nep-afr New Economics Papers
on Africa
Issue of 2012‒05‒02
sixteen papers chosen by
Quentin Wodon
World Bank

  1. The sophistication and diversification of the African agricultural sector: A product space approach By Ulimwengu, John; Badibanga, Thaddée
  2. The contribution of African women to economic growth and development : historical perspectives and policy implications -- Part I : the pre-colonial and colonial periods By Akyeampong, Emmanuel; Fofackm Hippolyte
  3. Rural demography, public services, and land rights in Africa: A village-level analysis in Burkina Faso By McMillan, Margaret; Masters, William A.; Kazianga, Harounan
  4. West and Central African Iron Ore : A Lesson in the Contestability of the Iron Ore Market By Luke Hurst
  5. Yield gaps and potential agricultural growth in West and Central Africa: By Nin-Pratt, Alejandro; Johnson, Michael; Magalhaes, Eduardo; You, Liangzhi; Diao, Xinshen; Chamberlin, Jordan
  6. Regional Integration Agreements and Rent-Seeking in Africa By S. STANDAERT; G. RAYP
  7. Impact of Uganda's National Agricultural Advisory Services program: By Benin, Samuel; Nkonya, Ephraim; Okecho, Geresom; Randriamamonjy, Josée; Kato, Edward; Lubadde, Geofrey; Kyotalimye, Miriam; Byekwaso, Francis
  8. Transferts Financiers des Migrants et développement en Afrique subsaharienne By TCHAMANBÉ DJINÉ Louise, TDL; MIAMO WENDJI Clovis, MWC
  9. Economic transformation in Ghana: Where will the path lead? By Kolavalli, Shashi; Robinson, Elizabeth; Diao, Xinshen; Alpuerto, Vida; Folledo, Renato; Slavova, Mira; Ngeleza, Guyslain; Asante, Felix
  10. China’s Growth and Its Impact on Resource Demand and The Iron Ore Trade By Peter Drysdale; Luke Hurst
  11. A new era of transformation in Ghana: Lessons from the past and scenarios for the future By Breisinger, Clemens; Diao, Xinshen; Kolavalli, Shashidhara; Al Hassan, Ramatu; Thurlow, James
  12. Equality of opportunities and fiscal incidence in Cote d'Ivoire By Abras, Ana; Cuesta, Jose; Hoyos, Alejandro; Narayan, Ambar
  13. Globalization, structural change, and productivity growth: By McMillan, Margaret; Rodrik, Dani
  14. Migration Networks in Senegal By Isabelle Chort
  15. Improving Village Poultry’s Survival Rate through Community-based Poultry Health Management: Evidence from Benin By Epiphane Sodjinou; Arne Henningsen; Olorounto D. Koudande
  16. How pro-poor and progressive is social spending in Zambia ? By Cuesta, Jose; Kabaso, Pamela; Suarez-Becerra, Pablo

  1. By: Ulimwengu, John; Badibanga, Thaddée
    Abstract: We use the concept of the product space to analyze the key features of the transformation process in Africa with a focus on the agricultural sector. Between 1962 and 2008, we find that both specialization and diversification occur for the overall economy and across sectors. Our findings also confirm that the transformation of the African economy is driven primarily by the increasing specialization of nonagricultural exports. However, the transformation process is still moving more slowly than that of an emerging economy such as Brazil. The index of specialization of agricultural exports grew at a modest annual rate of 2.1 percent between 1962 and 2008, compared to 5.0 percent for nonagricultural exports and 4.1 percent for the overall economy. Although substantive achievements are observed in terms of product specialization or sophistication, the diversification of agricultural exports is rather insignificant. Compared to Africa, Brazil appears to have experienced a more balanced process in terms of both specialization and diversification of its agriculture. African countries' specific transformation dynamics are heterogeneous, suggesting that a one-size-fits-all strategy to boost the agricultural sector in Africa is probably not the best option. Therefore, we advocate that the goals and principles of the Comprehensive Africa Agriculture Development Programme (CAADP) be adapted and customized to individual countries and incorporated into their strategies to enhance the transformation process of the African agricultural sector.
    Keywords: Structural transformation, sophistication, Growth, export, diversification,
    Date: 2012
    URL: http://d.repec.org/n?u=RePEc:fpr:ifprid:1156&r=afr
  2. By: Akyeampong, Emmanuel; Fofackm Hippolyte
    Abstract: Bringing together history and economics, this paper presents a historical and processual understanding of women's economic marginalization in Sub-Saharan Africa from the pre-colonial period to the end of colonial rule. It is not that women have not been economically active or productive; it is rather that they have often not been able to claim the proceeds of their labor or have it formally accounted for. The paper focuses on the pre-colonial and colonial periods and outlines three major arguments. First, it discusses the historical processes through which the labor of women was increasingly appropriated even in kinship structures in pre-colonial Africa, utilizing the concepts of"rights in persons"and"wealth in people."Reviewing the processes of production and reproduction, it explains why most slaves in pre-colonial Africa were women and discusses how slavery and slave trade intensified the exploitation of women. Second, it analyzes how the cultivation of cash crops and European missionary constructions of the individual, marriage, and family from the early decades of the 19th century sequestered female labor and made it invisible in the realm of domestic production. Third, it discusses how colonial policies from the late 19th century reinforced the"capture"of female labor and the codification of patriarchy through the nature and operation of the colonial economy and the instrumentality of customary law. The sequel to this paper focuses on the post-colonial period. It examines the continuing relevance and impact of the historical processes this paper discusses on post-colonial economies, and suggests some policy implications.
    Keywords: Anthropology,Gender and Development,Population Policies,Rural Development Knowledge&Information Systems,Gender and Law
    Date: 2012–04–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:6051&r=afr
  3. By: McMillan, Margaret; Masters, William A.; Kazianga, Harounan
    Abstract: This paper uses historical census data from Burkina Faso to characterize local demographic pressures associated with internal migration into river valleys after onchocerciasis eradication, combined with a new survey of village elders to document change over time and differences across villages in local public goods provision, market institutions, and land use rights. We hypothesize that higher local population densities are associated with more public goods and with a transition from open-access to regulated land use. Controlling for province or village fixed effects, we find that villages' variance in population associated with proximity to rivers is closely correlated with higher levels of infrastructure, markets, and individual land rights, as opposed to familial or communal rights. Responding to population growth with both improved public services and private property rights is consistent with both scale effects in public good provision and changes in the scarcity of land.
    Keywords: Demography, Institutions,
    Date: 2012
    URL: http://d.repec.org/n?u=RePEc:fpr:ifprid:1164&r=afr
  4. By: Luke Hurst (East Asia Bureau of Economic Research (EABER))
    Abstract: The paper briefly sets out factors behind Chinese demand for iron ore imports and the main features of China’s medium term resource consumption growth path. It then outlines the potential of major iron ore export countries to meet China’s medium term iron ore import demands. The focus of the paper is on the potential of iron ore supplies from west and central Africa to enter the export market over the short and medium terms. To assess this, three export capacity scenarios (low, medium and high risk) are constructed for 17 iron ore mines (over 27 production expansion phases) in west and central African. The results suggest the development of west and central African iron ore has the potential to create significant downward pressure on the price of iron ore exports over the short to medium term. The impact of the excess export capacity on iron ore price is estimated and it suggests that there would be significant knock-on effects for iron ore-centric economies such as Australia and Brazil.
    Keywords: iron ore, China, Africa, demand for iron ore, iron ore price, Brazil, Australia
    JEL: L72 O13 Q31
    Date: 2012–04
    URL: http://d.repec.org/n?u=RePEc:eab:wpaper:23292&r=afr
  5. By: Nin-Pratt, Alejandro; Johnson, Michael; Magalhaes, Eduardo; You, Liangzhi; Diao, Xinshen; Chamberlin, Jordan
    Abstract: The authors identify a set of development priorities for agriculture that cut across West Africa at both the country and regional levels to achieve economywide growth goals in the region. To do this we adopt a modeling and analytical framework that involves the integration of spatial analysis to identify yield gaps determining the growth potential of different agricultural activities for areas with similar conditions and an economywide multimarket model to simulate ex ante the economic effects of closing these yield gaps. Results indicate that the greatest agriculture-led growth opportunities in West Africa reside in staple crops (cereals and roots and tubers) and livestock production. Contributing the most to agricultural growth in the Sahel are livestock, rice, coarse grains, and oilseeds (groundnuts); in Coastal countries, staple crops such as cassava, yams, and cereal seems to be relatively more important than other subsectors; and in Central Africa livestock and root crops are the sources of growth with highest potential. Results also point toward an essential range of policies and investments that are needed to stimulate the productivity growth of prioritized activities. These include developing opportunities for regional cooperation on technology adaptation and diffusion, strengthening regional agricultural markets, exploiting opportunities for greater regional cooperation and harmonization, diversifying traditional markets, and enhancing linkages between agricultural and nonagricultural sectors.
    Keywords: Agricultural growth, Multi-market model, spatial analysis, Staple food crops, Yield gap, Agricultural development, Development strategies,
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:fpr:resrep:alejandronin-pratt&r=afr
  6. By: S. STANDAERT; G. RAYP
    Abstract: This paper explores the motives behind the formation of intra-African regional integration agreements (RIAs). We aim to see whether rent-seeking can be identified as a statistically significant driving force of African integration. The traditional reason for economic integration, the static and dynamic effects, predict no or even a negative effect on welfare. Moreover, many of the new regionalism theories are conditional on strong economic integration. Two exceptions are rent-seeking behavior and the regime boosting hypothesis. Not only can they credibly explain the proliferation of African trade agreements in the absence of a positive effect on welfare, they can also account for the lack of progress in clearing away the many obstructions to regional trade.<br> Because most African agreements involve more than two partner countries, the decision to enter a RIA cannot be analyzed by examining agreements between pairs of countries. Instead, we propose regressing whether a country is a member of a certain agreement on the characteristics of both country and agreement. We find that corruption does have an effect on the willingness to join RIAs, but that it is strongly dependent on the level of GDP. Moreover, for a given level of GDP the effect of corruption is non-linear.
    Keywords: Regional Integration, Rent-seeking, Africa
    JEL: F53 C23
    Date: 2012–02
    URL: http://d.repec.org/n?u=RePEc:rug:rugwps:12/773&r=afr
  7. By: Benin, Samuel; Nkonya, Ephraim; Okecho, Geresom; Randriamamonjy, Josée; Kato, Edward; Lubadde, Geofrey; Kyotalimye, Miriam; Byekwaso, Francis
    Abstract: In Uganda, agricultural extension has been hotly debated since the implementation of the National Agricultural Advisory Services (NAADS) program in 2001. Conceived as a demand-driven approach and largely publicly funded with services provided by the private sector, the NAADS program targets the development and use of farmer institutions. It is a key strategy in the government's poverty-reduction and national development plan. Due to methodological challenges arising from the complex ways that many factors influence the relationship between extension inputs and outcomes, as well as data-quality issues, the effectiveness of agricultural extension in raising agricultural productivity and incomes and reducing poverty is often viewed with skepticism among policymakers and development practitioners. The NAADS program has been no exception. Some initial evaluations, mostly qualitative in nature, indicate the program has had a favorable effect on increasing the use of improved technologies, marketed output, and wealth status of farmers receiving services from the program. However, the program does not appear to be promoting improved soil-fertility management, raising concern about the sustainability of potential productivity increases. Now that the first phase of the program has ended, this study rigorously assesses the outcomes and impacts obtained thus far, in order to help inform the current second phase and offer lessons for others implementing or planning to implement demand-driven agricultural advisory services in developing countries. The findings presented here are useful to policymakers of central and local governments, farmer groups, advisory service providers, donors, and others seeking to improve agricultural extension services in Uganda and elsewhere. Program evaluators and policy analysts will find the methods instructive.
    Keywords: Impact assessment, Agricultural extension, Land management,
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:fpr:resrep:samuelbenin&r=afr
  8. By: TCHAMANBÉ DJINÉ Louise, TDL; MIAMO WENDJI Clovis, MWC
    Abstract: The purpose of this paper is to analyze the relationship Workers’ Remittances, poverty, and economic growth in Sub-Saharan African countries. Workers’ Remittances seem to affect the economic development of recipient countries in the same way as Official Development Aid and Foreign Direct Investment. To achieve this objective, we use the fixed effects panel regression models to determine the link between Remittances and poverty on the one hand, Remittances and growth on the other. Recourse to the instrumental variables method turned out to be better for the estimation of the poverty model, while the standard error correction method proved to be well suited for the estimation of the growth model. Empirical results reveal that, Remittances inflows do not contribute significantly to the reduction of poverty. However, it is important to note that Workers’ Remittances seem to be a key element in boosting economic growth in the same manner as investment. Thus, if decision makers allocate a substantial percentage of the fruits derived from this growth to investment in the development of human capital, physical and basic social infrastructures, it is very likely that poverty will be reduced in the long term.
    Keywords: Workers’ Remittances; Poverty; Economic Growth; Development
    JEL: F22 I31 F24
    Date: 2012
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:38139&r=afr
  9. By: Kolavalli, Shashi; Robinson, Elizabeth; Diao, Xinshen; Alpuerto, Vida; Folledo, Renato; Slavova, Mira; Ngeleza, Guyslain; Asante, Felix
    Abstract: In the context of the Ghanaian government's objective of structural transformation with an emphasis on manufacturing, this paper provides a case study of economic transformation in Ghana, exploring patterns of growth, sectoral transformation, and agglomeration. We document and examine why, despite impressive growth and poverty reduction figures, Ghana's economy has exhibited less transformation than might be expected for a country that has recently achieved middle-income status. Ghana's reduced share of agriculture in the economy, unlike many successfully transformed countries in Asia and Latin America, has been filled by services, while manufacturing has stagnated and even declined. Likely causes include weak transformation of the agricultural sector and therefore little development of agroprocessing, the emergence of consumption cities and consumption-driven growth, upward pressure on the exchange rate, weak production linkages, and a poor environment for private-sector-led manufacturing.
    Keywords: agglomeration, Economic transformation,
    Date: 2012
    URL: http://d.repec.org/n?u=RePEc:fpr:ifprid:1161&r=afr
  10. By: Peter Drysdale (East Asia Bureau of Economic Research (EABER)); Luke Hurst
    Abstract: The paper sets out what has been driving Chinese demand for resources and outlines the main features of the growth of Chinese resource consumption. It explains the impact of Chinese growth on the Australian economy and examines the future of Chinese resource demand. It reviews the potential to supply Chinese resource (and in particular, iron ore) demand and looks at some policy questions that confront China, as a major resource-procuring economy seeking resource security through foreign investment, and resource-supplying countries, such as Australia, in the context of the growth of Chinese demand. The paper argues that increased supply capacity in Africa and elsewhere in the world is likely to put downward pressure on iron ore (and potentially other resource) prices as new projects come on stream over the next five years.
    Keywords: iron ore trade, resource demand, demand for iron ore, iron ore price, China, Africa, Australia, Chinese resource consumption, Chinese resource demand
    JEL: L72 O13 Q31
    Date: 2012–04
    URL: http://d.repec.org/n?u=RePEc:eab:wpaper:23293&r=afr
  11. By: Breisinger, Clemens; Diao, Xinshen; Kolavalli, Shashidhara; Al Hassan, Ramatu; Thurlow, James
    Keywords: Economic development, Economic conditions, Agriculture,
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:fpr:resrep:clemensbreisinger&r=afr
  12. By: Abras, Ana; Cuesta, Jose; Hoyos, Alejandro; Narayan, Ambar
    Abstract: This study analyzes opportunities for children in Cote d'Ivoire, where opportunities refer to access to basic services and goods that improve the likelihood of a child maximizing his or her human potential. The principle that guides this analysis is one of equality of opportunity, which is that a child's circumstances at birth should not determine his or her access to opportunities. The analysis computes the Human Opportunity Index, which measures the extent to which access to basic services is universal and evenly distributed among children of different circumstances. Opportunities are limited in Cote d'Ivoire, despite some improvements in access to electricity and timely access to primary education. Otherwise, trends on access remain stagnant. Scale effects (variations across the board) are behind these trends, with little improvement observed from equalizing interventions. Circumstances such as region and household head characteristics affect a child's access to opportunities, while household incomes and a child's gender and ethnicity play a relatively small role in access differentials. Public spending on education opportunities is shown to be regressive and pro-rich, especially when analyzed across the distribution of circumstances rather than acroos income level.The groups of children that are particularly behind in terms of educational opportunities are those whose household heads lack primary education and reside in rural areas. Closing the enrollment gap of these children should be a priority for targeted educational interventions. However, improving opportunities may require more than a single type of intervention: opportunities with low coverage may need to be scaled up, while those with large inequalities of access may require equalizing interventions.
    Keywords: Primary Education,Population Policies,Disability,Gender and Law,Rural Poverty Reduction
    Date: 2012–04–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:6048&r=afr
  13. By: McMillan, Margaret; Rodrik, Dani
    Abstract: Large gaps in labor productivity between the traditional and modern parts of the economy are a fundamental reality of developing societies. In this paper, we document these gaps and emphasize that labor flows from low-productivity activities to high-productivity activities are a key driver of development. Our results show that since 1990 structural change has been growth-reducing in both Africa and Latin America, with the most striking changes taking place in Latin America. The bulk of the difference between these countries' productivity performance and that of Asia is accounted for by differences in the pattern of structural change—with labor moving from low- to high-productivity sectors in Asia, but in the opposite direction in Latin America and Africa. In our empirical work, we identify three factors that help determine whether—and, if so, the extent to which—structural change contributes to overall productivity growth. In countries with a relatively large share of natural resources in exports, structural change has typically been growth-reducing. Even though these enclave sectors usually operate at very high productivity, they cannot absorb the surplus labor from agriculture. By contrast, competitive or undervalued exchange rates and labor market flexibility have contributed to growth-enhancing structural change.
    Keywords: economic growth, exchange rates, Labor, productivity, structural change,
    Date: 2012
    URL: http://d.repec.org/n?u=RePEc:fpr:ifprid:1160&r=afr
  14. By: Isabelle Chort (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris - INRA, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: This paper investigates the importance and role of migration networks in Senegal using a new nationally representative survey conducted in 2006-2007. Using a sample of 1707 Senegalese households I explore potentially differential effects of networks on international migration depending on their characteristics in terms of composition and destination. Results from logit and multinomial logit regressions show that household networks seem to be destination-specific and have a greater positive influence on migration than community networks. Networks also seem to have heterogeneous effects on migration depending on gender, household wealth or size which is consistent with previous findings in the literatureand backs up a networks effects story.
    Keywords: Migration ; Migrant Networks ; Senegal
    Date: 2012–04
    URL: http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-00689460&r=afr
  15. By: Epiphane Sodjinou (Institut National des Recherches Agricoles du Benin); Arne Henningsen (Institute of Food and Resource Economics, University of Copenhagen); Olorounto D. Koudande (Institut National des Recherches Agricoles du Benin)
    Abstract: Community-based poultry health management (CBM) is a strategy for village poultry improvement based on the installment of “poultry interest groups” in experimental villages. These groups serve as a channel for the dissemination of village poultry improvement technologies. The use of CBM is due to the fact that village poultry farming is practiced in a total or partial scavenging system which gives the impression that all the birds in the village belong to the same flock. Accordingly, actions that target all farmers of the same village may have a larger impact on the village poultry’s survival rate than actions that target individual producers. The objective of this study is to assess the impact of CBM on the survival rate of village poultry. Based on data collected on 353 poultry keepers, the study shows that CBM significantly improves the survival rate of village poultry. The adoption of technologies – poultry vaccination, construction of henhouses, and improved feed – disseminated through the CBM also significantly improves the survival rate. The access to markets for inputs and veterinary services is also important in improving the survival rate of poultry. Finally, the study suggests that governments and development agencies can improve village poultry survival rates by investing in the dissemination of information regarding best husbandry management practices through approaches that rely on the community such as CBM because CBM groups serve as channels for the dissemination of village poultry improvement technologies.
    Keywords: Benin; Community-based management; Survival rate; Two-limit Tobit; Village poultry
    JEL: O13 Q12 Q16
    Date: 2012–04
    URL: http://d.repec.org/n?u=RePEc:foi:wpaper:2012_6&r=afr
  16. By: Cuesta, Jose; Kabaso, Pamela; Suarez-Becerra, Pablo
    Abstract: This paper analyzes the distributional effect of public spending in Zambia using the most recent data from the 2010 Living Conditions Monitoring Survey. The analysis focuses on both the"traditional"social sectors, such as education and public healthcare, as well as other spending areas less thoroughly studied, such as agricultural support programs. Ultimately, this benefit incidence analysis addresses the extent to which spending is pro-poor and progressive; that is, it primarily benefits the poor and does so at an increasing rate as welfare levels decrease. The results indicate that overall public education spending in Zambia is neither pro-poor nor progressive, but while this is true for the system as a whole it is not true for all of its parts. The net unitary benefits of primary and secondary education are clearly both pro-poor and progressive. However, their progressivity is ultimately outweighed by the extreme concentration of tertiary education benefits among the wealthiest members of Zambian society. Health spending is also regressive and not pro-poor. Although unitary net benefits are slightly progressive, unequal access remains the key constraint. In contrast, the benefits of agricultural-input subsidy programs follow a somewhat progressive pattern (for each beneficiary in the top quintile there are almost two beneficiaries in the poorest quintile) but clearly suffer from targeting problems. Consequently, without better-designed and more conscientiously implemented targeting mechanisms, public spending on health, education, and fertilizers will not be able to further the government's larger objectives for pro-poor and progressive development policy.
    Keywords: Health Monitoring&Evaluation,Public Sector Expenditure Policy,Access to Finance,Population Policies,Health Systems Development&Reform
    Date: 2012–04–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:6052&r=afr

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