nep-afr New Economics Papers
on Africa
Issue of 2014‒09‒05
six papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. The Evolving Debate on the Effect of Foreign Aid on Corruption and Institutions in Africa By Asongu Simplice
  2. Macroeconomic stability and the impact of foreign aid on economic growth in Nigeria By Osaro Agbontaen; Milton Iyoha
  4. The contribution of women microenterprises to poverty alleviation in urban Sudan By Khadra Hassan Siddig; Mohamed Osman Hegazi
  5. Self-Selection into Credit Markets: Evidence from Agriculture in Mali By Lori Beaman; Dean Karlan; Bram Thuysbaert; Christopher Udry
  6. Repbulic of Chad Poverty Notes : Dynamics of Poverty and Inequality following the Rise of the Oil Sector By World Bank

  1. By: Asongu Simplice (Yaoundé/Cameroun)
    Abstract: This policy chapter summarises an evolving debate on the effect of foreign aid on corruption and institutions. It entails a series of publications that have been successively motivated by feedbacks from academic and policy making circles. The plethora of papers explores debates sustaining the direct, conditional and indirect effects of foreign aid on institutions. Moreover, another debate on the incidence of foreign aid distortions on corruption is also assessed in light of a recently celebrated literature on development assistance. Overall, the findings show that the effects of foreign aid on corruption and institutions are: directly positive; conditionally positive with a magnitude dependent on initial institutional capacity levels; contingent on fundamental characteristics of development due to heterogeneity and; indirectly positive or negative depending on the transmission mechanism. While the impact of foreign aid uncertainty on corruption is also positive, the sign on governance could change in light of governments’ commitment to increase its dependence on local tax revenues.
    Keywords: Foreign Aid; Corruption; Development; Africa
    JEL: B20 F35 F50 O10 O55
    Date: 2014–08
  2. By: Osaro Agbontaen; Milton Iyoha
    Abstract: 1. Identify unanticipated shocks in foreign aid. 2. Examining how macroeconomic stability constraints foreign aid and hinders the drives of growth. Vector Auto-regression Model 1. Estimates of the innovations of foreign aid shocks to macroeconomic variables shocks generates inconsistencies that distorts budget deficits. 2. Foreign aid shocks creates uncertainties that weakens current account balances and transmit negative shocks that has strong constraining effects on economic growth. 3. Foreign aid negative impacts reduce the tendencies for the economy to grow. 4. Macroeconomic strategies are inconsistent and lack the will to effectively utilize the gains of foreign aid.
    Keywords: Nigeria, Macroeconometric modeling, Trade issues
    Date: 2013–06–21
  3. By: Kayode Bowale; PROF. J.B. LONGE; DR (MRS) M.O.FASORANTI
    Abstract: There is no consensus on the effects of small businesses development on poverty reduction. While some showed positive evidence, others have shown weak relationship.Those that showed negative or weak relationship did not indicate the factors responsible for this.Most of the existing studies have also neglected individual traits of firms and countries.Therefore, the objective of this study is to identify the individual traits of firms and examine their relative contributions to poverty reduction with a view to assessing the role of small businesses development to job creation and income generation in Ondo State, Nigeria-a developing country in Africa.Primary data was used for this study.A questionnaire was used to captured the relevant data from business owners of the selected area. A stratified random sample technique was used in selecting the respondents. Descriptive statistics and econometric statistics were applied in the study.There was sufficient evidence to show that various forms of businesses identified(Micro enterprises,small businesses and medium enterprises) have played role in reducing poverty through employment creation and income generation
    Keywords: Nigeria, Socio-economic development, Socio-economic development
    Date: 2013–09–05
  4. By: Khadra Hassan Siddig; Mohamed Osman Hegazi
    Abstract: In this context, there is a need to assess the effectiveness of microenterprises in improving the socioeconomic conditions of women entrepreneurs and in alleviating poverty.Accordingly, the thrust of the study lies in identifying the effect of women microenterpriseson poverty alleviation in urban Sudan, taking the Khartoum state as a case. The study’s focus is on women with microenterprises or engaged in trading, production, and selling in the informal sector. Hence, the population of the study is the 104 thousand of the self-employed females in KS.350 respondents are selected and random sampling technique is applied considering location of project (market-based, home-based, and street sellers), locality (all KS localities, namely Omdorman, Karrari, Ombada, Khartoum, Jabalawlia, Bahri, Shargalneel) and type of activity (20 different activities are covered). Primary data are collected using a structured questionnaire and individual interviews held with female entrepreneurs in KS as well as by optical observation by visiting the respondents in their locations. Collected data include (1) socioeconomic characteristics including age, marital status, education, family size and housing and place of residence; (2) project related data covering projecttype, activityandlocation; (3) entrepreneurial motivations, opinions, attitudes, perceptions and viewpoints; (4) information on familyincomeand assetsbeforeand after the establishment of the project; (5) sources of funding; (6) marketing, competition and overall performance; and (7) problems and constrains. Secondary data are gathered from various sources including national surveys, censuses and previous studies. Both primary and secondary data are analysed using descriptive statistics and cross tabulation imbedded in the advanced data analysis module of Microsoft Excel. Major findings of the study show that the implemented poverty alleviations plans have contributed to alleviate poverty in the study area, but poverty still widespread. Despite the significant role of the government plans, the average performance remained minor and limited. The study results show that poverty has a woman’s face as there are more women than men who suffer from abject poverty in urban Sudan. It is also revealed that, women’s microenterprises are important elements for an effective poverty reduction strategy, as many respondents confirmed that their business is the only source of family income, which support the assumption that women’ projects is a solution for many families to move out of poverty. This is confirmed as well by the findings that 67% of the women entrepreneurs consumed the income they gained from their projects on daily basic needs, mainly food for the family, especially for women-headed household.Female entrepreneurs' age, marital status and education and family size are all found to be influential factors for their entry into business and in general the culture of self-employment is getting widely accepted with lesser rush to be employed by the public sector. This being reported, female entrepreneurs have also identified several constrains and challenges such as the limited access to finance, difficulties in the marketing of their products, the complex administrative procedures and the government’s fees and taxes.
    Keywords: Sudan, Developing countries, Developing countries
    Date: 2014–07–03
  5. By: Lori Beaman; Dean Karlan; Bram Thuysbaert; Christopher Udry
    Abstract: We partnered with a micro‐lender in Mali to randomize credit offers at the village level. Then, in no- loan control villages, we gave cash grants to randomly selected households. These grants led to higher agricultural investments and profits, thus showing that liquidity constraints bind with respect to agricultural investment. In loan-villages, we gave grants to a random subset of farmers who (endogenously) did not borrow. These farmers have lower – in fact zero – marginal returns to the grants. Thus we find important heterogeneity in returns to investment and strong evidence that farmers with higher marginal returns to investment self-select into lending programs.
    JEL: D21 D92 O12 O16 Q12 Q14
    Date: 2014–08
  6. By: World Bank
    Keywords: Poverty Reduction - Rural Poverty Reduction Macroeconomics and Economic Growth - Regional Economic Development Poverty Reduction - Achieving Shared Growth Health Monitoring and Evaluation Health, Nutrition and Population
    Date: 2013–09

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