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on Africa |
| By: | Asongu, Simplice; Odhiambo, Nicholas |
| Abstract: | The Quiet Life Hypothesis (QLH) is the pursuit of less efficiency by firms. In this study, we assess if powerful banks in the African banking industry are increasing financial access. The QLH is therefore consistent with the pursuit of financial intermediation inefficiency by large banks. To investigate the hypothesis, we first estimate the Lerner index. Then, using Two Stage Least Squares, we assess the effect of the Lerner index on financial access proxied by loan price and loan quantity. The empirical evidence is based on a panel of 162 banks from 42 African countries for the period 2001-2011. The findings support the QLH, although quiet life is driven by the below-median Lerner index sub-sample. Policy implications are discussed. |
| Keywords: | Financial access; Bank performance; Africa |
| JEL: | D40 G20 G29 L10 O55 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:88525&r=afr |
| By: | Stephen Oluwatobi (Covenant University, Nigeria); Isaiah Olurinola (Covenant University, Nigeria); Philip Alege (Covenant University, Nigeria); Adeyemi Ogundipe (Covenant University, Nigeria) |
| Abstract: | The experience of South Korea, India, China and Singapore reveals that developing economies can fasttrack development, leapfrog the stages of development and catch up with advanced economies by putting knowledge capital as the driver of development. If the knowledge economy is therefore an accelerant of development for both advanced and developing economies, it is possible for Sub-Saharan African (SSA) economies to also catch up with advanced economies. It was on this basis that this study assessed the knowledge capacity of SSA and the effect it has on its economic advancement. Given the importance of the interrelatedness among the knowledge economy elements, this study, thus, examined how the interaction effect between the elements of the knowledge economy affects economic growth in 32 SSA countries, for which data were available, over the period of 17 years (1996-2012). Using the System Generalized Method of Moments (SGMM), the study found out that institutions and human capital in SSA mitigate the effect of innovation on economic growth in the region, thus, making it a lean knowledge economy. |
| Keywords: | Economic Growth; Human Capital; ICT; Innovation; Institutions; Knowledge Economy |
| JEL: | O10 O30 O38 O55 O57 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:18/030&r=afr |
| By: | D'Haene, E.; Desiere, S.; D'Haese, M.; Verbeke, W.; Schoors, K. |
| Abstract: | This paper addresses the role of religious practices on market outcomes. We study the Ethiopian milk market what amounts to a natural experiment influenced by different Christian, Islamic and traditional faiths. Focal point of this article are the fasting rituals characterized by the abstinence of animal products, a fundamental pillar of Orthodox Christianity, the dominant religious group within Ethiopia. Employing country-wide data collected by the Living Standards Measurement Studies, we find, much to our surprise, that the fasting rituals of the Orthodox Christian society adversely affects both milk demand in Orthodox and local Muslim communities alike. The direct effect on Orthodox groups and the spillovers to Muslim networks create important market inefficiencies. The religion-related demand cycles are particularly challenging to government policies that aim to develop the livestock sector. Keywords: Consumer behavior, Collective fasting rituals, Intentional demand seasonality, Livestock sector development and policies, Religion, Market inefficiencies |
| Keywords: | International Development, Livestock Production/Industries |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:276029&r=afr |
| By: | Bangmarigu, Emmanuel; Qineti, Artan |
| Abstract: | The objective of this paper is to analyse the production and export of Cocoa in Ghana. Concerns about declining output and export of cocoa in Ghana has prompted the necessity of this study. Given the significance of Ghana as the principal producer and exporter of cocoa and a major source of foreign earnings in the country, it is imperative to analyze the production and export trend of the industry. This study review cocoa production and export in Ghana over a 21 year period spanning from 1995 to 2016. Time series data were employed and these were collected from FOA database and other secondary sources from Literatures and books to process the data. We assessed the country’s production and export trend by using both empirical and descriptive approaches which were checked by multivariate statistical analysis. The results suggest that total cocoa production and export in Ghana both witnessed an average year-over- year increase of 5.3% and 5.7% respectively. In spite of these improvements observed, there is potential for further improvement and this can be achieved through government support to the subsector. |
| Keywords: | International Relations/Trade |
| Date: | 2018–04–26 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa162:272051&r=afr |
| By: | Chege, C.; Sibiko, K.; Birachi, E.; Jager, M. |
| Abstract: | The Base of the Pyramid (BoP) consumers living in the urban informal settlement of developing countries spend over 60% of their income on food, yet malnutrition and micronutrient deficiency remains widespread among this population, pointing to the inadequacy of the foods they consume in terms of quality and quantity. In this paper we examine BoP consumer willingness to pay (WTP) for safe and nutritious multicomposite porridge flour (improved flour) in the informal settlements of Nairobi, Kenya and Kampala, Uganda. In 2016, we collected primary data from 600 consumers in the informal settlements of Kampala, Uganda and Nairobi, Kenya (300 in Kenya and 300 in Uganda). We use Tobit regression models to analyse determinants of WTP for the improved flour. Results show that both Kenyan and Ugandan consumers are willing to pay a premium for the improved flour. In addition, providing nutrition information of the flour, characteristics of household head, economic status of the household, and presence of young children between 6 and 59 months in the household influence WTP for the safe and nutritious porridge flour. The paper concludes by providing recommendations for enhancing nutrition among poor consumers in the informal settlements of developing countries. |
| Keywords: | Food Consumption/Nutrition/Food Safety, Food Security and Poverty, International Development |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:276021&r=afr |
| By: | Vacu, Nomfundo P.; Odhiambo, Nicholas M. |
| Abstract: | The study investigates the determinants of aggregate and disaggregated import demand for Tanzania, over the period 1985 to 2015. The study employed the autoregressive distributed lag (ARDL) bounds testing approach. The empirical results confirm that aggregate import demand is positively determined by investment spending and export of goods and services, both in the long run and short run, but negatively determined by trade liberalisation policy only in the short run. The long-run results confirm that import demand for consumer goods is positively determined by gross national income, but negatively determined by trade liberalisation policy. The import demand for intermediate goods is found to be positively determined by exports of goods and services and gross national income, but negatively determined by trade liberalisation policy. The results further show that exports of goods and services and relative import price are positive determinants of import demand for capital goods. In the short run, the results confirm that import demand for consumer goods is positively determined by export of goods and services, gross national income and import demand for consumer goods in the previous period, but negatively determined by gross national income in the previous period and trade liberalisation policy. The results further confirm that the import demand for intermediate goods is positively determined by exports of goods and services, but negatively determined by gross national income. Lastly, import demand for capital goods is found to be positively determined by import demand for capital goods in the previous period, exports of goods and services, and relative import price. |
| Keywords: | ARDL Approach, Import Demand, Aggregate Import Demand, Disaggregated Import Demand, Tanzania |
| Date: | 2018–08–24 |
| URL: | http://d.repec.org/n?u=RePEc:uza:wpaper:24785&r=afr |
| By: | Tumala, Mohammed M; Olubusoye, Olusanya E; Yaaba, Baba N; Yaya, OlaOluwa S; Akanbi, Olawale B |
| Abstract: | As a result of the adverse macroeconomic effect of inflation on welfare, fiscal budgeting, trade performance, international competitiveness and the whole economy, inflation still remains a subject of utmost concern and interest to policy makers. The traditional Philips curve as well as other methodologies have been criticized for their inability to track correctly the pattern of inflation, particularly, these models do not allow for enough variables to be included as part of the regressors, and judgment is often made by a single model. In this work, model averaging techniques via Bayesian and frequentist approach were considered. Specifically, we considered the Bayesian model averaging (BMA) and Frequentist model averaging (FMA) techniques to model and forecast future path of CPI inflation in Nigeria using a wide range of variables. The results indicated that both in-sample and out-of-sample forecasts were highly reliable, judging from the various forecast performance criteria. Various policy scenarios conducted were highly fascinating both from the theoretical perspective and the prevailing economic situation in the country. |
| Keywords: | Bayesian model averaging; Forecasting; Frequentist approach; Inflation rate; Nigeria |
| JEL: | C30 C32 C5 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:88754&r=afr |