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on Africa |
| By: | Keijiro Otsuka (National Graduate Institute for Policy Studies); Frank Place (World Agroforestry Centre) |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:ngi:dpaper:13-22&r=afr |
| By: | PENARD Thierry; POUSSING Nicolas; MUKOKO Blaise; TAMOKWE Georges Bertrand |
| Abstract: | The objective of this paper is to understand what factors stimulate or hinder the adoption and usage of the Internet in Africa. We adopt a micro-econometric approach and use household survey data from Cameroon. Our results show that Internet users in Cameroon tend to be young, educated and in employment. The probability of using the Internet is also higher for male, as well as for English-speaking and computer savvy individuals. Moreover, Internet users are more likely to have family abroad. We also find that Internet usage patterns differ across gender, age and education. For instance, young generations (below 21) tend to favor leisure usage (games) while older generations are more likely to use the Internet to search (local and international) information. Highly educated and computer savvy users are also more likely to use the Internet for professional purpose (information search) and less likely to have entertainment usage. These results provide evidence of digital divide in the Internet access, but also in the usage patterns on the African continent. |
| Keywords: | Internet adoption; Internet usage; Digital divide; Africa; Survey data; Empirical analysis |
| JEL: | L86 L96 O33 O57 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:irs:cepswp:2013-22&r=afr |
| By: | Kleemann, Linda; Lay, Jann; Nolte, Kerstin; Ott, Konrad; Thiele, Rainer; Voget-Kleschin, Lieske |
| Abstract: | For local people in sub-Saharan Africa, large land investment projects currently imply many risks and few benefits. Drawing on own ethical and economic research and using evidence from the authors' case studies in Kenya, Mali and Zambia and a new database of large-scale land acquisitions worldwide, this brief offers policy recommendations for host governments, investors and the international community so as to achieve a more favourable balance of risks and benefits in land investment projects. Our research suggests that the land governance systems of sub-Saharan African countries, comprising a multitude of sometimes contradictory laws derived from colonial and customary systems, privilege powerful actors and lead to violation of human rights. Legal uncertainty and an acquisition process that gives no voice to local land users can lead to displacements of farmers without compensation. Poorly enforced formal laws, neglect of built-in checks and balances, and power and information asymmetries between investors and local people can give rise to coalitions of investors and powerful rent-seekers. Displaced farmers and those unable to find jobs on the land investment projects migrate to other rural areas or the cities, and few and only low-skilled jobs are available to those who remain. We found limited evidence of positive spillovers from improved infrastructure and knowledge and technology transfer. Local food prices are likely to rise, as most of the production on investment farms is for export. Overall, when many farmers are displaced and investment projects are capital intensive the net welfare effect for the local population can be expected to be negative. Against this background, we propose a set of policy changes for promoting benefits for the local population and avoiding human rights violations. In contrast to proposals made by international guidelines and codes of conduct, we emphasize in particular the responsibilities of host country governments. -- |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkpb:67&r=afr |
| By: | M Du Preez, DE Lee and M Sale |
| Abstract: | Parametric regression models of hedonic price functions suffer from two main specification issues: the identification of appropriate dependent and independent variables, and the choice of functional form. Although the first issue remains relevant with the use of nonparametric regression models, the second issue becomes irrelevant since these models do not presume functional forms a priori. We estimate a linear parametric model via OLS, which fails a common specification test, before showing that recently developed nonparametric regression methods outperform it significantly. In addition to estimating the models, we compare the out-of-sample prediction performance of the OLS and nonparametric models. Our data reveals that the nonparametric models provide more accurate predictions than the parametric model. |
| Keywords: | Parametric regression model, hedonic price, South Africa |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:379&r=afr |
| By: | Asongu Simplice (Yaoundé/Cameroun) |
| Abstract: | Abstract Purpose – This paper assesses the determinants of corruption-control with freedom dynamics (economic, political, press and trade), government quality and a plethora of socio-economic factors in 46 African countries using updated data. Design/methodology/approach – A quantile regression approach is employed while controlling for the unobserved heterogeneity. Principal component analysis is also used to reduce the dimensions of highly correlated variables. Findings – With the legal origin fundamental characteristic, the following findings have been established. (1) While political freedom increases corruption-control (CC) in a bottom quantile of English common law countries, there is no such evidence in their French civil law counterparts. (2) Government quality consistently improves CC across all quantiles in English common law countries but fails to exert the same effect in middle quantiles of French civil law countries. (3) Economic freedom ameliorates CC only in common law countries with low existing CC levels (bottom quantiles). (4) We find no significant evidence of a positive ‘press freedom’-CC nexus and having the status of Low income English common law (French civil law) countries decreases (increases) CC. From a religious domination scenario, we also find the following. (1) Political and trade freedoms only reduce CC in Christian dominated countries while press freedom has a mitigation effect in both religious cultures (though more consistent across quantiles of Christian-oriented countries). (2) Government quality is more pro-CC in Christian than in Muslim-dominated countries. (3) While economic freedom has a scanty negative nexus with CC in Christian-oriented countries, the effect is positive in their Muslim-dominated counterparts. (4) Having a low-income status in countries with Christian common law tradition improves CC. Originality/value – We complement the literature on the fight against corruption in Africa by employing recently documented additional factors that should be considered in corruption studies. |
| Keywords: | Corruption; Freedom; Government quality; Quantile regression; Africa |
| JEL: | C10 H10 K10 O10 O55 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:13/028&r=afr |
| By: | Willenbockel, Dirk |
| Abstract: | This study provides an ex-ante computable general equilibrium (CGE) assessment of the Tripartite Free Trade Agreement between the member states of the Common Market for Eastern and Southern Africa, the East African Community and the Southern African Development Community. The CGE approach enables a consistent integrated predictive evaluation of sectoral production and employment impacts, aggregate income and welfare effects of changes in trade barriers while taking full account of the macroeconomic repercussion arising e.g. from terms-of trade effects, tariff revenue changes and intersectoral input-output linkages. The simulation analysis considers eight distinct trade integration scenarios that differ in their level of ambition. |
| Keywords: | Free trade agreement, South-south trade, regional economic integration, computable general equilibrium |
| JEL: | D58 F13 F15 F17 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:51501&r=afr |
| By: | Asongu Simplice (Yaoundé/Cameroun) |
| Abstract: | The object of this paper is to complement theoretical ‘mobile penetration’ literature with empirical evidence in a dual manner: on the one hand, assess the income-redistributive effect of mobile phone penetration and; on the other hand, the instrumentality of good governance in this nexus. Main findings suggest an equalizing income-redistributive effect, with a higher magnitude in the presence of government quality instruments. It follows that, good governance is a necessary condition for a higher income-equalizing effect of mobile phone penetration. The empirical evidence which deviates from mainstream country-specific and microeconomic survey-based approaches is on 52 African countries. ‘Mobile phone’-oriented poverty reduction channels are also discussed. |
| Keywords: | Mobile Phones; Shadow Economy; Poverty; Inequality; Africa |
| JEL: | E00 G20 I30 L96 O33 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:13/027&r=afr |
| By: | Maria Kuecken (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne); Josselin Thuilliez (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne); Marie-Anne Valfort (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris) |
| Abstract: | We examine the middle-run effects of the Global Fund's malaria control programs on the educational attainment of primary schoolchildren in Sub-Saharan Africa. Using a quasi-experimental approach, we exploit geographic variation in pre-campaign malaria prevalence (malaria ecology) and variation in exogenous exposure to the timing and expenditure of malaria control campaigns, based on individuals' years of birth and year surveyed. In a large majority of countries (14 of 22), we find that the program led to substantial increases in years of schooling and grade level as well as reductions in schooling delay. Moreover, although by and large positive, we find that the marginal returns of the Global Fund disbursements in terms of educational outcomes are decreasing. Our findings, which are robust to both the instrumentation of ecology and use of alternative ecology measures, have important policy implications on the value for money of malaria control efforts. |
| Keywords: | Malaria; Sub-Saharan Africa; education; quasi-experimental; Global Fund |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00881371&r=afr |
| By: | Nonso Obikili |
| Abstract: | I examine the relationship between social and human capital in colonial Western Nigeria. Using data on expenditure of cocoa farmers in 1952, I show that farmers in townships with higher social spending individually spend more on education. The relationship holds after controlling for various characteristics of the farmers and the townships. Thus I show that there is a relationship between social and human capital and that this relationship was already present during the colonial era. |
| Keywords: | Human Capital, social capital, Africa |
| JEL: | J24 D71 N37 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:382&r=afr |
| By: | Maystadt, Jean-Francois; Ecker, Olivier; Mabiso, Arthur |
| Abstract: | Climate change leads to more frequent and more intense droughts in Somalia. In a global context, weather shocks have been found to perpetuate poverty and fuel civil conflict. By relating regional and temporal variations in violent conflict outbreaks with drought incidence and severity, we show that this causality is valid also for Somalia at the local level. We find that livestock price shocks drive drought-induced conflicts through reducing the opportunity costs of conflict participation. Our estimation results indicate that a temperature rise of around 3.2 degrees Celsius—corresponding to the median Intergovernmental Panel on Climate Change scenario for eastern Africa by the end of the century—would lower cattle prices by about 4 percent and, in turn, increase the incidence of violent conflict by about 58 percent. Hence climate change will further aggravate Somalia’s security challenges and calls for decisive action to strengthen both drought and conflict resilience, especially in pastoralist and agropastoralist livelihoods. |
| Keywords: | drought; conflict; civil war; livestock; prices; Somalia; Horn of Africa; |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ner:leuven:urn:hdl:123456789/401898&r=afr |
| By: | Volker Schöer (School of Economic and Business Sciences, University of Witwatersrand); Debra Shepherd (Department of Economics, University of Stellenbosch) |
| Abstract: | As South African universities experience extremely low graduation rates, academic staff implement a range of interventions, such as tutorial programmes, in order to improve student performance. However, relatively little is known about the impact of such tutorial programmes on students’ performance. Using data from an introductory microeconomics course, this paper investigates the impact of a compulsory tutorial programme on students’ performance in their final examination. Due to the fact that the tutorial programme was only compulsory for students that obtained less than a pass in the first test, while otherwise offered on a voluntary basis, this paper employs a fuzzy regression discontinuity (RD) design to investigate the impact of the tutorial programme on final exam performance. Findings indicate that assignment to the compulsory programme positively affects students’ performance. However, this result is mainly drive by students who already seem to have the ability to perform but, for whatever reason, underperformed in the first test. Thus, while assignment to the tutorial programme itself leads to an improvement in performance, the mechanism is unclear. |
| Keywords: | peer tutoring, compulsory tutorial programme, introductory microeconomics, regression discontinuity design, South Africa |
| JEL: | A2 A20 A22 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:sza:wpaper:wpapers203&r=afr |
| By: | Louw Pienaar (Western Cape Department of Agriculture, Elsenburg); Dieter von Fintel (Department of Economics, University of Stellenbosch) |
| Abstract: | One hundred years after the implementation of the 1913 Land Act, the subject of land reform and rural development are still at the forefront of public discourse within South Africa. Much of the literature suggests that post-apartheid interventions have not been successful at improving small-scale agriculture, which is seen as an important vehicle for improving rural food security. Nevertheless, data from the General Household Survey indicate that household food security has improved in the post-2000 decade. In particular, this paper demonstrates that hunger levels have declined substantially since 2002 (as other estimates of poverty have also indicated), but more importantly that they have done so faster in former homelands regions. Using linear probability models, this paper seeks to isolate which factors have led to the convergence of homeland regions’ hunger levels to the rest of the country. The historical context that is sketched here highlights the severe challenges faced by farmers in these areas; this raises the question how convergence in food security occurred, given that many agricultural interventions have not attained the success that was hoped for. In particular, the large reliance on social grants in homelands regions accounts for a part of the reduction in hunger levels. Communal gardens and connections to the agricultural market have reduced hunger within former homelands regions. The long-term sustainability of grants in bolstering food security is of concern, highlighting the need for greater market integration of small scale farmers in homeland regions. |
| Keywords: | Food Security, Subsistence Farming, Apartheid Homelands, Social Pensions |
| JEL: | Q18 Q12 C31 H55 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:sza:wpaper:wpapers202&r=afr |
| By: | Mintewab Bezabih; Abe Damte Beyene; Zenebe Gebreegziabher; Livousew Borga |
| Abstract: | The paper analyses the impact of climate change and local social networks on farmers’ soil conservation behaviour in the Central Highlands of Ethiopia. Farm household level panel data with multiple plots combined with climate data from the adjacent meteorological stations, interpolated at a household level, are employed in the analysis. The extent to which local social networks contribute to soil conservation investment in the presence of climate change is assessed using multivariate probit and poison estimation methods. In light of similar previous studies, the major contributions of the paper are: 1) the use of wide ranging social capital measures, and 2) the availability of different soil conservation structures in multiple plots within the same household. The results show that climate change is a significant determinant of soil conservation investment. In addition, the relationship between local social networks and soil conservation is context specific. |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp115&r=afr |
| By: | Monique Reid and Gideon Du Rand |
| Abstract: | Mankiw and Reis (2002) propose the Sticky Information Phillips Curve as an alternative to the standard New Keynesian Phillips Curve, to address empirical shortcomings in the latter. In this paper, a Sticky Information Phillips curve for South Africa is estimated, which requires data on expectations of current period variables conditional on sequences of earlier period information sets. In the literature the choice of proxies for the inflation expectations and output gap measures are usually not well motivated. In this paper, we test the sensitivity of model fit and parameter estimates to a variety of proxies. We find that parameter estimates for output gap proxies based either on a simple Hodrik-Prescott filter application or on a Kalman filter estimation of an aggregate production function are significant and reasonable, whereas methods employing direct calculation of marginal costs do not yield acceptable results. Estimates of information updating probability range between 0.69 and 0.81. This is somewhat higher than suggested by alternative methods using micro-evidence (0.65 – 0.70 (Reid, 2012)). Lastly, we find that neither parameter estimates nor model diagnostics are sensitive to the choice of expectation proxy, whether it be constructed from surveyed expectations or the ad hoc VAR based forecasting methods. |
| Keywords: | South Africa, sticky information, Phillips curve |
| JEL: | E31 E3 E52 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:381&r=afr |
| By: | Johane Dikgang and Edwin Muchapondwa |
| Abstract: | This study seeks to value ecosystem services in the Kgalagadi area by applying the Choice Experiment technique. The values placed on dryland ecosystem services by indigenous communities are estimated using a Conditional Logit model, Random Parameter Logit model and a Random Parameter Logit model with interactions. The results show that local communities would prefer getting increased grazing firewood collection, hunting opportunities and harvesting of medicinal plants. |
| Keywords: | choice experiment, conditional logit, ecosystem services, local communities, random parameter logit |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:383&r=afr |
| By: | Calderone, Margherita; Maystadt, Jean-Francois; You, Liangzhi |
| Abstract: | Weather shocks and natural disasters, it has been argued, represent a major threat to national and international security. Our paper contributes to the emerging micro-level strand of the literature on the link between local variations in weather shocks and conflict by focusing on a pixel-level analysis for North and South Sudan at different geographical and time scales between 1997 and 2009. Temperature anomalies are found to strongly affect the risk of conflict. In the future the risk is expected to magnify in a range of 21 to 30 percent under a median scenario, taking into account uncertainties in both the climate projection and the estimate of the response of violence to temperature variations. Extreme temperature shocks are found to strongly affect the likelihood of violence as well, but the predictive power is hindered by substantial uncertainty. Our paper also sheds light on the vulnerability of areas with particular biophysical characteristics or with vulnerable populations. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ner:leuven:urn:hdl:123456789/403654&r=afr |
| By: | Thierry Pairault (CCJ - Chine, Corée, Japon - CNRS : UMR8173 - École des Hautes Études en Sciences Sociales [EHESS] - Université Paris VII - Paris Diderot) |
| Abstract: | Relations between China and African countries are getting better known even if sub-Saharan Africa is more often documented than Maghreb. The organisation of strikes by Algerians workers employed by Chinese firms or the repatriation of Chinese workers from building sites in Libya has been widely reported. On the other hand, little is said about the part China might effectively play in the economy of Maghreb countries and about the diversity of the situations of these countries in their economic relations with China. Even less is said about whether Chinese presence in Maghreb might foster the emergence of a new and more balanced partnership between European countries and Maghreb countries and promote new European co-operation governance. To address this issue I shall bring together statistics published by international institutions (UNCTAD and Eurostat) and by China statistical services to assess the forces involved and the actual part played by each actor. Successively, I shall attend to the question of the foreign direct investment to Maghreb countries, and then I shall deal with the exports of goods from Maghreb countries and imports of Chinese goods by these countries. Finally I shall examine whether China is actually contending European Union countries in Maghreb and to which extent this state of affairs might promote a new partnership and co-operation governance. |
| Keywords: | Chine;Maghreb;Europe;relations économique;IDE |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00881405&r=afr |
| By: | Johane Dikgang and Edwin Muchapondwa |
| Abstract: | The economic importance of the dryland ecosystem services in the Kgalagadi area is generally unknown, as is the distribution of benefits from use of the ecosystem services. This study seeks to value ecosystem services in the Kgalagadi area by applying the Choice Experiment technique and thereafter assess the potential for ecosystem services to contribute to the Khomani San livelihoods through a payment for ecosystem services (PES) scheme. The values placed on dryland ecosystem services by tourists are estimated using a Conditional Logit model, Random Parameter Logit model and a Random Parameter Logit model with interactions. The park visitors prefer getting more pristine recreational opportunities, increased chances of seeing predators and show disapproval of granting more access inside the Kgalagadi Transfrontier Park to local communities. This scenario shows that there is a possibility to craft a PES scheme where park visitors could compensate the local communities to accept a restriction of resource use in the Kgalagadi area. |
| Keywords: | choice experiment, conditional logit, ecosystem services, Khomani San, random parameter logit |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:384&r=afr |
| By: | Yonas Alem; Jonathan Colmer |
| Abstract: | Using a household panel data set in rural Ethiopia combined with a new data set containing daily atmospheric parameters, we are able to show that increased climate variability reduces the level of a farmer’s subjective assessment of their individual well-being. Resulting from the impact that climate variability has on uncertainty about future income, those living in riskier areas report lower life satisfaction than those living in more stable environments. The magnitude of our result indicates that a one standard deviation increase in climate variability has an equivalent e?ect on life satisfaction to a two standard deviation (1-2%) decrease in real consumption expenditure per capita. Out of all of the determinants examined, this e?ect is shown to be one of the largest determinants of life satisfaction in rural Ethiopia. Robustness tests demonstrate the resilience of our results and help to disentangle the e?ects of climate variability from weather e?ects. They also help to draw out the mechanism by which climate variability impacts life satisfaction. We also demonstrate, using a second panel data set in urban Ethiopia, that increased climate variability has no impact on subjective well-being for urban households. In light of the resilience and magnitude of our result, policies that reduce dependence on rain-fed agriculture, improve farmers’ ability to deal with climatic risk, and provide credible insurance are likely to be welfare-enhancing. |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp118&r=afr |
| By: | World Bank Group |
| Keywords: | Accommodation and Tourism Industry Economic Theory and Research Environment - Tourism and Ecotourism Transport Economics Policy and Planning Urban Development - City Development Strategies Industry Macroeconomics and Economic Growth Transport |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:16252&r=afr |
| By: | Vandeginste, Stef |
| Abstract: | Le 9 et 10 octobre 2013, le Conseil des Ministres burundais a adopté un projet de loi portant modification de certaines dispositions de la Constitution du Burundi. Moins de deux ans avant les élections générales de 2015, cette démarche suscite de nombreuses interrogations. La présente analyse se limite à développer trois éléments d’analyse très précis. S’agit-il une d’une révision de la Constitution du 18 mars 2005 actuellement en vigueur ou de son remplacement par une nouvelle Constitution? Si, en effet, il est question d’une nouvelle Constitution qui remplacera l’actuelle, quelles seront les conséquences en ce qui concerne l’éligibilité de l’actuel Président de la République Pierre Nkurunziza? Enfin, comment peut-on évaluer cette initiative au regard de la Charte africaine de la démocratie, des élections et de la gouvernance? Avant d’aborder ces trois questions, un bref aperçu historique nous paraît utile. On 9 and 10 October 2013, the Council of Ministers of Burundi adopted a bill amending certain provisions of the Constitution of Burundi. Less than two years before the general elections of 2015, this approach raises many questions. This analysis is limited to three very specific elements of analysis. Is it a revision of the Constitution of 18 March 2005 or is it a replacement by a new Constitution? If, indeed, a new constitution is to replace the current one, what are the implications regarding the eligibility of the current President Pierre Nkurunziza of the Republic? Finally, how can we evaluate this initiative under the African Charter on Democracy, Elections and Governance? Before addressing these three questions, a brief history seems useful. (text only available in French) |
| Keywords: | Burundi; constitution |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:iob:apbrfs:2013004&r=afr |
| By: | Mbaye, Linguère Mously (IZA) |
| Abstract: | Fatalities from illegal immigration from Africa is an important issue, representing a major challenge for both major migrant sending and receiving countries. Nonetheless, almost nothing is known about how the illegal migration intentions of potential migrants are formed. This paper aims to explain the factors behind the formation of these intentions to migrate illegally by using an original survey among urban Senegalese individuals. Remarkably, the results show that potential illegal migrants are willing to accept a substantial risk of death (25% at the median). Furthermore, the paper also finds that the price of illegal migration, migrant networks and high expectations play important roles in the decision to illegally migrate. Moreover, I find that, contrary to conventional thinking, stricter immigration policies deter potential legal migrants more than potential illegal migrants. |
| Keywords: | illegal migration, intentions, Senegal |
| JEL: | F22 O15 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7728&r=afr |
| By: | World Bank |
| Keywords: | Public Sector Corruption and Anticorruption Measures Public Sector Expenditure Policy Private Sector Development - E-Business Finance and Financial Sector Development - Bankruptcy and Resolution of Financial Distress Finance and Financial Sector Development - Debt Markets Public Sector Development |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:16262&r=afr |
| By: | Odile Chanut; Nadjoua Gharbi; Dominique Bonet Fernandez; E. Hachemi Aliouche |
| Abstract: | Franchising has become a dominant model of retailing in the Western world and is rapidly expanding in emerging countries. This paper is an attempt to explain the significant differences in the development of franchising in three emerging countries: Morocco, Algeria and Tunisia. Explanations can be found in the general institutional environment in these countries, including the political and economic environments; governments' willingness to modernize the distribution structures; and the legal and regulatory environments specific to franchising.Our analytical framework is based on institutional theory (DiMaggio & Powell, 1983), a framework that provides further insights beyond the approaches based on economic efficiency (agency theory and the resource scarcity perspective). Based on an analysis of the documents in the major public databases in the three countries, supplemented with field research, we propose an analytical framework that helps explain the uneven developments of franchising in the three North African countries based on the specific institutional environment of each country. This study thus provides empirical evidence supporting the institutional theory of franchise expansion. It appears that institutional theory complements agency theory and resource scarcity theory in explaining the development of franchising in emerging markets: while agency theory and resource scarcity theory explain the motivation of firms to expand internationally through franchising, institutional theory helps explain the success or failure of these firms in the emerging markets they expand to. |
| Keywords: | Institutional environment, institutional theory, analytical framework,international expansion, Maghreb. |
| Date: | 2013–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:39&r=afr |
| By: | World Bank |
| Keywords: | Energy - Energy and Environment Environment - Climate Change Mitigation and Green House Gases Oil Refining and Gas Industry Environment - Environment and Energy Efficiency Energy - Energy Production and Transportation Industry |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:16264&r=afr |
| By: | World Bank |
| Keywords: | Environment - Climate Change Mitigation and Green House Gases Environment - Environment and Energy Efficiency Private Sector Development - E-Business Energy - Energy Production and Transportation Energy - Energy and Environment |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:16263&r=afr |