nep-afr New Economics Papers
on Africa
Issue of 2014‒12‒19
eighteen papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. An Empirical Investigation of Automated Teller Machines (ATMs)and Customers' Satisfaction in Nigeria: A case study of Ilorin, Kwara State By Ibrahim Danlami, Mohammed; Richard Mayowa, Dada
  2. Cost efficiency of cocoa farmers in Twifo Hemang Lower Denkyira Area in Central Region of Ghana By Obeng, Isaac Antwarko; Adu, Kofi Osei
  3. Optimal public investment, growth, and consumption: Fresh evidence from African countries By Kwasi Fosu A.; Getachew Y.Y.; Ziesemer T.H.W.
  4. The impact of food transfers for people living with HIV/AIDS: Evidence from Zambia By Tirivayi J.N.; Groot W.N.J.
  5. Young Entrepreneurs in Rural Africa: Prevalence, Determinants, Productivity By Nagler, Paula; Naudé, Wim
  6. Specialization or Risk Reduction: The Effect of Agricultural Diversity on Poverty Persistence in Ethiopia By Michler, Jeffrey; Josephson, Anna Leigh
  7. Where and why is Fertilizer (Un)Profitable in sub-Saharan Africa? A Spatial Econometric Analysis of Fertilizer Use in Malawi By Darko, Francis Addeah; Ricker-Gilbert, Jacob; Shively, Gerald; Florax, Raymond; Kilic, Talip
  8. Is There More than Milk? The Impact of Heifer International’s Livestock Donation Program on Rural Livelihoods: Preliminary Findings from a Field Experiment in Zambia By Kafle, Kashi R.
  9. Do Remittances Alter Household Nutrition? Evidence from Rural Kilimanjaro in Tanzania By Isoto, Rosemary; Kraybill, David
  10. Do input subsidies crowd in or crowd out other soil fertility management practices? Evidence from Zambia By Levine, Kendra; Mason, Nicole M.
  11. Assessment of Farmers’ Willingness to Pay for Quality Seed Using Dynamic Auctions: The Case of Smallholder Potato Growers in Tanzania By Okello, Julius J.; Lagervist, Carl Johan; Kakuhenzire, Rogers; Parker, Monica; Shulte-Geldermann, Elmar
  12. Dynamic Agricultural Supply Response: Application to Ethiopian Agriculture using GMM By Wamisho, Kassu
  13. Market Power & Economic Consequences of Post-Harvest Losses in Rwandan Dry Bean Markets By Jones, Michael S.; Alexander, Corinne E.; Smith, Bruce
  14. Agricultural Technology Adoption and Child Nutrition: Improved Maize Varieties in Rural Ethiopia By Zeng, Di; Alwang, Jeffrey; Norton, George; Shiferaw, Bekele; Jaleta, Moti; Yirga, Chilot
  15. Resolving the Puzzle of the Conditional Superiority of In-kind versus Cash Food Assistance: Evidence from Niger By Upton, Joanna B.
  16. Spatial Dependence in the Adoption of the Urea Deep Placement for Rice Production in Niger State, Nigeria: A Bayesian Spatial Autoregressive Probit Estimation Approach By Adjognon, Serge; Liverpool-Tasie, Lenis Saweda O.
  17. Study on Demand of Animal Protein Resources in Egypt By Bassyouni Shehata, Gaber Ahmed
  18. Does malaria control impact education? A study of the Global Fund in Africa By Maria Kuecken; Josselin Thuilliez; Marie-Anne Valfort

  1. By: Ibrahim Danlami, Mohammed; Richard Mayowa, Dada
    Abstract: The paper examined the impact of Automated Teller Machines (ATMs) on customers’ satisfaction in Ilorin metropolis, the capital city of Kwara state, Nigeria, using three purposively selected commercial banks in the city, that is; First Bank of Nigeria Plc., Guaranty Trust Bank Plc. and First City Monument Bank Plc. The objective is to ascertain the relationship between ATM usage and customers’ satisfaction in Nigeria. The study employed primary data sourced through structured questionnaires as the data collection procedure. The questionnaires were administered to 180 customers (60 from each bank), selected randomly at the banks’ ATM terminals during the course of transactions. Descriptive and inferential statistical technique tools such as tables, percentages and charts were used to present and analyze the data, while the chi-square technique was applied to test for the hypothesis. The result revealed that there is a significant relationship between ATM usage and customers’ satisfaction. The study thus recommended among others, that restriction on cash withdrawals by customers per day should be abolished by Monetary Authority in order to enhance customer satisfaction and to promote financial inclusion in Nigeria.
    Keywords: ICT, Commercial banks, ePayment, Infrastructure, ATM, Remote-on-us withdrawals.
    JEL: O33
    Date: 2014–11–07
  2. By: Obeng, Isaac Antwarko; Adu, Kofi Osei
    Abstract: This study empirically examined cost efficiency of cocoa production in Twifo Hemang Lower Denkyira area in Central region of Ghana. Primary data was collected from 400 cocoa farmers in twenty (20) communities using interview guide and the cost efficiency of inputs in cocoa production was estimated using stochastic frontier production function. The empirical result of summation of the partial elasticities exhibited positive increasing returns to scale in the inputs use and the mean cost efficiency was 1.10 indicating that an average cocoa farms in the study area incurred costs that were about 10% above the minimum cost defined by the frontier .The findings show that cost efficiency of inputs use was fairly high. Hybrid varieties, level of education and age of tree, Farmer-based organization and extension contacts were found to be the main determinants of cost efficiency. This study recommends that Farmers should be encouraged to join farmer-based organization.
    Keywords: stochastic frontier model, cost efficiency and cocoa production.
    JEL: Q1 Q12
    Date: 2014–11–01
  3. By: Kwasi Fosu A.; Getachew Y.Y.; Ziesemer T.H.W. (UNU-MERIT)
    Abstract: This paper develops a model positing a nonlinear relationship between public investment and growth. The model is then applied to a panel of African countries using nonlinear estimating procedures. The growth-maximizing level of public investment is estimated at about 10 percent of GDP based on System GMM estimation. The paper further runs simulations, obtaining the constant optimal public investment share that maximizes the sum of discounted consumption as between 81 percent and 96 percent of GDP. Compared with the observed end-of-panel mean value of no more than 726 percent, these estimates suggest that there has been significant public under-investment in Africa.
    Keywords: Public Goods; Macroeconomic Analyses of Economic Development; One, Two, and Multisector Growth Models; Economywide Country Studies: Africa;
    JEL: O11 O41 O55 H41
    Date: 2014
  4. By: Tirivayi J.N.; Groot W.N.J. (UNU-MERIT)
    Abstract: We estimate the impact of food transfers on diet and consumption expenditures in food insecure households with HIV positive members on antiretroviral therapy. We use primary data collected from 199 beneficiary and 179 non-beneficiary households in Lusaka, Zambia. Propensity score matching estimates show that the food transfers significantly increase dietary diversity and food consumption expenditures. Our results also show that the food transfers increased the proportion of households with optimal dietary diversity and consuming at least five food groups. The results are robust to variation in the propensity score model and matching technique. Sensitivity analysis demonstrates that our results are largely robust to substantial amounts of unobserved selection bias. We discuss the implications of our findings in the context of the growing number of HIV/AIDS treatment, care and support programmes providing food assistance in resource poor settings.
    Keywords: Microeconomic Behavior: Underlying Principles; Consumer Economics: Empirical Analysis; General Welfare; Welfare and Poverty: Government Programs; Provision and Effects of Welfare Programs;
    JEL: D01 D12 I31 I38
    Date: 2014
  5. By: Nagler, Paula (Maastricht University); Naudé, Wim (Maastricht University)
    Abstract: Africa is not only the poorest and most rural continent, it is also the most youthful continent in terms of population. Given the large number of young job seekers that will enter the labor market over the next decade, we need a better understanding of rural non-farm entrepreneurship, particularly with regard to the role of young adults in this sector. This paper contributes to the literature by providing empirical evidence on (i) the prevalence of enterprises operated by young adults and the contribution they make to rural household income, the (ii) determinants of enterprise operation, and (iii) labor productivity in enterprises operated by young owners. Using the World Bank's recent LSMS-ISA database that covers six countries in Sub-Saharan African, we find that young adults present a lower share of enterprise owners and derive less income from it. Using a Heckman selection model and panel data analysis, we further find that young household head have a lower likelihood of operating and enterprise and if they operate one, these enterprises are less productive than those of older adults. We conclude that policies to support young entrepreneurs in rural Africa should not only focus on creating conditions that attract young adults to start enterprises, but to also enable young entrepreneurs to improve productivity in already existing enterprises. If these enterprises grow and survive, they can provide a part of the growing number of non-farm jobs that will be needed in Africa's rural areas.
    Keywords: entrepreneurship, labor markets, productivity, rural development, Sub-Saharan Africa, youth employment
    JEL: J43 L26 M13 O55 O13 Q12
    Date: 2014–10
  6. By: Michler, Jeffrey; Josephson, Anna Leigh
    Keywords: Crop Diversification, Poverty Persistence, Control Function Approach, Rural Ethiopia, Agricultural and Food Policy, Food Security and Poverty, International Development, Land Economics/Use, C33, C35, O13, Q12,
    Date: 2014–05
  7. By: Darko, Francis Addeah; Ricker-Gilbert, Jacob; Shively, Gerald; Florax, Raymond; Kilic, Talip
    Keywords: Crop Production/Industries, Demand and Price Analysis,
    Date: 2014
  8. By: Kafle, Kashi R.
    Abstract: This study evaluates the impact of Heifer International’s livestock donation program in the Copperbelt Province in Zambia. Using a panel data of 300 households and 4 survey rounds, this analysis assesses the impact of dairy cow, meat goat, and draft cattle donation programs on poverty and food security measures. The impact on consumption expenditures and livestock revenue are estimated with a difference-in-difference method, and the impact on dairy/meat consumption frequency is estimated with a pooled poisson regression. A probit model is used to estimate the effects on subjective measures of poverty and food security. Results show that the impact of the program has increased significantly over time and animal recipients are relatively feeling better. By the fourth round, all animal recipients have seen a significant increase in consumption expenditure, livestock revenue, and frequency of dairy/meat consumption. However, no significant impact exists on household asset ownership and growth. Although all the animal recipients have increased milk consumption, meat consumption has gone up among the goat beneficiaries only. While all three animal species contribute to increase consumption expenditures among animal recipients, only the draft cattle and dairy cow programs help increase revenue from livestock products. Likewise, the meat goat and dairy cow programs have contributed to food security through improved dietary diversity.
    Keywords: livestock donation, poverty, dietary diversity, milk consumption, consumption expenditure, food security, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, International Development, Livestock Production/Industries,
    Date: 2014–07–25
  9. By: Isoto, Rosemary; Kraybill, David
    Abstract: There is growing interest in the role of remittances on livelihoods of households in developing countries including those in Sub-Saharan Africa. We estimate the remittance elasticity for a number of macro- and micronutrients using a sample of rural households in Tanzania. Due to endogeneity of net income and remittances, special focus is placed on econometric analysis. One major finding is that remittances seem to be used as an investment in higher quality nutrients like proteins, vitamin A, vitamin C and calcium that lead to better development of especially the young population while net income is used for mere consumption. Remittances do not have any significant effect on calories, carbohydrates, and fats.
    Keywords: Remittances, Macronutrients, Micronutrients, Sub-Saharan Africa, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, International Development, O15, D1,
    Date: 2014
  10. By: Levine, Kendra; Mason, Nicole M.
    Abstract: It is recognized that inorganic fertilizer, as is commonly distributed in large-­‐scale input subsidy programs, must be used along with soil fertility management (SFM) practices in order to maximize its efficacy. We use nationally representative data with 8,839 household observations to assess the impact of the Zambian input subsidy program on the use of five SFM practices: (i) manure and/or compost application, (ii) soil erosion preventative measures, (iii) minimum tillage, (iv) rotations between cereals and legumes, and (v) leaving land fallow. We estimate at the household level the effect of subsidized fertilizer on probability of adoption of each practice using a maximum likelihood probit model and the effect on number of hectares under each practice with a maximum likelihood Tobit model. The endogeneity of fertilizer distribution is tested and controlled for using the control function approach. We find a small but positive statistically significant crowding in effect of receiving subsidized fertilizer on all SFM practices except for fallow land, where we report a statistically significant crowding out effect of larger magnitude than estimated for the other practices (a decrease in hectares equal to 11.3% of the unconditional mean hectares of fallow land per household).
    Keywords: Fertilizer, Input subsidies, Zambia, Sub-Saharan Africa, Soil fertility management, Agricultural and Food Policy, Community/Rural/Urban Development, International Development, H2, Q180, Q010,
    Date: 2014
  11. By: Okello, Julius J.; Lagervist, Carl Johan; Kakuhenzire, Rogers; Parker, Monica; Shulte-Geldermann, Elmar
    Keywords: Demand and Price Analysis, Farm Management,
    Date: 2014
  12. By: Wamisho, Kassu
    Keywords: Food Security and Poverty, International Development, Production Economics,
    Date: 2014–05
  13. By: Jones, Michael S.; Alexander, Corinne E.; Smith, Bruce
    Abstract: To date there is extremely limited knowledge of the economic consequences of post-harvest losses for smallholders in sub-Saharan Africa. Major contributors to economic losses are price penalties for poor quality marketed grain. This study investigates farm-gate level discounts demanded by rural Rwandan bean traders for insect-damaged dry beans. We use a simplified contingent evaluation methodology with physical grain samples to elicit seasonal damage discount schedules, gathering data from 270 trader interviews in 25 regionally-diverse rural markets, in periods of both grain abundance and grain scarcity. We find that while levels of 5-10% grain damage can generally be sold with a moderate discount, grain with 20-30% damage is largely unmarketable. We additionally use a two-stage model to investigate physical and non-physical drivers of buying insect-damaged grain and, if so, the demanded discount intensity. Results indicate that while grain damage levels play a central role, large volume traders penalize damage less while traders in the seed market, storing before re-sale, or purchasing heavily from farmers (vs. other traders) penalize damage significantly more. Findings have helped develop more evidence-based extension programming for the Post-Harvest Task Force of the Rwandan Ministry of Agriculture. Additionally, derived discount coefficients help evaluate the cost-effectiveness of technologies throughout the region which prevent post-harvest damage.
    Keywords: post-harvest losses, crop storage, storage technology, food security, Rwanda, sub-Saharan Africa, Food Security and Poverty, Research and Development/Tech Change/Emerging Technologies,
  14. By: Zeng, Di; Alwang, Jeffrey; Norton, George; Shiferaw, Bekele; Jaleta, Moti; Yirga, Chilot
    Abstract: Adoption of agricultural technology can lead to multiple benefits to farm households, including increased productivity, incomes and food consumption. However, specific causal linkages between agricultural technology adoption and child nutrition outcomes are rarely explored in the literature. This paper helps bridge this gap through an impact assessment of the adoption of improved maize varieties on child nutrition outcomes using a recent household survey in rural Ethiopia. The conceptual linkage between adoption of improved maize varieties and child nutrition is first established using an agricultural household model. Instrumental variable (IV) estimation suggests the overall impacts of adoption on child height-for-age and weight-for-age z-scores to be positive and significant. Quantile IV regressions further reveal that such impacts are largest among children with poorest nutritional outcomes. By combining a decomposition procedure with system of equations estimation, it is found that the increase in own-produced maize consumption is the major channel through which adoption of improved maize varieties affects child nutrition.
    Keywords: child nutrition, impact, improved maize varieties, Ethiopia, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Health Economics and Policy, International Development,
    Date: 2014
  15. By: Upton, Joanna B.
    Keywords: cash transfers, food assistance, development economics, household models, Niger, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, International Development,
    Date: 2014
  16. By: Adjognon, Serge; Liverpool-Tasie, Lenis Saweda O.
    Keywords: Agricultural and Food Policy, Consumer/Household Economics, International Development, Productivity Analysis, Research Methods/ Statistical Methods,
    Date: 2014
  17. By: Bassyouni Shehata, Gaber Ahmed
    Abstract: Agricultural is the principal source of food and some essential raw materials for industrial development. It accounts for almost 18-20% of the Egyptian gross domestic production, for about 17-19% of export earning and employs 32% of the workforce. Increasing Egyptian demand for food yearly, due mainly to the growth of the population considers one of the reasons which caused raising imports. The red meat of staple food commodities that meet Egypt in the proportion of sufficiency was about 73.6% in 2011, having reached the quantities available for consumption of red meat about 1251 tons, while the average individual share of 15.3 kg / year in 2011, increasing an annual rate was about 1.25% during the study period (1992-2011). This shows that the high prices of red meat that makes the consumer to alternatives available in the markets where the average individual share of fish and poultry were about 18.9, and about 13.8 kg / year in 2011 respectively, while the annual growth rate was about 4.87% and 2.04% of fish and poultry, respectively during the period (1992-2011). The shortage of providing food from animal protein is very important because it is one of the components of the major food necessary for human nutrition and the maintenance of health, it is access to sources of animal protein from red meat, poultry and fish, it is associated with the demand by increasing population, increasing expenditure income and the level of awareness of health and nutrition of the population, and increase the average per capita, with an average individual share consumption of red meat, fish and poultry in Egypt with about 13.63, 13.18 and 10.93 kg / year during the study period (1992-2011), while the annual growth rate was about 1.48%, 5.04%, 2.3%, respectively, which demonstrates that the rate of increase in population growth exceeded the rate of increase and improve the demand for red meat due to increase the incomes as a result of continuous rise in the price of red meat and low average per capita, resulting in the transformation of consumer to the alternatives available in the market of animal protein resources such as fish meat and poultry. The study results showed that the demand for red meat using the Almost Ideal Demand System( AIDS) in Egypt during the study period (1992-2011) as follows: • The most important factors affecting the demand for red meat in Egypt during the study period ware the average retail price of red meat, fish, poultry and expenditure on red meat. • High proportion of expenditure for the Egyptian consumer on the red meat for fish and poultry which amounted to about 57.97%, 23.62% and 18.41% respectively, it means that consumer preference for red meat, fish and poultry in bridging the requirements of the animal protein products. • Most of consumer income spent on red meat because the significant value of demand elasticity expenditure coefficient. • The research showed that the value of the signal coefficient of price elasticity of demand cross - compensated that red meat and fish are considered alternative or competing commodities, thus raising the price of fish entail a reduction in the proportion of expenditure on red meat. • The research showed also found that red meat and poultry are considered alternative or competing commodities, which increases the price of poultry, leading to increase in the proportion of expenditure on red meat.
    Keywords: Demand elasticity, animal protein, food commodities, consumption, Agribusiness, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Research Methods/ Statistical Methods,
    Date: 2013–09
  18. By: Maria Kuecken (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne); Josselin Thuilliez (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne); Marie-Anne Valfort (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: We examine the middle-run effects of the Global Fund's malaria control programs on the educational attainment of primary schoolchildren in Sub-Saharan Africa. Using a quasi-experimental approach, we exploit geographic variation in pre-campaign malaria prevalence (malaria ecology) and variation in exogenous exposure to the timing and expenditure of malaria control campaigns, based on individuals' years of birth and year surveyed. In a large majority of countries (14 of 22), we find that the program led to substantial increases in years of schooling and grade level as well as reductions in schooling delay. Moreover, although by and large positive, we find that the marginal returns of the Global Fund disbursements in terms of educational outcomes are decreasing. Our findings, which are robust to both the instrumentation of ecology and use of alternative ecology measures, have important policy implications on the value for money of malaria control efforts.
    Keywords: Malaria; Sub-Saharan Africa; education; quasi-experimental; Global Fund
    Date: 2013–10

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