nep-afr New Economics Papers
on Africa
Issue of 2007‒02‒24
24 papers chosen by
Suzanne McCoskey
Foreign Service Institute, US Department of State

  1. Smallholder Farming Under Increasingly Difficult Circumstances: Policy and Public Investment Priorities for Africa. By T.S. Jayne; D. Mather; E. Mghenyi
  2. A Note on Infrastructure Quality in South Africa By Johan Fourie
  3. Factors Associated with Farm Households' Movement Into and Out of Poverty in Kenya - The Rising Importance of Livestock By William J. Burke; T.S. Jayne; H. Ade Freeman; P. Kristjanson
  4. Local and Regional Food Aid Procurement: an Assessment of Experience in Africa and Elements of Good Donor Practice. By David Tschirley; Anne Marie del Castillo
  5. Financing Development in Africa: Trends, Issues and Challenges By Osakwe, Patrick N.; Ben Hammouda, Hakim
  6. Poverty and inequality effects of a high growth scenario in South Africa: A dynamic microsimulation CGE analysis By Ramos Mabugu; Margaret Chitiga
  7. Risks to Global Trade and Implications for South Africa’s Economy and Policy By Jeremy Wakeford
  8. THE POST-APARTHEID EVOLUTION OF EARNINGS INEQUALITY IN SOUTH AFRICA, 1995-2004 By Phillippe G. Leite; Terry McKinley; Rafael Guerreiro Osorio
  9. Youth and labour markets in Africa, A literature review By DIAL
  10. Why do North African firms involve in corruption ?. By Clara Delavallade
  11. Emerging Issues and Concerns of African Countries in the WTO Negotiations on Agriculture and the Doha Round By Osakwe, Patrick N.
  12. Commercialisation des Céréales et Sécurité Alimentaire au Mali (International Trade and the Production of Cereals in Mali) By Marthe Diallo; Kadiatou Dème; Niama Nango Dembélé; Abdramane Traoré; John Staatz
  13. Global Trade Models and Economic Policy Analyses: Relevance, Risks and Repercussions for Africa By Ben Hammouda, Hakim; Osakwe, Patrick N.
  14. The changing face of public funding of higher education, with special reference to South Africa By Pierre de Villiers; Gert Steyn
  15. Inefficient policies, inefficient institutions and trade By Rubén Segura-Cayuela
  16. Graduate Unemployment in the Face of Skills Shortages: A Labour Market Paradox. By Kalie Pauw; Morné Oosthuizen; Carlene van der Westhuizen
  17. Graduate Unemployment in the Context of Skills Shortages, Education and Training: Findings from a Firm Survey By Kalie Pauw; Haroon Bhorat; Sumayya Goga; Liberty Ncube; Morné Oosthuizen; Carlene van der Westhuizen
  18. Determinants of poverty vulnerability in Uganda By Charles Augustine Abuka; Michael Atingi-Ego; Jacob Opolot; Patrick Okello
  19. The Regulatory Environment and SMMEs. Evidence from South African Firm Level Data By Neil Rankin
  20. Neighborhood effects in economic growth By Josep M. Vilarrubia
  21. POVERTY, OLD-AGE AND SOCIAL PENSIONS IN KENYA By Nanak Kakwani; Hyun H. Son; Richard Hinz
  22. The Impacts of Sector-Specific Policies and Regulations on the Growth of SMES in Eight Sectors of the South African Economy By SBP
  23. Scolarisation et travail des enfants : Un modèle économétrique à régimes endogènes appliqué à Madagascar - 2001-2005 By Jean-Pierre Lachaud
  24. Descent Rules and Strategic Transfers. Evidence from Matrilineal Groups in Ghana By La Ferrara, Eliana

  1. By: T.S. Jayne (Department of Agricultural Economics, Michigan State University); D. Mather (Department of Agricultural Economics, Michigan State University); E. Mghenyi (Department of Agricultural Economics, Michigan State University)
    Abstract: There is no single “future” of the small farm in Africa. African farms display great heterogeneity in the challenges and constraints that they face. However, without renewed attention to sustained agricultural productivity growth, most small farms in Africa will become increasingly unviable economic and social units. Sustained agricultural productivity growth will require progress on a number of fronts, most importantly increased public goods investments to agriculture, a policy environment that supports private investment in input, output and financial marketing and provision of key support services, a more level global trade policy environment, supportive donor programs, and improved governance. Most of these challenges can be met; meaningful progress will start when there is a critical mass of political commitment and leadership among African leaders and developed country governments.
    Keywords: Africa, food security, food policy, small holder, investments
    JEL: Q18
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:msu:polbrf:081&r=afr
  2. By: Johan Fourie (Department of Economics, University of Stellenbosch)
    Abstract: The emphasis, both in research and in policy making, seems to be on more infrastructure, rather than better infrastructure. This research note aims to critically analyse the lack of quality indicators in infrastructure empirics and to redirect attention to improving infrastructure quality in its various forms in South Africa.
    Keywords: Infrastructure, South Africa, quality, international trade, port facilities, binding constraints
    JEL: H54
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:sza:wpaper:wpapers34&r=afr
  3. By: William J. Burke; T.S. Jayne (Department of Agricultural Economics, Michigan State University); H. Ade Freeman; P. Kristjanson
    Abstract: This study explores the dynamics of poverty in Kenya. The study specifically examines how initial conditions, household decisions, and other factors that may change over time affect poverty. Dynamic relationships are identified between behavioral variables, exogenous shocks at one point in time, and indicators of household welfare in subsequent years.
    Keywords: Africa, food security, food policy, Kenya, poverty, livestock
    JEL: Q18
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:msu:idpwrk:090&r=afr
  4. By: David Tschirley (Department of Agricultural Economics, Michigan State University); Anne Marie del Castillo (USAID/Food for Peace)
    Abstract: Procuring food aid supplies locally and regionally can save lives by improving the timeliness and reducing the cost of food aid delivery. Experience with local/regional procurement (LRP) in Africa has demonstrated significant cost savings compared to in-kind food aid; World Food Program (WFP) experience in Africa shows that LRP can be efficient relative to both local and international prices, and can be designed to have minimal disruptive effects on local markets while providing an important additional outlet for marketed surplus; A wide range of procurement modalities, each potentially appropriate under different circumstances, are available. For example, donors can and do rely upon WFP to carry out the local procurement. WFP can allow quick start-up to procurement activities, and may be cost effective (relative to other LRP modalities) when large quantities are needed, but is relatively inflexible as it is obliged to follow its own established procedures. Reliance on NGOs may require greater local monitoring by the donor, but can offer greater flexibility, since NGOs may be able to procure and distribute (smaller quantities) more quickly than could WFP or a commercial buying agent
    Keywords: Africa, food security, food policy, food aid, procurement
    JEL: Q18
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:msu:polbrf:079&r=afr
  5. By: Osakwe, Patrick N.; Ben Hammouda, Hakim
    Abstract: Access to finance is critical to successful development in Africa. This paper presents recent trends in various aspects of development finance and provides a critical assessment of the costs of meeting the Millennium Development Goals in the region. It also examines recent proposals for financing the MDGs. Furthermore, it examines the key international commitments made to Africa as well as the extent to which donors have fulfilled these commitments. Finally, it examines issues and challenges arising from recent initiatives on aid and debt.
    Keywords: Development; Finance; MDGs; Africa; Trends
    JEL: O1
    Date: 2006–12
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:1815&r=afr
  6. By: Ramos Mabugu (Financial and Fiscal Commission, South Africa); Margaret Chitiga (Department of Economics, University of Pretoria)
    Abstract: The debate about the consequences of economic growth on poverty and welfare was recently rekindled in South Africa by announcements that the government would be targeting a sustainable growth rate of 6 percent per annum under the Accelerated and Shared Growth Initiative for South Africa (ASGISA). This paper uses a sequential dynamic computable general equilibrium model linked to a nationally representative household survey to assess the poverty and economic consequences of a higher economic growth scenario. The main findings are that higher economic growth induces reductions in poverty both in the short and long run. It enhances capital accumulation, particularly in the agriculture and textiles sectors. An interesting observation is that the Mining industry benefits the least from a high economic growth scenario. However, this is not related to domestic savings/investment. Mining is strongly dependent on foreign investments and the industry return to capital is less profitable to domestic institutions, particularly households and this is what explains the lower benefits to the sector. African and Coloured households reap most of the benefits, with greater gains among urban unskilled dwellers. These findings suggest that lifting of growth constraints rather than macroeconomic stimulation would induce higher growth with the resulting beneficial effects. Economic growth of the levels simulated does not appear to be inconsistent with macroeconomic balance, as reflected in price stability, balance of payments and sectoral effects.
    Keywords: Sequential dynamic CGE, microsimulation, ASGISA, poverty, welfare, growth, South Africa
    JEL: D58 E27 F17 I32 O15 O55
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:sza:wpaper:wpapers35&r=afr
  7. By: Jeremy Wakeford (School of Economics, University of Cape Town)
    Abstract: Abstract: The past two decades have witnessed an unprecedented globalisation of trade in goods and services. This process has been driven, inter alia, by technology, ideology and the availability of relatively cheap energy. By extrapolating this trend, one may expect further integration of world markets and increasingly unhindered international trade. However, there is mounting evidence of significant risks to global trade, at least in goods and possibly in certain services as well. Three main risk areas are identified here: (1) fossil fuel depletion, in particular a possible peak in world oil production within the next five to ten years; (2) climate change, and especially its effects on agricultural production, transport and financial risk; and (3) instability in the world financial system caused primarily by the US’s unsustainable twin deficits. The paper explores some possible implications of these risks for the South African economy and its foreign trade in particular. It argues that South Africa’s trade policy should take due cognizance of these threats, and advocates adaptation and mitigation strategies designed to improve self-sufficiency and to protect the poor in sensitive areas, especially food and energy security.
    Keywords: Sector-Specific Policies and Regulations, SMEs
    JEL: A1
    Date: 2006–07
    URL: http://d.repec.org/n?u=RePEc:ctw:wpaper:9607&r=afr
  8. By: Phillippe G. Leite (World Bank Research Department and Previous Research and Consultant for the International Poverty Centre, United Nations Development Programme); Terry McKinley (International Poverty Centre, United Nations Development Programme); Rafael Guerreiro Osorio (International Poverty Centre, United Nations Development Programme)
    Abstract: This paper examines the trend in post-Apartheid earnings inequality in South Africa. By combining data sets, the paper is able to analyze the trend for the whole period 1995-2004. Earnings inequality rose sharply during 1995-1999 and then declined marginally, but remained high, during 2000-2004. A dramatic rise in unemployment was the driving force in exacerbating earnings inequality in the 1990s. Unemployment began to level off in the 2000s but remained at a high rate. An unprecedented influx of new entrants into the formal labour market in the 1990s put downward pressure on average real wages, affecting workers both in the middle of the distribution and toward the bottom. The growth of the South African economy has been neither rapid enough nor employment-intensive enough to absorb such a large influx of workers. Moreover, the economy’s greater openness to trade and financial flows appears to have left many workers behind, especially Africans, workers in low-skilled occupations, residents of rural areas in general and poor regions in particular. Earnings inequality remains high across groupings of workers differentiated by race, education and occupation although occupation has become a more important factor than the other two in the 2000s. Differentials across the mean earnings of workers classified by rural and urban residence and by province have also intensified. In the 1990s, inequalities within groupings of worker rose sharply and then moderated by the 2000s. While earnings differentials by race and the rural-urban divide also exacerbated inequality in the 1990s, they have been in modest decline since then. These changes in the dynamics of earnings inequality between the 1990s and 2000s pose new challenges for South African policymakers in their efforts to substantially reduce the Apartheid legacy of high inequality and poverty.
    Keywords: South Africa, Income distribution, Earnings distribution, Inequality
    JEL: I32 D31 N36 O15
    Date: 2006–10
    URL: http://d.repec.org/n?u=RePEc:ipc:wpaper:0032&r=afr
  9. By: DIAL (DIAL, IRD, Paris)
    Abstract: Young people in Africa are confronted with many difficulties when it comes to their integration in the labour markets and their research for decent and productive jobs. Youth unemployment, which is substantially higher than global adult unemployment, has been growing in the last decade. In spite of the dramatic economic, social and political consequences of African youth employment problems, few studies focus on this population. This survey of literature stresses that a clear diagnosis of youth employment problems in African countries based on hard data and analytical research is badly needed. As shown by our research review, basic labour market indicators are lacking or are at best incomplete due to data availability and methodological problems. Worst, as illustrated in our paper, different sources lead to opposite diagnoses concerning youth unemployment and its trends. In order to contribute to this diagnosis, we present some new evidence based on the 1-2-3 Surveys recently conducted in 10 African countries, which provide a consistent and comparable picture of the situation of youth employment in urban labour markets in these countries. We also underline the diversity of the situation of youth employment on the continent (Southern Africa vs. other African countries; Anglophone vs. Francophone countries, etc.). We emphasize the “urban bias” in economic research on this subject, partly due to the lack of data on rural areas. Key Words : Youth, labour, unemployment, Africa _________________________________ Les jeunes en Afrique sont confrontés à de nombreuses difficultés pour s’intégrer dans le marché du travail et pour y trouver un emploi décent et productif. Le chômage des jeunes, qui est substantiellement plus élevé que le chômage global des adultes, a crû au cours de la dernière décennie. En définissant une cible spécifique sur le chômage des jeunes dans les Objectifs du Millénaire pour le Développement, la communauté internationale a reconnu la gravité de la situation. Toutefois, malgré les dramatiques conséquences économiques, sociales et politiques des difficultés d’emploi des jeunes africains, peu d’études s’intéressent spécifiquement à cette population. Cette revue de littérature souligne le fait qu’un diagnostic précis concernant l’emploi des jeunes en Afrique basé sur des données statistiques et une recherche analytique est cruellement nécessaire. Comme le montre notre étude, les indicateurs basiques sur le marché du travail manquent ou sont au mieux incomplets en raison du manque d’informations de bases et de problèmes méthodologiques. Pire, comme l’illustre notre papier, des sources différentes conduisent à des diagnostics opposés concernant le chômage des jeunes et ses tendances. Afin de contribuer à ce diagnostic indispensable, nous présentons de nouveaux résultats basés sur les enquêtes 1-2-3 conduites récemment dans 10 pays africains, qui procurent une image cohérente et comparable de la situation des marchés du travail urbains dans ces pays. Nous soulignons également la diversité de la situation de l’emploi des jeunes sur le continent (Afrique australe vs autres pays d’Afrique, pays anglophones vs francophones, etc.). Nous montrons enfin le « biais urbain » de la recherche économique sur ce sujet, dû en partie au manque de données sur les zones rurales.
    Keywords: Youth, labour, unemployment, Africa, Jeunes, travail, chômage, Afrique.
    JEL: C25 D60 D71 D72 I31 I32
    Date: 2007–02
    URL: http://d.repec.org/n?u=RePEc:dia:wpaper:dt200702&r=afr
  10. By: Clara Delavallade (Centre d'Economie de la Sorbonne)
    Abstract: This paper empirically analyzes the main microeconomic determinants of different forms of corruption supply. Our study is based on a new database of near 600 Algerian, Moroccan and Tunisian firms. We show that the undeclared part of firms' sales is a major factor of their involvement in administrative corruption. The latter increases with the part of the firm's informal activity as far as it is inferior to 55% of total sales, before slightly decreasing. State capture is rather strengthened by a failing enforcement of property and contract rights. Moreover, both forms of corruption help to compensate a loss of competitiveness, which contradicts previous results on this issue. Finally, we draw a comparison of the factors of corruption in North Africa, Uganda and transition countries and derive policy recommendations.
    Keywords: Supply of corruption, administrative corruption, state capture, informal activity, competitiveness, North Africa.
    JEL: C2 D73 O17 H32
    Date: 2007–01
    URL: http://d.repec.org/n?u=RePEc:mse:cesdoc:v07002&r=afr
  11. By: Osakwe, Patrick N.
    Abstract: Since the Uruguay Round, African countries have been concerned about the rules and operations of the multilateral trading system and are beginning to realize that they have to be active in the negotiation process to protect their interests. Consequently, several countries in the region have been relatively more active in the Doha Round negotiations and have formed alliances with other developing countries to increase their bargaining power. This paper provides a critical assessment of Africa’s concerns in the negotiations on agriculture and the Doha Round. It also examines the extent to which the Hong Kong Ministerial declaration meets the demands of African countries in the agriculture negotiations. Furthermore, it outlines essential elements of any new agreements on agriculture that would ensure a fair outcome for the region. Finally, the paper stresses that trade is important for development in Africa but is not the solution to the numerous economic and social problems facing the region. Consequently, African countries must adopt a strategic approach to trade which ensures that their participation in the Doha Round reforms does not jeopardize the achievement of key national development goals.
    Keywords: Doha Round; WTO Negotiations; Agriculture; Africa; Concerns
    JEL: O19 O13 F13
    Date: 2006–02
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:1850&r=afr
  12. By: Marthe Diallo; Kadiatou Dème; Niama Nango Dembélé (Department of Agricultural Economics, Michigan State University); Abdramane Traoré; John Staatz
    Abstract: The liberalization of foreign trade has positively impacted the production of cereals in Mali. The increase in the production of cereals is due to both price increases and the effectiveness of the marketing system. The liberalization made Mali a cereal exporter l in contrast with its former status ten years ago, that of a cereals importer Mali supplies its neighboring countries such as Mauritania, Niger, Burkina Faso, Senegal and Cote d’Ivoire with coarse grains. However, subsidies, rapid urbanization, and changes in the food habits of the urban population threaten Mali’s capacity to remain an exporter. To remain an exporter, Mali should, in the long term, process coarse grains into products conforming to the expectations and food habits of the urban population. Food security remains a major challenge in Mali in spite of the country’s food self sufficiency.
    Keywords: food security, food policy, Mali
    JEL: Q18
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:msu:icpwrk:ml-promisam-commercialisation&r=afr
  13. By: Ben Hammouda, Hakim; Osakwe, Patrick N.
    Abstract: Computable general equilibrium (CGE) models are widely used for trade policy analyses and recommendations. Simulation results from these models have also been used as a basis for offering advice to African countries on what positions to take in multilateral trade negotiations. There is however increasing discomfort with the use of these models for policy recommendations, especially in Africa. In this paper we compare the results of several CGE studies that examined the impact of potential Doha Round reforms on Africa and demonstrate that the results differ drastically both in terms of magnitude and direction. Part of the discrepancies in results can be explained by differences in database, model structure, and choice of parameters. Others are, however, difficult to explain because several studies either do not report key assumptions made or do not provide a clear description of how their framework differs from those in the literature. We also show that the modelling approach and the database used in most CGE studies do not take account of key features of African economies that have serious implications for the impact of trade reforms on Africa. Finally, we outline potential consequences of the misuse of CGE models for policy evaluation and suggest pitfalls to avoid if CGE model results are to be taken seriously by policy makers in Africa.
    Keywords: Trade Reforms; CGE Models; Doha Round; Africa
    JEL: F15 F13 F11
    Date: 2006–12
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:1851&r=afr
  14. By: Pierre de Villiers (Department of Economics, University of Stellenbosch); Gert Steyn (Institutional Planning Division, University of Stellenbosch)
    Abstract: Higher education displays characteristics of both private and public goods and there is a trend worldwide to expect individuals to pay more of the costs of their higher education. In South Africa public funding of higher education decreased from 0.86% of GDP in 1986 to only 0.66% in 2006. Due to the decrease in state appropriations, student tuition fees had to be increased to compensate for this loss of income. In the process staff numbers were kept relatively constant, while student numbers increased at a much faster rate. Two future scenarios, based on public higher education expenditure as a percentage of GDP and on real state allocation per WFTES, are included. Although the qualifications awarded per FTE academic staff member increased over time, the graduation rates of the higher education institutions in South Africa are worsening. High-level research, measured in publication units per FTE academic staff member, shows a disturbing decreasing trend since 1997.
    Keywords: Higher education, education financing, qualifications
    JEL: H52 I22 I23
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:sza:wpaper:wpapers36&r=afr
  15. By: Rubén Segura-Cayuela (Banco de España)
    Abstract: Despite the general belief among economists on the growth-enhancing role of international trade and significant trade opening over the past 25 years, the growth performance of many developing economies, especially of those in Latin America and Africa, has been disappointing. While this poor growth performance has many potential causes, in this paper I argue that part of the reason may be related to the interaction between weak institutions and trade. In particular, I construct a model in which trade opening in societies with weak institutions (in particular autocratic and elite-controlled political systems) may lead to worse economic policies. The reason is that general equilibrium price effects of taxation and expropriation in closed economies also hurt the elites, and this puts a natural barrier against inefficient policies. Trade openness removes this barrier and enables groups with political power to exercise this power in more inefficient ways.
    Keywords: institutions, political economy, expropriation, property rights, international trade
    JEL: O10 P16 F10
    Date: 2006–12
    URL: http://d.repec.org/n?u=RePEc:bde:wpaper:0633&r=afr
  16. By: Kalie Pauw; Morné Oosthuizen; Carlene van der Westhuizen (Development Policy Research Unit,University of Cape Town)
    Abstract: Abstract: There is consensus among analysts that South Africa’s unemployment is structural in the sense that the unemployed generally possess lower skills than what is required in the marketplace. In the context of increasing demand for skilled workers due to technical progress and the need to become more competitive globally, graduate unemployment would be expected to fall. This paper investigates the nature of graduate unemployment in South Africa since 1995, finding that labour force and employment growth has been concentrated in higher educational categories. However, against expectations unemployment has risen amongst young and better educated people. The paper suggests that the education sector urgently requires continued emphasis and monitoring to ensure that learners are adequately prepared for entry into the labour force; that greater efforts be made to encourage learners to choose directions of study with superior employment prospects; and that investment in young people’s soft skills is required.
    Keywords: graduate unemployment, skills shortages
    JEL: A1
    Date: 2006–11
    URL: http://d.repec.org/n?u=RePEc:ctw:wpaper:9604&r=afr
  17. By: Kalie Pauw; Haroon Bhorat; Sumayya Goga; Liberty Ncube; Morné Oosthuizen; Carlene van der Westhuizen (Development Policy Research Unit,University of Cape Town)
    Abstract: Abstract: The paper reflects on the findings from a firm survey conducted among twenty of South Africa’s largest firms across a range of sectors. The survey formed part of research conducted by the Development Policy Research Unit on graduate unemployment in South Africa. The firm interviews traversed a range of issues relating, for example, to the schooling and higher education system, the learnership programme and National Skills Development Strategy (NSDS) and the nature of skills shortages and the skills deficit. In turn, a number of detailed long- and short-run policy suggestions emanated from the interviews and background research. In the context of skills shortages the persistence of unemployment among graduates is puzzling. However, the findings here suggest that reported skills shortages, especially in occupations such engineers, technicians and scientists, are most severe at the middle- to senior management level. Graduates do not compete for these positions; in fact, firms generally agree that there are enough graduates available in the economy. Firms do feel,however, that graduates often do not possess the necessary skills and experience to be considered even for entry-level positions. Poor education therefore lies at the heart of the graduate unemployment problem. While on-the-job training in the form of learnerships, implemented in accordance with the NSDS can potentially bridge the skills deficit of graduates, the survey findings rather suggest that this subsidised employment and training programme has not generated above-equilibrium employment in firms. While short-term interventions may help alleviate immediate skills shortages in the economy,it is clear from this research that a longer-term agenda of radically improving education and training in South Africa is the only sustainable solution to skills shortages and, eventually, the graduate unemployment problem.
    Keywords: graduate unemployment, skills shortages
    JEL: A1
    Date: 2006–11
    URL: http://d.repec.org/n?u=RePEc:ctw:wpaper:9603&r=afr
  18. By: Charles Augustine Abuka; Michael Atingi-Ego; Jacob Opolot; Patrick Okello
    Abstract: Ugandan data shows poverty to be entrenched in rural areas and in large households. Households with heads exposed to education, an improved health status, less reliance on agriculture as the most important source of earnings, access to electricity for lighting and, the presence of markets to sell produce in the community experience improved household well-being. The data also confirms two known stylized facts regarding poverty vulnerability. First, households in the Northern region have a higher probability of being poor than those in Central, Eastern, and Western regions. Second, the ‘annual cropping and cattle northern' and ‘annual cropping and cattle Teso' zones are the agro ecological zones that are positively correlated with poverty vulnerability . The fact that residence in rural areas is associated with higher incidence of poverty suggests that promotion of off-farm employment (for example, through rural electrification) would help reduce vulnerability.
    Keywords: Poverty vulnerability, logistic regression, Uganda
    Date: 2007–02–19
    URL: http://d.repec.org/n?u=RePEc:iis:dispap:iiisdp203&r=afr
  19. By: Neil Rankin (University of the Witwatersrand, South Africa)
    Abstract: Abstract: The paper specifically examines: labour regulations and their relationship with employment and investment; trade regulations; permits and licences for businesses; visa regulations; the predictability of regulatory application; and the costs of regulation. It also investigates the ways firms respond to regulations. There is evidence that these regulations constrain firm growth, particularly among smaller firms. Labour regulations are not the only type of regulations that have a disproportional effect on smaller firms. Government regulation comes in many forms, such as tax regulation, labour regulation and regulations concerning the import and export of goods. This paper uses data gathered from a number of South African firm-level surveys to investigate how government regulations impact on firms. In many cases firms are asked about the perceived impact of regulations. This places regulation in context.
    Keywords: Labour Regulations, employment and investment
    JEL: A1
    Date: 2006–09
    URL: http://d.repec.org/n?u=RePEc:ctw:wpaper:9605&r=afr
  20. By: Josep M. Vilarrubia (Banco de España)
    Abstract: One of the most striking features of the world economy is that wealthy countries are clustered together. This paper theoretically and empirically explains a mechanism for this clustering by extending the Acemoglu and Ventura model so that it takes real geography into account. Countries close to fast growing economies experience faster growth in aggregate demand for their exports, stimulating faster domestic growth. As a result, a poor country that is surrounded by other poor countries finds it more difficult to grow because its terms of trade shift against it. When this model is estimated on data for 1965 to 1985, we find statistically and economically significant effects. If the typical European country were located in Africa, these terms of trade effects would have lowered its growth rate by almost 1 percentage point per year. The results strongly suggest that it is very difficult to raise income in poor countries without dealing with regional problems.
    Keywords: economic growth, economic geography, international trade, terms of trade, empirical
    JEL: F12 F15 F43 O11 O19
    Date: 2006–10
    URL: http://d.repec.org/n?u=RePEc:bde:wpaper:0627&r=afr
  21. By: Nanak Kakwani (International Poverty Centre, United Nations Development Programme); Hyun H. Son (International Poverty Centre, United Nations Development Programme); Richard Hinz (World Bank)
    Abstract: This study is concerned with old-age poverty in Kenya. It is also concerned with strengthening and developing social pension programs for the elderly. In this study, we develop precise socioeconomic and demographic profiles of the elderly in Kenya from the viewpoint of providing policy-makers with information that may be useful in the reform and expansion of the pension system. It also analyzes the impact of current pension systems on poverty among elderly and national poverty. Further, the current study evaluates the potential effects that alternative policies and targeting alternatives may be expected to have on poverty within the country.
    Keywords: Poverty, Social pensions, Kenya
    JEL: D31
    Date: 2006–07
    URL: http://d.repec.org/n?u=RePEc:ipc:wpaper:0024&r=afr
  22. By: SBP (Strategic Business Partnerships for Growth in Africa)
    Abstract: Abstract: The paper aims to identify the impacts of sector-specific policies and regulations on the growth of – and job creation by – SMEs in eight sectors of the South African economy. Where appropriate and, where possible, impacts are quantified. The aim is also to develop suggestions for policy changes and regulatory reforms which would reduce the regulatory cost burden on these SMEs and permit them to grow and take on workers more readily. The paper contains descriptions of sector-specific policies and regulations in the eight selected sectors, qualitative assessment of the impacts of sector-specific policies and regulations on SMEs in the the selected sectors, quantitative assessment of these impacts and suggestions are made for policy changes and reforms to the sector-specific regulatory environments of the selected sectors. The eight sectors are agri-processing, the automotive industry, clothing and textiles, financial services, information and communications technology (ICT), mining, pharmaceuticals and tourism.
    Keywords: Sector-Specific Policies and Regulations, SMEs
    JEL: A1
    Date: 2006–07
    URL: http://d.repec.org/n?u=RePEc:ctw:wpaper:9606&r=afr
  23. By: Jean-Pierre Lachaud (CED, Université Montesquieu Bordeaux IV)
    Abstract: L’étude examine l’effet de la scolarisation sur la durée du travail des enfants de 6-14 ans à Madagascar en 2001 et 2005, à l’aide d’un modèle économétrique à régimes prenant en compte l’endogénéité de la fréquentation scolaire. Premièrement, le temps de travail des enfants scolarisés pourrait constituer une variable d’ajustement conjoncturel, liée à la fluctuation des gains des adultes, tandis que celui des non-scolarisés est susceptible de revêtir une dimension plus structurelle, conditionnée par la nécessité de dépasser le seuil de subsistance. Plusieurs éléments d’analyse semblent justifier cette hypothèse : (i) le temps de travail des enfants scolarisés diminue avec l’élévation des revenus par tête des adultes du ménage, contrairement à ceux qui ne fréquentent pas l’école ; (ii) le statut du travail du chef de ménage influence principalement la variation de la durée du travail des enfants non-scolarisés ; (iii) la durée du travail des enfants scolarisés décroît systématiquement avec l’élévation du niveau d’instruction du chef de ménage, un phénomène beaucoup moins perceptible pour les enfants non-scolarisés ; (iv) quels que soient le régime et l’année, les enfants de 10-14 ans travaillent plus que ceux de 6-9 ans, tout comme les garçons, comparativement aux filles ; (v) le temps de travail des enfants scolarisés croît avec la dimension des ménages, alors que cette évolution ne concerne pas ceux qui ne fréquentent pas l’école ; (vi) indépendamment des régimes et des périodes, le temps de travail est plus élevé en milieu rural, ainsi que dans les provinces de Toliara et d’Antananarivo. Deuxièmement, des simulations suggèrent d’importants bénéfices potentiels en termes de temps de travail. D’une part, les enfants scolarisés travaillent potentiellement 121,5 et 84,1 heures de moins par mois, respectivement, en 2001 et 2005, comparativement à une hypothétique situation de non-scolarisation. D’autre part, si les enfants qui ne fréquentent pas l’école avaient été scolarisés, ils auraient potentiellement travaillé 52,5 et 96,5 heures de moins par mois, respectivement, en 2005 et 2001. En réalité, les bénéfices potentiels moyens ont décliné au cours de la période, en partie, parce que la proportion et le temps d’activité des enfants travailleurs et allant à l’école ont fortement augmenté, en particulier dans les provinces d’Antananarivo et de Toliara. En définitive, la recherche montre que la scolarisation peut générer des gains potentiels importants en termes de réduction du temps de travail des enfants. The study examines the effect of schooling on child labour hours of aged 6-14 years in Madagascar in 2001 and 2005, using an endogenous switching regression model taking into account the endogeneity of the household decision of sending a child to school. Firstly, the working time of enrolled children could constitute a short-term adjustment variable, dependent on the fluctuation of the incomes of the adults, while that of not-enrolled children could have a more structural dimension, conditioned by the need for exceeding the level of subsistence. Several elements of analysis seem to justify this assumption: (i) the hours of work of enrolled children decreases with the rise in the incomes per capita of the adults of the household, contrary to those which do not attend school ; (ii) the labour statute of the household head influences mainly the variation of the working time of the not-enrolled children; (iii) the labour hours of the children enrolled in school decrease systematically with the rise in the educational level of the household head, a phenomenon much less perceptible for the not-enrolled children; (iv) whatever the regime and the year, the children of aged 10-14 years work more than those of aged 6-9 years, just like the boys, compared to the girls; (v) the working time of children with education grows with the size of the households, whereas this evolution does not relate to those which do not attend school; (vi) independently of the regimes and the periods, the working time is higher in rural areas, like in the provinces of Toliara and Antananarivo. Secondly, the simulations suggest important potential benefit in terms of working time. On the one hand, the children enrolled in school potentially work 121.5 and 84.1 hours less per month, respectively, in 2001 and 2005, compared to a hypothetical situation of not-schooling. In addition, if the children who do not attend school had been enrolled, they would have potentially worked 52.5 and 96.5 hours less per month, respectively, in 2005 and 2001. Actually, the average potential benefit declined during the period, partly because the proportion and the time of activity of children working and going to school strongly increased, in particular in the provinces of Antananarivo and Toliara. In conclusion, the study shows that schooling can generate important potential profits in terms of reduction of children labours hours. (Full text in french)
    JEL: I31 J4
    Date: 2007–02
    URL: http://d.repec.org/n?u=RePEc:mon:ceddtr:134&r=afr
  24. By: La Ferrara, Eliana
    Abstract: Traditional descent systems can roughly be divided into patrilineal and matrilineal. In the latter, a man’s heir is not his own child but rather his sister’s son. The paper examines the implications of this social norm for the pattern of inter-vivos transfers using household level data from rural Ghana, where the largest ethnic group is traditionally matrilineal. In particular, it tests the predictions of a model of strategic behaviour according to which children should respond to the threat of disinheritance by increasing transfers to their parents during lifetime to induce a donation of land before the default (matrilineal) inheritance is enforced. I find that the credibility of customary norms enforcement, as proxied by the presence of a nephew in the father’s household, significantly increases the probability of receiving transfers from children for Akans but not for other groups. The effect is specific to nephews and not to other co-resident boys. This pattern of behaviour can affect asset accumulation decisions across generations.
    Keywords: inter-vivos transfers; matrilineal inheritance; social norms; strategic bequests
    JEL: O16 O17
    Date: 2007–02
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:6111&r=afr

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