Search

Sub-Saharan Africa faces serious challenges related to waste management due to increasing population, consumption, and industrialization ambitions pursued by governments seeking economic development. This paper contributes to research on waste utilization in the region through a case study of industrial symbiosis in Uganda. More specifically, it focuses on the different cost items of waste suppliers of an eco-farm based on a fitness condition equation, including costs of landfilling, transportation, handling, pre-processing, storage, and the waste selling price. Uncovering these elements on the micro level may inform policymakers on how to incentivize industrial symbiosis and help its implementation in an economically feasible way. Data for this research was collected via company visits, semi-structured interviews, and participant observations during two research trips in 2021 and 2022. The results indicate that the additional revenue from selling waste is the least important item in the rationale for IS. In most cases, the potential for reducing landfilling costs motivates companies to participate in IS. The high difference in the other cost items calls for a case-by-case rather than a standardized policy intervention. [ABSTRACT FROM AUTHOR]

Financial development and economic growth nexus is still an ongoing debate. Several studies have indicated the positive benefits associated with enhancing financial development. Nevertheless, more work can still be done to reap the full benefits of financial development. With growing social disparities in African countries, identifying the channels through which financial services can be effective is important to maintain stability on the continent. This paper employs a system generalized methods of moments (GMM) technique, to attempt to identify the channels through which financial services can be effective. The paper tests such an effect using a panel of 30 countries in sub-Saharan Africa from 2005 to 2016. The results suggest that credit provided by financial institutions and liquid liabilities affect economic growth negatively. Credit to the private sector, on the other hand, contributed significantly to GDP growth. The study underlines the important role of a vibrant private sector to serve as an engine for growth and reduce poverty. [ABSTRACT FROM AUTHOR]

This paper evaluates the relationship between human capital investment and economic growth in two sub-Saharan African countries (Kenya and South Africa). The paper applied a quantitative approach and secondary data were collected from the World Bank economic and education indicators from 1987 to 2016 (30 years). A cross sectional panel data arrangement gave a total of 60 observations and the fixed effect panel regression was applied using the Gretl econometrics package. The paper adds a nuance to previous methods and results by adding yearly time dummy in the model. Results show that investment in human capital is positively related to economic growth in the two sub-Saharan African countries. The paper highlights the significance results from time dummies, which shows that time is of essence in empirical analysis of this relationship and that investment in education would yield positive result on economic growth with timing considerations; this indicates that a waiting attitude is essential when investing in human capital. The paper recommends that economic policy makers should, in addition to universal primary education, commit more resources to secondary and university education to increase the stock of human capital in Africa as secondary and university education produce middle and high-level human capital. Improved policy that would fortify the colleges and universities in Africa would produce and retain quality human capital in Africa to spur economic growth. It also recommends that future research should consider the inclusion of yearly dummies when analysing the relationship between human capital investment and economic growth. [ABSTRACT FROM AUTHOR]

This paper explores whether Ethiopia's rapid economic growth is transformative enough for the country to eventually catch up with high‐income countries. It does so by exploring the change and continuity of four elements of social capability from 1950 to 2020: structural transformation, economic inclusion and the state's autonomy and accountability. It finds that Ethiopia's social capability modestly strengthened until the mid‐1970s, then weakened until the early 2000s, and has since strengthened again. However, the level of inclusion has been persistently low. In conclusion, although there are grounds for optimism, limited economic inclusion is a key concern for future catch‐up growth. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to re-examine the corruption and sustainable development nexus in Africa and offer a contemporary analytical review and analysis of that relationship in the region. Design/methodology/approach: Drawing on the available and accessible relevant data from credible sources, this work quantifies, outlines and analyses the nexus between corruption and sustainable development, as it applies primarily to sub-Saharan Africa. It uses the relevant disaggregated data and also complements that with the results of reliable empirical studies to further cross-reference and demonstrate the corruption and sustainable development nexus. Findings: It is shown that corruption in Africa continues to be negatively associated with sustainable development objectives and that, in turn, will continue to affect the continent's progress in achieving sustainable development. Undoubtedly, corruption is very damaging to economies across all nations and regions. However, in Africa, this impact on sustainable development has been particularly severe and ongoing. Consequently, the views expressed several decades ago of corruption being able to grease the wheels and potentially contribute to economic development is not valid and, in fact, has been severally discredited over the years. Originality/value: The main value of the paper is the insights it provides, and with cross-reference to the empirical literature and time series data, on the corruption and sustainable development nexus in Africa. [ABSTRACT FROM AUTHOR]

This paper examines the impact of ethnic diversity on the fostering of productive capacities and structural transformation in sub-Saharan Africa (SSA). The fact that ethnically diverse countries in SSA are lagging behind other developing countries in productive capacities and structural transformation is a confirmation of the endogeneity of ethnic polarisation in the development process. The paper shows that SSA performs poorly on the Productive Capacities Index (PCI) and other socio-economic indicators both in cross-country and inter-regional comparisons. It argues that accumulation of "national capital", as opposed to "ethnic capital formation", bonds societies, bridges ethnic divisions and fosters productive capacities and structural economic transformation. It provides conclusions and policy recommendations to maximise the developmental impact of ethnic diversity through national identity-based politics. Viewed from this perspective, the problem in SSA is not ethnic diversity per se but how political regimes, governance and elite institutions of the region manage ethnic diversity. The paper concludes that political elite and state institutions have primary responsibilities in managing ethnolinguistic and cultural diversity. Therefore, it suggests that there is an urgent need to seriously consider the ethnic dimension of development as an integral part of policy formulation and implementation in SSA. [ABSTRACT FROM AUTHOR]

The paper examines the role of institutional quality in the effect of financial globalization on economic growth in sub-Saharan Africa (SSA). The study used a dynamic panel Generalised Method of Moment (GMM) test in estimating the data. The paper finds that financial globalization has a negative and significant impact on economic growth in SSA. The results further show that institutional quality (measured by government effectiveness) lessens the negative effect of financial globalization on economic growth in SSA. The paper concludes that institutional quality mitigates the negative effect of financial globalization on economic growth in SSA. Therefore, governments in this region should put in place appropriate mechanism that will stimulate government effectiveness in order to derive the benefits of financial globalization which in turn enhance economic growth. [ABSTRACT FROM AUTHOR]

Purpose: The threshold regression framework is used to examine the effect of foreign direct investment on growth in Sub-Saharan Africa (SSA). The growth literature is awash with divergent evidence on the role of foreign direct investment (FDI) on economic growth. Although the FDI–growth nexus has been studied in diverse ways, very few studies have examined the relationship within the framework of threshold analysis. Furthermore, even where this framework has been adopted, none of the previous studies has comprehensively examined the FDI–growth nexus in the broader SSA. In this paper, within the standard panel and threshold regression framework, the problem of determining the growth impact of FDI is revisited. Design/methodology/approach: Six variables are used as thresholds – inflation, initial income, population growth, trade openness, financial market development and human capital, and the analysis is based on a large panel data set that comprises 45 SSA countries for the years 1985–2013. Findings: The results of this study show that the direct impact of FDI on growth is largely ambiguous and inconsistent. However, under the threshold analysis, it is evident that FDI accelerates economic growth when SSA countries have achieved certain threshold levels of inflation, population growth and financial markets development. This evidence is largely invariant qualitatively and is robust to different empirical specifications. FDI enhances growth in SSA when inflation and private sector credit are below their threshold levels while human capital and population growth are above their threshold levels. Originality/value: The contribution of this paper is twofold. First, the paper streamlines the threshold analysis of FDI–growth nexus to focus on countries in SSA – previous studies on FDI-growth nexus in SSA are country-specific and time series–based (see Tshepo, 2014; Raheem and Oyınlola, 2013 and Bende-Nabende, 2002). This paper provides a panel analysis and considers a broader set of up to 45 SSA countries. Such a broad set of SSA countries had never been considered in the literature. Second, the paper expands on available threshold variables to include two new important macroeconomic variables, population growth and inflation which, though are important absorptive capacities but, until now, had not been used as thresholds in the FDI–growth literature. The rationale for including these variables as thresholds stems from the evidence of an empirical relationship between population growth and economic growth, see Darrat and Al-Yousif (1999), and between inflation and economic growth, see Kremer et al. (2013). [ABSTRACT FROM AUTHOR]

The relationship between political instability (PI) and economic development has been extensively debated in the social sciences, yielding contrasting empirical results. In this article, we synergise two novel techniques—synthetic control (SC) and matrix completion (MC)—to study the economic effects of PI events on the sub-Saharan African scene. Our identification strategies capture potential spatial and temporal heterogeneities of treatment effects. We show that PI inflicts statistically and economically significant collateral damage, albeit heterogeneous across economies and over time. Notably, the group average treatment effect on the treated (ATT) reveals output shrinkage of approximately 17–20 percentage points. Exploiting the temporal dimension of the two techniques, we find that although output loss persists into the long run, the bulk of the damage is wrecked in the short run. This finding particularly casts doubt on the full economic recovery hypothesis in the near aftermath of a PI episode. Furthermore, we unearth spatial heterogeneities of the effects where we show that the negative effects are disproportionately more pronounced for economies which experience protracted PI episodes. Lastly, our paper demonstrates that while both methods provide reliable counterfactuals, the MC estimator yields significantly better pre-treatment fit in our data than the SC framework. [ABSTRACT FROM AUTHOR]

Sub-Saharan Africa faces immense challenges in spurring economic development and alleviating poverty, while these countries also should protect the environment amid population growth and industrial development. This study analyses the interrelationships between demographic change, economic growth, and pollution in four East African countries -- Ethiopia, Kenya, Sudan, and Uganda -- from 1990-2019. Using panel data and econometric analysis, the paper examines whether declining fertility rates and parallel diminishing of the youth dependency burdens are associated with accelerated growth and rising emissions. The results affirm that falling fertility has opened a window of opportunity through the 'first demographic dividend', which can catalyse growth by increased shares of working-age individuals. However, this growth has been accompanied by rising carbon dioxide emissions, underscoring potential trade-offs between environmental and economic objectives. The findings highlight the importance of complementary health, education, governance, and sustainable production investments for countries to leverage their demographic dividends for inclusive and green growth. Successfully doing so will be vital to achieve multiple Sustainable Development Goals simultaneously. [ABSTRACT FROM AUTHOR]

It is hypothesized that a well-functioning financial market is necessary but not sufficient condition to achieve the expected economic growth. Therefore, policy instruments of government aimed at streamlining financial sector activity in sub-Saharan Africa (SSA) are imperative. As a result, this paper explores the effect of financial development on economic growth by allowing the link between the two far variables to be mediated by the quality of institutions for the period 2000–2019. Using Twenty-nine (29) countries and the System-Generalized Method of Moments (system-GMM) estimation method, it is found that financial development has a positive and significant effect on economic growth. In addition, it is found that, when rule of law, political stability, and regulatory quality are highly effective, the positive effect of financial development on economic growth is magnified. [ABSTRACT FROM AUTHOR]

In Botswana, sport is positioned as a potential driver of economic and social development. In particular, there are numerous discussions about increasing the socio-economic impact of sport and the need to professionalise Botswana sport. Knowledge Management (KM) can play a critical role in achieving this greater professionalisation and impact. Despite this importance, there have only been a small number of studies on KM in sports, and none of this literature explores the topic in sub-Saharan Africa. Against this background, the goals of our paper are two-fold. Firstly, we wish to map out the current knowledge management landscape in the Botswana sport sector. Secondly, we aim to propose concrete, evidence-based avenues to improve KM within the sector. This paper relies on findings generated through semi-structured qualitative interviews with individuals connected to Botswana sport. To allow for triangulation, these interviews are further supported by other, previous qualitative research as well as relevant academic and policy literature. The Knowledge Management framework from Sunassee and Sewry (2002) is used to analyse and structure the results. Overall, we see that KM in Botswana sport is somewhat present at the individual, organisational level, but numerous obstacles and inefficiencies exist in creating and sharing knowledge at the sectoral level. To support the growth of KM in the sector, numerous concrete recommendations are presented. In particular, we highlight a need to communicate the value of KM better and obtain the necessary buy-in. [ABSTRACT FROM AUTHOR]

Domestic revenue mobilisation is fundamental if African countries are to fund investments in health, education, infrastructural development, economic growth, human capital development, security, and prosperity to attain the Sustainable Development Goals by 2030. Some goals focus on eradicating poverty, reducing inequalities, strengthening institutions, and providing decent work. This requires resources and investment, yet Sub-Saharan African countries continuously struggle to mobilise enough revenue to meet basic government objectives. Through a critical literature review, this paper focuses on sustainable tax revenue mobilisation in Sub-Saharan African Countries, discussing the challenges, opportunities, and prospects for possible amelioration of tax systems. Challenges identified to explain the ineffectiveness of revenue mobilisation in these countries include the presence of a significant informal sector, weak tax administration capacities, the growth in the digital economy, corruption, governance quality, and increased tax avoidance and evasion by multinational companies. Possible prospects include taxation of the digital economy, taxing the informal sector, the capacitation of tax authorities, and the broadening of tax bases. [ABSTRACT FROM AUTHOR]

This paper evaluates the influence of financial development on the cyclicality of monetary policy in a sample of 22 Sub Saharan African countries. We use a GMM model to estimate an equation of monetary policy stance based on Taylor's rule over the period 1984-2012. We obtain the following results. Monetary policy is pro-cyclical in Sub Saharan African countries. Central Banks implement counter-cyclical monetary policy when the country exhibits high level of financial development and pro-cyclical monetary policy in the presence of low level of financial development. The threshold level at which monetary policy is a-cyclical lies between 15% and 18%. [ABSTRACT FROM AUTHOR]

The emergence and diffusion of coronavirus (COVID-19) have brought a lot of impacts on various spheres of human endeavours including maritime trading. This paper explores the effect of the lockdown on maritime port calls for selected vessels in the sub-Saharan African (SSA) regions (East, Middle, South, and West Africa). The study utilizes port calls data of the maritime profile of the global economies obtained from the United Nations Conference on Trade and Development Statistics between 2018 and 2021. Data include port calls for liquid bulk carrier, liquefied petroleum gas, dry bulk carrier, dry break bulk carrier, roll-on-roll-off, and container carrier. The analysis of data involves the use of exploratory technique to reveal dimensions of performance by various carriers across the regions. The results picture the kind of response of port calls in all the regions akin to the response from other regions of the world. However, the study observes that though responses to COVID-19 lockdown across the globe were similar, SSA regions were slow in recovering from the decline in port calls when compared to the developed and some rapidly developing economies of the world due to the region's lack of economic resilience. Thus, since ports have been identified as vulnerable to economic, social, institutional, and environmental shocks, and to dynamic and highly unpredictable demand for port services, policymakers of various nationals in the SSA may need to examine the patterns of performance of vessels in the regions to manage trade flows more effectively as a way of responding to future dynamics in maritime trade in the region. [ABSTRACT FROM AUTHOR]

This paper examines the effect of human immunodeficiency virus/acquired immunodeficiency syndrome (HIV/AIDS) on economic growth in sub-Saharan Africa (SSA) using data from 46 SSA countries spanning the period 2000–2015. Results based on the system-generalized method of moments estimation showed that a 1% increase in the HIV/AIDS prevalence rate in SSA decreased the growth in per capita income by 0.47%. The impact of HIV/AIDS on economic growth was felt most in Eastern Africa followed by West Africa, although the prevalence rate was highest in Southern Africa. In particular, a 1% increase in the prevalence rate of HIV/AIDS in Eastern Africa and West Africa retarded growth in per capita income by 0.64% and 0.47%, respectively, over the study period. The paper suggests that for SSA to minimize the impact of HIV/AIDS prevalence on growth, African governments should take a cue from the southern African countries by making anti-retroviral drugs more accessible and affordable to persons living with the disease. [ABSTRACT FROM AUTHOR]

Low levels of investment into modern technologies, and limited use of measures that have low monetary cost but the potential for high yields, are often regarded as obstacles to further agricultural development. This paper investigates farmers' demand for one such measure, namely agricultural advisory services. These have modest (most frequently zero) monetary user cost but, according to some recent research, have the potential to result in large increases of yields. Yet demand for these extension services is often low. We propose that costly attention may be part of the explanation for this. In our model, advisory services are available free of charge, but positive effects on production are only realized if farmers devote attention to listening to and implementing the provided advice. Modeling farmers as rational decision makers facing scarce attention, we identify the circumstances under which farmers may optimally abstain from demanding advisory services. The model complements the insights of other theories commonly used to explain suboptimal farm decisions and outcomes, and generates testable predictions, which are consistent with empirical evidence based on a large farm-level panel dataset from Sub-Saharan Africa. [ABSTRACT FROM AUTHOR]

As globalization continues to shape the global economic landscape, understanding its intricate relationship with economic growth remains paramount in regions like sub-Saharan Africa. Hence, this study presents a comprehensive analysis of globalization's impact on economic growth in sub-Saharan Africa from 1971 to 2019. Using panel data from reputable databases on Trade and Development (UNCTAD), World Development Indicators, Penn World Table 10.0, and Our World Data, the paper explores various dimensions of globalization, including economic, social, and political factors. The feasible generalized least square (FGLS) estimation technique was used to analyze data. Findings reveal nuanced dynamics, with social and financial globalization indices showing positive effects on economic growth and statistically significant at 1% significance level. Additionally, this study uncovers the influence of demographic indicators, government consumption, and the rule of law on economic growth. The result of the study revealed demographic indicators, government consumption, and the rule of law had statistically significant impacts on the economic growth of sub-Sahara Africa. In contrast, certain aspects of economic globalization exhibit negative impacts. However, political, trade, information, and cultural globalization had no significant impact on economic growth of the region. It is important to recognize that the absence of significant effects does not necessarily imply an absence of impact, but rather reflects the multifaceted nature of globalization's influence on economic growth. Several factors, including differences in the periods analyzed, may account for the differences in these results compared to previous studies. This study not only adds to the existing literature on globalization and economic growth but also offers valuable insights for policymakers tasked with promoting sustainable development in sub-Saharan Africa. By acknowledging the complexities of globalization's impact, policy makers can formulate more effective strategies to harness its benefits while mitigating its potential drawbacks. This research contributes to a deeper understanding of globalization's role in economic development, laying the foundation for evidence-based policy interventions tailored to the unique challenges and opportunities facing sub-Saharan Africa. [ABSTRACT FROM AUTHOR]

We examine the effect of natural resource governance on the direct impact of economic growth on income inequality in Sub-Saharan African countries. We use data from a panel of 40 of these countries, in which natural resource revenues represent at least 5% of GDP over the period 2001–2020. Dynamic panel data models are estimated using the System Generalized Method of Moments technique. Estimation yields two important results. First, economic growth is found to be increasing income inequality in these panel countries, whatever the income inequality measure is considered. Second, natural resource governance improvement, captured by the Extractive Industries Transparency Initiative (EITI)_Engagement and by the EITI_Compliance, is found to be directly reducing income inequality and to be reducing the income inequality increasing effect of economic growth in these countries. We conclude the paper by recommending that SSA-rich natural resource-rich countries, in search of justice, peace, and development, should engage and conform to EITI requirements. [ABSTRACT FROM AUTHOR]

To what extent do colonial ties and knowledge spillovers continue to influence the development of scientific capabilities in sub-Saharan Africa? Using a new database of publication output of 46 sub-Saharan African countries over the period 1976–2016 and a production function approach, this paper gives evidence that knowledge produced in former colonizing countries continues to have a large and persistent effect on publication output in Africa. This relationship is growing stronger over time. Furthermore, the publication output of smaller countries and those at more advanced stages of scientific, economic and political development is more closely related to the publication output of their former colonizer. Overall, these findings have implications for programs and policies aiming to facilitate the development of scientific capacity in the region. [ABSTRACT FROM AUTHOR]

Purpose – The study of the link between debt and growth has been full of debates, both in theory and empirics. However, there is a growing consensus that the relationship is sensitive to the level of debt. The purpose of this paper is to address the question of non-linearity in the long-term relationship between public debt and economic growth. Specifically, the author set out to test if there exists an established “laffer curve” type relationship, where debt contributes to economic growth up to a certain point (maximal threshold) and then starts to have a negative effect on growth afterwards. Design/methodology/approach – To carry out the tests, the author has used a methodology that delivers a superior test of inverse U-shapes (Lind and Mehlum, 2010), in addition to the traditional test based on a regression with a quadratic specification. Findings – The results in the paper present evidence of a bell-shaped relationship between economic growth and total public debt in a panel of low-income Sub-Saharan African economies. This supports the hypothesis that debt has some positive contribution to economic growth in low-income countries, albeit up to a point. Practical implications – The overall result supports the claim that public debt may start to be a drag on economic growth if it goes on increasing beyond the level where it would be sustainable. Originality/value – This paper leads the way by implementing a robust test of non-linearity (“inverse-U” test) to the analyses the debt-growth nexus and the laffer curve in Sub-Saharan Africa. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Economic Research & Business Administration is the property of Al-Farabi Kazakh National University 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.)

Motivation: Institutions play a significant role in development processes, contributing to understanding the economic backwardness of Sub-Saharan Africa. There is no consensus in the literature on the specific set of institutions that significantly influence developmental processes. Furthermore, there is no convincing evidence that institutions create the proper environment for long-term growth or result from increased development due to advances in human capital and investments. Therefore, the article examines overcoming the developmental backwardness of those countries following sustainable development. Aim: The article aims to analyze whether institutions contribute to the development processes of Sub-Saharan African countries. The paper identifies the differences in channels of institutions' impact on the two development measures, GDP per capita and the Human Development Index (HDI). Regarding the high diversity in the level of development of countries in the region and the differences in their institutional systems, thirty-two countries in Sub-Saharan Africa were grouped regarding HDI level. Results: The heterogeneous panel Autoregressive Distributed Lags (ARDL) models revealed that in the lower developed countries, financial aid in the form of grants or very low-interest loans from the World Bank and OECD is of particular importance. They show that increased use of CO2 is a proxy for driving forces of African economies (production, investments, etc.). Indicators referring to institutions' measurement like government effectiveness, political stability, economic freedom, or the number of days for establishing a business play important roles in continuing development. [ABSTRACT FROM AUTHOR]

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]

This paper examines the impact of stock market development on economic growth in Sub-Saharan Africa using a balanced panel data of five selected countries over the period 1993-2013 and the system generalised method of moments dynamic panel estimation framework. The paper finds a positive impact of stock market development proxied by the turnover ratio of domestic shares and market capitalization on economic growth though minimal. Furthermore, investment, lagged gross domestic product and human capital were found to have a significantly positive impact on growth while trade and foreign direct investment negatively impacted on growth, even though the results for foreign direct investment is not significant in all the models and consequently, not very robust. There should be policy measures aimed at enhancing economic growth using the development of the stocks market as a channel. Such policies should focus on developing the appropriate mix of taxation of investors as well as the development of requisite technology, institutional and regulatory framework that will facilitate an increase in the size and liquidity of the market in the sub-region. [ABSTRACT FROM AUTHOR]

The effects of corruption on economic development have been extensively examined. There is overwhelming evidence that corruption is detrimental to economic progress. This, in turn, has provided the rationale to combat corruption. With the insistence of international development partners, many countries in Sub-Saharan Africa have put in place anticorruption strategies to fight corruption. This paper looks at the strategies adopted by some Sub-Saharan African countries to combat corruption with a view to identifying the strengths and weaknesses. Based on the successes or failures of the strategies in the cases examined, the elements that constitute a successful anticorruption strategy are identified. Of the ingredients of anticorruption strategy examined in the paper, the political will to fight corruption appears to be the overriding factor in mounting a successful anticorruption campaign. Besides identifying the necessary factors for a successful anticorruption strategy, the paper also serves as an update on the state of corruption in Sub-Saharan Africa and the literature on the causes of corruption. [ABSTRACT FROM AUTHOR]

There is inadequate knowledge about the relationship between financial openness and economic transformation, particularly in the African context. This lack of knowledge fuels the passion for research, especially with the emergence of new refined indicators of both financial openness and economic transformation. The objective of this paper, therefore, is to assess the impact of financial openness on the economic transformation process using as sample sub-Saharan African (SSA) countries, with study period spanning from 1995 to 2020. To do so, we use the economic complexity index as an indicator of economic transformation, and the KAOPEN index of Chinn and Ito (2006) to capture financial openness. Based on the Instrumental Variables Two-Stage Least Squares (IV-2SLS) technique, we obtain the following results: Firstly, financial openness is a powerful driver of economic transformation in SSA; secondly, our results remain stable following several sensitivity tests related to economic digitization, financial development, types of natural resources, quality of institutions, historical, cultural, and geographic factors; and finally, our results are robust to the use of alternative measures of financial openness and economic transformation, but also to changes in instrumentation and estimation technique. Consistent with our result, we suggest that policymakers should boost the attractiveness for foreign direct and portfolio investments while maintaining fundamental balances. [ABSTRACT FROM AUTHOR]

This paper analyzes the nexus between energy consumption, financial development, and economic growth in twenty-one (21) sub-Saharan African (SSA) nations by using the nonlinear autoregressive distributed lag (NARDL) framework from 1990Q1 to 2014Q4. First, the study reveals that energy consumption and financial development have asymmetrical impacts on economic growth in most countries in the short and long term. Second, positive shocks to financial development favor economic growth in only a few nations compared to the negative shocks in the short term, whereas they have mixed effects in the long term. Third, we found that adverse shocks to energy consumption boost economic growth in several nations in the short term, unlike the positive shocks, but the scenario has reversed in the long term. We also found that gross fixed capital formation and labor force remain key factors promoting economic growth in many SSA countries, in contrast to the mixed effects of trade openness over time. Accordingly, our study recommends implementing energy-saving policies in specific SSA countries to stimulate sustainable development. Policymakers must embrace an effective credit allocation to the private sector supporting productive investments. Governments should also optimize domestic investments in physical capital, upgrade the labor force, and implement efficient strategies in international trade. These policy recommendations need to be implemented according to the unique socio-economic characteristics of each SSA country. [ABSTRACT FROM AUTHOR]

Background: Significant efforts have been made in improving economic growth rates in sub-Saharan Africa. Economic growth, however, seems to be behind the desired rates, and also not inclusive. It is important to recognize the importance of health capital in achieving and sustaining the desired rates of growth in the region. This paper examines the relationship between health outcomes and economic growth in sub-Saharan Africa. Methods: The paper employs the panel data technique in achieving the objectives. Panel data technique was used because this study is a cross-country examination of the effects of health outcomes on economic growth over time. In this approach, we use the Generalized Method of Moments estimation technique. Data for the study were sourced from the 2019 World Bank's World Development Indicators for a sample of 39 countries in sub-Saharan Africa. Findings: The findings confirm the significant contribution of health outcomes to economic growth in SSA. An improvement in life expectancy at birth, and the reduction in the rates of infant and under-five mortalities, lead to an increase in the growth rate of per capita gross domestic product. Besides, capital formation, education, and trade openness contribute positively to economic growth, whereas the population growth rate negatively affects the growth rate of per capita gross domestic product. Conclusion: Given the significant effect of health outcomes on economic growth, sub-Sahara African countries will benefit from actively investing in the health sector to increase life expectancy and reduce mortality rates. This perhaps can be achieved through effective education of the populace in keeping healthy life practices and deliberate investments in the health sector by governments to improve the efficiency of the sector and to make appropriate health care available and accessible. This will contribute to the achievement of sustained economic growth rates in the region. [ABSTRACT FROM AUTHOR]

This paper examined the influence of the type of presidential mandate and the type of legal system on economic growth in sub-Saharan Africa. This paper employed a dynamic panel approach; the GMM model. Results revealed that the presence of a "limited presidential term" and "common law legal system" exert a significant and positive influence on economic growth. Results also indicated that "unlimited presidential terms" and "civil law legal system" have a negative impact on economic growth. On the other hand, it was observed that government efficiency, political stability, the rule of law, and the quality of regulation affect economic growth positively. Trade openness and population growth were found to have a negative impact on economic growth. These results have implications for the promotion of good governance for rapid economic growth in sub-Saharan African. [ABSTRACT FROM AUTHOR]

Purpose – This editorial builds on the distinction between soft and hard economics and discusses dominant explanations for the development challenges of Sub-Sahara African (SSA) countries. It also seeks to offer a backdrop for the papers in the present volume of AJEMS. The paper aims to discuss these issues. Design/methodology/approach – It is based on a review of a selection of literature that highlights the dominant perspectives in neoclassical economics and competing streams of research that provide alternative perspectives. Findings – The review suggests the emergence of a competing paradigm that focuses attention on the human factor in economic growth process – i.e. the development of human capability as a foundation of sustainable inclusive growth. The competing streams of research seem to co-exist today, but there are potentials for paradigmatic criss-crossing in future research. Originality/value – It provides directions for future research into issues of economic growth and poverty alleviation in SSA. [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]

The high reliance of Africa's GDP on agriculture makes its economic growth susceptible to climate change. The vulnerability of Africa is further worsened by the strong interlinkage that the agricultural sector has with other productive sectors. To drive policy implications that transform economic performance in Africa, it becomes important to understand the linkages between climate and economy of the region. This paper examines the effects that climate change has on economic performance in sub-Saharan African nations. Based on cross-country panel climatic data that takes account of the absorptive mechanism, it estimates the contribution of climate change to economic performance in sub-Saharan Africa (SSA). The estimator is developed based on the OLS, Fixed Effect, and the Arellano-Bond (1991) Generalized Method of Moments (GMM) estimator. The findings show that high temperature is a significant contributor to worsening economic performance in the SSA region. However, after accounting for the absorptive mechanisms, the relationship is no longer that strong. Specifically, after accounting for initial economic performance, social and political stability in the 2-stage GMM estimation, the estimate for temperature drops by 59%. This result confirms the hypothesis that the negative impact of climate change in the region is not absolute, and that building an overall stable socioeconomic environment in the region could assist in buffering the impact of climate change. [ABSTRACT FROM AUTHOR]

Agriculture is under transformation in sub-Saharan Africa where millions still do not have access to a healthy diet. Policy makers in this region should find ways to accelerate agricultural transformation while increasing access to healthy diets. Optimizing agriculture's public budget stands out as a handy option. By combining a dynamic computable general equilibrium model and a multi-criteria decision-making technique, and applying them in the context of Ethiopia, this paper points to an important trade-off that policy makers should keep in mind. An optimal allocation of agriculture's public budget aimed at increasing agri-food output, creating off-farm jobs and reducing rural poverty, which are agricultural transformation objectives, will help to reduce the cost of a healthy diet, allowing around 2 million more Ethiopians to afford it. This number could even be higher should policy makers allocate the budget optimally aiming at only lowering the cost of a healthy diet, but at the cost of reducing household income and slowing down transformation. [ABSTRACT FROM AUTHOR]

This paper is concerned with the question of whether democratic transition causes more foreign aid inflow to recipient countries. By focusing on Sub-Saharan Africa, a novel econometrics method, the synthetic control method (SCM) developed by Abadie et al. (2010), is applied to assess the causal effect of a “treatment”, i.e., democratization. The treatment unit is Senegal, which underwent democratization in 2000 and has since been a stable democracy; the untreated units are five other Sub-Saharan countries. The results indicate that democratization resulted in the “treated” country, that is, Senegal receiving significantly more foreign aid than it would have received if it had remained an autocracy, a finding that is robust to various robustness checks. Converting the detected extra foreign aid into an extra growth rate indicates a substantial (3.217 percentage points) additional growth rate for Senegal, ceteris paribus. However, the results should be interpreted with great caution, as they may not be generalizable and applicable to all cases; that is, general policy implications cannot be drawn based on a single case. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine the impact of commodity price changes (crude oil, cocoa, coffee, cotton and gold) on the international market on development (development proxied by the human development index) (HDI) among emerging economies in Sub-Saharan Africa (SSA). Design/methodology/approach: Empirical estimates verifying theorized relationships in question were performed using the two-step system generalized method of moments framework. Findings: Results from the empirical estimates suggest that a percentage increase in the prices of crude oil, cocoa and gold in the world market have a significant positive influence on development among economies in the sub-region all things being equal; however, similar price changes in cotton and coffee showed a negative effect on development. Further empirical estimates suggest that the extent to which prices of key commodities such as crude oil, influence development in the sub-region benefit less from institutional variables such as government effectiveness, corruption control and political stability. The same institutional variables, however, were found to augment how changes in cocoa prices influence development among economies in the sub-region. Originality/value: This study specifically examines the extent to which commodity price fluctuations impact a holistic measure of development, (HDI which inherently captures economic growth) among emerging economies such as those in the SSA region, and how such relationship may be moderated by conditions such as corruption control and government effectiveness. The review suggests that such a study is rare, did not find any specific empirical inquiry focusing on what this study is designed to accomplish. A major gap or deficit identified among most reviewed studies is the failure to verify how the surmised relationship between movements in prices of commodities traded on the international market and development is moderated by institutional factors such as corruption control, government effectiveness and political stability. This study specifically examines such interaction effects in its empirical analysis. [ABSTRACT FROM AUTHOR]

The flow of official development assistance (ODA) to support research and training (TR) in developing countries has raised questions within the academic and policy circles about whether this ODA intervention is effective. In addressing this question, this paper examines empirically, whether ODA channelled to research in Sub-Saharan Africa (SSA) to promote innovation and technology advancement in the sub-region leads to innovation. The study includes 32 countries in the SSA sub-region and the datasets deployed for the study were obtained from the World Bank Enterprise Survey (WBES), the Organisation for Economic Co-operation and Development (OECD) aid database, and the World Bank online database. Using firm-level data while controlling for country-specific characteristics and the fixed effect estimator, the results show that countries in SSA have the potential to introduce new products and services or significantly improve processes in their product or service if governments in the sub-region or their development partners increase their subventions to support research and TR. [ABSTRACT FROM AUTHOR]

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]

This paper aims to analyse the effect of foreign aid, moderated by governance effectiveness variables, on economic development in sub-Saharan Africa. Data on foreign aid, gdp and governance variables were from the World Bank governance archives covering five sub-Saharan African countries. The paper applied the ols and fixed effect panelmultiple regression analysis. From the first analysis, findings show a negative link between external aid and gdp per capita in sub-Saharan Africa. In the second analysis with governancemoderating variables, findings indicate a positive relationship between foreign aid and gdp with rule of lawproviding a positive boost toforeignaidand gdp growth, but corruptionandgovernancehave a negative relationship with economic growth. The paper highlights policy implications for the need to bridle corruption and to strengthen governance institutions to enable foreign aid to function effectively toward economic growth. The paper suggests an agenda for further research to apply more governance institution variables in further analysis of aid effectiveness in sub-Saharan Africa economic growth. [ABSTRACT FROM AUTHOR]

This paper investigates the relationship between inflation and economic growth for South Africa and Ghana using quarterly empirical data collected from 2001 to 2016 applied to the quantile regression method. For our full sample estimates we find that inflation is positively related with growth in Ghana at high inflation levels whilst inflation in South Africa exerts its least adverse effects at high inflation levels. However, when particularly focusing on the post-crisis period, we find inflation exerts negative effects at all levels of inflation for both countries with inflation having its least adverse effects at high levels for Ghana and at moderate levels for South Arica. Based on these findings bear important implications for inflation targeting frameworks adopted by Central Banks in both countries. [ABSTRACT FROM AUTHOR]

The literature assessing the effectiveness of bilateral foreign aid flows to sub-Saharan Africa primarily focus on one aspect of the aid delivery mechanism that is employed by donors, namely that of channeling aid to recipient central governments. These analyses do not take into account alternative donor delivery tactics of circumventing recipient governments with poor institutional quality – delivering aid to non-state ('bypass') actors instead. Thus, the objective of this paper is to extend the aid effectiveness literature by disaggregating bilateral aid flows into both government-to-government aid and bypass aid, and assessing their relative effect on economic growth. Utilising data compiled from multiple data sources including the OECD Credit Reporting Services and World Bank datasets, I find that whereas the effect of government-to-government aid on economic growth is conditional on institutional quality, bypass aid is unconditionally effective. [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]

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]

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]

This paper aims to analyse the effect of foreign aid, moderated by governance effectiveness variables, on economic development in sub-Saharan Africa. Data on foreign aid, gdp and governance variables were from the World Bank governance archives covering five sub-Saharan African countries. The paper applied the ols and fixed effect panelmultiple regression analysis. From the first analysis, findings show a negative link between external aid and gdp per capita in sub-Saharan Africa. In the second analysis with governancemoderating variables, findings indicate a positive relationship between foreign aid and gdp with rule of lawproviding a positive boost toforeignaidand gdp growth, but corruption and governance have a negative relationship with economic growth. The paper highlights policy implications for the need to bridle corruption and to strengthen governance institutions to enable foreign aid to function effectively toward economic growth. The paper suggests an agenda for further research to apply more governance institution variables in further analysis of aid effectiveness in sub-Saharan Africa economic growth. [ABSTRACT FROM AUTHOR]

On the question of whether external finance stimulates GDP growth, the profession offers inconclusive as well as frequent contradictory outcomes. While waiting for a robust consensus, this paper addressed directly the mechanisms through which external finance should influence economic growth. Investment was identify as the most significant transmission mechanism, and as well considers effects via funding regime consumption expenditure and import. By employing the residual generated repressors', we accomplish a measure of the overall influence of external finance on economic growth, accounting for the influence through investment. Based on the pooled panel outcomes, a sample of twenty-five Sub-Saharan Africa economies were examine over the period of 1970-1997; the result indicates that there is a significant and positive effect of overseas assistance on economic growth, ceteris paribus. Based on average, each 1% point upsurge in the aid/GNP ratio contributes one-quarter of 1% point to the growth rate. Therefore, the poor economic growth in Africa should not be attributed to external finance ineffectiveness. [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]