nep-afr New Economics Papers
on Africa
Issue of 2014‒11‒22
ten papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. An analysis of anti poaching techniques in Africa: A case of rhino poaching. By Cheteni, Priviledge
  2. Do Organic Inputs in African Subsistence Agriculture Raise Productivity? Evidence from Plot Data of Malawi Household Surveys By Wouter Zant
  3. Effects of Reducing Tariffs in The Democratic Republic of Congo(DRC): A CGE Analysis By Jean Luc Erero, Daniel Djauhari Pambudi & Lumengo Bonga-Bonga
  4. Effects of Transport Corridor Development on Firms’ Locational Choice and Firms’ Perception of Business Environment: A Preliminary Analysis of Transport Corridors in Mozambique By Fujita, Yasuo; Takeda, Asami
  5. Endogenous Savings Rate with Forward-Looking Households in a Recursive Dynamic CGE Model: Application to South Africa By André Lemelin
  6. Enhancing Rice Production in Uganda: Impact Evaluation of a Training Program and Guidebook Distribution in Uganda By Kijima, Yoko
  7. Estimating the recreational value of Kakum National Park in Ghana By Ankomah, Emmanuel; Adu, Kofi Osei
  8. Estimating the short run effects of South Africa's Employment Tax Incentive on youth employment probabilities using a difference-in-differences approach By Vimal Ranchhod; Arden Finn
  9. Female Managers in Hybrid Organizations: Evidence from Financial Cooperatives in Senegal By Anaïs PERILLEUX; Ariane SZAFARZ
  10. Labor Law Reforms and Labor Market Performance in Egypt By Ahmed Fayez Abdelgouad

  1. By: Cheteni, Priviledge
    Abstract: In the last decade the African continent has been facing a number of incidences on Rhino Poaching and we may be heading to Rhino extinction. A number of strategies have been tried and tested to protect the rhinos in Africa. Based on previous strategies to protect rhinos very little has been achieved in combating rhino poaching. Using extensive literature review this study investigates whether the current conservation methods are still useful in addressing poaching. Literature reveals that most methods have failed to protect rhinos. Therefore, forensic tests, shoot to kill policy and new strategies maybe the only way to avoid rhino extinction.
    Keywords: Rhinos, Poaching, Strategies, Conservation.
    JEL: O1 Q2 Q26 Q5
    Date: 2014–02–10
  2. By: Wouter Zant (VU University Amsterdam)
    Abstract: We exploit plot data from the agricultural module of the third Malawi Integrated Household Survey (IHS-3) to investigate how organic cultivation techniques contribute to productivity of non-subsidized local maize and what to expect from using organic inputs on a larger scale. We approximate organic inputs with crop combinations and livestock, and use matching techniques for estimating impacts. Productivity of local maize–bean, local maize–groundnut and local maize–nkhwana, each combined with livestock and chemical fertilizer, is shown to be statistically similar to productivity of fertilized maize mono-cropping. Simulations show that large increases in total maize production are potentially feasible under conversion to organic cultivation techniques. Limited availability of labour and livestock are likely constraints.
    Keywords: crop productivity, soil fertility, organic inputs, Green Revolution, Malawi, Africa
    JEL: Q12 O13 O55
    Date: 2014–08–25
  3. By: Jean Luc Erero, Daniel Djauhari Pambudi & Lumengo Bonga-Bonga
    Abstract: In this paper, the effects of reducing tariffs are analysed through a Computable General Equilibrium (CGE) model of the DRC. The specific DRC Formal-Informal Model (DRCFIM) is a multi-sectoral computable general equilibrium model that captures the observed structure of the DRC’s formal and informal economies, as well as the numerous linkages or transmission channels connecting their various economic agents, such as investors, firms, traders, and the government. The parameters of the CGE equations are calibrated to observed data from a social accounting matrix (SAM). In particular, this study draws the attention of policy makers to a different employment outcome when tariff reduction is taken into consideration. Tariff reduction increases formal employment and output but hurts informal producers. It considerably increases the output and employment of the formal sector by raising import competition without providing further opportunities for the informal sector to access foreign export markets. Nonetheless, it induces productivity improvements when local producers survive import competition by seeking importing input-saving technologies and production practices. These findings highlight the importance of differentiating between the formal and informal sector impacts of the DRC’s socioeconomic policies.
    Keywords: informal sector, CGE model, Democratic Republic of Congo
    JEL: C68 D58 E26 F16
    Date: 2014
  4. By: Fujita, Yasuo; Takeda, Asami
    Abstract: This paper aims to conduct a preliminary analysis of the expected effects of a transport infrastructure project on firms’ locational choice and business environment in Mozambique, using a baseline firm survey. We compare firms’ locational choice factors and their perceptions of the business environment between the underdeveloped Nacala corridor, where a road improvement project is being implemented, and the well-developed Beira corridor as a comparator. On the firms’ locational choice, we find a statistically significant difference between the two corridors, after controlling for firms’ characteristics. While the firms emphasize closeness to customers in the Beira corridor, the firms emphasize better infrastructure in the Nacala corridor. We also find statistically significant differences in some business environment factors between the two corridors. In the Nacala corridor, the firms consider transport infrastructure to be problematic for operation and growth. In the Beira corridor, the firms believe some factors related to government administration and regulations are obstacles. These results are still preliminary. At this stage of our research, we can only point out the possibility that the conditions of transport infrastructure may affect private firms’ self-evaluation of their locational choice and their business environment.
    Keywords: Transport infrastructure , Locational choice , Business environment , Impact analysis , Mozambique
    Date: 2014–03–28
  5. By: André Lemelin
    Abstract: In the vast majority of recursive dynamic CGE models, the savings rate is constant and exogenous. Intertemporal CGE models, by contrast, are solved simultaneously for all periods, and agents optimize intertemporally. But the theoretical consistency of intertemporal optimization is achieved only at the cost of more aggregated, less detailed models, due to computational limitations. In some applications, therefore, recursive dynamics should be preferred to intertemporal dynamics for practical reasons of computability. This paper presents a recursive dynamic CGE model in which households determine their savings rate from intertemporal optimization, by solving a simplified form of their intertemporal problem. This approach we call « truncated rational expectations » (TRE). In the TRE framework, households have rational expectations for the current period and the following one. Accordingly, the model is solved simultaneously for two periods at a time, the current period ? and the following one. Household (rational) expectations for period ? +1 are given by the model solution. For subsequent periods, household expectations are formed by extrapolating from ? and ? +1 solution values, assuming a constant rate of change. The TRE framework is implemented in a modified version of the Decaluwé et al. (2013) PEP-1-t model, and applied to South Africa, using a 2005 SAM by Davies and Thurlow (2011). Several simulations are run, with two variants of the 2005 SAM, the original one and a modified one with a high initial household savings rate. The results are compared with those of a static expectations model with intertemporal optimization, and of a fixed-savings rate model. The main difference is that in the first two models, the household savings rate is not constant, even in the BAU scenario. It is also responsive to changes in the rate of return on assets. On the other hand, an exogenous reduction in household wealth has very little effect.
    Keywords: Computable general equilibrium models, recursive dynamic models, intertemporal optimization, household savings
    JEL: C6 D1 D58 D91
    Date: 2014
  6. By: Kijima, Yoko
    Abstract: This paper provides an overview of rice sector development in Uganda and examines the effects of two technology dissemination programs on the enhancement of rice production in Eastern and Northern Uganda. One program was a JICA training program that provided on-the-job training at demonstration plots 3–4 times a year, while the other was to distribute a rice cultivation guidebook to households that were randomly selected. The training program was shown to have improved rice productivity. In contrast, there were no significant effects resulting from the distribution of the guidebook on technology adoption or rice production. Although the distribution of the guidebook was less costly and easier to implement than the training program, distribution of the guidebook alone cannot be a substitute for conventional training programs
    Keywords: rice production , Uganda , program evaluation, cultivation practices , technology adoption
    Date: 2014–09–17
  7. By: Ankomah, Emmanuel; Adu, Kofi Osei
    Abstract: National parks and Conservational area in general play major role in human life. They serve as habitats for animals and insects, protection of water bodies, carbon sequestration, recreational sites, source of income and source of revenue to government. Notwithstanding these benefits there are reports of the destruction and degradation of the natural ecosystem worldwide. This situation has led to serious environmental problems such as loss of biodiversity, global warming, climate change and its attendant effects. If forest reserves come with so many benefits as enumerated above, why then are they being degraded? This study sought to estimate the recreational value of Kakum national park in Ghana. To be able to give an estimate of the recreational value, an economic valuation technique called the Travel Cost method was applied. The travel cost method is a survey based method that uses the cost of travelling to a site to estimate the demand function for the site. The data used for the study was obtained from 300 visitors to the Kakum National Park from August 12 – 14, 2013. The recreational value of the KNP was estimated to be GH¢981,188 in 2013. Based on the findings, the study recommended the following; increased advertisement of the park, provision of additional facilities at the park and public education on the importance of recreation.
    Keywords: Recreational value, national park.
    JEL: Q2 Q23 Q26
    Date: 2014–09–14
  8. By: Vimal Ranchhod (SALDRU, School of Economics, University of Cape Town); Arden Finn (SALDRU, School of Economics, University of Cape Town)
    Abstract: What effect did the introduction of the Employment Tax Incentive (ETI) have on youth employment probabilities in South Africa in the short run? The ETI came into effect on the 1st of January 2014. Its purpose is to stimulate youth employment levels and ease the challenges that many youth experience in finding their first jobs. Under the ETI, firms that employ youth are eligible to claim a deduction from their taxes due, for the portion of their wage bill that is paid to certain groups of youth employees. We utilize nationally representative Quarterly Labour Force Survey (QLFS) data for the period from January 2011 to June 2014, and implement a difference-in-differences methodology at the individual level to identify the effects of the ETI on youth employment probabilities. Our primary finding is that the ETI did not have any statistically significant and positive effects on youth employment probabilities. The point estimate from our preferred regression is -0.005 and the 95% confidence interval is from -0.017 to 0.006. We thus obtain a fairly precisely estimated 'zero effect'. We also find no evidence that the ETI has resulted in an increase in the level of churning in the labour market for youth. What our results imply is that any decrease in tax revenues that arise from the ETI are effectively accruing to firms which, collectively, would have employed most of these youth even in the absence of the ETI. We conclude with a discussion of some of the policy implications of our findings.
    Keywords: Youth, Unemployment, South Africa, Employment Tax Incentive
    JEL: H25 H32 J38
    Date: 2014
  9. By: Anaïs PERILLEUX (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES), CIRTES and CERMiI); Ariane SZAFARZ (Université Libre de Bruxelles (ULB), SBS-EM, CEB, and CERMi)
    Abstract: This paper brings new insights on gender interaction in the management of hybrid organizations. Our database comes from Union des Mutuelles du Partenariat pour la Mobilisation de l’Epargne et du Crédit au Sénégal (UM-PAMECAS), a Senegalese network made of 38 financial cooperatives providing 419,602 members with micro-loans. We use fixed-effect panel estimation to analyze the interplay of female/male-dominated boards with female/male managers. The regressions explain the average loan size and the proportion of loans granted to women. Our results show that male managers mitigate the social orientation of female-dominated boards. In contrast, female managers tend to enhance this orientation. More puzzling is the influence of female managers associated with male-dominated boards. In this case, the presence of a female manager increases the average loan size and reduces the proportion of loans granted to women. In sum, female managers tend to align their objectives on those of the local board even though their hierarchy is at the central level. They avoid as much as possible conflicts with their local board members.
    Keywords: Gender, Leadership, Board, Microfinance, Financial cooperative, Senegal
    JEL: G20 J54 O16 G34 O55 L31
    Date: 2014–10–24
  10. By: Ahmed Fayez Abdelgouad (Leuphana University Lueneburg, Germany)
    Abstract: This study introduces a review of the institutional framework in the Egyptian labor market to show how it is regulated by discussing extensively the most recent labor law regulations in Egypt and the main reasons behind enacting this law. The paper guides also to different data sources that can be used and highlights a number of empirical studies about the labor market in Egypt. Finally, itconcludes that further reforms are still required to improve labor market efficiency in Egypt.
    Keywords: labor law, reforms, labor market flexibility, Egypt
    JEL: J31 J41 J51
    Date: 2014–10

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