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on Africa |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Samba Diop (Alioune Diop University, Bambey, Senegal) |
| Abstract: | This study assesses the nexus between bribery and poverty, contingent on the macroeconomic environment within the remit of inflation in Africa. The Afrobarometer survey is used. Our data cover 38 countries consisting of three rounds of survey and a sample of 151,345 individuals. The empirical strategy is based on multi-level mixed-effects ordered logit regression. The results reveal that while poverty has a positive effect on the spread of bribery, inflation can mitigate the impact. The impact is stronger for people living without basic necessities such as food, water and medical care. In other words, the attendant results indicate that the impact of poverty on bribery becomes negative when inflation increases. The findings are robust to inter alia: (i) multi-level mixed effects ordered logistic models for fragile and conflict-affected countries with the food price index at a market level as the mitigating variable and (ii) estimations with the continuous indicator of bribery and experienced poverty at the country level. Policy implications are discussed. |
| Keywords: | Inclusive development; Poverty; Bribery; Africa |
| JEL: | D31 I10 I32 K40 O55 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:22/090&r=afr |
| By: | Céline Zipfel |
| Abstract: | Sub-Saharan Africa (SSA) accounts for around 40% of projected global births over the next 80 years. To investigate the roots of persistently high fertility rates across the region, I assemble micro data from 192 Demographic and Health Surveys covering 66 low-and-middle-income countries and document three key facts. First, women's fertility ideals and intentions are, on average, substantially higher in SSA than other low-and-middle-income regions. This gap is particularly large among poorer households: the socioeconomic gradient in desired fertility is twice as steep (more negative) on the sub-continent. Second, poorer women are also significantly less likely to work for a wage in SSA, where there exists a robust negative relationship between female wage work prevalence and desired fertility across provinces. Third, exploiting within-SSA variation across 25 countries, I find that increases in female salaried employment opportunities at the province level are associated with a flattening of this gradient over time, conditional on a rich set of covariates. These findings provide suggestive evidence that the nature of SSA's occupational change process may be an important contributor to the region's distinct fertility transition. |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:cep:stieop:71&r=afr |
| By: | Cletus Moobelaa; Nalumino Akakandelwab; Mutale Katyokac; David Manased; Wilfred Matipae; Dingayo Mzyechef; Victor Samwingag; Sambo Zuluh |
| Abstract: | The paper investigates the main barriers and success factors to the adoption and implementation of Real Estate Investment Trusts (REITs) in African real estate markets. From their inception in the US more than half a century ago, REITs have seen steady growth across the globe as a distinct label in real estate investment markets Between 1990 and 2021, REITs have grown in both number and market capitalisation from 120 listed REITs in two countries to over 800 in more than 40 countries. Their continued growth has been buoyed by the manifold benefits associated with this investment option, including increased access to the real estate investment markets, improved stock liquidity, steady access to capital, greater opportunities for portfolio diversification and stability, strong record of performance, to name a few. Despite these benefits, the reality is that the REIT regime is predominantly limited to the developed countries, mainly the US and Europe while other countries are still trailing. Africa, in particular, is lagging behind other regions of the world with only a few countries - South Africa, Nigeria, Ghana, Rwanda, Morocco, Tanzania and Kenya - registering considerable success stories. To investigate the main barriers and success factors, the paper is informed by a thematic literature review on REITs in general, and those of African region in particular. The major obstacles revolve around the inertia in legislating REITs, inadequately developed capital markets, and the level of property market maturity. Lessons learnt, particularly from South Africa and Nigeria, offer some insights on overcoming these barriers including the providence of the enabling environment for increased market transparency. |
| Keywords: | Barriers; REITs; Success Factors |
| JEL: | R3 |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:afr:wpaper:2022-030&r=afr |
| By: | Ollendorf, Franziska; Ansah, Goodlet |
| Abstract: | In the context of persisting sustainability challenges in the Global Cocoa-Chocolate Chain (GCCC), sustainability certification gained momentum as a major industry response. While much research has been undertaking regarding effects of certification schemes on farming practices and farmers' livelihoods, there is little understanding of how these private sector responses transform the local economy. Taking the case of sustainability certification in the cocoa industry of Ghana, this study provides an empirical insight in effects of the rapid proliferation of sustainability certification on the local marketing environment and new forms of competition among local market players. Applying a lens of Global Value Chain theory, the study offers a discussion on upgrading opportunities for local companies and their responses to certification-linked pressures. In the Ghanaian cocoa sector, t sustainability certification became a key tool of competition for farmers among local buying companies. Yet, due to the lack of pre-financing capacities for the costly implementation of certification schemes, and the lack of off-taking arrangements, local Licensed Buying Companies (LBCs) are structurally disadvantaged with the implementation of certification schemes compared to their transnational counterparts and therefore face a strong tendency of losing market shares. The paper contributes to the study of sustainability in the GCCC in two ways: 1) It provides insights on the functioning of the so far understudied local marketing segment and changing dynamics of competition and governance, and 2) it enlarges the sustainability debate by including structural transformations of the industry linked to the implementation of certification. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:sgscdp:3&r=afr |
| By: | Dramane Coulibaly; Blaise Gnimassoun |
| Abstract: | Emigration from developing countries to advanced countries leads to two-way capital flows. The life cycle theory predicts a contraction in savings and a deterioration of the external balance in the countries of origin. Depending on their impact on savings and investment, migrant remittances can reduce or even counterbalance this effect. We find robust empirical evidence for subSaharan African countries that only high-skilled emigration has a significant and negative impact on the current account in these countries. The brain drain induces net capital (savings) flight. We also find that highly-skilled emigrant’s contribution to remittances is less important compared to that of low-skilled emigrants. Incentives for the financing of home economies by skilled migrants would be beneficial. |
| Keywords: | international migration, saving, remittances, external imbalances, SSA. |
| JEL: | F22 F32 O55 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2022-31&r=afr |
| By: | Girsberger, Esther Mirjam (University of Technology, Sydney); Meango, Romuald (University of Oxford) |
| Abstract: | Many developing countries exhibit a puzzling pattern given their scarce human capital: unemployment rates increase with education. We develop and estimate a model where educated unemployment arises from heterogeneous workers participating in a frictional labour market with three sectors (public, private and self-employment). We estimate that public sector distortions explain around two-thirds of educated unemployment in urban Burkina Faso and one-quarter in Senegal. We then simulate three equally costly policies. In contrast with public job creation and subsidies to self-employment income, subsidies for private sector vacancy creation effectively reduce educated unemployment and improve aggregate workers' welfare. |
| Keywords: | unemployment, education, search and matching model, urban West Africa |
| JEL: | J24 J64 E24 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15721&r=afr |
| By: | Tii N. Nchofoung (University of Dschang, Cameroon); Nathanael Ojong (York University, Toronto, Canada) |
| Abstract: | Based on data for 48 African countries for the period 2000–2020, we analyse the effects of natural resources on renewable energy development and the mediating effects of governance on that relationship. For this purpose, the Ordinary Least Squares method was used to develop a baseline regression model, and the Generalized Method of Moments (GMM) approach was used for the dynamic model regression. Quantile regression was used for robustness checking across the various distributions of renewable energy. First, we find that natural resources enhance renewable energy development in Africa and that the results are robust across alternative specifications of natural resources and governance, except for forest resources, which have a negative effect on renewable energy development. When robustness is checked through a quantile regression analysis, the results show that the positive effect depends on the conditional distribution of natural resources and the type of natural resource under consideration. The negative effect of total natural resources becomes weaker as we move towards higher quantiles. Second, governance interacts with natural resource rents to generate positive effects across different governance specifications and natural resources, except for coal rent. We thereby derive some relevant implications for renewable energy financing in African countries. |
| Keywords: | Sustainable development, renewable energy, natural resources, governance, Africa, SDG7 |
| JEL: | C23 Q33 Q48 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:22/094&r=afr |