nep-afr New Economics Papers
on Africa
Issue of 2012‒02‒08
eleven papers chosen by
Quentin Wodon
World Bank

  1. Consumer Attitudes and Preferences for Peanut Paste in Sub-Saharan Africa: By Heboyan, Vahe; Florkowski, Wojciech J.; Sarpong, Daniel; Resurreccion, Anna; Chinnan, Manjeet
  2. Manufacturing firms in Africa: Some stylized facts about wages and productivity By Clarke, George
  3. What Drives Remittance Inflows to Sub-Saharan Africa? A Dynamic Panel Approach By Francis Kemegue; Emmanuel Owusu-Sekyere; Renee van Eyden
  4. Trade Policy Options for a Food-Security Commodity in Southern Africa: A Case Study of Maize in Zambia By Gallagher, Paul W.
  5. Effects of Trade Openness on Economic Growth: The Case of African Countries By Yeboah, Osei; Naanwaab, Cephas; Saleem, Shaik; Akuffo, Akua
  6. Food Expenditures in Rural Households in the Northern Region of Ghana By Meng, Ting; Florkowski, Wojciech J.; Kolavalii, Shashi; Ibrahim, Mohammed
  7. Foreign Direct Investments in Africa's Farmlands: Threat or Opportunity for Local Populations? By Sylvain Dessy; Gaston Gohou; Désiré Vencatachellum
  8. The âMade in USA poultry labelâ and consumer choice in Ghana By Egyir, Irene; Adu-Nyako, Kofi; Okafor, Ralph
  9. Increasing Profitability of Small Scale Orchard Producers through Optimizing Replacement Rate: The Case Study of Ghana By Mahrizal; Nalley, Lanier; Dixon, Bruce; Popp, Jennie
  10. Analyse du capital humain : diagnostic des dépenses d'éducation au Sénégal By Youssouph Ba
  11. Anatomy of coping: evidence from people living through the crises of 2008-11 By Heltberg, Rasmus; Hossain, Naomi; Reva, Anna; Turk, Carolyn

  1. By: Heboyan, Vahe; Florkowski, Wojciech J.; Sarpong, Daniel; Resurreccion, Anna; Chinnan, Manjeet
    Keywords: Food Consumption/Nutrition/Food Safety,
    Date: 2012–02
  2. By: Clarke, George
    Abstract: Why have so few countries in Sub-Saharan Africa been successful in export-oriented manufacturing? This paper uses firm-level data from the World Bank’s Enterprise Surveys to discuss this. The paper shows that although firms in most African countries are relatively unproductive, they are more productive on average than firms in other countries at similar levels of development. Further, even though many Africans earn subsistence wages working for informal firms, formal firms have higher labor costs than firms in other low-income countries. The paper discusses several possible reasons for this including the effect of the poor institutional environment on profits and the effect of limited competition on productivity measurement.
    Keywords: Africa; Zambia; Productivity; Manufacturing; Wages; East Asia
    JEL: O25 O14 O12
    Date: 2012–01–21
  3. By: Francis Kemegue (Department of Economics, University of Pretoria); Emmanuel Owusu-Sekyere (Department of Economics, University of Pretoria); Renee van Eyden (Department of Economics, University of Pretoria)
    Abstract: This paper investigates the factors that drive and constrain remittance inflows into SubSaharan Africa (SSA) using annual data for 35 SSA countries from 1980 to 2008, generalised method of moments by Arellano and Bover (1995) and LSDV with Driscoll and Kraay (1998) corrected standard errors. We find that when cross-sectional dependence of the error term and individual effects are controlled for, host country economic conditions override home country income in driving remittances to SSA The quality of financial service delivery and investment opportunities in the home country and exchange rate considerations are also significant to remittance inflows to SSA. This is more consistent with self interest motives for remittance inflows than altruism. However there are country level differences.
    Keywords: Migration, remittances, Sub-Saharan Africa
    JEL: F22 F24 O55
    Date: 2011–11
  4. By: Gallagher, Paul W.
    Abstract: We examine the performance of maize import policy options in one of the poorest countries in Southern Africa. The results are shaped by unique features of Zambia’s maize market: production that is limited by risk and highly variable returns, and local marketing margins that increase with imports and limit consumer trade gains. Results suggest that the market-stabilizing protection with the variable import levy (VL) may improve welfare, compared free trade or the current tariff regime. The VL also redistributes benefits to farmers and rural residents and away from urban consumers. Tax revenues could be used to fund transportation improvements or an urban consumer subsidy. Also, we estimate that market-led improvements in transport infrastructure, which would be conducive to more open trade policies, may be 25 years away.
    Keywords: Maize Policy; Zambia; Food Security; Variable Levy
    Date: 2012–01–24
  5. By: Yeboah, Osei; Naanwaab, Cephas; Saleem, Shaik; Akuffo, Akua
    Abstract: The relationship between trade and productivity has not been established theoretically. Some researchers have indeed found some, if not complete, support for the view that increasing openness has a positive impact on productivity. This study used a Cobb-Douglas production function as in Miller and Upadhyay (2000) to estimate the impact of FDI, exchange rate, capital-labor ratio and trade openness on GDP for 38 African countries from 1980 to 2008. Data were transformed to natural logs and estimated using alternative panel models; which included one- or-two-way fixed or random effects models. The results found trade openness having a positive relationship with GDP; which is comparable to findings of Ahmed et al.; (2008).
    Keywords: Trade Openness, Productivity, Africa, Cobb Douglas Production Function., International Development, International Relations/Trade, Productivity Analysis,
    Date: 2012
  6. By: Meng, Ting; Florkowski, Wojciech J.; Kolavalii, Shashi; Ibrahim, Mohammed
    Abstract: The objective of the paper is to identify farmer and farm characteristics that determine the food expenditure in rural households in the Northern Region of Ghana. The results indicate income, implicit wealth, age, family structure, cultivation staple or cash crop, and buying dry goods in bulks are the major determinants.
    Keywords: Northern Ghana, Farm characteristics, Food expenditure, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,
    Date: 2012
  7. By: Sylvain Dessy; Gaston Gohou; Désiré Vencatachellum
    Abstract: We study the welfare effects of government-backed FDIs in Africa’s farmlands. We build an occupational choice model featuring four mechanisms driving these effects. First, local farming is subject to social arrangements prescribing that farmers share their crop surplus with kin. Second, proceeds from land investment deals are invested to make modern inputs affordable to local farmers. Third, these deals cause some farmers to shift to wage employment. Fourth, they also entrench export-oriented agriculture, at the expense of local markets. We show that three conditions are sufficient for such deals to make local people better off: (i) the state has a high capacity and willingness to negotiate deals that benefit local people; (ii) these deals create enough jobs; (iii) wage employment make displaced farmers better off. Fulfilling these three conditions, however, may conflict with the interests of profit-maximizing foreign investors.
    Keywords: FDIs in farmland, local populations, welfare
    JEL: O13 Q15 Q24 Q28
    Date: 2012
  8. By: Egyir, Irene; Adu-Nyako, Kofi; Okafor, Ralph
    Abstract: Market survey data from Ghana was used to gain understanding of consumersâ attitudes, preferences for foreign food products, and the role product country of origin plays in the demand for poultry. Intention to purchase poultry from the US was anchored on product packaging, quality, expiry date and country of origin.
    Keywords: Country of origin, consumer preference, poultry demand, Ghana, US exports., Agribusiness, Industrial Organization, Marketing, Q13, Q17,
    Date: 2012
  9. By: Mahrizal; Nalley, Lanier; Dixon, Bruce; Popp, Jennie
    Abstract: This study sets out to empirically estimate the optimum annual replacement rate and age of cocoa trees in order to maximize the net present value of four common cocoa production systems. The study examines the costs and returns of four common cocoa production systems in Ghana associated with changes in cocoa prices, fertilizer prices, inflation rates, and labor prices. While this study focuses on cocoa, the methodology is applicable to any perennial crop. This study uses empirical yield curves and cost of production data from Ghana to determine when and what percentage of a cocoa orchard should be replaced annually to maximize net present value of revenues over time. Successive versions of the model are solved to determine how input and output price changes affect optimal replacement rates and replacement ages. Producers in both high- and low-income countries are reluctant to cull still productive assets, such as trees that are diminishing in yield over time. The Excel based model developed in this study could provide extension personnel with a simple yet powerful tool to illustrate to producers the benefits of systematic tree replacement. This study provides strong evidence of the benefits of replacing trees at the optimal time and rate.
    Keywords: Cocoa, Replacement Rate, Net Present Value (NPV), Production Economics, Q01, Q15, Q32,
    Date: 2012–02–04
  10. By: Youssouph Ba (USTV UFR SEG - Université Sud-Toulon-Var - UFR Sciences économiques et de gestion - Ministère de l'Enseignement Supérieur et de la Recherche Scientifique)
    Abstract: Le but de notre travail consistait dans un premier temps à revisiter les soubassements théoriques du capital humain et savoir si l'augmentation du capital humain a un effet ponctuel sur la croissance économique (aussi bien dans la sphère des pays industrialisés que dans celle des pays en développement). Dans un second temps, il consistait à mesurer la politique du Sénégal en terme de capital humain : mesurer les efforts de financement de l'éducation d'une part et d'autre part, voir si ces efforts financiers aboutissent à des résultats probants en termes d'insertion économique et productive, de réduction des inégalités et de lutte efficace et durable contre la pauvreté.
    Keywords: capital humain, croissance économique, emploi, insertion productive, dépenses d'éducation, pauvreté, Sénégal, réduction des inégalités
    Date: 2011–09–15
  11. By: Heltberg, Rasmus; Hossain, Naomi; Reva, Anna; Turk, Carolyn
    Abstract: This paper surveys qualitative crisis monitoring data from sites in 17 developing and transition countries to describe crisis impacts and analyze the responses and sources of support used by people to cope. These crises included shocks to export sectors as a result of the global financial crisis, as well as food and fuel price volatility, in the period from 2008 to early 2011. Respondents reported the crisis had resulted in significant hardships in the form of foregone meals, education, and health care, food insecurity, asset losses, stress, and worsening crime and community cohesion. Although the export-oriented formal sector was most exposed to the global economic downturn, the crises impacts were more damaging for informal sector workers, and some of the adverse impacts will be long-lasting and possibly irreversible. There were important gender and age differences in the distribution of impacts and coping responses, some of which diverged from what has been seen in previous crisis coping responses. The more common sources of assistance were family, friends, and community-based and religious organizations; formal social protection and finance were not widely cited as sources of support in most study countries. However, as the crisis deepened, the traditional informal safety nets of the poor became depleted because of the large and long-lasting shocks that ensued, pointing to the need for better formal social protection systems for coping with future shocks.
    Date: 2012–01–01

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