nep-afr New Economics Papers
on Africa
Issue of 2013‒09‒06
23 papers chosen by
Quentin Wodon
World Bank

  1. Forecasting key South African variables with a global VAR model By Annari de Waal; Renee van Eyden
  2. The Role of Polygyny in the Intrahousehold Efficiency of Agricultural Production in West Africa By Anyck Dauphin
  3. Managing Some Motorised Recreational Boating Challenges in South African Estuaries: A Case Study at the Kromme River Estuary By Deborah E. Lee, Stephen G. Hosking and Mario Du Preez
  4. Family Functioning and Life Satisfaction and Happiness in South African Household By Ferdi Botha and Frikkie Booysen
  5. On the effectiveness of foreign aid in institutional quality By Asongu Simplice
  6. On the channels of foreign aid to corruption By Asongu , Simplice A; Jellal, Mohamed
  7. International Trade and Labour Demand Elasticities: Is there Any Empirical Evidence from South Africa? By Abdulkader Cassim Mahomedy
  8. Shorter, cheaper, quicker, better : linking measures of household food security to nutritional outcomes in Bangladesh, Nepal, Pakistan, Uganda, and Tanzania By Tiwari, Sailesh; Skoufias, Emmanuel; Sherpa, Maya
  9. Conservation Fees in the Kgalagadi Transfrontier Park between Botswana and South Africa in the Presence of Land Restitution By Johane Dikgang and Edwin Muchapondwa
  10. Revisiting the Effectiveness of African Economic Integration. A Meta-Analytic Review and Comparative Estimation Methods By Sylvanus Kwaku Afesorgbor
  11. African Jobless Growth Morphology:Vulnerabilities and Policy Responses By NWAOBI, GODWIN
  12. Southern African Customs Union Revenue, Public Expenditures and HIV/AIDS in BLNS Countries By Harold Ngalawa
  13. Assessing Indicators of Currency Crisis in Ethiopia : Signals Approach By Megersa, Kelbesa; Cassimon, Danny
  14. The transmission of longevity across generations: The case of the settler Cape Colony By Patrizio Piraino; Sean Muller; Jeanne Cilliers; Johan Fourie
  15. Copius Structural Shifts in Exchange Rates of the South African Rand (Post-1994): Do They Matter (for Unit Root Testing)? What are the Most Likely Triggers? By Cyril May
  16. An Equilibrium Model of the African HIV/AIDS Epidemic By Philipp Kircher; Michele Tertilt; Cezar Santos; Jeremy Greenwood
  17. Transmission of China's Shocks to the BRIS Countries By Mustafa Yavuz Cakir and Alain Kabundi
  18. Rural-rural Migration and Land Conflicts: Implications on Agricultural Productivity in Uganda By Francis Mwesigye; Tomoya Matsumoto
  19. Does the semi-autonomous agency model function in a low-governance environment ? the case of the road development agency in Zambia By Raballand, Gael; Bridges, Kate; Beuran, Monica; Sacks, Audrey
  20. Crowding out of Solidarity? – Public Health Insurance versus Informal Transfer Networks in Ghana By Florian Klohn; Christoph Strupat
  21. Water Resource Accounts for Uganda: Use and Policy Relevancy By Nicholas Kilimani
  22. Was the African American great migration delayed by outlawing emigrant agents? By Kha Yen Prentice; László Kónya; David Prentice
  23. The future of artisanal gold mining and miners under an increasing industrial presence in South Kivu and Ituri, eastern Democratic Republic of Congo By Geenen, Sara; Fahey, Daniel; Iragi Mukotanyi, Francine

  1. By: Annari de Waal (Department of Economics, University of Pretoria); Renee van Eyden (Department of Economics, University of Pretoria)
    Abstract: This study determines whether the global vector autoregressive (GVAR) approach provides better forecasts of key South African variables than a vector error correction model (VECM) augmented with foreign variables. The paper considers both a small GVAR model and a large GVAR model to determine the most appropriate GVAR for forecasting South African variables. We compare the recursive out-of-sample forecasts for South African GDP and inflation from five types of models: a general 33-country (large) GVAR, a customised small GVAR for South Africa, a VECM for South Africa with weakly exogenous foreign variables, autoregressive (AR) models and random walk models. The results show that the forecast performance of the large GVAR is generally superior to the performance of the customised small GVAR for South Africa. The forecasts of both the GVAR models tend to be better than the forecasts of the augmented VECM, especially at longer forecast horizons. We conclude that despite the complicated nature of the GVAR model with the inclusion of many countries and trade linkages, the additional information is useful for forecasting domestic variables for South Africa.
    Keywords: South Africa, global vector autoregressive (GVAR) model, forecasting
    JEL: C51 C53
    Date: 2013–08
  2. By: Anyck Dauphin
    Abstract: Polygyny is an institution with deep roots in West Africa. Many papers have attempted to explain the rationality and persistence of this phenomenon through time. Less effort has been devoted to studying the effect of polygyny on household economic behavior. This question is policy relevant given the pressure underway to eliminate polygyny. This paper provides new empirical evidence on whether polygyny leads to an improvement or a worsening of intra-household efficiency for three countries with high levels of polygyny: Benin, Burkina Faso and Senegal. The evidence we obtain is mixed. In Benin, polygyny does not seem to have an impact on intra-household efficiency, while it appears, in the longer run, to improve it in Burkina Faso, but to decrease it in Senegal.
    Keywords: Polygyny, Efficiency, Agriculture, Africa
    JEL: D13 D79 J12 O13 O55
    Date: 2013
  3. By: Deborah E. Lee, Stephen G. Hosking and Mario Du Preez
    Abstract: Estuaries in South Africa face negative crowding effects with respect to motorised boat use, due to competing demand. This paper proposes this be managed through user charges and that the setting of these charges be informed by applying a choice experiment to estimate user preferences for reduced motorized boat congestion on the Kromme River Estuary, Eastern Cape. The application of this method led the paper to deduce that users are willing to pay an additional supplementary charge of R483 per annum during peak periods in order to experience a decrease in negative crowding effects and an improvement in overall welfare.
    Date: 2013
  4. By: Ferdi Botha and Frikkie Booysen
    Abstract: Families form an integral part of society and in fostering individual well-being. Despite the acknowledged importance of family, the association between family functioning and individual well-being outcomes have remained unexplored in the current body of knowledge. This paper explores the association between family functioning and reported levels of life satisfaction and happiness in South Africa. The paper employs the Family Attachment and Changeability Index (FACI8) to measure family functioning, using data from the 2011 South African Social Attitudes Survey (SASAS 2011). Four measures of family functioning are utilised, namely the aggregate FACI8 scale, the attachment and changeability subscales, and family type. Improvements in the level of family functioning as well as in the levels of attachment and changeability are positively associated with life satisfaction and happiness. In addition, individuals living in midrange or balanced family types aremore satisfied with life and happier compared to persons living in extremely or moderately dysfunctional families. The findings highlight the importance of supportive intra-family dynamics in fostering greater individual well-being. This in turn places emphasis on the investigation of likely correlates of family functioning and impact evaluations of family-focused social work interventions’ impact on family functioning as areas for future research.
    Keywords: Family functioning, family, subjective well-being, South Africa
    JEL: D10 Z13
    Date: 2013
  5. By: Asongu Simplice (Yaoundé/Cameroon)
    Abstract: We extend the Okada & Samreth (2012, EL) and Asongu (2012, EB) debate on ‘the effect of foreign aid on corruption’ by: not partially negating the former’s methodological underpinning (as in the latter’s approach) with a unifying empirical framework and; broadening the horizon of inquiry from corruption to eight institutional quality dynamics (rule of law, regulation quality, government effectiveness, democracy, corruption, voice & accountability, control of corruption and political stability). Core to this extension is a hypothetical contingency of the ‘institutional perils of foreign aid’ on existing institutional quality such that, the institutional downside of development assistance maybe questionable when greater domestic institutional development has taken place. Based on the hypothesis of institutional thresholds for foreign aid effectiveness, the perilous character of development assistance to institutional quality is broadly confirmed in 53 African countries for the period 1996-2010.
    Keywords: Foreign Aid, Political Economy, Development, Africa
    JEL: B20 F35 F50 O10 O55
    Date: 2013–01
  6. By: Asongu , Simplice A; Jellal, Mohamed
    Abstract: The debate by Okada & Samreth (2012, EL) and Asongu (2012, EB; 2013, EEL) on ‘the effect of foreign aid on corruption’ in its current state has the shortcoming of modeling corruption as a direct effect of development assistance. This note extends the debate by assessing the channels of foreign aid to corruption in 53 African countries for the period 1996-2010. Two main findings are established to unite the two streams of the debate. (1) Foreign aid channeled through government’s consumption expenditure increases corruption. (2) Development assistance channeled via private investment and tax effort decreases corruption. It follows that foreign aid that is targeted towards reducing corruption should be channeled via private investment and tax effort, not through government expenditure. Our results integrate an indirect component and reconcile the debate by showing that, the effect could either be positive or negative depending on the transmission channel.
    Keywords: Foreign Aid; Political Economy; Development; Africa
    JEL: B20 F35 F50 O10 O55
    Date: 2013–06–26
  7. By: Abdulkader Cassim Mahomedy
    Abstract: There are various pathways through which the impact of trade openness may be transmitted to the labour market. This study explores a relatively new linkage identified by the literature: the impact on labour demand elasticities via a substitution effect through increased factor substitutability and/or via a scale effect brought about by an increase in product market elasticities. More elastic factor demands have adverse implications for labourers vis-à-vis employers. Using an industry-level panel dataset covering the South African manufacturing sector spanning a period of over three decades, I empirically test for this relationship focusing primarily on the substitution effect. I am able to find, at best, only limited empirical support for my hypothesis of a positive and significant impact of trade liberalisation on labour demand elasticities. Whilst demand for labour appears to have become more elastic for manufacturing overall and in one of ten sectors within manufacturing, this result fails to hold for any of the other industries examined.
    Keywords: International trade, labour demand, elasticities, empirical evidence, South Africa
    Date: 2013
  8. By: Tiwari, Sailesh; Skoufias, Emmanuel; Sherpa, Maya
    Abstract: Using nationally representative household survey data from five countries -- three from South Asia (Bangladesh, Pakistan, and Nepal) and two from Sub-Saharan Africa (Tanzania and Uganda) -- this paper conducts a systematic assessment of the correlation between various measures of household food security and nutritional outcomes of children. The analysis, following the universally accepted and applied definition of food security, is based on some of the most commonly used indicators of food security. The results show that the various measures of household food security do appear to carry significant signals about the nutritional status of children that reside within the household. This result holds even after the analysis controls for a wide array of other socio-economic characteristics of the households that are generally also thought to be associated with the quality of child nutrition. If using these food security indicators as proxy measures for the underlying nutritional status of children is of some interest, then the results show that simple, cost-effective, and easy-to-collect measures, such as the food consumption score or the dietary diversity score, may carry at least as much information as other measures, such as per capita expenditure or the starchy staple ratio, which require longer and costlier surveys with detailed food consumption modules. Across five different countries in South Asia and Africa, the results suggest that the food consumption score, in particular, performs extremely well in comparison with all other measures from the perspective of nutritional targeting as well as for monitoring nutritional outcomes.
    Keywords: Food&Beverage Industry,Food Security,Regional Economic Development,Rural Poverty Reduction,Nutrition
    Date: 2013–08–01
  9. By: Johane Dikgang and Edwin Muchapondwa
    Abstract: This paper estimates the visitation demand function for Kgalagadi Transfrontier Park (KTP) in order to determine the conservation fee to charge South African residents to maximise park revenue. We conducted contingent behavior experiments at KTP and three other national parks, which we assume are either substitutes or complements for visitors to KTP. Our random effects Tobit model shows that there is a wide variation in the own-price elasticities of demand between the parks but they are generally not elastic. The cross-price estimates indicate that there is limited substitutability in visitation demand among the four parks. The study uses the unitary elasticity rule to demonstrate that there is a possibility of raising conservation fees to revenue-maximising levels at KTP as well as the other parks, using methods such as a mandatory conservation fee increment or a community-bound voluntary donation above the regular conservation fee. Sharing conservation revenue with communities surrounding parks could demonstrate the link between ecotourism and local communities’ economic development, promote a positive view of land restitution involving national parks, help address South Africa’s heavily skewed distribution of income, and act as an incentive for the local communities to participate in conservation even more.
    Keywords: Contingent behavior, conservation fee, demand, land claim, national park
    Date: 2013
  10. By: Sylvanus Kwaku Afesorgbor (Department of Economics and Business, Aarhus University)
    Abstract: The gravity model has extensively been used in estimating the effectiveness of a number of RTAs in the world. However, many previous studies that assess the effectiveness of African RTAs using gravity model produce contrasting results and are characterize by two main shortcomings. Firstly, these studies failed to account for multilateral resistance term (MRT). The omission of the MRT contributes to biased estimates for standard variables in the gravity model. This bias is reflected in parameters of these previous studies. Secondly, there is significant proportion of zero flows in developing countries’ trade measurement; however, these studies fail in dealing with them properly. The zero flows are more endemic when one considers only African bilateral trade, which has over 50% zero flows. In an attempt to correct this anomaly, previous studies rely on the Tobit model or replacing zero flows with small values. However this strategy has been labeled as infeasible and producing inconsistent parameters. In this study, we conduct a meta-analysis of previous empirical studies to explain the potential heterogeneity in the studies and compare the different estimation methods of the gravity model to Poisson Pseudo Maximum Likelihood (PPML). Using panel data on trade flows from 1980 to 2006 for 47 African countries, we estimate the gravity model for the five major RTAs on the Africa continent. We find that although there is general positive impact of African RTAs, impacts are highly sensitive to different estimation methods and they tend to be significantly overestimated when zero flows are not properly dealt with. Comparative assessment of the five major RTAs indicates highly uneven performance.
    Keywords: Regional Integration in African, Gravity model, Meta-Analysis, Zero flows, PPML
    JEL: C33 F15 O55
    Date: 2013–09–02
    Abstract: As by product of economic growth, jobs are indeed transformational. In other words, efficiency increases as workers get better at what they do (as more productive jobs appear and less productive one disappear). In fact societies flourish as jobs bring together people from different ethnic and social backgrounds while providing alternatives to conflict. Unfortunately, in many African countries, unemployment rates are low and growth is seldom jobless. Regrettably, most of the poor work long hours and cannot make ends meet while the violation of basic human rights is not uncommon. Again, youth unemployment and unmet job expectations are alarming. Consequently, this paper provides a framework that cuts across sectors and shows that the best policy responses vary across African countries (depending on their levels of development, endowments, demography and institutions). Thus, at all stages of development, forcing economic production to spread evenly across areas is both elusive and expensive. Policy makers should therefore identify and execute strategies that balance development outcomes across areas by means of domestic integration instruments. However, in places where integration is hardest, the policy response should be comprehensively total: institutions that unite, infrastructure that connects, interventions that target, incentives that motivate as well as information and communication technologies that enables or drives.
    Keywords: jobs, employment, unemployment, Africa, social protection, productivity, institutions, incentives, infrastructures, labor policies, information technology, economic growth, development, vulnerabilities, youth unemployment, domestic integration, self employment, social cohesion, private sector, government, knowledge, living standard, skills, education, industries
    JEL: D02 D13 D31 D63 D83 E02 E24 E26 F00 F43 H10 H30 H40 H50 I2 I30 J0 J20 J30 J40 J5 J60 J7 J70 J8 K31 L20 L30 L50 M5 O1 R0 R1
    Date: 2013–08–29
  12. By: Harold Ngalawa
    Abstract: This study sets out to investigate how revenue from the Southern African Customs Union (SACU) common revenue pool affect efforts to contain HIV/AIDS in Botswana, Lesotho, Namibia and Swaziland (BLNS countries). Using a panel data set of the BLNS countries covering the period 1990-2007 in annual frequency and a health production function, we show that an increase in either SACU revenue or aggregate government expenditure increases HIV prevalence rates. Disaggregating the government expenditures into health and non-health outlays reveals that the health expenditure component decreases HIV prevalence rates. We argue, therefore, that the type of public expenditure matters: public health expenditures decrease while public non-health expenditures increase HIV prevalence rates, with the ultimate direction of HIV prevalence rates determined by the dominant of the two effects.
    Keywords: Government expenditure, customs union, health, HIV prevalence
    JEL: H27 H51 I12
    Date: 2013
  13. By: Megersa, Kelbesa; Cassimon, Danny
    Abstract: Currency crises, generally defined as rapid depreciations of a local currency or loss of foreign exchange reserves, are common incidents in modern monetary systems. Due to their repeated occurrence and severity, they have earned wide coverage by both theoretical and empirical literature. However, unlike advanced and emerging economies, currency crises in low-income countries have not received due attention. This paper uses the signals approach developed by Kaminsky et al. (1998) and assesses currency crisis in Ethiopia over the time frame January 1970 to December 2008. Using the Exchange Market Pressure Index (EMPI), we identify three currency crisis episodes that coincide with the liberalisation following the fall of Ethiopian socialism, the Ethio-Eritrean border conflict, and the zenith of the global financial crisis. The timing shows the importance of both local and international dynamics. More macro-economic indicators picked up the first crisis in a 24 month signalling window, compared to the latter two. Three categories of indicators were used: current account, capital account and domestic financial sector. None of the capital account indicators were significant based on the noise-to-signal ratio rule. One possible explanation for this might be the weak integration of the Ethiopian economy with global capital markets.
    Keywords: Currency crisis; financial crisis; early warning systems; signals approach; Ethiopia
    Date: 2013–07
  14. By: Patrizio Piraino (Department of Economics, University of Cape Town); Sean Muller (Department of Economics, University of Cape Town); Jeanne Cilliers (Department of Economics, University of Stellenbosch); Johan Fourie (Department of Economics, University of Stellenbosch)
    Abstract: The literature on parent-child correlations in socioeconomic status provides little evidence on long-term multigenerational dynamics. This is because most studies of intergenerational status persistence are based on two (at most three) successive generations. Our analysis adds to the intergenerational mobility literature by studying the correlation in longevity across multiple generations of a historical population. By using information on birth and death dates of eighteenth and nineteenth century settlers in South Africa’s Cape Colony, we are able to estimate the intergenerational transmission of longevity, which is found to be positive and significant. Our analysis confirms one of the most consistent findings in the social sciences: the correlation between the status of parents and that of their offspring is positive and significant.
    Keywords: intergenerational mobility, persistence, social mobility, inequality, genealogical, Cape Colony
    JEL: J62 N37
    Date: 2013
  15. By: Cyril May
    Abstract: There is a theoretical case for real exchange rates to be stationary, but conventional unit root tests generally find nonstationarity in most economic data expressed in nominal terms; exchange rates in particular. Perron (1989) questioned the latter interpretation on the basis that the presence of a unit root may be a manifestation of not allowing for structural change — a finding reaffirmed later by Zivot and Andrews (1992) and Clemente et al (1998) when single and double sudden and gradual endogenous breakpoints are accounted for in unit root tests. This paper considers testing for structural breaks and unit roots — in the presence of structural shifts — in the univariate data generating process (DGP) of the key nominal foreign exchange rates of the South African rand. Additionally, the connexions between the timing of the structural shifts and important economic and noneconomic events are explored.
    Keywords: Exchange rate, unit root, non-stationarity, stationarity, trend, structural breaks
    JEL: C22 F31
    Date: 2013
  16. By: Philipp Kircher (LSE and University of Edinburgh); Michele Tertilt (University of Mannheim); Cezar Santos (University of Mannheim); Jeremy Greenwood (University of Pennsylvania)
    Abstract: Eleven percent of the Malawian population is HIV infected. Eighteen percent of sexual encounters are casual. A condom is used one quarter of the time. A choice-theoretic general equilibrium search model is constructed to analyze the Malawian epidemic. In the developed framework, people select between different sexual practices while knowing the inherent risk. The analysis suggests that the efficacy of public policy depends upon the induced behavioral changes and general equilibrium effects that are typically absent in epidemiological studies and small-scale field experiments. For some interventions (some forms of promoting condoms or marriage), the quantitative exercise suggests that these effects may increase HIV prevalence, while for others (such as male circumcision or increased incomes) they strengthen the effectiveness of the intervention. The underlying channels giving rise to these effects are discussed in detail.
    Date: 2013
  17. By: Mustafa Yavuz Cakir and Alain Kabundi
    Abstract: This study examines the impact of China’s dominant position among the BRIS countries, namely Brazil, Russia, India and South Africa. Particularly, by using a dynamic factor model estimated over the period 1995Q2-2009Q4, it investigates how supply and demand shocks from China are transmitted to these economies. The results show that China's supply shocks are more important than its demand shocks. Supply shocks produce positive and signifiant output responses in all BRIS countries. International trade is an important channel for the transmission of shocks across China and BRIS countries indicating that supply and demand shocks in China do not have similar e¤ects on the BRIS countries and therefore they require different policy responses.
    Keywords: Dynamic Factor Model, Supply and demand shocks, Sign restrictions, BRICS
    JEL: C3 E32 F40 O57
    Date: 2013
  18. By: Francis Mwesigye (National Graduate Institute for Policy Studies); Tomoya Matsumoto (National Graduate Institute for Policy Studies)
    Abstract: We use community and household data with plot-level information to explore the determinants of different forms of land conflicts and the conflicts’ impact on agricultural productivity in Uganda. Tracing rural-rural migration patterns, we find that communities that receive/host more immigrants (and thus have many coexisting tribes) tend to have more land conflicts than those sending migrants out. Unbundling conflicts by type reveals that the number of tribes and being in a ‘receiving’ community are associated with a higher probability of eviction conflicts than ‘sending’ communities and those with fewer tribes. Turning to conflict impact, we find that plots with conflicts have 17% lower yield than those without conflicts. Moreover, breaking down conflicts by type reveals that plots with eviction conflicts have 36% lower yield than those with inheritance conflicts. Our results suggest that rural-rural migration weakens community-specific informal land arrangements and conflict resolution mechanisms, which, in the absence of formal institutions, result in eviction conflicts that, in turn, hurt productivity.
    Date: 2013–08
  19. By: Raballand, Gael; Bridges, Kate; Beuran, Monica; Sacks, Audrey
    Abstract: This paper uses Zambia as a case study to assess empirically whether political interference in a low-governance environment has diminished in the past years as expected after a semi-autonomous agency model was set up ten years ago. The road sector in Zambia has experienced some significant developments since then. The paper uses data on contract from 2008 to 2011 and analyses a number of key trends related to Road Development Agency governance and staffing dynamics as well as procurement and project selection within the institution. The main findings indicate that, after some years of implementation of these reforms, there is reason to question whether the model of semi-autonomous agency enables road management to be shielded from political interference. Zambia may be an isolated case but, so far, this model does not seem to have been able to decrease political interference in the selection or supervision of projects and there seems to have been an increased lack of accountability of civil servants working in this sector.
    Keywords: Transport Economics Policy&Planning,Post Conflict Reconstruction,Rural Roads&Transport,Banks&Banking Reform,Public Sector Corruption&Anticorruption Measures
    Date: 2013–08–01
  20. By: Florian Klohn; Christoph Strupat
    Abstract: This paper delivers empirical evidence on how informal transfers are affected by a formal and country-wide health insurance scheme. Using the fifth wave of the Ghanaian Living Standard Household Survey, we investigate the extent to which the exogenous implementation of the National Health Insurance Scheme affects the probability of making or receiving informal transfers and their monetary equivalents. Our findings suggest that there is a significant crowding out of informal transfers. Members of weak transfer networks and individuals that run an enterprise are inclined to reduce their amount of remittances. We conclude that the provision of formal health insurance can reduce covariate risk in weak transfer networks and support business owners that are confronted by strong sharing obligations.
    Keywords: Public health insurance; informal transfer networks; crowding out; Ghana
    JEL: I15 O12
    Date: 2013–08
  21. By: Nicholas Kilimani (Department of Economics, University of Pretoria)
    Abstract: The increasing variability in the climatic pattern and its adverse effects on the Ugandan economy has become a major development challenge. For example, a key but climate sensitive sector like agriculture is increasingly experiencing severe disruptions as a result of its reliance on rainfall which has increasingly become unpredictable. Recent studies indicate a seemingly decreasing trend in the number of rainy days during the months which are crucial for crop growth. This trend is severely disrupting agricultural activity across the country. Since water is a vital input in many economic activities, we need to clearly understand the available supply of water resources and the level of utilization by the different sectors of the economy. This is with the view to establishing whether or not, there is room for increased utilization; within the framework of Integrated Water Resources Management. It is the objective to the study to provide this understanding through a water resource accounting framework. However, no developed water resource accounts exist for the Ugandan economy. Hence the task of the study was to develop the water resource accounts for Uganda. The results show evidence of under utilization of the available water resources. The under utilization is prevalent across all productive sectors of the economy and is likely to constrain the scope for productivity improvements, economic growth and other development outcomes.
    Keywords: Water Accounts, Water utilization, Economic performance
    JEL: E01 Q56
    Date: 2013–08
  22. By: Kha Yen Prentice (School of Economics, La Trobe University); László Kónya (School of Economics, La Trobe University); David Prentice (School of Economics, La Trobe University)
    Abstract: The question of why more African Americans did not migrate earlier out of the stagnant and repressive South after emancipation remains open. Previous work has highlighted the role of demand and supply conditions. At the time, though there was much concern about the role of emigrant agents who actively recruited African Americans to migrate away from their homes such that several states introduced emigrant agent laws to effectively drive them out of business. In this paper we provide the first estimates of the quantitative significance of these agents to African American migration. Specifically, we take advantage of a natural experiment provided by different outcomes in court cases in Georgia and Alabama, which resulted in Alabama being prevented from re-introducing these laws between 1882 and 1903 while Georgia's laws remained. Analyzing gross migration out of the two states, we find that the emigrant agent laws had no direct effect on migration. Though there is some limited evidence that the sensitivity of migration flows to economic differences within the South was lower if an emigrant agent law was in place. This suggests that small changes to the emigrant agentlaws are unlikely to have led to an earlier Great Migration. Interestingly we also find that the increase in migration began before 1920 which provides some support for the supply-based explanations.
    Keywords: Great Migration, Emigrant Agents, Gravity Models, African Americans, Southern Labor Markets, Labor Market Regulation.
    JEL: N31 N41 N91 K31 J61 R23
    Date: 2013
  23. By: Geenen, Sara; Fahey, Daniel; Iragi Mukotanyi, Francine
    Abstract: While the Congolese government is actively promoting large-scale industrial mining since it provides easy rents, artisanal mining seems to escape most attempts to control and regulate it. Yet artisanal mining provides employment and livelihoods to an estimated million people. This paper presents original research on artisanal gold miners in Province Orientale (Ituri district) and South Kivu. In both locations, the start of industrial gold mining operations threatens to displace artisanal mining from some of the areas where the soils and rocks have the highest gold concentrations. The research findings presented in this paper thus provide an understanding of artisanal miners’ perceptions on their work, income and livelihoods, at a time of transition, when local economies are shifting from purely artisanal production to a mix of industrial and artisanal production. They demonstrate that artisanal miners are strongly committed to their jobs and livelihoods. Even if they are displaced by industrial mining operations, artisanal miners are likely to remain within the sector, moving to new or existing mining sites. Thus, the success of state- or corporate-sponsored resettlement programs and alternative livelihood schemes may be affected by the desire of artisanal miners to retain their livelihood. While academics and policymakers debate whether industrial or artisanal mining can lead to long-term economic development, the survey results suggest that from the point of view of those engaged in artisanal mining, the artisanal livelihood is seen as more likely than large-scale mining to promote development, in part because it provides large numbers of relatively-good paying jobs.
    Keywords: South Kivu; Ituri; DRC; gold mining; artisanal gold mining
    Date: 2013–06

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