nep-afr New Economics Papers
on Africa
Issue of 2013‒08‒10
thirteen papers chosen by
Quentin Wodon
World Bank

  1. Using elicitation mechanisms to estimate the demand for nutritious maize: Evidence from experiments in rural Ghana By Banerji, A.; Chowdhury, Shyamal K.; de Groote, Hugo; Meenakshi, Jonnalagadda V.; Haleegoah, Joyce; Ewoo, Manfred
  2. Smallholder demand for maize hybrids and selective seed subsidies in Zambia By Smale, Melinda; Birol, Ekin
  3. Bank financing of SMEs in five Sub-Saharan African countries : the role of competition, innovation, and the government By Berg, Gunhild; Fuchs, Michael
  4. Contingent Democrats in Action: Organized Labor and Regime Change in the Republic of Niger By Sebastian Elischer
  5. Black Man's Burden - The Cost of Colonization of French West Africa. By Huillery, Elise
  6. Braving the Waves: The Role of Time and Risk Preferences in Illegal Migration from Senegal By Arcand, Jean-Louis; Mbaye, Linguère Mously
  7. Global Insecurity,Transparency and Sustainable Development:African Challenges By NWAOBI, GODWIN
  8. Femmes au pouvoir et Pouvoir des femmes : Qu’est-ce qui se passe en Afrique ? By Kodila-Tedika, Oasis
  9. Mineral Mining and Female Employment By Andreas Kotsadam; Anja Tolonen
  10. Protecting public investment against shocks in the West African economic and monetary union : options for fiscal rules and risk sharing By Dessus, Sebastien; Varoudakis, Aristomene
  11. Competitiveness and determinants of coffee exports, producer price and production for Ethiopia By Boansi, David; Crentsil, Christian
  12. Poverty, malnutrition and vulnerability in Mali By Eozenou, Patrick; Madani, Dorsati; Swinkels, Rob
  13. Corruption, croissance et pauvreté : le cas du Sénégal By Joseph-François Cabral

  1. By: Banerji, A.; Chowdhury, Shyamal K.; de Groote, Hugo; Meenakshi, Jonnalagadda V.; Haleegoah, Joyce; Ewoo, Manfred
    Abstract: In this paper we assess (a) consumers’ willingness to pay (WTP) for a recently developed variety of maize that is high in provitamin A in the context of a public health intervention and (b) the performance of three elicitation mechanisms in estimating WTP in a field experiment in Ghana. The mechanisms that we used for elicitation are the Becker-DeGroot-Marschak (BDM) mechanism, kth price auction, and choice experiment. The basic design of the experiment involved random allocation of consumers to one of three elicitation methods. This was augmented to include treatment arms to address the effect of (1) participation fees and (2) nutrition information on WTP.
    Keywords: Ghana, West Africa, Africa south of Sahara, Africa, Biofortification, maize, Provitamin A, Vitamin A, demand
    Date: 2013
  2. By: Smale, Melinda; Birol, Ekin
    Abstract: This analysis explores smallholder demand for hybrid maize seed by subsidy receipt. We test the hypothesis that the hybrid maize subsidy in Zambia is selectively biased due in part to its delivery mechanism and the self-selection of farmers who are able or choose to exercise their claim. Our analysis found that farmers with a lower poverty headcount are more likely to receive subsidized seed. In addition, a segment of farmers with a high predicted demand for hybrid seed are not reached by FISP—and they are poorer in terms of land and income than those who obtain the subsidy. These farmers represent a potentially important demand segment for HarvestPlus, which might consider addressing their needs through means other than a subsidy program.
    Keywords: Zambia, Southern Africa, Africa south of Sahara, Africa, Hybrid maize, smallholder, decisionmaking, subsidies, Seed supply
    Date: 2013
  3. By: Berg, Gunhild; Fuchs, Michael
    Abstract: This paper provides an overview of the state of access to bank financing for SMEs in five Sub-Saharan African countries and analyzes the drivers behind banks'involvement with SMEs. The paper builds on data collected through five in-depth studies in Kenya, Nigeria, Rwanda, South Africa, and Tanzania between 2010 and 2012. The paper shows that the share of SME lending in the overall loan portfolios of banks varies between 5 and 20 percent. Reasons for this finding vary, but key contributing factors are the structure and size of the economy and the extent of Government borrowing, the degree of innovation mainly as introduced by foreign entrants to financial sectors, and the state of the financial sector infrastructure and enabling environment.
    Keywords: Access to Finance,Banks&Banking Reform,Debt Markets,Financial Intermediation,Environmental Economics&Policies
    Date: 2013–08–01
  4. By: Sebastian Elischer (GIGA German Institute of Global and Area Studies)
    Abstract: The effects of organized labor on regime change in developing countries are not clear-cut. Optimists argue that union agitation is conducive to both democratic transition and consolidation processes. Pessimists hold that unions will support any regime that is conducive to their demands. Accordingly, unions may support regime transitions; however, once their economic interests are under threat, they will jeopardize the subsequent consolidation process. Systematic studies on the effects of organized labor on regime change in sub-Saharan Africa are sparse and largely confined to the (pre)transition phase. This article examines the role of organized labor in Niger between 1990 and 2010. Given the high number of regime breakdowns during the period, a longitudinal study of Nigerien labor enables a critical examination of motives and actions of organized labor toward different regime types. In contrast to other recent findings on African unionism, the article confirms the pessimistic view.
    Keywords: political science, democratization, sub-Saharan Africa, trade unions, Niger, civil society, francophone Africa
    Date: 2013–08
  5. By: Huillery, Elise (Département d'économie)
    Abstract: Was colonization costly for France? Did French taxpayers contribute to colonies' development? This paper reveals that French West Africa's colonization took only 0.29 percent of French annual expenditures, including 0.24 percent for military and central administration and 0.05 percent for French West Africa's development. For West Africans, the contribution from French taxpayers was almost negligible: mainland France provided about two percent of French West Africa's revenue. In fact, colonization was a considerable burden for African taxpayers since French civil servants' salaries absorbed a disproportionate share of local expenditures.
    Date: 2013
  6. By: Arcand, Jean-Louis (Graduate Institute of International and Development Studies, Geneva); Mbaye, Linguère Mously (IZA)
    Abstract: This paper aims to provide the first evidence concerning the relationship between time and risk preferences and illegal migration in an African context. Based upon our theoretical model and using a unique data set on potential migrants collected in urban Senegal, we evaluate a measure of time and risk preferences through the individual's intertemporal discount rate and coefficient of absolute risk aversion. Remarkably, our results show that these individual preferences matter in the willingness to migrate illegally and to pay a smuggler.
    Keywords: illegal migration, discount rate, risk aversion, Africa, Senegal
    JEL: F22 O15 O16 R23
    Date: 2013–07
    Abstract: Notably, the 20th century was dominated by the legacy of devastating global wars, colonial struggles, and ideological conflicts as well as effort s to establish international systems that would foster global peace and prosperity. Yet, insecurity and corruption not only remain, they have become the primary development challenges of the 21st century. In particular, new threats such as organized crime, trafficking, civil unrest and terrorism have supplemented continued pre-occupation with conventional war between and within countries. In other words, risks are evolving with new threats to stability arising from international organized crime and global economic instability. Thus, a fundamental rethink is needed on the approaches of international actors to manage global risks collectively. This paper therefore argues that strengthening legitimate institutions and governance to provide citizen security, justice and jobs is crucial to break cycles of violence while stimulating development in Africa. Furthermore, defeating a terrorist network requires African nations to work with international partners to disrupt criminal and terrorist financial networks as well as eliminating the safe havens that protect (and facilitate) this activities. Perhaps, the key solution may be the biblical decree that stated that the weapons of our warfare are not carnal but mighty through GOD in pulling down strongholds and demonic imaginations. As a road-map to sustainable development, the paper recommends the need for restoring confidence, transforming institutions(procedures), providing specialized assistance, acting regionally(globally) to reduce external(internal) stresses on fragile(failed)states of Africa. For the Nigerian case, break-up might be inevitable and revolutionary.
    Keywords: violence, insecurity, Africa, failed state, transparency, corruption, terrorism, wars, crime, development, sustainability, governance, human development, human security, economic policies, growth, conflicts, poverty, institutions, vulnerability, stresses, violence, cycles, resilience, justice, jobs
    JEL: D0 D3 D63 D7 D83 E24 F0 F5 H5 H77 I3 J2 K4 N4 O1 Z1
    Date: 2013–07–31
  8. By: Kodila-Tedika, Oasis
    Abstract: This study attempts to understand whether women develop a political decision-making leads to better results on the indicators of the condition of women, mainly economic, political rights and laws against violence to women. It uses the African data from 2000 to 2010. The study is cross-sectional data, but also relies on a case study: that of the Liberian Republic. Our cross-sectional estimates suggest interesting results: the representation of women in parliament is an important determinant for the improvement of economic and political rights of African women. This effect is not as significant, though. The impact of women's representation in parliament disappears for legislation against violence to women. We can say the same for the Liberian Republic, where the country was headed for years now by a woman, in the best case. This conclusion for Liberia was made possible after combining several statistical techniques. In addition, we also found that cultural variables (religion and ethnic fragmentation) can be crucial also to some degree. Cette étude essaye de comprendre si doter les femmes d’un pouvoir de décision politique conduit aux meilleurs résultats sur les indicateurs de la condition de la femme, principalement les droits économiques, les droit politiques et les législations contre les violences faites à la femme. Elle recourt aux données africaines allant de 2000 à 2010. L’étude est en coupe instantanée, mais aussi s’appuie sur une étude d’un cas : celui de la République libérienne. Nos estimations en coupe transversale suggèrent des résultats intéressants : la représentation féminine au parlement est un déterminant important pour l’amélioration des droits économiques et politiques des femmes africaines. Cet effet n’est pas aussi considérable, cependant. L’impact de la représentation féminine au parlement disparait pour la législation contre les violences faites à la femme. On peut dire la même chose pour la République libérienne où le pays a été dirigé depuis déjà des années par une femme, dans le meilleur des cas. Cette conclusion pour le Libéria a été rendue possible après combinaison des plusieurs techniques statistiques. Par ailleurs, nous avons également trouvé que les variables culturelles (religion et fragmentation ethnique) peuvent être déterminantes aussi,à certain degré.
    Keywords: genre, femmes politiques, institutions, Afrique
    JEL: J16 O15 O17 P48
    Date: 2013–08–01
  9. By: Andreas Kotsadam; Anja Tolonen
    Abstract: We use the rapid expansion of the number of mineral mines in Sub-Saharan Africa to explore changes in local labor markets. Matching over two decades of panel data on industrial mines to survey data for half a million women and exploiting the spatial and temporal variation in the data in a difference-in-difference strategy, we find that opening of an industrial mine induces a structural shift whereby women switch from working in agriculture to services. We also find that the probability to earn cash income increases and women become less likely to work seasonally once a mine opens nearby. The results illustrate that mineral mining creates non-agricultural employment opportunities for women despite their absence frm the mining workforce. T|he spillover effects wear off with distance from mine and the effects on service employment are reversed when a mine closes.
    Keywords: Mineral mining, female employment, Sub-Saharan Africa, local labor markets, women
    JEL: J16 J21 O13 O18
    Date: 2013
  10. By: Dessus, Sebastien; Varoudakis, Aristomene
    Abstract: West African Economic and Monetary Union arrangements have been instrumental in helping member countries maintain low inflation. However, a lesser-known characteristic of the West African Economic and Monetary Union, with possible implications for economic growth, is the high exposure to shocks and the pro-cyclicality of fiscal policy associated with these arrangements. Evidence from a panel of 80 low-income and lower middle-income countries over the period 1995-2012 suggests that, in the Union, both public investment and current public expenditure are more pro-cyclical than they are in other countries. In particular, public investment contracts more in"bad times"than it increases in"good times"in order to absorb negative shocks to the budget in the context of strict fiscal convergence criteria. The asymmetric response of public investment to shocks could thus be a reason for the relatively low levels of infrastructure in the Union. Comparisons with earlier periods suggest that publicinvestment has become pro-cyclical since the introduction of the fiscal convergence criteria in 1994. Moreover, the shocks that affect Union member countries appear to be highly idiosyncratic and thus difficult to mitigate by the Union's common monetary policy. The pro-cyclicality of public expenditure and the high asymmetry of shocks that affect Union member countries justify exploring options for greater counter-cyclicality of rules-based fiscal frameworks and for risk-sharing.
    Keywords: Public Sector Expenditure Policy,Debt Markets,Economic Stabilization,Fiscal Adjustment,Access to Finance
    Date: 2013–08–01
  11. By: Boansi, David; Crentsil, Christian
    Abstract: The objective of this study was to analyze the performance of Ethiopia in its exports of coffee and to estimate the magnitude and effects of key economic determinants of coffee exports, producer price and production. In analyzing the competitiveness of the country in its exports of coffee, three distinct periods were considered, namely, years under the imperial regime (1961-73), under the military rule (1974-1991) and under the reformist government (1992-2010). The Revealed Comparative Advantage (RCA) and Revealed Symmetric Comparative Advantage (RSCA) measures of competitiveness were used for the analysis. Even though the results show that Ethiopia has comparative advantage in export of coffee, the same cannot be said of its overall performance on the international market owing to factors such as challenges with management of price risk, high transaction cost resulting from the extensive nature of the supply chain and the numerous actors and processes therein, challenges with quality control, low productivity of growers’ fields, and incidence of smuggling. To improve upon its export performance and to ensure continuous growth in the major strongholds of the subsector (exports, prices and production), based upon estimates for the current study, we propose investment in yield-enhancing innovations, devising and implementation of measures to improve quality control in the supply chain, address issues with price risk, minimize incidence of smuggling and more importantly minimize transaction costs. In addition, measures should be put in place to increase and ensure continuous government support to the subsector, hold onto the current devaluation of the Ethiopian birr, ensure payment of fair prices to growers and appropriately transmit future increments, increase current area under cultivation to enhance efficient utilization of the abundant labour, and to attract more export-oriented foreign direct investments (as an opportunity for trade creation).
    Keywords: Competitiveness, supply chain, determinants, export, producer price, production
    JEL: Q1 Q11 Q13 Q17 Q18
    Date: 2013–08–04
  12. By: Eozenou, Patrick; Madani, Dorsati; Swinkels, Rob
    Abstract: This paper provides new insight into the poverty, malnutrition and vulnerability issues in Mali, using existing household survey data. First, it presents a profile of households that are poor,"food poor,"or have malnourished children. Second, it explores the impact of recent weather and price shocks on household welfare and identifies those affected most by the shocks. Finally, it estimates vulnerability to poverty by modeling both households'expected consumption and their consumption volatility, and by distinguishing between idiosyncratic and covariate risks. The basic results of the analysis match conventional knowledge about poverty, food poverty, and malnutrition. The prevalence of chronic malnutrition is high in Mali, with 44 percent of Malian households and 66 percent of food poor Malian households having at least one stunted child. A 25 percent increase in cereal prices and a 25 percent decrease in cereal production are estimated to increase the number of food poor by 610,000 people. An estimated US$ 5.4 million of extra aid per year will be needed to lift the newly food poor above the food poverty line. About US$ 182 million is needed to do this for all existing and new food poor. Vulnerability incidence is in general two to three times higher among the poor than the non-poor, except in urban areas and in the region of Sikasso where the vulnerability incidence is five to six times higher among the poor. Overall, vulnerability is mostly driven by poverty induced vulnerability, except in the capital, Bamako, where vulnerability is more driven by risk induced vulnerability.
    Keywords: Rural Poverty Reduction,Regional Economic Development,Food&Beverage Industry,Poverty Lines
    Date: 2013–08–01
  13. By: Joseph-François Cabral (GREDI, CRES, Universite Cheik Anta Diop)
    Abstract: Dans cet article, nous tentons d’évaluer les effets de la corruption sur la croissance, le bien-être et la pauvreté au Sénégal à l’aide d’un modèle d’équilibre général calculable dynamique. Les résultats de nos simulations montrent qu’une fuite de 10% d’investissements publics sous l’effet de la corruption aurait pour effet d’engendrer une perte de 2.6 points de pourcentage de taux de croissance par an, en moyenne. Le bien-être des ménages diminue, en moyenne, de 0,64 point de pourcentage par an. Par ailleurs, ce détournement de ressources destinées à l’investissement public a également pour effet d’accroître l’incidence de la pauvreté de 0,51 point de pourcentage en moyenne par an, soit 61136 nouveaux pauvres tous les ans.
    Keywords: corruption, croissance, bien-être, pauvreté, modèle EGC
    JEL: K4 O4 I3 C6
    Date: 2013–08

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