|
on Africa |
| By: | Sakyi, Daniel |
| Abstract: | Sub-Saharan Africa has been characterised by low-income levels for decades. This paper analyses the impact of economic globalisation and democracy on income in sub-Saharan Africa using panel cointegration techniques. The paper considers a composite indicator for economic globalisation and several alternative indicators of democracy and highlights the essence of the simultaneous adoption of economic globalisation and democracy for sub- Saharan African countries. The empirical results based on a sample of 31 countries over the 1980-2005 period, clearly indicate that, whilst the total long run impact of economic globalisation on income has been beneficial, the total long run impact of democracy has been the bane of income in sub-Saharan Africa. The paper concludes that policy reforms should aim to improve democratic institutions in sub-Saharan Africa for its potential benefits to be realised. -- |
| Keywords: | Economic Globalisation,Democracy,Income,Sub-Saharan Africa |
| JEL: | P0 E0 O1 O55 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec11:72&r=afr |
| By: | Pohl, Birte |
| Abstract: | This paper examines the efficiency effects of foreign bank entry on domestic banks in sub-Saharan Africa during the period 1999-2006. Using a recently compiled dataset on foreign bank presence, the competition and spillover effects of North-South, regional and nonregional South-South banks are distinguished. The results show that the competitive pressure on domestic banks' net interest margins emanates only from regional South-South banks. There is evidence of spillover effects from North-South and regional South-South banks on domestic banks. As domestic banks invest in foreign technologies, their overhead costs increase in the short-run. Non-regional South-South banks seem to have little effect on the efficiency of domestic banks. -- |
| Keywords: | Sub-Saharan Africa,efficiency,South-South banks,spillover |
| JEL: | F21 F23 F36 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec11:66&r=afr |
| By: | Rouanet, Léa |
| Abstract: | We study the relationship between height stature and child mortality in West Africa. This is motivated by two things: understanding the determinants of height, widely used health indicator, and explaining the « double African paradox ». This paradox comes from the fact that Africans are relatively tall in spite of extremely unfavorable income and disease environments; this the level paradox. The second paradox is that African height stature decreased in recent years, despite better health conditions and lower child mortality; this is the trend paradox. These stylized facts are surprising as both child mortality and height stature are viewed as health indicators, so that we expect a negative correlation between the two. To study this paradox, we focus on West African countries only, where child mortality levels are very high. For Benin, Burkina Faso, Côte d'Ivoire, Ghana, Mali, Nigeria and Senegal, we use DHS (Demographic and Health Surveys) data to measure child mortality (before 5) at the region X period level using the retrospective birth history of mothers. We want to test to what extent the paradox can be explained by selective child mortality. More generally, there is a need to understand how much child mortality levels and trends affect the study of height stature in Africa. Instrumentation can not be used in our context as we would need an event that increases or decreases mortality without affecting nutrition and regardless the distribution of heights. Consequently, we build a statistical model that we estimate linearly and nonlinearly. We first show that the correlation between adult height and mortality within region is not significantly negative in our setting. By estimating a nonlinear relationship between height and child mortality, we show that in high mortality contexts, when child mortality decreases selective mortality decreases as well, so that more short people survive. We are able to explain some differences in height levels between African countries and countries where selective mortality is lower. We also manage to explain why height stature did not increase as much as expected in Africa compared to the decrease in child mortality rates in the second half of the 20th century. -- |
| Keywords: | Height,Child Mortality,Selection,West Africa |
| JEL: | I1 I3 J1 O1 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec11:71&r=afr |
| By: | Stelios Michalopoulos (Tufts University and the Institute for Advanced Study); Elias Papaioannou (Dartmouth College, NBER and CEPR) |
| Abstract: | We investigate jointly the importance of contemporary country-level institutional structures and local ethnic-specific pre-colonial institutions in shaping comparative regional development in Africa. We utilize information on the spatial distribution of African ethnicities before colonization and regional variation in contemporary economic performance, as proxied by satellite light density at night. We exploit the fact that political boundaries across the African landscape partitioned ethnic groups in different countries subjecting identical cultures to different country-level institutions. Our regression discontinuity estimates reveal that differences in countrywide institutional arrangements across the border do not explain differences in economic performance within ethnic groups. In contrast, we document a strong association between pre-colonial ethnic institutional traits and contemporary regional development. While this correlation does not necessarily identify a causal relationship, this result obtains conditional on country fixed-effects, controlling for other ethnic traits and when we focus on pairs of contiguous ethnic homelands. |
| Keywords: | Africa, Borders, Ethnicities, Development, Institutions, Regression Discontinuity |
| JEL: | O10 O40 O43 N17 Z10 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:ads:wpaper:0099&r=afr |
| By: | Paul Cahu (The World Bank - The World Bank); Falilou Fall (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I) |
| Abstract: | In this paper, we first, perform a quantitative assessment of the impact of the HIV/AIDS epidemic on growth. Second, we precisely account for the effects of the epidemic on income per capita through human and physical capital accumulations, population and labor force. That is, we disentangle the effect on the different sources of short and long run growth. Using a dynamic panel of 46 Sub-Saharan African countries over the period 1981-2007, we show that HIV/AIDS has negative, significant and long-lasting effects on demography and growth. According to the estimates presented, GDP per working age population will be 12% lower in the long-run for the average African country than it should be if the epidemic had not spread out. However, the impact is huge for the countries experiencing a high prevalence rate. To tackle the endogeneity issue of HIV/AIDS, we provide a new series of HIV prevalence rate build from the estimation of the propagation dynamic of the epidemic. |
| Keywords: | Health, AIDS epidemic, human capital, growth, Sub-Saharan Africa. |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00609798&r=afr |
| By: | Thiele, Rainer; Böhme, Marcus |
| Abstract: | Employing a unique dataset that covers households from six West African capitals, this paper provides new evidence on the demand for informal sector products and services. We first investigate whether demand linkages exist between formal and informal products and distribution channels, and whether there is an overlapping customer base, which would imply that both formal sector wage earners and informal workers buy both formal and informal products using both formal and informal distribution channels. In a second step, we estimate demand elasticities based on Engel curves. We find a strongly overlapping customer base and strong demand-side linkages between the formal and informal sector, with the exception that informal goods are hardly bought through formal distribution channels. The estimated demand elasticities tend to show that rising incomes are associated with a lower propensity to consume informal sector goods and to use informal distribution channels. We therefore conclude that the informal sector in West Africa is likely to be constrained from the demand side. -- |
| Keywords: | Informal sector,formal-informal linkages,Engel curve estimates,West Africa |
| JEL: | D12 O17 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec11:76&r=afr |
| By: | Bah, El-hadj M.; Fang, Lei |
| Abstract: | Africa is the poorest part of the world and it has the worst environment for long term business success by most standards. Empirical works normally find a negative correlation between income per worker and measures for poor business environment. This paper develops a general equilibrium model to assess the quantitative effects of the business environment, including access to finance, regulation, crime, corruption and infrastructure, on output and TFP for 30 Sub-Saharan African countries. We find that the quantitative effects of these areas of the business environment are large. They together can explain about 67% of the variation in income per capita relative to the US. Improving these dimensions of the business environment will be key for the long term development of the continent. |
| Keywords: | Business environment; Investment Climate; African Development; Productivity |
| JEL: | O47 L23 O16 |
| Date: | 2011–07–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:32225&r=afr |
| By: | Bertocchi, Graziella |
| Abstract: | This essay investigates the determinants of the growth performance of Africa. I start by illustrating a broader research agenda which accounts not only for basic economic and demographic factors, but also for the role of history and institutional development. After reporting results from standard growth regressions, I analyze the role of Africa’s peculiar history, which has been marked by its colonization experience. Next I discuss the potential growth impact of state fragility, a concept which reflects multiple facets of the dysfunctions that plague the continent. The last topic I address is the influence, in and out of Africa, of the slave trades. The essay ends with critical conclusions and suggestions for further research. |
| Keywords: | Africa; colonization; Growth; history; institutions; slavery; state fragility |
| JEL: | H11 N17 O43 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8486&r=afr |
| By: | Kabunga, Nassul S.; Dubois, Thomas; Qaim, Matin |
| Abstract: | We analyze yield effects of tissue culture (TC) banana technology in the Kenyan small farm sector, using recent survey data and an endogenous switching regression approach. TC banana plantlets, which are free from pests and diseases, have been introduced in East Africa since the late-1990s. While field experiments show significant yield advantages over traditional banana suckers, a rigorous assessment of impacts in farmers' fields is still outstanding. A comparison of mean yield levels between TC adopters and non-adopters in our sample shows no significant difference. However, we find a negative selection bias, indicating that farmers with lower than average yields are more likely to adopt TC. Controlling for this bias results in a positive and significant TC net yield gain of 7%. We also find that TC technology is more knowledgeintensive and more responsive to irrigation than traditional bananas. Simulations show that improving access to irrigation could lift TC productivity gains to above 20%. The analytical approach developed and applied here may also be useful for the evaluation of other knowledgeintensive package technologies and innovations in perennial crops. -- |
| Keywords: | Biotechnology,adoption,productivity,impact,endogenous switching regression,Kenya |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec11:43&r=afr |
| By: | Harttgen, Kenneth; Günther, Isabel |
| Abstract: | In this paper we analyze if an 'urban mortality penalty' exists for today's developing countries, repeating the history of industrialized nations during the 19th century. We analyze the Demographic and Health Survey (DHS) of 19 Sub-Saharan African countries for differences in child and adult mortality between rural and urban areas. Our findings indicate that child mortality is higher in rural areas for almost all countries. On average child mortality rates are 13.6 percent in rural areas and 'only' 10.8 percent in urban areas. In contrast, average urban adult mortality rates (on average 14.5 percent) have indeed exceeded rural adult mortality rates (on average 12.8 percent) in many of our sample countries in the 2000s. For many countries high child mortality pockets do, however, exist in slum areas within cities. Child mortality rates in slum areas are on average 1.65 times higher than in the formal settlements of cities, but still lower than in rural areas. -- |
| Keywords: | mortality,urban,slum,inequality |
| JEL: | I10 I30 J10 R00 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec11:39&r=afr |
| By: | Afesorgbor, Sylvanus Kwaku; van Bergeijk, Peter A.G. |
| Abstract: | Using a gravity model for 35 countries and the years 1995-2006 we estimate the impact of regional trade agreements in Africa (in particular ECOWAS and SADC) and compare this to the a benchmark of North South trade integration (Europe's preferential trade agreement). We find that - ECOWAS and SADC membership significantly increases bilateral trade flows (and by more than for example preferential trade agreements with the EU do), - SADC membership has a stronger impact compared to ECOWAS and - that the impact of multi-membership critically depends on the characteristics of the overlapping RTA We find a positive impact if an additional membership complements the integration process of the original RTA: overlapping memberships had a significant positive effect on bilateral trade within the ECOWAS bloc but it is insignificant for SADC. -- |
| Keywords: | Sub Sahara Africa,regional economic integration,South-South trade,North-South trade intra-regional trade,gravity model,international trade,multi-membership |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec11:1&r=afr |
| By: | Quamrul Ashraf; Oded Galor |
| Abstract: | This research argues that deep-rooted factors, determined tens of thousands of years ago, had a significant effect on the course of economic development from the dawn of human civilization to the contemporary era. It advances and empirically establishes the hypothesis that, in the course of the exodus of Homo sapiens out of Africa, variation in migratory distance from the cradle of humankind to various settlements across the globe affected genetic diversity and has had a long-lasting effect on the pattern of comparative economic development that is not captured by geographical, institutional, and cultural factors. In particular, the level of genetic diversity within a society is found to have a hump-shaped effect on development outcomes in both the pre-colonial and the modern era, reflecting the trade-off between the beneficial and the detrimental effects of diversity on productivity. While the intermediate level of genetic diversity prevalent among Asian and European populations has been conducive for development, the high degree of diversity among African populations and the low degree of diversity among Native American populations have been a detrimental force in the development of these regions. |
| JEL: | N10 N30 N50 O11 O50 Z10 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17216&r=afr |
| By: | Giovanni Andrea Cornia; Luca Tiberti; Stefano Rosignoli; UNICEF Innocenti Research Centre |
| Abstract: | The years 2000-2007 witnessed an average decline in U5MR in sub-Saharan Africa (SSA) faster than that recorded during the prior two decades, including in countries with high HIV prevalence rates due to the spread of preventative and curative measures. Despite their gravity, a comprehensive analysis of the impact of the 2008-2009 crises on child mortality is still lacking, and estimates of the number of additional child deaths caused by the crises in SSA vary enormously. |
| Keywords: | economic crisis; food shortage; infant mortality; |
| JEL: | C1 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ucf:inwopa:inwopa633&r=afr |
| By: | Frey, Leo; Volz, Ulrich |
| Abstract: | This paper examines the effects of political agreements on regional financial integration (RFI) on financial market development and access to and cost of finance in Sub-Saharan Africa. Our results suggest that RFI positively affects financial development - measured very broadly as the size of the financial sector, including the liabilities of the central banks - when combined with a sufficient level of institutional quality. If institutional quality is below a threshold level, RFI apparently has negative effects on financial development. However, we can find no significant effects of RFI on the size of the private financial sector or on the efficiency of the banking sector. Regarding the effects of RFI on access to and costs of finance of enterprises in SSA, our results are mixed. We can find no significant effect of RFI on access to finance for all firms in the aggregate, but the results indicate that RFI actually impedes small firms' access to finance. Furthermore, there is a significant positive influence of foreign bank involvement on the severity of the credit constraint for small enterprises, while we don't find such an influence for large enterprises. These results provide some support for the foreign bank barrier hypothesis in the context of RFI. -- |
| Keywords: | Regional financial integration,Sub-Saharan Africa,financial development,access to finance |
| JEL: | G21 F36 O16 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec11:29&r=afr |
| By: | Bensch, Gunther; Peters, Jörg |
| Abstract: | The dissemination of improved cooking stoves (ICS) is frequently considered an effective instrument to combat deforestation. This paper evaluates the impacts of an ICS dissemination project in urban Senegal implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (German Agency for International Cooperation, or GIZ). Based on a survey among 624 households, we examine the effects of the intervention on charcoal consumption. Given a complex cooking behavior in urban Africa with simultaneous usage of different fuel and stove types, the virtue of our data set is that it provides for detailed information on individual stoves and meals. This allows for estimating charcoal savings by accounting for both household characteristics and meal specific cooking patterns. On average, households using an ICS save around 25 percent of charcoal per stove utilization. In total, around 6.1 to 6.9 percent of the Dakar charcoal consumption is saved due to the ICS dissemination project. -- |
| Keywords: | Impact evaluation,deforestation,energy access,Africa,Senegal |
| JEL: | O13 O22 Q41 Q56 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec11:9&r=afr |
| By: | Christian von Soest; Karsten Bechle; Nina Korte |
| Abstract: | Neopatrimonialism is a concept that has predominately been applied to describe governance in sub?Saharan Africa. Recently, though, it has also been used to describe states from other world regions. However, scholars have rarely attempted to systematically compare neopatrimonial rule in different regional settings. This paper aims to narrow this gap by examining the effect of neopatrimonialism on the tax administration as a core state function in six countries from three different world regions: Argentina, Venezuela, Indonesia, the Philippines, Kenya and Zambia. We conclude that neopatrimonialism is a valuable concept for comparative area studies with the potential to foster dialogue on the “state in operation” across the regional divide. However, several indicators are more valid for some world regions than for others. We find that there is no systematic relationship between neopatrimonial trajectories and the strength of tax administration. Individual actor decisions influence the outcomes of neopatrimonialism substantially. |
| Keywords: | neopatrimonialism, governance, institutions, Argentina, Venezuela, Indonesia, Philippines, Kenya, Zambia |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:gig:wpaper:172&r=afr |
| By: | Johan Fourie (Department of Economics, University of Stellenbosch); Jolandi Uys (Department of Economics, University of Stellenbosch) |
| Abstract: | What we know about the material culture of eighteenth century Cape Colony settlers is mostly limited to qualitative evidence found in official documents, letters, travel accounts and other correspondence. This paper uses a new quantitative source – the MOOC probate inventories – to ascertain the nature, growth and distribution of luxury good ownership in the Cape Colony. The survey reveals a marginal increase over the course of the eighteenth century in per capita ownership, although the trend masks greater movements within different wealth groups, which supports the notion of high inequality within the European society at the Cape. Yet, even given such inequality, the evidence suggests that even the poorest had access to the most basic amenities. In fact, comparisons with European and North American regions suggest that the Cape settlers were often more affluent, refuting the notion that the Cape Colony was an “economic and social backwater”. |
| Keywords: | South Africa, Cape Colony, French Huguenots, VOC, wine, slaves |
| JEL: | N37 D31 D63 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:sza:wpaper:wpapers142&r=afr |
| By: | Chiwaula, Levison; Waibel, Hermann |
| Abstract: | Applying research on vulnerability to seasonal data, we assess seasonal vulnerability to poverty using panel data from the Hadejia-Nguru Wetlands in Nigeria involving 260. We find that both observed poverty and vulnerability to poverty vary seasonally and that these variations are related to household livelihood strategies. Basing on our findings policy interventions should aim at increasing crop productivity (both food and cash crops) and returns to crop sales as well as promoting income diversification to off-farm activities. Safety net programs should be implemented only after productivity-enhancing interventions have been implemented. Further research is proposed to particularly assess the influence of seasonal variation on household livelihood choices. -- |
| Keywords: | Vulnerability to poverty,Seasonality,Social protection,Nigeria |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec11:19&r=afr |
| By: | André, Pierre; Mesplé-Somps, Sandrine |
| Abstract: | The body of literature on purely democratic countries can sometimes fail to explain the behavior of government in semi-democratic African countries. Empirical and theoretical political economic papers and that public funds target ruling party supporters and swing districts. Our results, however, suggest that the opposite was true of Ghana. We observe that pro-government districts received less public investment when the NDC was in power. We posit that this nding is partially driven by the government's will to curry favor with opposition politicians. Indeed, in addition to pursuing its electoral objectives, the government of an emerging democracy may fear political instability and keep the lid on potential unrest by bargaining with opposition leaders. Our analysis also shows that, when controlling for votes and other covariates (including wealth, urbanization and density), public goods allocation is not driven by ethnic group targeting either. -- |
| Keywords: | Public goods,Elections,Politics,Ghana |
| JEL: | D72 O55 R53 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec11:6&r=afr |
| By: | Fischer, Elisabeth; Qaim, Matin |
| Abstract: | Collective action has become an important strategy for smallholders in developing countries to remain competitive in rapidly changing markets. However, within farmer groups, the commitment of individual members can vary, as the expected net benefits are not the same for all individuals, and opportunities to free-ride exist. Since the benefits of collective action emerge primarily through the exploitation of economies of scale, low participation rates in joint activities may put a serious threat to the success and viability of farmer groups. This article investigates determinants of smallholder participation intensity and free-riding, using the example of banana groups in Kenya. The results suggest that family labor availability and previous benefits that members received through the groups positively influence their intensity of participation in group meetings and collective marketing. Free-riding can mostly be attributed to structural and institutional conditions, such as group size and the timing of payments. More diversified farmers are less likely to sell collectively. Since smallholders are often highly diversified in their agricultural activities, farmer groups should also diversify, focusing on more than a single crop. Further policy implications are discussed. -- |
| Keywords: | collective action,participation intensity,smallholder farmers,Kenya |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec11:28&r=afr |
| By: | Pasquier-Doumer, Laure |
| Abstract: | Abstract Social reproduction is the highest for self-employed as shown by an extensive literature from developed and developing countries. Very few studies however document the reason for this high intergenerational correlation of the self-employed status. The rare studies that have been done concern the US and show that children of self-employed benefit from an advantage when they are themselves self-employed. The purpose of this paper is to test in the African context if the second-generation of self-employed has an advantage related to the first-generation. It aims at highlighting the debate between two visions: the first of informal sector as the less-advantaged sector of a dualistic labour market, and the second as a sector of personal choice and dynamic entrepreneurship. Using 1-2-3 surveys collected in the commercial capitals of seven West African countries in 2001-2002, this paper shows that the second-generation of informal self-employed does not have better outcomes than the first one, except when they choose a familial tradition in the same sector of activity. Thus, in the African context, having a self-employed father does not provide any advantage in terms of profit or sales and is not sufficient for the transmission of a valuable informal human capital. On the other hand, informal entrepreneurs who have chosen a specific enterprise based on familial tradition have a comparative advantage. Their comparative advantage is partly explained by the transmission of enterprise-specific human capital, acquired thanks to experiences in the same type of activity and by the transmission of social capital that guarantees a better clientele and a reputation. -- |
| Keywords: | informal sector,entrepreneurship,intergenerational link |
| JEL: | L26 J24 J62 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec11:64&r=afr |
| By: | Preez, Du; Rensburg, Janse Van; Terblanche-Smit, Marlize |
| Abstract: | Social marketers play a pivotal role in influencing consumer's food choices, which ultimately contribute to healthier societies. In 2005, approximately 1.6 billion people worldwide, and 50% of the South African population, were classified as overweight. These numbers are escalating together with health related illnesses. The aim of this study was to investigate the relationship between self-concept, self-efficacy, emotional state, weight perception and food choice within Generation Y, a coveted consumer segment, regarded as trendsetters and early-adopters. An ex post facto research design and a self-administered questionnaire were utilized. The main findings include significant relationships between emotional state and food choice as well as weight perception and self-concept. The significance of this study lies in the expansion of knowledge regarding food choice behaviour of Generation Y and recommendations made to social marketers based on relationships found. |
| Keywords: | Generation Y; self-efficacy; food choice; weight perception; emotional state; Self-concept |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:nsu:apasro:356&r=afr |
| By: | Goetghebuer, Tatiana |
| Abstract: | In Mali, there exist various farm-cum-family structures, so that agricultural production occurs on plots controlled by different members of the household. In this paper, we want to lay emphasis on the under-researched differentials between collective and individual plots (attended by male or female farmer) in the context of extended family farms using input and output first hand data collected in the south-eastern part of Mali. First, we find that land yields are significantly larger on (male) private plots than on common plots with similar characteristics planted to the same crop in the same year after all appropriate controls have been included. And, second, we bring strong suggestive evidence that a moral hazard-in-team problem exists on the collective fields (yet only with regard to care-intensive crops) that could explain their relatively poor performance. -- |
| Keywords: | Land productivity,family structure,moral-hazard-in-team problem,collective |
| JEL: | D13 D57 J12 O12 O13 Q12 Q15 R20 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec11:34&r=afr |
| By: | Kebede, Sindu; Fekadu, Belay; Aredo, Dejene |
| Abstract: | Using a CGE model, this study analyses the impact of trade liberalization on poverty at the household level taking Ethiopia as a case. Two scenarios (complete tariff cut and uniform tariff scheme) suggest that further liberalization of trade has little short-run effect on the overall economy. However, the agriculture-based manufacturing sector (in particular, textile and leather) is likely to be strongly affected by further tariff reduction. Reductions in import prices of textiles and leather products increase imports of these goods implying that trade liberalization is likely to dampen domestic production of textile and leather products. Poverty shows a slight increase in both scenarios. At the national level, a complete tariff cut results in an increase in poverty by 2.8 percent, while a uniform tariff scheme raises poverty by 2.3 percent. Similarly, it is found that poverty gap and poverty severity indices show a slight increase. Comparing the effect of trade reform on different household groups, i.e. farm households, wage earner households and entrepreneur households, poverty in entrepreneur households increases by a higher percentage change (3.2 percent) in the complete tariff cut scenario. Poverty incidence increases by 1.7 and 1.5 percent for farm households and wage earners, respectively, under the complete tariff cut scenario. This comparison holds consistently when looking at the more realistic uniform tariff scheme. Entrepreneur households are at a disadvantage due to trade liberalization shown in the poverty gap and poverty severity indices. This is consistent with the theoretical argument that previously protected infant industries are highly affected by trade liberalization. -- |
| Keywords: | trade liberalization,poverty,CGE,import duties,macro-micro simulation |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec11:44&r=afr |
| By: | Buehren, Niklas |
| Abstract: | Microfinance in general and microcredit programs in particular have attracted much attention among interest groups concerned with poverty eradication and are seen by many as highly promising means in order to alleviate poverty. More recently, the spotlight has turned increasingly on the development and promotion of microsaving devices and mechanisms suitable to the unbanked poor. Along these lines, the Saving Mobilization program implemented by BRAC in Uganda is an attempt to encourage a saving culture as well as overcoming barriers to make use of saving services at more formal financial institutions. Building on a randomized control trial, the aim of this study is to investigate the impact of this program on the saving behavior of participants. The intervention is successful in increasing the usage of semi-formal financial institutions on the extensive margin as well as to boost the amount held at these institutions. The total amount of savings, however, remains unaffected. Impact heterogeneity is important and the analysis shows that illiterate individuals as well as individuals having experienced theft in the recent past are more likely to respond to the program. -- |
| Keywords: | Microfinance,saving promotion,theft,literacy,Uganda |
| JEL: | D14 G21 O16 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:gdec11:16&r=afr |
| By: | Deininger, Klaus; Ali, Daniel Ayalew; Alemu, Tekie |
| Abstract: | As countries increasingly strive to transform their economies from agriculture-based into a diversified one, land rental will become of greater importance. It will thus be critical to complement research on the efficiency of specific land rental arrangements -- such as sharecropping -- with an inquiry into the broader productivity impacts of the land rental market. Plot-level data for a matched landlord-tenant sample in an environment where sharecropping dominates allows this paper to explore both issues. The authors find that pure output sharing leads to significantly lower levels of efficiency that can be attenuated by monitoring while the inefficiency disappears if inputs are shared as well. Rentals transfer land to more productive producers but realization of this productivity advantage is prevented by the inefficiency of contractual arrangements, suggesting changes that would prompt adoption of different contractual arrangements could have significant benefits. |
| Keywords: | Labor Policies,Municipal Housing and Land,Economic Theory&Research,Land and Real Estate Development,Real Estate Development |
| Date: | 2011–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5727&r=afr |