nep-afr New Economics Papers
on Africa
Issue of 2015‒01‒31
nine papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. The Heterogeneity of FDI in Sub-Saharan Africa – How Do the Horizontal Productivity Effects of Emerging Investors Differ from Those of Traditional Players? By Birte Pfeiffer ; Holger Görg ; Lucia Perez Villar
  2. Determinants of food production in Sub Saharan Africa: the impact of policy, market access and governance By Di-Marcantonio, Federica ; Morales-Opazo, Cristian ; Barreiro-Hurlé, Jesús ; Demeke, Mulat
  3. Food standards, certification, and poverty among coffee farmers in Uganda By Chiputwa, Brian ; Qaim, Matin ; Spielman, David J.
  4. Construction and analysis of a composite quality of life index for a region of South Africa By Talita Dalton-Greyling and Fiona Tregenna
  5. A Dream Deferred: the Microfoundations of Direct Political Action in Pre- and Post-democratization South Africa By Biniam Bedasso
  6. Infrastructure provision and Africa's trade and development prospects: Potential role and relevance of The WTO Agreement on Government Procurement (GPA) By Niggli, Nicholas C. ; Osei-Lah, Kodjo
  7. Oil and ethnic inequality in Nigeria By James Fenske ; Igor Zurimendi
  8. More than copper: toward the diversification and stabilization of Zambian exports By Brulhart, Marius ; Dihel, Nora ; Kukenova, Madina
  9. The Effectiveness of Regulatory and Supervisory Framework of Islamic Microfinance in Sudan By Saaid Ali, Abd Elrahman Elzahi

  1. By: Birte Pfeiffer ; Holger Görg ; Lucia Perez Villar
    Abstract: This paper analyzes the horizontal productivity effects of foreign direct investment (FDI) from industrialized and developing countries in 10 sub-Saharan African countries. We establish a unique data set by combining data from the World Bank Enterprise Surveys that allow us to distinguish between foreign investors from sub-Saharan Africa, Asia, Europe, the Middle East, and North Africa. We find strong evidence of horizontal productivity spillovers to domestic firms derived from foreign-firm presence. However, these effects are clearly dependent on domestic firms’ absorptive capacity. The largest productivity effects seem to be driven by investors from sub-Saharan Africa. Our analysis also shows that productivity effects differ according to the income level of host countries. Overall, the strongest productivity effects seem to materialize in lower-middle-income countries. These key findings emphasize the increasing importance of emerging investors, beyond the traditional players from industrialized countries, in sub-Saharan Africa
    Keywords: foreign direct investment, productivity, South–South firms, spillovers, sub-Saharan Africa
    JEL: F23
    Date: 2015–01
    URL: http://d.repec.org/n?u=RePEc:kie:kieliw:1981&r=afr
  2. By: Di-Marcantonio, Federica ; Morales-Opazo, Cristian ; Barreiro-Hurlé, Jesús ; Demeke, Mulat
    Abstract: This study examines the relationship between policy, market access, country governance indicators and food production in 41 African countries. Based on a cross-country panel sample, a fixed-random effect models is employed to test the hypothesis that beyond agricultural inputs and macroeconomic reforms other exogenous factors could foster food production. Our findings show that improving food-agricultural inputs enhance production, while conflicts, food aid and geographic location such as landlocked countries negatively affect food production. Exogenous factors influencing production response include rainfall, market access, and education. Both governance and education can indirectly improve food production by enhancing growth, through investment in infrastructures, and human capital.
    Keywords: food, production, market, governance, Institutional and Behavioral Economics,
    Date: 2014–08
    URL: http://d.repec.org/n?u=RePEc:ags:eaae14:182683&r=afr
  3. By: Chiputwa, Brian ; Qaim, Matin ; Spielman, David J.
    Abstract: Voluntary standards are gaining in importance in global markets for high-value foods. We analyze and compare impacts of three sustainability oriented standards – Fairtrade, Organic, and UTZ – on the livelihoods of smallholder coffee farmers in Uganda. Using survey data and propensity score matching with multiple treatments, we find that Fairtrade certification increases household living standards by 30% and reduces the prevalence and depth of poverty. For the other two certification schemes, no significant impacts are found. Several factors that can explain differential impacts are discussed. Overly general statements about the effects of sustainability standards on smallholder livelihoods may be misleading.
    Keywords: coffee, smallholder farmers, Organic, Fairtrade, Uganda, Food Security and Poverty,
    Date: 2014–08
    URL: http://d.repec.org/n?u=RePEc:ags:eaae14:182718&r=afr
  4. By: Talita Dalton-Greyling and Fiona Tregenna
    Abstract: This study employs a novel approach to measure and analyse quality of life in the Gauteng City-Region of South Africa. A comprehensive composite index is constructed. Comparing the quality of life of different groups, groups such as Africans, residents in urban informal settlements and females scoring relatively low. The weighting of the dimensions of quality of life is compared across groups, with ‘housing and infrastructure’ and ‘social relationships’ explaining the most variance for groups with lower and higher quality of life respectively. The findings emphasise the unevenness of wellbeing. The study provides a basis for measuring and analysing quality of life in other countries.
    Keywords: quality of life, wellbeing, composite indices, Gauteng City-Region, measuring instruments
    JEL: C38 I31 O15 O18 R11
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:rza:wpaper:481&r=afr
  5. By: Biniam Bedasso
    Abstract: Persistent protests might endanger the stability of young democracies because the economic legacies of the old autocratic regimes tend to outlive their political structures. This paper seeks to explore the micro-level predictors of protest potential in South Africa before and after the end of apartheid. The results of the cohort analysis reveal that the political consciousness of the anti-apartheid struggle has a lasting effect. The gap between actual income and expected returns to education explains protest potential better than comparison of one’s income with that of a reference group. The effect of race on protest potential has diminished over time.
    Keywords: protest, relative welfare, cohort, democratization, South Africa
    JEL: D74 P16
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:rza:wpaper:483&r=afr
  6. By: Niggli, Nicholas C. ; Osei-Lah, Kodjo
    Abstract: Two issues stand out in this conversation. The first concerns the unfinished business of the global fight against the scourge of poverty, which impacts one region more than most: Africa. At the same time, a key pre-requisite for economic performance - affordable and efficient public infrastructure and services - remains lacking in this region - notably, in Sub-Saharan Africa. To address this, the region itself has initiated a major, long-term, continent-wide infrastructure development programme which is intended to fix this problem sustainably - namely, the Programme for Infrastructure Development in Africa (PIDA). Its success foreshadows an economic transformation that will potentially usher in an emergent Africa in the 21st century. Secondly, in one area of economic activity - trade in government procurement markets - the revised WTO Agreement on Government Procurement (GPA) is emerging as a multi-dimensional tool of trade, governance and development. The thesis of this paper is that GPA participation by African countries - a prospect which, to date, they have declined to take up - holds strong potential to reinforce the positive effects of PIDA and to contribute to the region's growth and development more generally. [...]
    Keywords: Africa,Agreement on Government Procurement,Aid,Corruption,Development,Developing Countries,Economic Integration,Foreign Investment,Foreign Trade,GDP,Governance,Government Procurement,GPA,Infrastructure,Integration,International Trade,International Trade Organizations,LDCs,Liberalization,Openness,Procurement,Public Goods,Public-Private Partnerships,Public Procurement,Regional Integration,Strategic Trade,Trade,Trade Agreements,Trade Policy,WTO
    JEL: F13 F14 F15 H44 H54 H57 O19
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:zbw:wtowps:ersd201420&r=afr
  7. By: James Fenske ; Igor Zurimendi
    Abstract: Oil prices experienced in early life predict differential adult outcomes across Nigerian ethnic groups. Our difference-in-difference approach compares members of southern ethnicities to other Nigerians from the same birth cohort. Greater prices in a southern individual’s birth year predict positive relative outcomes, including reduced fertility, delayed marriage, higher probabilities of working and having a skilled occupation, and greater schooling. By contrast, health outcomes suffer, including reduced height and increased BMI. These microeconomic impacts can be explained by macroeconomic responses to greater oil prices. Relative Southern incomes increase, food production declines, maternal labor intensifies, and Southern conflict rises.
    Keywords: Commodity prices, conflict, early life, ethnicity, Nigeria
    JEL: I12 I15 O12
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:csa:wpaper:2015-02&r=afr
  8. By: Brulhart, Marius ; Dihel, Nora ; Kukenova, Madina
    Abstract: This paper analyzes Zambian export patterns using a new transaction-level trade data set for the period 1999-2011. The data show that, in international comparison, Zambian exports are exceptionally concentrated (on mining products). This reliance has been increasing in recent years. Zambia's exports are also characterized by a high level of churning of firms and products. Multivariate models of survival probabilities suggest that exchange rate volatility and difficult access to imported inputs significantly inhibit diversified and stable exports. The econometric analysis is complemented with a qualitative study of the Zambian export sector. The analysis concludes that one of the main policy levers for unleashing Zambia's full potential as an exporter is by facilitating access to imported inputs. Additional measures that ease foreign exchange transactions, simplify export and certification requirements, and increase the predictability of Zambia's trade regime could be effective to promote Zambia's nontraditional exports.
    Keywords: Economic Theory&Research,Markets and Market Access,Free Trade,Debt Markets,Emerging Markets
    Date: 2015–01–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:7151&r=afr
  9. By: Saaid Ali, Abd Elrahman Elzahi (The Islamic Research and Teaching Institute (IRTI) )
    Abstract: Islamic microfinance is one of the essential inconventional branch of lending that uses by Islamic microfinance providers for financial and social inclusion to provide resources for low-income people as well as the extremely poor. Through the in-bodied social inclusion tools, Islamic microfinance can best used to mitigate the negative impact of the extreme poverty. Since financing micro-borrowers and extremely poor are highly risk, the need for efficient and effective regulatory and supervision of microfinance frame work is very important. This research investigated Sudanese Islamic microfinance regulatory and supervisory framework. Despite of the exerted efforts by Sudanese government through providing favorable climate and the establishment of Islamic financial intuitions and establishing structured microfinance framework, the results showed that Sudanese microfinance regulatory framework is not providing best outreach. Through more than ten years since the first initiative the results illegible clients have reached less than 3%. Despite the continuous increasing of the ceiling portfolio by the regulatory authority until reached 12% from 4% since the first issued rules in 2006, the actually utilization only 2% at the end of the year 2013. This might be due to several reasons such as bad basic infrastructures, ineffective follow up by the regulator of the microfinance providers, Islamic microfinance deliberately ignoring the rural areas clients’ because of the high risk, the framework lack of the building capacity tools for clients as well as for the microfinance providers staff. The results of this research gives strong policy implications for both to Islamic microfinance regulator and providers to carry on real revision and evaluation for the efficiency and effectiveness of the current operated microfinance frame work in Sudan. The results might be useful for Islamic microfinance regulators and providers in Muslims countries and interested providers in the West the benefit from the nullified factors that render the regulatory framework ineffective.
    Keywords: Islamic Microfinance; Regulatory and Supervision
    Date: 2015–01–19
    URL: http://d.repec.org/n?u=RePEc:ris:irtiwp:1435_016&r=afr

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