nep-afr New Economics Papers
on Africa
Issue of 2007‒07‒27
three papers chosen by
Suzanne McCoskey
George Washington University

  1. The Long-Term Effects of Africa's Slave Trades By Nunn, Nathan
  2. An Evaluation of Foreign Exchange Intervention and Monetary Aggregates in Nigeria (1986- 2003) By Adebiyi, Michael Adebayo
  3. Picking Winners and Losers: An Empirical Analysis of Industrial Policy in Morocco By Harabi, Najib

  1. By: Nunn, Nathan
    Abstract: Can part of Africa’s current underdevelopment be explained by its slave trades? To explore this question, I use data from shipping records and historical documents reporting slave ethnicities to construct estimates of the number of slaves exported from each country during Africa’s slave trades. I find a robust negative relationship between the number of slaves exported from a country and current economic performance. To better understand if the relationship is causal, I examine the historical evidence on selection into the slave trades, and use instrumental variables. Together the evidence suggests that the slave trades have had an adverse effect on economic development.
    Keywords: Africa; Slave trade; Economic development
    JEL: O1 F1 O55
    Date: 2007–07
  2. By: Adebiyi, Michael Adebayo
    Abstract: The paper investigates the impact of foreign exchange intervention in the Nigerian foreign exchange market using an Autoregressive Distributed Lag (ARDL) modeling approach. Quarterly time series data spanning 1986:1 to 2003:4 are used and a number of statistical tools are employed to verify this hypothesis. The study examines stochastic characteristics of each time series by testing their stationarity using Phillip Perron (PP) test. This is followed by performing cointegration test using Johansen technique. The existence of co-integration motivates us to estimate the error correction model for broad money, M2. The overall finding from all the techniques employed is that foreign exchange intervention in Nigeria is sterilized because the cumulative aid, which constitute part of foreign exchange inflows, and net foreign assets variables, which are proxies for intervention, are not significant. Thus, paper concludes by recommending, among others, that the use of stock of external reserves to support the exchange rate through increased funding of the foreign exchange market should be encouraged.
    Keywords: Nigeria; Foreign Exchange Intervention; Co-integration and Auto-regressive Distributed Lag
    JEL: E52 E5
    Date: 2007–07–04
  3. By: Harabi, Najib
    Abstract: This paper describes the major instruments of industrial policy in Morocco since its independence (1956) and assesses them empirically. Regarding the second objective, several methods for assessing the impact of industrial policy exist in the economic literature. In this paper the question is raised whether government selective policies have contributed to economic growth of private firms in Morocco. To answer this question empirically, the paper analyzes the factors affecting the growth process of Moroccan private firms, including selective government policies. The analysis is based on a field survey of 850 firms carried out under the auspices of the World Bank in 2004. The sample includes firms of different sizes and covers all major manufacturing industries. A major result of this case study is that they are indirect clues of the inefficacy of industrial policies in Morocco, at least measured by their impact on firm growth.
    Keywords: Industrial Policy; Morocco; Economic Development
    JEL: L52 L53
    Date: 2007–07–21

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