|
on Africa |
| By: | Wassie, Mengistu Alamneh; Kornher, Lukas; Zaki, Chahir |
| Abstract: | This study investigates the trade impacts of trade facilitation (TF) and computes ad valorem tariff equivalents of trade facilitation for Africa. Its contribution is threefold. First, a structural gravity model is used to estimate the impact of TF on trade at a disaggregated level. Second, we validate our results by using different indices that measure TF (time to trade, logistic performance index, and trade-enabling index). Third, in a partial equilibrium framework, it simulates the impact of TF in African countries. Our findings indicate that time to trade has a strong and negative impact on trade, whereas logistics performance and the trade-enabling index positively and significantly impact trade. The analysis suggests that African countries benefit most from TF improvements, particularly those with long delays and weak infrastructural and logistics performance. We find that a one-day custom delay has a 0.9% tariff equivalent. At the product level, the agriculture, food, and some manufacturing sectors, which are the leading African imports, benefit the most from implementing TF. In contrast, mining-related products, which are the major export components of Africa, benefit the least. An ambitious and realistic TF implementation of reducing trade delay by half enhances Africa’s exports and imports by 30.2% and 12.7 % respectively. |
| Keywords: | International Relations/Trade |
| Date: | 2024–08–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:cfcp15:344296 |
| By: | Ozili, Peterson K; Oladipo, Oladije |
| Abstract: | The literature has not examined the factors leading to tight labor markets or unemployment in West African countries. We investigate the impact of private credit expansion and contraction on the unemployment rate in Economic Community of West African States (ECOWAS) countries. Credit expansion and contraction are measured using a three-level criterion. The fixed effect panel regression model was used to estimate the impact of private credit contraction and expansion on the unemployment rate in ECOWAS countries. Private credit contraction significantly increases the unemployment rate in ECOWAS countries. Private credit expansion does not have a significant effect on the unemployment rate. Real GDP growth has a significant negative effect on the unemployment rate which supports the prediction of the Okun’s Law while the inflation rate has a positive and insignificant effect on the rate of unemployment in ECOWAS countries which contradicts the prediction of the Phillips curve. Policymakers in ECOWAS countries need to be cautious when introducing policies that lead to private credit contraction as it could increase unemployment. Policymakers in ECOWAS countries should also find the “threshold” below which private credit contraction will worsen the unemployment rate and introduce policy measures to ensure that private credit contraction does not fall below the threshold. |
| Keywords: | unemployment, credit, economic growth, ECOWAS, legal system, inflation, domestic private credit to private sector. |
| JEL: | E24 E51 E58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121525 |
| By: | Murunga, Powel |
| Abstract: | he study examined the determinants of fertilizer adoption among small scale crop farmers across Sub-Saharan Africa's regions using a probit regression model and propensity score matching (PSM) technique to assess productivity impacts. Variables analyzed include land tenure, access to credit, access to fertilizer, gender, age, farm size, education, household size, expenditure, and other income sources. Data was obtained from households’ survey data for selected sub-Saharan countries. The countries were also categorized as arid, semi-arid, and non- arid regions. Findings indicated that access to fertilizer increases adoption across all zones, for example by 36.1% in arid areas at 95% confidence level. Access to credit is also significant at 95% confidence level in arid regions, boosting adoption by 6.2%. Land tenure positively affects adoption in semi-arid regions but is insignificant in arid and non-arid areas. Education levels and household expenditure show mixed effects; secondary education negatively affects adoption in arid zones, while higher household expenditure reduces adoption likelihood in semi-arid regions. The PSM analysis conducted showed that fertilizer adoption leads to increased productivity, with adopters experiencing yield increases between 195 kg/acre and 261 kg/acre compared to non- adopters. Policy recommendations to improve fertilizer adoption include enhancing supply chains for timely and affordable access, expanding financial services for smallholder farmers, securing land tenure, and providing targeted education and training programs. These strategies are expected to boost agricultural productivity and smallholder’s farmer livelihoods in arid and semi-arid regions. The study emphasizes on the critical role of fertilizer access in boosting productivity for smallholder farmers and provides actionable insights for policymakers to improve agricultural outcomes in challenging environments. |
| Keywords: | Consumer/Household Economics |
| Date: | 2024–08–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:cfcp15:344322 |
| By: | Aude Farnault; Khalifa Sarr |
| Abstract: | This working paper provides an in-depth review of the opportunities and challenges surrounding water investment in Africa. It also presents the state of play in the use of ultimate sources of funding (the “3Ts”: tariffs, taxes, and transfers) and financing for water on the continent, showing that these sources are not currently being used to their full potential and in the most efficient and equitable way. In this context, there is a wide range of options to scale up and improve water finance in Africa and to achieve SDG 6 - and, by extension, all the Sustainable Development Goals - on the continent. This paper follows the lifecycle of a project, paying particular attention to equity and affordability. It presents concrete proposals to strengthen water policy investment frameworks, build well-prepared and investment-ready water projects, scale up risk mitigation instruments for water, and diversify financing instruments and sources. |
| Keywords: | Africa, economics, finance and investment, tariffs, taxes, transfers, water, water finance |
| JEL: | F30 G10 G20 H23 H54 H81 O13 Q21 Q25 Q28 O20 |
| Date: | 2024–08–23 |
| URL: | https://d.repec.org/n?u=RePEc:oec:envaaa:248-en |