nep-afr New Economics Papers
on Africa
Issue of 2014‒06‒07
three papers chosen by
Christian Zimmermann
Federal Reserve Bank of St. Louis

  1. Wirtschaftliche Partnerschaftsabkommen (EPAs) der EU mit Afrika: Dominanz der EU Exportinteressen statt Partnerschaft auf Augenhöhe By Kohnert, Dirk
  2. Social policies and redistribution in South Africa By Leubolt, Bernhard
  3. To Charge or Not to Charge: Evidence from a Health Products Experiment in Uganda By Greg Fischer; Dean Karlan; Margaret McConnell; Pia Raffler

  1. By: Kohnert, Dirk
    Abstract: In view of the global run on African resources the EU is at pains to conclude Economic Partnership Programs with African states up to October 2014. The EPAs are meant not just to liberalize trade but also to promote economic development in Africa and thus creating a win-win situation in a partnership on eye-level. However, many Africans suspect the EU of double talk and of promoting selfish export interest at the expense of inclusive growth in African countries. Taking the proposed ECOWAS EPAs as example, analyses reveal that tensions are due to both the gap between discourse and practice of EU trade and aid policy as well as different hidden interest of different EU directorates and member states. The growing preparedness of African states to challenge EU mercantile interest has been effectively backed by long lasting proactive agitation of NGOs and civil society groups inside and outside Africa.
    Keywords: EU, Africa, ACP, ECOWAS, international trade, trade liberalization, aid, development, regional integration, civic agency,
    JEL: F02 F13 F15 O17 O24 O43 O55
    Date: 2014–05–26
  2. By: Leubolt, Bernhard
    Keywords: income distribution, social policy, social protection, racial discrimination, social expenditure, political development, trend, South Africa R, répartition du revenu, politique sociale, protection sociale, discrimination raciale, dépenses sociales, développement politique, tendance, Afrique du Sud R, distribución del ingreso, política social, protección social, discriminación racial, gastos sociales, desarrollo político, tendencia, República de Sudáfrica
    Date: 2014
  3. By: Greg Fischer; Dean Karlan; Margaret McConnell; Pia Raffler
    Abstract: Pricing policy for any experience good faces a key tradeoff. On one hand, a price reduction increases immediate demand and hence more people learn about the product. On the other hand, lower prices may serve as price anchors and, through a comparison effect, decrease subsequent demand. This tension is particularly important for the distribution of health products in low-income countries, where free or heavily subsidized distribution is a common but controversial practice. Based on a model combining the learning aspect of experience goods with reference-dependent preferences, we setup a field experiment in Northern Uganda in which three health products differing in their scope for learning were initially offered either for free or for sale at market prices. In line with prior studies, when the product has potential for positive learning, we do not find an effect of free distribution on future demand. However, for products without scope for positive learning, we find evidence of price anchors: future demand is lower after a free distribution than after a distribution at market prices.
    JEL: D11 D12 D83 I11 I18 O12
    Date: 2014–05

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