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on Africa |
| By: | Leandro Prados de la Escosura |
| Abstract: | Long-run trends in Africa’s well-being are provided on the basis of a new index of human development, alternative to the UNDP’s HDI. A sustained improvement in African human development is found that falls, nonetheless, short of those experienced in other developing regions. Within Africa, Sub-Saharan Africa has fallen steadily behind the North since mid-20th century. Human development improvement is positively associated to being coastal and resource-rich and negatively to politicaleconomy distortions. Contrary to the world experience, in which life expectancy dominated, education has driven progress in African human development during the last half-a-century and, due to the impact of HIV/AIDS on life expectancy and the arresting effect of economic mismanagement and political turmoil on growth, advances in human development since 1990 have depended almost exclusively on education achievements. The large country variance of the recovery during the last decade suggests being cautious about the future’s prospects |
| Keywords: | Africa, Sub-Saharan Africa, Human Development, HDI, Life Expectancy, Education |
| JEL: | O15 O55 I30 N37 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:cte:whrepe:wp11-09&r=afr |
| By: | Kristian Behrens; Alain Pholo Bala |
| Abstract: | We develop an economic geography model where mobile skilled workers choose to either work in a production sector or to become part of an unproductive elite. The elite sets income tax rates to maximize its own welfare by extracting rents, thereby influencing the spatial structure of the economy and changing the available range of consumption goods. We show that either unskilled labor mobility, or rent-seeking behavior, or both, are likely to favor the occurence of agglomeration and of urban primacy. In equilibrium, the elite may tax the unskilled workers but does not tax the skilled workers, and there are rural-urban transfers towards the agglomeration. The size of the elite and the magnitude of the tax burden that falls on the unskilled decrease with product differentiation and with the expenditure share for manufacturing goods. All these results are broadly in line with observed patterns of urban primacy and economic development in sub-Saharan African countries. |
| Keywords: | economic geography; rent-seeking; interregional transfers; urban primacy; Sub-Saharan Africa. |
| JEL: | D72 F12 R12 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:237&r=afr |
| By: | Mario Du Preez; Deborah Ellen Lee; Stephen Gerald Hosking |
| Abstract: | Using beach visitation data collected via the administration of a questionnaire to 226 respondents, this paper estimates a random utility model of beach recreation. The relative value of selected attributes of beaches is estimated, and the recreational values of lost access to four Blue Flag beaches in the Nelson Mandela Bay area, namely Kings beach, Humewood beach, Hobie beach and Wells Estate beach, respectively are calculated to be R44.73, R24.61, R37.85 and R2.68 per person, per trip. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:239&r=afr |
| By: | Agar Brugiavini; Noemi Pace |
| Abstract: | There is considerable interest in exploring the potential of health insurance to increase the access to, and the affordability of, health care in Africa. We focus on the recent experience of Ghana, where a National Health Insurance Scheme (NHIS) became law in 2003 and fully implemented from late 2005. Even though there is some evidence of large coverage levels, the effect of the NHIS on health care demand and out-of-pocket expenditures has still not been fully examined. This paper is an attempt to close this gap. Using nationally-representative household data from the Ghana Demographic and Health Survey, we find that the introduction of the NHIS has a positive and significant effect on the utilisation of health care services, although it does have only a weak effect on out-of-pocket expenditure. |
| Keywords: | Health insurance; out-of-pocket expenses; maternity care demand |
| Date: | 2011–05–13 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2011/27&r=afr |
| By: | Thomas Bossuroy |
| Abstract: | This paper examines the individual determinants of ethnic identication using large sample surveys (about 30,000 respondents) representative of seven capitals of West-African countries. A small model that relates ethnic identication to an investment in ethnic capital suggests that individuals initially deprived of social or human capital resort to ethnicity to get socially inserted, and do even more so if their ethnic group itself is well inserted. Empirical results are consistent with this simple theory. First, education lowers ethnic salience. Second, ethnic identication is higher for uneducated unemployed or informal workers who seek a new or better job, and is further raised by the share of the individual's ethnic group integrated on the job market. Third, ethnic identication is higher among migrants, and raised by the share of the migrant's ethnic group that is employed. Group solidarity makes ethnic identity more salient for individuals deprived of other means for upward mobility. |
| Keywords: | Ethnicity, Identity, Social capital, Networks, Africa |
| JEL: | A13 A14 D74 O17 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:242&r=afr |
| By: | Katarina Juselius; Niels Framroze; Finn Tarp |
| Abstract: | Studies of aid effectiveness abound in the literature, often with opposing conclusions. Since most time-series studies use data from the exact same publicly available data bases, our claim here is that such differences in results must be due to the use of different econometric models and methods. To investigate this we perform a comprehensive study of the long-run effect of foreign aid (ODA) on a set of key macroeconomic variables in 36 sub-Saharan African countries from mid-1960s to 2007. We use a well-specified (Cointegrated) VAR (CVAR) model as our statistical benchmark. It represents a much-needed general-to-specific approach which can provide broad confidence intervals within which empirically relevant claims should fall. Based on stringent statistical testing, our results provide broad support for a positive long-run impact of ODA flows on the macroeconomy. For example, we find a positive effect of ODA on investment in 33 of the 36 included countries, but hardly any evidence supporting the view that aid has been harmful. From a methodological point of view our study documents the importance of transparency in results reporting in particular when the statistical null does not correspond to a natural economic null hypothesis. Our study identifies three reasons for econometrically unsatisfactory results in the literature: failure to adequately account for unit roots and breaks; imposing seemingly innocuous but invalid data transformations; and imposing aid endogeneity/exogeneity without testing. |
| Keywords: | foreign aid, Africa, transmission channels, unit roots, Cointegrated VAR |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2011-51&r=afr |
| By: | Awojobi, Omotola; Bein, Murad |
| Abstract: | The main focus of this research is to juxtapose the features of microfinancing and the institutional forbearance of economic development in Nigeria. Based on empirical study, it has been observed that poverty is multifaceted and its persistence is due to lack of productive resources. The Nigerian case reveals that the major constraint to improving the standard of living of the poor is capital (finance). This has restricted their extensive participation in economic activities which could improve their lives. For this study, our theoretical a priori expectation is that provision of microfinance services such as savings and microloans have direct impact on GDP. A causal relationship will be established and evaluated with the ‘t-test’ statistic, while the relevance of the independent variables in explaining the subject will be justified based on the F-statistic test and R2 coefficient of multi-determination. Also, using a lin-log regression model, economic growth shall be regressed on poverty level in Nigeria. This will create an assertion whether Nigeria needs a systematic reinforcement of the microfinance mechanism to propagate a soothing trend for poverty reduction and economic growth. |
| Keywords: | Microfinance; Poverty; Economic Development; Economic Growth; Financial Services; Gross Domestic Product |
| JEL: | O17 I38 G21 |
| Date: | 2010–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33530&r=afr |
| By: | Gustav Ranis (Economic Growth Center, Yale University) |
| Abstract: | This paper reviews the literature on the impact of ethnic diversity on economic development. Ethnically polarized societies are less likely to agree on the provision of public goods and more likely to engage in rent seeking activities providing lower levels of social capital. Initial conditions are important determinants of adverse development outcomes. The role of decentralization, democracy and markets as potential remedies are discussed. The paper then presents a number of preliminary hypotheses on the relationship between diversity and instability in order to stimulate future research. |
| Keywords: | Africa, Diversity, Economic Growth, Instability |
| JEL: | O11 O40 O43 O55 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:egc:wpaper:1001&r=afr |
| By: | Hassan Suleiman; Zahid Muhammad |
| Abstract: | In this study the long-run relationship between real oil price, real effective exchange rate and productivity differentials is examined using annual data for Nigeria over the period 1980 to 2010. We aim to investigate whether oil price fluctuations and productivity differentials affect the real effective exchange rate. The empirical results suggest that whereas real oil price exercise a significant positive effect on the real exchange rate in the long run. Productivity differentials exercise a significant negative influence on the real exchange rate. The study noted that, the real exchange rate appreciation of 2000-2010 was driven by oil prices. The findings of this study have important implications for exchange rate policy and are relevant to many developing economies where oil exports constitute a significant share of their exports. |
| Keywords: | Exchange rate, oil price, Nigerian economy |
| JEL: | F31 C22 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wsr:wpaper:y:2011:i:072&r=afr |
| By: | Nicholas Wilson (Williams College) |
| Abstract: | Prevention of mother-to-child transmission (PMTCT) interventions reduce the cumulative probability of transmission from a HIV positive woman to her child by as much as 40 percentage points. This paper is the first economic analysis of the behavioral effects of PMTCT. I examine fertility responses to the scale-up of PMTCT in Zambia, a country where approximately 15 percent of adults age 15-49 are HIV positive. My results suggest that the local introduction of PMTCT reduced pregnancy rates by up to 20 percent, that the fertility response was greater among women who were more likely to be HIV positive, and that PMTCT substantially increased breastfeeding rates. |
| Keywords: | Fertility; HIV/AIDS; PMTCT; reproductive technology; Zambia |
| JEL: | I10 J13 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:wil:wilcde:2011-08&r=afr |
| By: | Zahid Muhammad; Hassan Suleiman; Reza Kouhy |
| Abstract: | This paper investigates the oil price – exchange rate nexus for Nigeria during the period 2007-2010 using daily data. The generalised autoregressive conditional heteroscedasticity (GARCH) and exponential GARCH (EGARCH) models are employed to examine the impact of oil price changes on the nominal exchange rate .The outcome of this research indicates that a rise in oil prices leads to a depreciation of the Nigerian Naira vis-à-vis the US dollar over the study period. |
| Keywords: | Exchange rate, oil price, Nigeria, GARCH/EGARCH |
| JEL: | F31 E44 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wsr:wpaper:y:2011:i:071&r=afr |
| By: | M. Du Preez; M.C. Sale |
| Abstract: | Social housing projects often face substantial “Not-in-my-backyard†(NIMBY) sentiment and as a result are frequently plagued by local opposition from communities who argue that nearby property prices will be affected adversely by these developments. International hedonic pricing studies conducted have, however, produced mixed results with some concluding that social housing developments may in fact lead to an improvement in surrounding property values. There is, however, a paucity of South African evidence. This study considers the validity of the most pervasive NIMBY argument, the claim that social housing developments negatively affect nearby property values, by considering the property prices of 170 single-family homes in the Walmer neighbourhood, Nelson Mandela Bay, as a function of their proximity to an existing low-cost housing development. The results of this study indicate that in the case of one Nelson Mandela Bay low-cost housing development, a negative impact is exerted on the property values of nearby houses. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:241&r=afr |
| By: | Mussa, Richard |
| Abstract: | The allocation of resources within households may not be equal, and this may lead to different outcomes including health outcomes for household members. This paper investigates whether child nutrition inequalities are attributable to differences between households or differences within households in Malawi. Using a linear model with random effects, we derive a method to estimate the between and within contributions of both the explained and unexplained variances of child nutrition. Child nutrition is measured using height-for-age z-scores, and weight-for-height z-scores. The empirical analysis uses the 2006 multiple indicator cluster survey (MICS) data. We find evidence of within household nutritional bias along gender, age, and birth order lines in Malawi. The results for rural and urban areas, as well as ethnic and religious groups show that nutrition inequalities largely stem from differences within households. Intrahousehold nutrition inequalities are however less explained by observables, while interhousehold inequalities are more explained by observables. |
| Keywords: | Inequality; nutrition; Malawi |
| JEL: | D13 I12 |
| Date: | 2011–09–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33498&r=afr |
| By: | Grietjie Verhoef |
| Abstract: | The internationalisation of enterprises is one of the essential ways to strengthen the competitiveness of firms from developing countries (UNCTAD, 2005c: 3). Strong growth in outward foreign direct investment (OFDI) from developing countries has become the distinguishing feature of the twenty-first century. This OFDI flows from state-owned enterprises, sovereign wealth funds (SWF) as well as private enterprises operating as multinational companies from a home base or as free-standing companies. Multinational corporations have commenced activities since the 1960s by moving operations to resource-rich, low-cost labour and capital markets (Wilkins, 1970; 1974; 1988; Jones, 1994; 2005). The first wave of OFDI during the 1960s and 1970s was motivated by efficiency and market-seeking factors. This wave was dominated by firms from Asia and Latin America. A second wave of OFDI followed in the 1980s, led by strategic assetseeking enterprises from Hong Kong, Taiwan, Singapore and South Korea (Dunning et al., 1996; UNCTAD, 2005b: 3s). Since the 1990s China, Brazil, India, Russia (the so-called BRIC countries) Malaysia, Turkey and South Africa are among the countries expected to add significantly to OFDI growth (UNCTAD, 2005c: 4). The flow of investment funds from developed countries was expected, but the reverse trend displayed the emerging capacities in countries and firms outside the core of the international economy, which challenged the dominance of developed countries and companies from developed countries. These developments have prompted several questions: how do developing country firms succeed in entering global markets? Do these firms improve their competitiveness through OFDI? This paper investigates this phenomenon from the experience of South Africa. The emergence of EMNC (Emerging Market Multinational Corporations) prompted extensive analysis and debates about the nature of and motives for EMNCs, but has also led to more in-depth analysis of specific country characteristics and firm-specific reasons for OFDI. |
| Keywords: | overseas foreign direct investment internationalisation business history conglomerates competitiveness industrial protection management strategy |
| JEL: | L14 L21 L32 N60 N67 N87 N97 O31 O32 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:238&r=afr |
| By: | Achyuta Adhvaryu (School of Public Health, Yale University) |
| Abstract: | I show that malaria misdiagnosis, common in resource-poor settings, decreases the expected effectiveness of an important new therapy–since only a fraction of treated individuals have malaria–and reduces the rate of learning via increased noise. Using pilot program data from Tanzania, I exploit variation in the location and timing of survey enumeration to construct reference groups composed of randomly chosen, geographically and temporally proximate acutely ill individuals. I show that learning is stronger and adoption rates are higher in villages with more misdiagnosis. Subsidizing diagnostic tools or improving initial targeting of new technologies may thus accelerate uptake through learning. |
| Keywords: | technology adoption, learning, malaria, Tanzania |
| JEL: | O12 O33 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:egc:wpaper:1000&r=afr |
| By: | Xavier Giné; Jessica Goldberg; Dean Yang |
| Abstract: | We report the results of a randomized field experiment that examines the credit market impacts of improvements in a lender's ability to determine borrowers’ identities. Improved personal identification enhances the credibility of a lender’s dynamic repayment incentives by allowing it to withhold future loans from past defaulters and expand credit for good borrowers. The experimental context, rural Malawi, is characterized by an imperfect identification system. Consistent with a simple model of borrower heterogeneity and information asymmetries, fingerprinting led to substantially higher repayment rates for borrowers with the highest ex ante default risk, but had no effect for the rest of the borrowers. The change in repayment rates is driven by reductions in adverse selection (smaller loan sizes) and lower moral hazard (for example, less diversion of loan-financed fertilizer from its intended use on the cash crop). |
| JEL: | O12 O16 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17449&r=afr |
| By: | Martin Rempe |
| Abstract: | Françafrique, Francophonie, l’état franco-africain and Mafiafrique – all these terms are commonly used if one comes to talk about French-African relations after the severing of colonial ties in 1960. Even though they bear slightly different meanings, they share the notion of a very close, stable, and continuous if not to say colonially-styled relationship. According to the relevant literature, the European Economic Community (EEC) acted thereby as a stabilizing instrument. Against this backdrop, the paper tries to present new perspectives on the complex relationship between the EEC, France and its former African colonies associated to the community since 1958. The paper explores to what extent France’s belonging to the EEC triggered Europeanization processes that directly affected French-African relations and eventually acted in favor of decolonization of metropolitan France. I will argue that in the course of the 1960s, emulation of community procedures as well as supranational legal coercion to a certain extent transformed French development co-operation and trade relations with the Francophone African states and in the end fostered France’s regional reconfiguration towards Europe. |
| Keywords: | Mediterranean; Mediterranean; Europeanization; Europeanization |
| Date: | 2011–05–02 |
| URL: | http://d.repec.org/n?u=RePEc:erp:kfgxxx:p0027&r=afr |
| By: | Abras, Ana; Cuesta, Jose |
| Abstract: | This paper brings back the fiscal angle to the analysis of equal opportunities both by connecting traditional benefit-incidence analysis of public spending with equal opportunities and by conducting ex-ante micro-simulations on the fiscal cost of equal opportunity policies in education. Four simulations are conducted in Liberia, a country devastated by a civil war, with serious educational enrollment gaps and fiscal policies highly dependent on international aid. Results for the simulated policy scenarios (increases in teachers'salaries, elimination of both fee and non-fee costs borne by households, and targeting public spending on education to rural schools) point to very modest redistributive effects but very different patterns of winners and losers among groups of children in Liberia. |
| Date: | 2011–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5801&r=afr |
| By: | Andrews, Colin; Galliano, Elena; Turk, Carolyn; Zampaglione, Giuseppe |
| Abstract: | This paper reviews a small community-based school feeding program launched in Togo in response to the 2007/08 food price crisis. The discussion focuses on the operational and policy lessons emerging from the program, to better understand opportunities for scale up and sustainability in the future. A focus of the discussion is how to build safety nets in fragile states and in situations where there is weak and fragmented government capacity to deliver services to disadvantaged and vulnerable communities. In this context school feeding is explored as an entry point through the use of informal mechanisms based on the commitment of communities and civil society. The analysis is premised on quantitative and qualitative analysis carried out at program sites. The discussion identifies the operational challenges and opportunities in customizing school feeding within Togo with an emphasis on targeting, cost effectiveness, procurement and institutional aspects. Evidence on the economic and social benefits of the program is also presented, focusing on dietary impacts, as well as household and local community effects. The objective of the discussion is to share lessons learned from evaluation findings so that they can be useful for implementing similar programs in the future in Togo itself or in other countries. Findings from the analysis highlight the possibilities of implementing school feeding in a low capacity setting and the scope for using the program as a springboard towards a broader and more comprehensive social safety net. |
| Keywords: | Food&Beverage Industry,Education For All,Safety Nets and Transfers,Disability,Rural Poverty Reduction |
| Date: | 2011–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:hdnspu:64631&r=afr |