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on Africa |
| By: | Svetlana Adrianova; Badi H. Baltagi; Panicos Demetriades; David Fielding |
| Abstract: | We present a theoretical model of moral hazard and adverse selection in an imperfectly competitive loans market that is suitable for application to Africa. The model allows for variation in both the level of contract enforcement (depending on the quality of governance) and the degree of market segmentation (depending on the level of ethnic fractionalization). The model predicts a specific form of non-linearity in the effects of these variables on the loan default rate. Empirical analysis using African panel data for 111 individual banks in 29 countries over 2000-2008 provides strong evidence for these predictions. Our results have important implications for the conditions under which policy reform will enhance financial development. |
| Keywords: | Ethnic fractionalization, Governance, Financial development, African Banks, Panel data |
| JEL: | G21 O16 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:2015-12&r=afr |
| By: | Simplice Asongu (Yaoundé/Cameroun); John Ssozi (Baylor University, USA) |
| Abstract: | We survey about 110 recently published studies on Sino-African relations; put some structure on the documented issues before suggesting some solutions and strategies to the identified policy syndromes. The documented issues classified into eight main strands include, China: targeting nations with abundant natural resources; focusing on countries with bad governance; not hiring local workers; outbidding other countries by flouting environmental and social standards; importing workers that do not integrate into domestic society and living in extremely simple conditions; exhibiting low linkages between her operations and local businesses; exporting low quality products to Africa; and the emergence of China hindering Africa’s development. |
| Keywords: | Economic relations; China; Africa |
| JEL: | F19 F21 O10 O19 O55 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:15/013&r=afr |
| By: | Marcel Fafchamps; Simon R. Quinn |
| Abstract: | We run a novel field experiment to link managers of African manufacturing firms. The experiment features exogenous link formation, exogenous seeding of information, and exogenous assignment to treatment and placebo. We study the impact of the experiment on firm business practices outside of the lab. We find that the experiment successfully created new variation in social networks. We find significant diffusion of business practices only in terms of VAT registration and having a bank current account. This diffusion is a combination of diffusion of innovation and simple imitation. At the time of our experiment, all three studied countries were undergoing large changes in their VAT legislation. |
| JEL: | D22 L26 O33 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21132&r=afr |
| By: | Kotsadam,Andreas; Tolonen,Anja Karolina |
| Abstract: | It is a contentious issue whether large scale mining creates local employment, and the sector has been accused of hurting women?s labor supply and economic opportunities. This paper uses the rapid expansion of mining in Sub-Saharan Africa to analyze local structural shifts. It matches 109 openings and 84 closings of industrial mines to survey data for 800,000 individuals and exploits the spatial-temporal variation. With mine opening, women living within 20 km of a mine switch from self-employment in agriculture to working in services or they leave the work force. Men switch from agriculture to skilled manual labor. Effects are stronger in years of high world prices. Mining creates local boom-bust economies in Africa, with permanent effects on women?s labor market participation. |
| Keywords: | Economic Theory&Research,Labor Markets,Labor Policies,Rural Development Knowledge&Information Systems,Population Policies |
| Date: | 2015–04–27 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7251&r=afr |
| By: | Simon Franklin |
| Abstract: | This paper looks at the link between housing conditions and household income and labour market participation in South Africa. I use four waves of panel data from 2002-2009 on households that were originally living in informal dwellings. I find that those households that received free government housing later experienced large increases in their incomes. This effect is driven by increased employment rates among female members of these households, rather than other sources of income. I take advantage of a natural experiment created by a policy of allocating housing to households that lived in close proximity to new housing developments. Using rich spatial data on the roll out of government housing projects, I generate geographic instruments to predict selection into receiving housing. I then use housing projects that were planned and approved but never actually built to allay concerns about non-random placement of housing projects. The fixed effects results are robust to the use of these instruments and placebo tests. I present suggestive evidence that formal housing alleviates the demands of work at home for women, which leads to increases in labour supply to wage paying jobs. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:2015-10&r=afr |
| By: | Katarzyna Cieslik; Marek Hudon; Philip Verwimp |
| Abstract: | This study explores the social entrepreneurial potential of the rule-breaking practices of microfinance programs’ beneficiaries. We empirically apply the positive theory of social entrepreneurship that views social entrepreneurship as a pursuit of neglected positive externalities. Using the storyboard methodology, the paper examines the strategies employed by the poor in Burundi to bypass institutional rules. We argue that illicit practices can in fact be interpreted as value-creating entrepreneurial acts and be symptomatic of an emergent social-entrepreneurial orientation. Our findings cast a spotlight on issues of agency and empowerment, questioning and contextualizing the definition of social value. |
| Keywords: | entrepreneurship; rule-breaking; social value; microfinance; Africa; Burundi |
| Date: | 2015–04–23 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/198935&r=afr |
| By: | Boateng, Elliot; Amponsah, Mary; Serwaa-Adomako, Akosua |
| Abstract: | Bank customers are selective with the banks to transact with since everyone wants the best service for their money. Asa result, there is competition in the banking sector. Each bank wants to give quality services and products to keep up existing customers and broaden their customer base as well. The purpose of this study is to find out if customer needs for direct service transactions with bank employees in the banking halls has reduced due to Automated Teller Machines (ATM) provided for Ghanaians at customer service points. The essential dimensions of an ATM service quality and its effect on customer satisfaction is also examined. Questionnaires were administered to users and nonusers of Automated Teller Machines, as well as bank staffs, to source data for the study. An analysis of data was done with descriptive statistics and the chi-square test. About the scope of the study, the results showed that, the demand for direct service transactions with bank employees had reduced with the ATM introduced in Ghana. ATM service quality dimensions that produced an effect on customer satisfaction were the reduced time spent on transactions, delivery of renewed ATM cards on time as well as safety during withdrawals at ATM service points. In conclusion, when Banks in Ghana enhance on the ATM service quality dimensions that impact on customer satisfaction, they shall increase their customer base, cut workload on bank staff and increase their turnover. |
| Keywords: | automated teller machine, customer satisfaction, service quality |
| JEL: | G21 |
| Date: | 2014–10–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:63927&r=afr |
| By: | Chuhan-Pole,Punam; Dabalen,Andrew L.; Kotsadam,Andreas; Sanoh,Aly; Tolonen,Anja Karolina |
| Abstract: | Ghana is experiencing its third gold rush, and this paper sheds light on the socioeconomic impacts of this rapid expansion in industrial production. The paper uses a rich data set consisting of geocoded household data combined with detailed information on gold mining activities, and conducts two types of difference-in-differences estimations that provide complementary evidence. The first is a local-level analysis that identifies an economic footprint area very close to a mine; the second is a district-level analysis that captures the fiscal channel. The results indicate that men are more likely to benefit from direct employment as miners and that women are more likely to gain from indirect employment opportunities in services, although these results are imprecisely measured. Long-established households gain access to infrastructure, such as electricity and radios. Migrants living close to mines are less likely to have access to electricity and the incidence of diarrheal diseases is higher among migrant children. Overall, however, infant mortality rates decrease significantly in mining communities. |
| Keywords: | Disease Control&Prevention,Mining&Extractive Industry (Non-Energy),Labor Policies,Population Policies,Health Monitoring&Evaluation |
| Date: | 2015–04–23 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7250&r=afr |
| By: | Nakamura, Leonard I. (Federal Reserve Bank of Philadelphia) |
| Abstract: | The current era of globalization is dominated by the rise of investments in intangible capital rather than tangible capital — the ascendance of creativity over plant and equipment. This brief paper is motivated by the possibility that emerging market economies such as Morocco might take greater advantage of new tools and policies designed for this new era. To begin, I discuss the transformation of the global economy and the consequences of the transformed global economy for economic thinking and measurement. I refer to both old and new literature on the measurement of intangible investment and capital. Then, I discuss the rising role of creativity and cultural difference in the development of these new economic forces, using the example of the Harry Potter book series. I then consider how cultural enhancement serves multiple purposes for a nation. Finally, I turn to some of the possible implications of these economic forces for Morocco, stressing that these implications are speculative. |
| Keywords: | Intangibles; Emerging market economies; Measurement; Economic development |
| JEL: | C8 O2 O32 Z11 |
| Date: | 2015–04–29 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpwp:15-21&r=afr |