and economic development as well. The present paper considers how science diplomacy is mobilised to improve African scientific capacity and participation in international standard setting and thus the multilateral trading system. Through the conceptual frame of epistemic communities, we argue that science diplomacy is exemplified through how scientific expertise embedded within a set of international institutions seeks to build capacity and participation of African states in this important, yet often little considered aspect of international governance. This case highlights how science diplomacy can be mobilised for economic development in international affairs. [ABSTRACT FROM AUTHOR]
- Published
- 2018
- Full Text
- View/download PDF
22. The Extent and Determinants of Tax Gap in the Informal Sector: Evidence from Ghana.
- Author
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Danquah, Michael and Osei‐Assibey, Eric
- Subjects
INFORMAL sector ,COST of living ,ECONOMIC development - Abstract
Abstract: In this paper, we attempt to estimate the tax gap in the informal sector as well as the contributing factors of the tax losses in SSA countries using Ghana as a case study. Using micro data on non‐farm household enterprises obtained from the sixth round of the Ghana Living Standards Survey as well as data on quarterly tax payable by specified small scale enterprises derived from the Small Tax Payer office of the Ghana Revenue Authority, the findings show that the national potential and actual taxes in the informal sector are US$ 81 974 846 and US$ 25 023 273, respectively, reflecting an estimated national tax gap or loss of approximately US$ 56 951 573. Firm level variables such as type of business, urban location and experience of the firm significantly increase the propensity to pay tax and reduce the tax gap. Copyright © 2018 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]
- Published
- 2018
- Full Text
- View/download PDF
23. Domestic Debt, Private Sector Credit and Economic Growth in Sub- Saharan Africa.
- Author
-
Mbate, Michael
- Subjects
DEBT management ,PRIVATE sector ,ECONOMIC development ,CREDIT ,GROSS domestic product ,ELASTICITY (Economics) - Abstract
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]
- Published
- 2013
- Full Text
- View/download PDF
24. REMITTANCES AND GROWTH IN SUB-SAHARAN AFRICAN COUNTRIES: EVIDENCE FROM A PANEL CAUSALITY TEST Remittances and Growth in Sub-Saharan African Countries.
- Author
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Ahamada, Ibrahim and Coulibaly, Dramane
- Subjects
REMITTANCES ,ECONOMIC development ,CAPITAL investments ,CAPITAL movements ,DEVELOPING countries ,FOREIGN investments - Abstract
This paper examines the causality between remittances and economic growth in Sub-Saharan African (SSA) countries. We employ the panel Granger causality testing approach that is based on seemingly unrelated regressions systems and Wald tests with country-specific bootstrap critical values. Using annual data over the period 1980-2007 for 20 SSA countries, we find that in any SSA country, there is no causality between remittances and growth. An explanation of why remittances do not increase growth in SSA countries is given by the causality test that shows that remittances do not increase physical capital investment. Copyright © 2012 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]
- Published
- 2013
- Full Text
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25. The Role of Property Rights in the Relationship between Capital Flows and Economic Growth in SSA: Do Natural Resources Endowment and Country Income Level Matter? .
- Author
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Coulibaly, Sionfou Seydou, Gakpa, Lewis Landry, and Soumaré, Issouf
- Subjects
PROPERTY rights ,CAPITAL movements ,FOREIGN investments ,ECONOMIC development ,NATURAL resources ,ECONOMICS ,ECONOMIC conditions in Africa - Abstract
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]
- Published
- 2018
- Full Text
- View/download PDF
26. International Growth Spillovers, Geography and Infrastructure.
- Author
-
Roberts, Mark and Deichmann, Uwe
- Subjects
INFRASTRUCTURE (Economics) ,GEOGRAPHY ,TELECOMMUNICATION & economics ,ECONOMIC development ,ECONOMICS - Abstract
There is significant academic evidence that growth in one country has a positive impact on growth in neighbouring countries. This paper contributes to this literature by analysing the heterogeneous strength of growth spillovers across world regions and by investigating the contribution of transport and communication infrastructure to explain this heterogeneity and promote neighbourhood effects. By defining neighbourhood on the basis of membership of regional trade agreements, we focus on spillovers that work through regional integration and trade. The analysis finds significant evidence for heterogeneity in growth spillovers, which are strong between OECD countries and essentially absent in sub-Saharan Africa (SSA). We further find strong interaction between infrastructure and being a landlocked country. This suggests that growth spillovers from regional 'success stories' in SSA and other lagging world regions will depend on first strengthening the channels through which such spillovers can spread - most importantly connective infrastructure such as transport and telecommunication links. [ABSTRACT FROM AUTHOR]
- Published
- 2011
- Full Text
- View/download PDF
27. The finance-growth nexus in Sub-Saharan Africa: Panel cointegration and causality tests.
- Author
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Fowowe, Babajide
- Subjects
ECONOMIC development ,COINTEGRATION ,CAUSATION (Philosophy) ,ECONOMIC conditions in Africa - Abstract
This paper examines the causal relationship between financial development and economic growth using data for 17 countries in Sub-Saharan Africa. The analysis is conducted using panel cointegration and causality tests which take account of heterogeneity between countries which arises as a result of different country intercepts and varying regression coefficients slopes across countries. The results show that there is homogenous bi-directional causality between financial development and economic growth. This result is robust to alternative measures of financial development and implies that for these Sub-Saharan African countries, both the real and financial sectors are complementary to each other and their simultaneous development should be encouraged. Copyright © 2010 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]
- Published
- 2011
- Full Text
- View/download PDF
28. The Global Financial Crisis and Sub-Saharan Africa: The Effects of Slowing Private Capital Inflows on Growth.
- Author
-
Brambila-Macias, José and Massa, Isabella
- Subjects
FINANCIAL crises ,ECONOMIC development ,CAPITAL movements ,FOREIGN investments ,BANKING industry - Abstract
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]
- Published
- 2010
- Full Text
- View/download PDF
29. Financial Liberalization Policies and Economic Growth: Panel Data Evidence from Sub-Saharan Africa.
- Author
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Fowowe, Babajide
- Subjects
MONETARY policy ,FINANCIAL liberalization ,ECONOMIC development ,PUBLIC finance ,ECONOMICS - Abstract
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]
- Published
- 2008
- Full Text
- View/download PDF
30. SOURCES OF ECONOMIC GROWTH AND TECHNOLOGY TRANSFER IN SUB-SAHARAN AFRICA.
- Author
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Ahmed, Abdullahi D. and Suardi, Sandy
- Subjects
ECONOMIC development ,TECHNOLOGY transfer ,MACROECONOMICS ,GROWTH rate ,ECONOMIC convergence ,ECONOMIC policy - Abstract
This paper provides some empirical evidence on the sources of growth in sub-Saharan Africa (SSA). Within the classical convergence framework, several macroeconomic, socio and political factors are identified as affecting the steady state growth paths of the SSA countries. The rejection of the constant technology growth rate assumption implied by the linearised Solow-Swan growth specification suggests differences in the economies' technology growth rates. An endogenous technology growth model is estimated to measure contributions of diminishing returns and technology transfer to the rate of conditional convergence in the region. The results carry important policy implications for improving the standard of living and economic growth rate of African countries. [ABSTRACT FROM AUTHOR]
- Published
- 2007
- Full Text
- View/download PDF
31. THE LEGACY AND CHALLENGE OF FISCAL POLICY IN SUB-SAHARAN AFRICA.
- Author
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Siebrits, F. K. and Calitz, E.
- Subjects
FISCAL policy ,ECONOMIC reform ,DEVELOPING countries ,ECONOMIC development ,POVERTY rate - Abstract
This paper traces salient aspects of the evolution of fiscal policy in sub-Saharan Africa since 1960 and highlights the need for further reforms to consolidate the gains of the recent past. The fiscal position of the sub-Saharan African region as a whole has improved markedly during the past ten years, but most countries still face formidable fiscal challenges. To consolidate the progress made during the past decade and to tackle the remaining problems, sub-Saharan African policymakers should remain firmly committed to sound fiscal policies. [ABSTRACT FROM AUTHOR]
- Published
- 2007
- Full Text
- View/download PDF
32. Transfrontier conservation areas: Integrating biodiversity and poverty alleviation in Southern Africa.
- Author
-
Munthali, Simon M.
- Subjects
BIODIVERSITY conservation ,TRANSFRONTIER conservation areas ,RURAL poor ,ECONOMIC development ,RURAL development ,LAND use ,PRIVATE sector ,NATURAL resources - Abstract
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]
- Published
- 2007
- Full Text
- View/download PDF
33. Political Development, Agriculture, and Ethnic Divisions: An African Perspective.
- Author
-
Grabowski, Richard
- Subjects
POLITICAL development ,AGRICULTURE ,EARNED income ,AGRICULTURAL productivity ,ETHNIC groups ,COLONIZATION ,ECONOMIC development - Abstract
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]
- Published
- 2006
- Full Text
- View/download PDF
34. Aid and growth in Sub-Saharan Africa: accounting for transmission mechanisms.
- Author
-
Gomanee, Karuna, Girma, Sourafel, and Morrissey, Oliver
- Subjects
INTERNATIONAL economic assistance ,ECONOMIC development ,INVESTMENTS ,PUBLIC spending - Abstract
This paper is a contribution to the literature on aid and growth. Despite an extensive empirical literature in this area, existing studies have not addressed directly the mechanisms via which aid should affect growth. We identify investment as the most significant transmission mechanism, and also consider effects through financing imports and government consumption spending. With the use of residual generated regressors, we achieve a measure of the total effect of aid on growth, accounting for the effect via investment. Pooled panel results for a sample of 25 Sub-Saharan African countries over the period 1970 to 1997 point to a significant positive effect of foreign aid on growth, ceteris paribus. On average, each one percentage point increase in the aid/GNP ratio contributes one-quarter of one percentage point to the growth rate. Africa's poor growth record should not therefore be attributed to aid ineffectiveness. Copyright © 2005 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]
- Published
- 2005
- Full Text
- View/download PDF
35. THE IMPLICATIONS OF SOUTH AFRICAN ECONOMIC GROWTH FOR THE REST OF AFRICA.
- Author
-
Arora, Vivek and Vamvakidis, Athanasios
- Subjects
ECONOMIC development ,ECONOMIC indicators ,ECONOMIC policy ,ECONOMICS - Abstract
This paper measures the extent to which South African economic growth is an engine of growth in sub-Saharan Africa. Results based on panel data estimation for 47 African countries over four decades suggest that South African growth has a substantial positive impact on growth in the rest of Africa, even after controlling for other growth determinants. The estimates are robust to the effects of global and regional shocks, changes in model specification, and sample period. [ABSTRACT FROM AUTHOR]
- Published
- 2005
- Full Text
- View/download PDF
36. Economic Growth in a Cross-section of Nonindustrial Countries: Does Colonial Heritage Matter for Africa?
- Author
-
Price, Gregory N.
- Subjects
ECONOMIC development ,ECONOMIC conditions in Africa - Abstract
Abstract The paper investigates the effects of Sub-Saharan African colonial heritage on economic growth in a sample of nonindustrial countries. An empirical Solow growth model is specified in a way that allows an examination of whether or not growth in Sub-Saharan Africa reflects a legacy of extractive colonialization strategies, motivated by a hostile disease environment that resulted in extractive growth-retarding institutions that persisted after independence. Parameter estimates suggest that the partial effects of extractive institutions engendered by a twentieth century colonial heritage account for approximately 30% of the growth gap between the former colonies in Sub-Saharan Africa and other nonindustrial countries. [ABSTRACT FROM AUTHOR]
- Published
- 2003
- Full Text
- View/download PDF
37. Trade Openness and Economic Growth: Panel Data Evidence from Sub-Saharan Africa.
- Author
-
Brueckner, Markus and Lederman, Daniel
- Subjects
ECONOMIC development ,COMMERCE ,GROSS domestic product ,MANAGEMENT of capital ,ECONOMICS ,ECONOMIC conditions in Africa - Abstract
This paper uses an instrumental variables approach to estimate the relationship between trade openness and economic growth in Sub-Saharan Africa. Instrumental variables estimates show that economic growth has a significant negative contemporaneous effect on trade openness, while trade openness has a significant positive effect on economic growth. A 1 percentage point increase in the ratio of trade over GDP is associated with a short-run increase in growth of approximately 0.5% in a given year; the cumulative long-run effect on the level of GDP per capita is larger, reaching about 2%. [ABSTRACT FROM AUTHOR]
- Published
- 2015
- Full Text
- View/download PDF
38. MOBILE MONEY, FINANCIAL INCLUSION AND DEVELOPMENT: A REVIEW WITH REFERENCE TO AFRICAN EXPERIENCE.
- Author
-
Ahmad, Ahmad Hassan, Green, Christopher, and Jiang, Fei
- Subjects
MONEY ,MARKET design & structure (Economics) ,ECONOMIC impact ,ECONOMIC development - Abstract
Survey literature on mobile money and its contribution in promoting financial inclusion and development, with a focus on sub‐Saharan Africa. We use taxonomic, descriptive and analytical methods to evaluate the state of knowledge in the area. We analyse how mobile technology in general may contribute to economic development and financial inclusion in theory and practise. We explain the mechanics of mobile money using Kenya's M‐Pesa as a canonical example; and consider whether the literature has fully established the potential economic impact of mobile money especially its contribution to financial inclusion. We also consider market structure, pricing and regulatory implications of mobile money. We conclude by highlighting issues that require further investigation: the take‐up of mobile money; mobile money and financial inclusion; substitutability between mobile money and conventional finance; and regulatory structures for institutions providing mobile money services. [ABSTRACT FROM AUTHOR]
- Published
- 2020
- Full Text
- View/download PDF
39. Institutions and the financial development–economic growth nexus in sub‐Saharan Africa.
- Author
-
Aluko, Olufemi A. and Ibrahim, Muazu
- Subjects
FINANCIAL institutions ,ECONOMIC expansion ,ECONOMIC development - Abstract
Using a sample splitting approach that does not impose an exogenous quadratic term, we examine the effect of financial development on economic growth in sub‐Saharan Africa by allowing the link to be mediated by the level of institutions. Our findings reveal a disproportionate growth‐enhancing effect of finance, given countries' distinct level of institutional quality. More specifically, when the International Country Risk Guide‐based measure of institutions is used as the threshold variable, below the optimal level of institutional quality, financial development does not significantly promote economic growth. For countries with institutional quality above the threshold, higher finance is associated with growth. However, when institutions are measured by World Governance Indicators proxy, we find a significant effect of financial development, irrespective of whether a country is below or above the threshold. Interestingly, the growth‐enhancing effect of finance is greater for low‐institution countries relative to high‐institution countries. Thus, through its ability to provide some crucial roles, the well‐developed financial sector may also perform the function of sound institutions in influencing economic growth. [ABSTRACT FROM AUTHOR]
- Published
- 2020
- Full Text
- View/download PDF
40. Does Famine Matter for Aggregate Adolescent Human Capital Acquisition in Sub-Saharan Africa?
- Author
-
Agbor, Julius A. and Price, Gregory N.
- Subjects
ECONOMIC development ,FAMINES ,HUMAN capital ,MALNUTRITION in children ,LITERACY ,FOOD security - Abstract
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]
- Published
- 2014
- Full Text
- View/download PDF
41. Revisiting the Finance-Growth Nexus in Sub-Saharan Africa: Results from Error Correction-based Panel Cointegration Tests.
- Author
-
Walle, Yabibal M.
- Subjects
ERROR correction (Information theory) ,ECONOMIC development ,LIABILITIES (Accounting) ,LIQUIDITY (Economics) ,GROSS domestic product ,FINANCIAL services industry - Abstract
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]
- Published
- 2014
- Full Text
- View/download PDF
42. On the Determinants of Investment in Sub- Saharan African Manufacturing Firms.
- Author
-
Foster‐McGregor, Neil
- Subjects
INVESTMENTS ,MANUFACTURING industries ,ORGANIZATIONAL performance ,ECONOMIC development ,INTERNATIONAL business enterprises ,PROPERTY rights - Abstract
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]
- Published
- 2013
- Full Text
- View/download PDF
43. FINANCIAL LIBERALIZATION IN SUB-SAHARAN AFRICA: WHAT DO WE KNOW?
- Author
-
Fowowe, Babajide
- Subjects
FINANCIAL liberalization ,ECONOMIC policy ,ECONOMIC development ,INVESTMENTS ,MATHEMATICAL variables ,ECONOMIC reform - Abstract
Beginning from the early 1980s countries in Sub-Saharan Africa embarked on financial liberalization policies with a view to reversing the ill-effects of financial repression. This paper provides a survey of financial liberalization in Sub-Saharan African countries over the period 1980 to 2004. Our review of empirical studies showed that financial liberalization has had diverse and contrasting effects on savings, investment and economic growth. Most studies found a significant positive effect of financial liberalization on investment whereas its effect on savings has been largely insignificant. The evidence on the effect on economic growth is inconclusive as different studies find contrasting results. It is found that financial liberalization policies have not had the desired and expected results as both financial and macroeconomic variables have not improved following financial liberalization in these countries. This calls for a rethinking of financial liberalization in Sub-Saharan African countries. It is important that financial liberalization is carried out in a stable macroeconomic environment. In addition to this, there should be a building and reform of institutions and the strengthening of prudential regulation. Following this, financial liberalization can be embarked upon but it must be properly sequenced and not rushed. [ABSTRACT FROM AUTHOR]
- Published
- 2013
- Full Text
- View/download PDF
44. Angola 2025: The Future of the 'World's Richest Poor Country' as Seen through a Chinese Rear-View Mirror.
- Author
-
Power, Marcus
- Subjects
ANGOLAN foreign relations, 1975- ,PETROLEUM industry ,ECONOMIC development ,INTERNATIONAL economic assistance ,POSTWAR reconstruction ,SOCIAL history ,INTERNATIONAL economic relations - Abstract
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]
- Published
- 2012
- Full Text
- View/download PDF
45. Barriers to the development of small stock markets: A case study of Swaziland and Mozambique.
- Author
-
Hearn, Bruce and Piesse, Jenifer
- Subjects
ECONOMICS ,STOCK exchanges ,ECONOMIC development ,FINANCE ,FOREIGN investments - Abstract
The establishment of a successful stock market in a developing economy can be a major source of economic growth if it provides development finance by channelling domestic savings and attracting foreign investment. However, this objective is not always met, particularly in very small markets where there are barriers to efficient market operations. A case study of Swaziland and Mozambique illustrates that any potential gains to the domestic investment community are limited if there is insufficient liquidity and the political economy is such that ownership is not truly dispersed but rather remains in the hands of social elites. This paper finds that potential growth of small developing markets is further severely constrained by poverty and wealth inequality and consequently the impact on development is minimal. Copyright © 2009 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]
- Published
- 2010
- Full Text
- View/download PDF
46. Aid, institutions and economic growth in sub‐Saharan Africa: Heterogeneous donors and heterogeneous responses.
- Author
-
Wako, Hassen Abda
- Subjects
ECONOMIC development ,AID (Feudal tax) ,MONEY supply ,NONPROFIT organizations ,HETEROGENEITY - Abstract
Abstract: This study contributes to the aid‐effectiveness debate using panel data from 43 sub‐Saharan African countries over the period 1980–2013. Its novelty lies in assessing the intermediary role of institutions and the importance of recipient and donor heterogeneity. The long‐run growth effect of (aggregate) aid from “traditional” donors is robustly non‐positive, and the indirect effect is negative. Disaggregation reveals donor heterogeneity. Chinese aid outperforms aggregate aid from traditional donors with respect to growth; however, it has a negative institutional effect. Recipient heterogeneity is largely a short‐run phenomenon, with only a few countries showing some deviations from shared long‐run parameter sets. Comparing donor behavior suggests that the future of aid would benefit more from focusing on quality – particularly, specialization and donor alignment. [ABSTRACT FROM AUTHOR]
- Published
- 2018
- Full Text
- View/download PDF
47. Natural Resource Revenues and Public Investment in Resource-rich Economies in Sub-Saharan Africa.
- Author
-
Karimu, Amin, Adu, George, Marbuah, George, Mensah, Justice Tei, and Amuakwa‐Mensah, Franklin
- Subjects
CONSUMPTION (Economics) ,NATURAL resources ,FOREIGN assets ,PUBLIC investments ,ECONOMIC development ,ECONOMIC policy - Abstract
The general policy prescription for resource-rich countries is that, for sustainable consumption, a greater percentage of the windfall from resource rents should be channeled into accumulating foreign assets such as a sovereign public fund as done in Norway and other developed but resource-rich countries. This might not be a correct policy prescription for resource-rich sub-Saharan African (SSA) countries, where public capital is very low to support the needed economic growth. In such countries, rents from resources serve as an opportunity to scale-up the needed public capital. Using a panel data for the period 1990-2013, we find in line with the scaling-up hypothesis that resource rents significantly increases public investment in SSA and that this tends to depend on the quality of political institutions. Moreover, we also find evidence of a positive effect of public investment on economic growth, which also depends on the level of resource rents. [ABSTRACT FROM AUTHOR]
- Published
- 2017
- Full Text
- View/download PDF
48. Myths and realities about input subsidies in sub-Saharan Africa.
- Author
-
Ghins, Léopold, Mas Aparisi, Alban, and Balié, Jean
- Subjects
AGRICULTURAL development ,AGRICULTURE ,IRRIGATION ,PUBLIC spending ,ECONOMIC development ,INVESTMENTS - Abstract
Using a recent public expenditure dataset, this article proposes a 'reality check' of the level and composition of input subsidies in nine African countries between 2006 and 2013. Results show that input subsidies (1) received close to 35% of agricultural-specific expenditure on average and (2) cover a variety of interventions, including investments in capital, such as on-farm irrigation, and in on-farm services, such as inspection or training. Further, the figures show that input subsidies tended to become entrenched in agricultural budgets over time, leading to sub-optimal execution rates, and were primarily funded by the national taxpayer, while donors invested more in public goods. Findings confirm that input subsidies crowded out other spending categories likely to be more supportive of long-term agricultural development objectives. The article concludes that the political economy of input subsidies should be directed to making more concrete efforts to attain a better balance of public expenditure on agriculture. Furthermore, policy-makers should aim to increase the efficiency and policy coherence of input subsidies, since merely abolishing them is likely to be unfeasible in the short term. [ABSTRACT FROM AUTHOR]
- Published
- 2017
- Full Text
- View/download PDF
49. How Significant Is Sub-Saharan Africa's Demographic Dividend for Its Future Growth and Poverty Reduction?
- Author
-
Ahmed, S. Amer, Cruz, Marcio, Go, Delfin S., Maliszewska, Maryla, and Osorio ‐ Rodarte, Israel
- Subjects
POVERTY reduction ,DEMOGRAPHIC change ,DIVIDENDS ,ECONOMIC development ,GROSS domestic product - Abstract
Sub-Saharan Africa will be undergoing substantial demographic changes over the next 15 years with the rising working-age share of its population. The opportunity of African countries to convert these changes into demographic dividends for growth and poverty reduction will depend on several factors. The outlook will likely be good if African countries can continue the gains already made under better institutions and policies, particularly those affecting the productivity of labor, such as educational outcomes. If African countries can continue to build on the hard-won development gains, the demographic dividend could account for 11-15% of gross domestic product ( GDP) volume growth by 2030, while accounting for 40-60 million fewer poor in 2030. The gains can become more substantial with better educational outcomes that allow African countries to catch up to other developing countries. If the skill share of Africa's labor supply doubles because of improvements in educational attainment, from 25 to about 50% between 2011 and 2030, then the demographic dividends can expand the regional economy additionally by 22% by 2030 relative to the base case and reduce poverty by an additional 51 million people. [ABSTRACT FROM AUTHOR]
- Published
- 2016
- Full Text
- View/download PDF
50. Economic development with deadly communicable diseases and public prevention.
- Author
-
Gori, Luca, Mammana, Cristiana, Manfredi, Piero, and Michetti, Elisabetta
- Subjects
COMMUNICABLE diseases ,PREVENTIVE medicine ,ECONOMIC development ,CAPITAL gains ,ENDEMIC diseases - Abstract
Infectious diseases have been a major determinant of human mortality in history and the key regulator of population size, including the first epoch of the Industrial Revolution (until the 1950s) in Western countries and still now in developing countries, especially in Sub‐Saharan Africa. In recent times, a new vein of economic research dealing with the interplay between communicable diseases and economic development has grown. However, pioneering previous research has analysed this issue in a framework where prevention decisions were the outcome of private individual rational choices. This assumption neither seems to hold for least‐developed countries, primarily due to a lack of resources, nor for developed countries, where prevention policies are mostly planned by the public authority through its (public) health system, as also well documented by the current COVID‐19 crisis. Our aim in this article is twofold. First, we pinpoint the properties of Chakraborty et al.'s (2010, 2016) basic epidemiological equation to fully enlighten its usability in economic‐epidemiology modelling. Second, we apply this framework to analyse prevention activities against a range of infectious diseases by endogenous public (rather than private) health expenditures. Our results identify the relationships governing the interplay between—on the one hand—typical epidemiological phenomena, namely invasion (i.e., the tendency of infection to establish in a population) versus endemicity (i.e., the tendency of infection to persist in the long term) and—on the other hand—economic variables, such as capital accumulation, GDP, and taxation. This is done by identifying threshold quantities, depending on both epidemiological and economic parameters, and by bifurcation analysis showing the effects that public intervention can have on previously uncontrolled infectious diseases. Both direct and indirect, that is, partial and general equilibrium, effects of control interventions are identified. [ABSTRACT FROM AUTHOR]
- Published
- 2022
- Full Text
- View/download PDF
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