nep-afr New Economics Papers
on Africa
Issue of 2009‒04‒18
seventeen papers chosen by
Quentin Wodon
World Bank

  1. Trends in Kenyan Agricultural Productivity: 1997-2007 By Betty Kibaara; Joshua Ariga; John Olwande; T.S. Jayne
  2. Promoting Fertilizer Use in Africa: Current Issues and Empirical Evidence from Malawi, Zambia, and Kenya. By Isaac Minde; T.S. Jayne; Eric Crawford; Joshua Ariga; Jones Govereh
  3. Maize Market Sheds in Eastern and Southern Africa. Report 1 By Jones Govereh; Steven Haggblade; Hunter Nielson; David L. Tschirley
  4. Promoting Fertilizer Use in Africa: Current Issues and Empirical Evidence from Malawi, Zambia, and Kenya By Isaac Minde; T.S. Jayne; Eric Crawford; Joshua Ariga; Jones Govereh
  5. Maize Market Sheds in Eastern and Southern Africa. Report 1. Country Annexes. By Lucy Aliguma; Gasper Ashimogo; Geoffrey S. Mwale; J.K. Nyoro; Alexander Phiri; Lulama Ndibongo Traub
  6. Structure des marchés du coton graine et performance du secteur coton : Plusieurs leçons mais pas de prescription de recommandations By Valerie Kelly; David L. Tschirley
  7. Le Coton en Afrique de l’Ouest et du Centre: Adaptation d’un Modèle réussi à de nouvelles réalités By Valerie Kelly; David L. Tschirley
  8. Trends and Patterns in Fertilizer Use by Smallholder Farmers in Kenya, 1997-2007 By Joshua Ariga; T.S. Jayne; Betty Kibaara; J.K. Nyoro
  9. Do institutions limit clientelism?: A study of the district assemblies common fund in Ghana By Banful, Afua Branoah
  10. Trends and Spatial Distribution of Public Agricultural Spending in Zambia: Implication for Agricultural Productivity Growth. By Jones Govereh; Emma Malawo; Tadeyo Lungu; T.S. Jayne; Kasweka Chinyama; Pius Chilonda
  11. The Impact of Monetary and Commodity Fundamentals, Macro News and Central Bank Communication on the Exchange Rate: Evidence from South Africa By Balázs Égert
  12. Assessment of Kenya's Domestic Horticultural Production and Marketing Systems and Lessons for the future By David L. Tschirley; Miltone Ayieko
  13. Liberalization with Endogenous Institutions: A Comparative Analysis of Agricultural Reform in Africa, Asia, and Europe By Johan F.M. Swinnen; Anneleen Vandeplas; Miet Maertens
  14. Explaining Productivity Variation among Smallholder Maize Farmers in Tanzania By Msuya, Elibariki Emmanuel; Hisano, Shuji; Nariu, Tatsuhiko
  15. Dynamics of structural transformation: An empirical characterization in the case of China, Malaysia, and Ghana By Badibanga, Thaddee; Diao, Xinshen; Roe, Terry; Somwaru, Agapi
  16. Receiving People or Sending Money : Differential Impact of Income Shocks on Migration and Transfers in Senegal By SAFIR Abla
  17. Inflation,Unemployment and Nigerian Families: An empirical investigation By Nwaobi, Godwin C

  1. By: Betty Kibaara; Joshua Ariga; John Olwande; T.S. Jayne
    Abstract: Agriculture continues to be a fundamental instrument for sustainable development, poverty reduction and enhanced food security in developing countries. Agricultural productivity levels in Sub Sahara Africa are far below that of other regions in the world, and are well below that required to attain food security and poverty reduction goals. On the other hand, the rate of agricultural productivity growth since the early 2000s has been quite impressive in many African countries, including Kenya, yet this is no cause for complacency. Sustained and accelerated growth requires a sharp increase in productivity of smallholder farmers. The Strategy to Revitalize Agriculture (SRA), Kenya Vision 2030, Comprehensive African Agricultural Development Program (CAADP) and Alliance for Green Revolution in Africa (AGRA) have underscored the importance of increasing agricultural productivity in the fight against poverty. In the past, agricultural production was largely a function of acreage, but further growth in production will have to be driven by productivity growth.
    Keywords: Africa, Kenya, productivity
    JEL: Q10
    Date: 2008–09
    URL: http://d.repec.org/n?u=RePEc:msu:icpwrk:icpw_ke_tegemeo_wp_029&r=afr
  2. By: Isaac Minde; T.S. Jayne; Eric Crawford; Joshua Ariga; Jones Govereh
    Abstract: It is generally agreed that increasing agricultural productivity is critical to stimulating the rate of economic growth in Africa. There are many important and often complementary determinants of agricultural productivity. In this brief and the full paper it draws from, the focus is on fertilizer and improved seed, without intending to imply that they are the only or most significant productivity determinants.
    Keywords: fertilizer, Africa, Malawi, Zambia, Kenya.
    JEL: Q18
    Date: 2008–11
    URL: http://d.repec.org/n?u=RePEc:msu:polbrf:pol083&r=afr
  3. By: Jones Govereh; Steven Haggblade; Hunter Nielson; David L. Tschirley
    Abstract: Over the next generation, growing trade in food staples appears poised to dwarf that in all other African agricultural markets. Currently, the market value of Africa’s food staples amounts to $50 billion per year, or nearly three-fourths of the value of all agricultural production (Table 1). Given growing urbanization and the highest rates of poverty in the world, Africa’s market demand for food staples will grow dramatically in coming decades. As a result, production of food staples -- for growing urban markets and food-deficit rural areas -- represents probably the largest growth opportunity available to African farmers. Facilitating expansion of these markets will, therefore, be critical for efforts at stimulating agricultural production growth, broad- based income expansion and poverty reduction.
    Keywords: Africa, markets, maize
    JEL: Q13
    Date: 2008–06
    URL: http://d.repec.org/n?u=RePEc:msu:icpwrk:wb_001&r=afr
  4. By: Isaac Minde; T.S. Jayne; Eric Crawford; Joshua Ariga; Jones Govereh
    Abstract: It is generally agreed that increasing agricultural productivity is critical to stimulating the rate of economic growth in Africa. There are many important and often complementary determinants of agricultural productivity. In this paper, we focus on fertilizer, without intending to imply that it is the only or most significant productivity determinants. Other key factors are seed technology, adequate water availability, labor, agronomic and other farmer management practices, and choice of crops to grow.
    Keywords: fertilizer, Africa, Malawi, Zambia, Kenya
    JEL: Q18
    Date: 2008–11
    URL: http://d.repec.org/n?u=RePEc:msu:icpwrk:resakss_pb001&r=afr
  5. By: Lucy Aliguma; Gasper Ashimogo; Geoffrey S. Mwale; J.K. Nyoro; Alexander Phiri; Lulama Ndibongo Traub
    Abstract: Agriculture remains an important sector in South Africa despite its small direct share of the country’s gross domestic product (GDP). In 2004 primary agriculture contributed 3% to total GDP, while accounting for over 10% of all reported employment (OECD, 2006). Within this sector, the grain industry is one of the largest, contributing approximately 16% to the total gross value of agricultural production between 2000 and 2003 marketing years (SAGIS, 2005). It is comprised of all grain and oilseed industries, of which, maize and wheat are considered primary staple commodities given their importance in promoting food security. Over the past two decades or so, both domestic and trade policy interventions within the maize industry has occurred within the context of vast political and socioeconomic change. The overall goal of government during this period was to create an open and market-orientated economy as well as to redress the injustices of the past. The resultant set of policy interventions affecting the grain sector have successfully managed to achieve the goal of a market- orientated system, while making significant strides in achieving a more open grain sector in term of Black Economic Empowerment. The primary objective of this case study is to describe the evolution of policies affecting crossborder trade in maize and maize meal between South Africa and the Southern African region. To this end, the major maize grain flows within South Africa, the major domestic and trade policies affecting cross-border maize trade between South Africa and its surrounding neighbors, as well as the market pricing mechanism are described and assessed.
    Keywords: Africa, markets, maize
    JEL: Q13
    Date: 2008–06
    URL: http://d.repec.org/n?u=RePEc:msu:icpwrk:wb_001a&r=afr
  6. By: Valerie Kelly; David L. Tschirley
    Abstract: This Policy Brief summarizes evidence reported in a recent study on the links between seed cotton market structures and selected cotton sector performance indicators in nine African countries Tschirley et al. 2008). The purpose of the study is to contribute to better design and implementation of cotton sector reforms by building a reliable, broad assessment of cotton sector performance from detailed empirical information collected and analyzed by independent researchers and cotton sector experts.
    Keywords: Africa, cotton, seed, market structure
    JEL: Q13
    Date: 2008–11
    URL: http://d.repec.org/n?u=RePEc:msu:icpbrf:wacip_pb002f&r=afr
  7. By: Valerie Kelly; David L. Tschirley
    Abstract: This Policy Brief introduces a series of synthesis papers on the relationship between cotton sector structure and performance, drawing on recent studies of cotton sectors across Africa. The series is targeted at the wide range of stakeholders involved in cotton sector reforms in West and Central Africa (WCA). This introductory brief focuses on the cotton sector structural model most prevalent in WCA—the ‘filière integrée’. The brief reviews the early successes of the ‘filière integrée’ approach and the more recent history of crisis and reforms. This sets the stage for comparisons between the ‘filière integrée’ system of WCA and other systems that are described in subsequent briefs.
    Keywords: Africa, cotton
    JEL: Q13
    Date: 2008–11
    URL: http://d.repec.org/n?u=RePEc:msu:icpbrf:wacip_pb001f&r=afr
  8. By: Joshua Ariga; T.S. Jayne; Betty Kibaara; J.K. Nyoro
    Abstract: This study uses nationwide household panel survey data from 1996/97 to 2006/07 to examine trends in fertilizer use on maize by smallholder maize growers. The paper also compares these findings with fertilizer use rates according to other recent surveys in Kenya to assess comparability. We also examine the correlation between household fertilizer use and indicators of welfare such as wealth and landholding size. In addition, we use econometric techniques applied to household survey data to identify the main household and community characteristics associated with fertilizer purchases. Lastly, the study considers alternative policy strategies for maintaining smallholders’ access to fertilizer in the current context of substantially higher world fertilizer prices.
    Keywords: fertilizer, Africa, Malawi, Kenya, small holders
    JEL: Q13
    Date: 2008–10
    URL: http://d.repec.org/n?u=RePEc:msu:icpwrk:icpw_ke_tegemeo_wp_027&r=afr
  9. By: Banful, Afua Branoah
    Abstract: "Analyses of how coveted central-government resources in Africa are shared have shown widespread patronage, ethnic cronyism, and pork-barrel politics. While some governments have attempted to rectify the situation by establishing revenue-sharing formulas, a key unanswered question is whether such institutions are able to achieve this goal. This paper presents an empirical investigation of a pioneering formula-based system of resource allocation from the central government to local governments in Ghana—the District Assemblies Common Fund (DACF). The evidence is consistent with governments being able to politically manipulate resource allocation within the confines of the formula-based system. Nevertheless, this does not suggest that the DACF completely fails to limit political influence. It indicates that other guiding structures of a formula-based system—in particular, how and when the formula can be altered—are important determinants of how well a program such as the DACF is able to resist political pressures." from authors' abstract
    Keywords: Resource sharing, Grants in aid, Intergovernmental relations, Development strategies,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:fpr:ifprid:855&r=afr
  10. By: Jones Govereh; Emma Malawo; Tadeyo Lungu; T.S. Jayne; Kasweka Chinyama; Pius Chilonda
    Abstract: This paper assesses the level and composition of the Zambia’s public expenditures in the agricultural sector from 2000 to 2008. By measuring the size of public agricultural expenditures, the study will answer whether the Government of Zambia met CAADP’s target of allocating 10% of national budget to agriculture in 2008. Furthermore, examining what the fund is being spent on will shed light on the extent to which spending contributes to agricultural growth. This review will also characterize the spatial patterns of expenditures across provincial boundaries. The results of this work will hopefully lay a foundation for future analysis of the impacts of public agricultural spending on sector performance.
    Keywords: food security, policy, Zambia, Africa, public finance, growth
    JEL: Q18
    Date: 2009–02
    URL: http://d.repec.org/n?u=RePEc:msu:icpwrk:zm-fsrp-wp-36&r=afr
  11. By: Balázs Égert
    Abstract: This paper studies drivers of high-frequency (daily) dynamics of the South African rand vis-à-vis the dollar from January 2001 to July 2007. We find strong nonlinear effects of commodity prices, perceived country and emerging market risk premium and changes in the dollar-euro exchange rate on changes in daily returns of the rand-dollar exchange rate. We also identify a one-sided nonlinear mean reversion to the long-term monetary equilibrium. In addition we establish very short-lived effects on the exchange rate of selected macroeconomic surprises and central bank communication aimed at talking up the rand.<P>L’impact des fondamentaux monétaires et de matières premières, des nouvelles macroéconomiques et de la communication de la Banque centrale sur le taux de change : Le cas de l’Afrique du Sud<BR>Ce document étudie les facteurs qui peuvent expliquer la dynamique journalière du rand sud-africain vis-à-vis du dollar sur la période allant de janvier 2001 à juillet 2007. Nous trouvons que les prix des matières premières, la perception du risque par rapport à l’Afrique du Sud et aux pays émergents et les changements du taux de change dollar-euro influencent forcément les variations des rendements journalières du taux de change du rand par rapport au dollar de manière non linéaire. Nos résultats indiquent aussi que le rand s’ajuste vers son niveau d’équilibre monétaire de manière non linéaire lorsque le taux de change du marché est plus fort que le taux de change d’équilibre. De plus, il se trouve que certaines nouvelles macroéconomiques et la communication de banque centrale visant l’appréciation du rand exercent une influence de très court terme sur le cours du rand par rapport au dollar.
    Keywords: exchange rates, taux de change, South Africa, Afrique du Sud, commodity prices, central bank communication, communication de la Banque centrale, macroeconomic news, nouvelles macroéconomiques, nonlinearity, non-linéarité, monetary model, modèle monétaire, prix des commodités
    JEL: E31 F31 O11 P17
    Date: 2009–04–08
    URL: http://d.repec.org/n?u=RePEc:oec:ecoaaa:692-en&r=afr
  12. By: David L. Tschirley; Miltone Ayieko
    Abstract: After reviewing trends in the production and marketing of fresh produce for the domestic market in Kenya since 1997, this paper presents detailed information on the structure of the flow of this produce from rural areas to wholesale markets in Nairobi and from those wholesale markets to assorted retail markets. Market shares are estimated by product for geographic areas supplying Nairobi, and for each important wholesale and retail market in the city. It is found that horticultural production for the domestic market is keeping up with rural population growth but not with the much faster urban population growth. The urban wholesaling and retailing system has decentralized dramatically and with little planning over the past two decades in response to lack of investment in public market places. In the current system, all participants are subjected to high costs and poor quality, and many traders, especially but not only those in kiosks, are subject to theft and even bodily injury. Collaborative planning for new investment between city officials and farmer- and trader organizations is badly needed; positive signs of movement in this direction include a more constructive approach to kiosks and joint public/private planning for a new wholesale market outside Nairobi. As new approaches to wholesaling and retailing are considered in response to Vision 2030, the continuing importance of existing market places means that complementary improvements in these markets, at the same time that investments in new markets are being made, will have major positive effects on farmers and consumers.
    Keywords: Africa, horticulture, market, production
    JEL: Q13
    Date: 2008–09
    URL: http://d.repec.org/n?u=RePEc:msu:icpwrk:icpw_ke_tegemeo_wp_028&r=afr
  13. By: Johan F.M. Swinnen; Anneleen Vandeplas; Miet Maertens
    Abstract: Thirty years ago, a vast share of the poor and middle income countries were heavily state-controlled. The effects of the liberalizations in the 1980s and 1990s differed strongly between regions in Africa, Asia and Europe. This paper first documents these differences in reform effects in a comparative framework and then develops a model to formally analyze how liberalization affects production and income distribution when institutions that govern production and exchange are also affected. We derive hypotheses on how the endogenous institutional adjustments affect the supply response to the liberalizations. We use these insights to forward a series of explanations on the differences in performance across countries following liberalization.
    Keywords: Agricultural supply chains, growth, development, regional comparisons
    JEL: O12 O18 O43 O57 Q12 Q13
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:lic:licosd:23309&r=afr
  14. By: Msuya, Elibariki Emmanuel; Hisano, Shuji; Nariu, Tatsuhiko
    Abstract: Using a stochastic frontier production model proposed by Battese and Coelli (1995), the paper estimates the levels of technical efficiency of 233 smallholder maize farmers in Tanzania and provides an empirical analysis of the determinants of inefficiency with the aim of finding way to increase smallholders’ maize production and productivity. Results shows that smallholder productivity is very low and highly variable, ranging form 0.01t/ha to 6.77t/ha, averaging 1.19t/ha. Technical efficiencies of smallholder maize farmers range from 0.011 to 0.910 with a mean of 0.606. Low levels of education, lack of extension services, limited capital, land fragmentation, and unavailability and high input prices are found to have a negative effect on technical efficiency. Smallholder farmers using hand-hoe and farmers with cash incomes outside their farm holdings (petty business) are found to more efficient. However, farmers who use agrochemicals are found to be less efficient. Policy implications drawn from the results include a review of agricultural policy with regard to renewed public support to revamp the agricultural extension system, and interventions towards improving market infrastructure in order to reduce the transaction element in the input and output marketing.
    Keywords: Productivity variation; smallholder farmers; technical efficiency; maize; tanzania
    JEL: Q12 D24
    Date: 2008–07
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:14626&r=afr
  15. By: Badibanga, Thaddee; Diao, Xinshen; Roe, Terry; Somwaru, Agapi
    Abstract: "The paper develops a metric of structural transformation that can account for the production of new varieties of goods embodying advancements in technological know-how and design. Our measure captures the dynamics of an economy's transformation and can be viewed as an extension of Hausmann and Klinger's static measure. We apply our measure to four-digit-level SITC trade data of China, Malaysia, and Ghana over the period 1962–2000. The results show that two important factors characterize the rapid transformation of the Chinese economy: the high proximity of its export basket to three main industrial clusters—capital goods, consumer durable goods, and intermediate inputs—and the increase in the values of the new goods belonging to those three clusters. Malaysia exhibits a similar but more modest pattern. In contrast, the structure of the Ghanaian economy appears unchanged over the entire 1962–2000 period. That economy is dominated by primary goods clusters, and the values of the goods in those clusters have remained relatively low. We also discuss qualitatively the role of policies and institutions in spurring transformation in the three countries." from authors' abstract
    Keywords: Structural transformation, Discovery, technological change, Development strategies,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:fpr:ifprid:856&r=afr
  16. By: SAFIR Abla
    Abstract: Using a recent household survey conducted in Senegal with detailed data on movements in and out of the household as well as transfers, both sent and received, we compare the impact of income shocks on both, focusing on differences between the urban and rural sectors. Marked differences emerge. While urban households share positive shocks with their network through sending them transfers, rural households react to positive income shocks through hosting new members, in fact young girls. On the other hand, we find that young adult children of household members leave the household in case of negative shocks while transfers received by the household do not seem to be impacted by shocks whatsoever. So far, except for departures of young adults, the closest mechanism to insurance is that negative shocks decrease arrivals in the household as well as transfers sent.
    Keywords: migration, remittances, shocks, rural-urban differences, Senegal
    Date: 2008–11
    URL: http://d.repec.org/n?u=RePEc:lea:leawpi:0901&r=afr
  17. By: Nwaobi, Godwin C
    Abstract: At present, the world economy is at a cross road. The Nigerian economy is therefore undergoing it most severe economic crisis since the Biafra war of the sixties. Currently, she is experiencing a staggering rate of inflation (well up to the double digit) as well as experiencing a severe recession (as the unemployment rate has risen astronomically). Consequently, a basic thesis of this proposal is that stagflation has caused and will continue to cause considerable hardship for many Nigerian families and poses a serious threat to the mental health of a substantial proportion of the population. It is therefore the aim of this research to document in a systematic way how families that have experienced varying degrees of “inflation crunch” have adjusted to or tried to adapt to this pressure. In other words, this phased research project proposes to provide information that will be useful to policy makers (government) who must weigh the costs and benefits of the current inflationary pressures as well as severe recession. Essentially, the result will be an emergence and evolution of corrective policy measures and strategies (as adequate and functional).
    Keywords: inflation; unemployment; stagflation; inflationcrunch; nigeria; economy; world; depression; recession; targeting; phillipscurve; monetarypolicy; rationalexpectations; keynesiantheory; newclassicals; wages; prices; NAIRU
    JEL: J60 E24 C90 D10 C80
    Date: 2009–04–10
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:14596&r=afr

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