nep-afr New Economics Papers
on Africa
Issue of 2010‒02‒05
six papers chosen by
Quentin Wodon
World Bank

  1. Peace-Building without External Assistance: Lessons from Somaliland By Nicholas Eubank
  2. South African Agricultural Research and Development: A Century of Change By Liebenberg, Frikkie; Pardey, Philip G.; Kahn, Michael
  3. Assessing the impact of infrastructure quality on firm productivity in Africa : cross-country comparisons based on investment climate surveys from 1999 to 2005 By Escribano, Alvaro; Guasch, J. Luis; Pena, Jorge
  4. What constrains Africa's exports ? By Freund, Caroline; Rocha, Nadia
  5. Paying primary health care centers for performance in Rwanda By Basinga, Paulin; Gertler, Paul J.; Binagwaho, Agnes; Soucat, Agnes L.B.; Sturdy, Jennifer R.; Vermeersch, Christel M.J.
  6. How Beliefs about HIV Status Affect Risky Behaviors: Evidence from Malawi, Second Version By Aureo de Paula; Gil Shapira; Petra E. Todd

  1. By: Nicholas Eubank
    Abstract: Since its secession from Somalia in 1991, the east-African nation of Somaliland has become one of the most democratic governments in eastern Africa. Yet Somaliland has never been recognized by the international community. This paper examines how this lack of recognition—and the consequent ineligibility for foreign financial assistance—has shaped Somaliland’s political development. It finds evidence that Somaliland’s ineligibility for foreign aid facilitated the development of accountable political institutions and contributed to the willingness of Somalilanders to engage constructively in the state-building process.
    Keywords: somaliland; post-conflict; peace-building; foreign aid
    Date: 2010–01
    URL: http://d.repec.org/n?u=RePEc:cgd:wpaper:198&r=afr
  2. By: Liebenberg, Frikkie; Pardey, Philip G.; Kahn, Michael
    Abstract: The 20th Century saw substantive shifts in the structure of agriculture and agricultural production in South Africa. Farm size grew, farm numbers eventually declined, and production increasingly emphasized higher-valued commodities, notably a range of horticultural crops. The real gross value of agricultural output grew steadily (by 3.32 percent per year) from 1910-1981, but declined thereafter (by 0.21 percent per year from 1982-2008). These long-run sectoral changes provide a context to present and assess an entirely new data series on public agricultural R&D (and related regulatory and extension) spending and associated scientist trends. South African agricultural R&D has been affected by a series of major policy changes. These are also documented and discussed here, along with the associated institutional changes regarding the conduct and funding of public agricultural R&D in South Africa. We reveal a number of disturbing trends, including an effective flat lining of the long-run growth in total agricultural R&D spending that took hold in the 1970s, an erratic path of funding per scientist, and a loss of scientific personnel in recent decades. Moreover, South Africa has lost ground relative to its competitors in international commodity markets such as the United States and Australia in terms of the intensity of investment in agricultural R&D. These developments are likely to have long-term, and detrimental, consequences for the productivity performance and competiveness of South African agriculture. They deserve serious policy attention as the 21st Century unfolds, with a firm eye to the long-run given the long lags (often many decades) that typify the relationship between agricultural R&D spending and productivity growth.
    Keywords: Research and Development/Tech Change/Emerging Technologies,
    Date: 2010–01
    URL: http://d.repec.org/n?u=RePEc:ags:umaesp:56688&r=afr
  3. By: Escribano, Alvaro; Guasch, J. Luis; Pena, Jorge
    Abstract: This paper provides a systematic, empirical assessment of the impact of infrastructure quality on the total factor productivity (TFP) of African manufacturing firms. This measure is understood to include quality in the provision of customs clearance, energy, water, sanitation, transportation, telecommunications, and information and communications technology (ICT). Microeconometric techniques to investment climate surveys (ICSs) of 26 African countries are carried out in different years during the period 2002–6, making country-specific evaluations of the impact of investment climate (IC) quality on aggregate TFP, average TFP, and allocative efficiency. For each country the impact is evaluated based on 10 different productivity measures. Results are robust once controlled for observable fixed effects (red tape, corruption and crime, finance, innovation and labor skills, etc.) obtained from the ICSs. African countries are ranked according to several indices: per capita income, ease of doing business, firm perceptions of growth bottlenecks, and the concept of demeaned productivity (Olley and Pakes 1996). The countries are divided into two blocks: high-income-growth and low-income-growth. Infrastructure quality has a low impact on TFP in countries of the first block and a high (negative) impact in countries of the second. There is significant heterogeneity in the individual infrastructure elements affecting countries from both blocks. Poor-quality electricity provision affects mainly poor countries, whereas problems dealing with customs while importing or exporting affects mainly faster-growing countries. Losses from transport interruptions affect mainly slower-growing countries. Water outages affect mainly slower-growing countries. There is also some heterogeneity among countries in the infrastructure determinants of the allocative efficiency of African firms.
    Keywords: Transport Economics Policy&Planning,Economic Theory&Research,E-Business,Labor Policies,Infrastructure Economics
    Date: 2010–01–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:5191&r=afr
  4. By: Freund, Caroline; Rocha, Nadia
    Abstract: This paper examines the effects of transit, documentation, and ports and customs delays on Africa’s exports. The authors find that transit delays have the most economically and statically significant effect on exports. A one-day reduction in inland travel times leads to a 7 percent increase in exports. Put another way, a one-day reduction in inland travel times translates to a 1.5 percentage point decrease in all importing-country tariffs. By contrast, longer delays in the other areas have a far smaller impact on trade. The analysis controls for the possibility that greater trade leads to shorter delays in three ways. First, it examines the effect of trade times on exports of new products. Second, it evaluates the effect of delays in a transit country on the exports of landlocked countries. Third, it examines whether delays affect time-sensitive goods relatively more. The authors show that large transit delays are relatively more harmful because of high within-country variation.
    Keywords: Transport Economics Policy&Planning,Common Carriers Industry,Transport and Trade Logistics,Trade Policy,Economic Theory&Research
    Date: 2010–01–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:5184&r=afr
  5. By: Basinga, Paulin; Gertler, Paul J.; Binagwaho, Agnes; Soucat, Agnes L.B.; Sturdy, Jennifer R.; Vermeersch, Christel M.J.
    Abstract: Paying for performance (P4P) provides financial incentives for providers to increase the use and quality of care. P4P can affect health care by providing incentives for providers to put more effort into specific activities, and by increasing the amount of resources available to finance the delivery of services. This paper evaluates the impact of P4P on the use and quality of prenatal, institutional delivery, and child preventive care using data produced from a prospective quasi-experimental evaluation nested into the national rollout of P4P in Rwanda. Treatment facilities were enrolled in the P4P scheme in 2006 and comparison facilities were enrolled two years later. The incentive effect is isolated from the resource effect by increasing comparison facilities'input-based budgets by the average P4P payments to the treatment facilities. The data were collected from 166 facilities and a random sample of 2158 households. P4P had a large and significant positive impact on institutional deliveries and preventive care visits by young children, and improved quality of prenatal care. The authors find no effect on the number of prenatal care visits or on immunization rates. P4P had the greatest effect on those services that had the highest payment rates and needed the lowest provider effort. P4P financial performance incentives can improve both the use of and the quality of health services. Because the analysis isolates the incentive effect from the resource effect in P4P, the results indicate that an equal amount of financial resources without the incentives would not have achieved the same gain in outcomes.
    Keywords: Health Monitoring&Evaluation,Population Policies,Health Systems Development&Reform,Disease Control&Prevention,Adolescent Health
    Date: 2010–01–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:5190&r=afr
  6. By: Aureo de Paula (Department of Economics, University of Pennsylvania); Gil Shapira (Department of Economics, University of Pennsylvania); Petra E. Todd (Department of Economics, University of Pennsylvania)
    Abstract: This paper examines whether and to what extent changes in beliefs about own HIV status induce changes in risky sexual behavior using data from married males living in three regions of Malawi. Risky behavior is measured as the propensity to engage in extramarital affairs. The empirical analysis is based on panel surveys for years 2006 and 2008 from the Malawi Diffusion and Ideational Change Project (MDICP), which contain detailed information on beliefs about HIV status and on sexual behaviors. Many individuals change their beliefs over time, because of opportunities to get tested for HIV and informational campaigns. We estimate the effect of belief revisions on the propensity to engage in extra-marital affairs using a panel data estimator developed by Arellano and Carrasco (2003), which accommodates unobserved heterogeneity as well as belief endogeneity arising from the dependence of current beliefs on lagged behaviors. We find that downward revisions in the belief of being HIV positive lead to an increased propensity to engage in extra-marital affairs and upward revisions to a decreased propensity. The estimates are shown to be robust to underreporting of affairs. Using our estimates and a standard epidemeological model of disease transmission, we find that increasing the responsiveness of beliefs to test results would reduce the HIV transmission rate as infected individuals reduce sexual behavior and decrease the likelihood that uninfected persons have contact with an HV-positive person.
    Keywords: AIDS, Malawi, Beliefs
    JEL: I12
    Date: 2009–08–01
    URL: http://d.repec.org/n?u=RePEc:pen:papers:10-004&r=afr

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