nep-afr New Economics Papers
on Africa
Issue of 2015‒03‒27
thirteen papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. The questionable economics of development assistance in Africa: hot-fresh evidence, 1996-2010 By Asongu, Simplice
  2. The Political, Moral, Intellectual and Revolutionary Authority of Africa in Malcolm X's Life and Thought By Tunde Adeleke
  3. Institutionalisation of Derivatives Trading and Economic Growth: Evidence from South Africa By Audrey Nguema Bekale, Erika Botha and Jacobus Vermeulen
  5. International trade and military expenditure: Friends or foe? By André Jordaan
  6. Do Precious Metal Prices Help in Forecasting South African Inflation? By Mehmet Balcilar; Nico Katzke; Rangan Gupta
  7. Adolescent Sexual and Reproductive Health in Nigeria By Rafael Cortez; Seemeen Saadat; Edmore Marinda; Odutolu Oluwole
  8. Perception of Child Sexual Abuse in Ghana By Ummu Ibrahim
  9. Professional Identity, Bribery and Public Service Delivery: Evidence from a Lab-in-the-Field Experiment in Burundi By Jean-Benoit Falisse; Natassia Leszcynska
  10. The Transition from Juvenile Delinquency to Adulthood Criminality in Ghana; the prediposing factors By PRINCE ABRAH BOAMAH
  11. Alternative Track of Energy in Egypt By yasmine Gharieb; Zeinab Ibrahim
  12. Africa´s Largest Economy, World´s Poorest People: Paradox of the Nigerian State in a Democracy By Mike Omilusi
  13. Technical and Scale Efficiency of Tanzanian Saving and Credit Cooperatives By Nyankomo Marwa and Meshach Aziakpono

  1. By: Asongu, Simplice
    Abstract: This paper assesses the aid-development nexus in 52 African countries using updated data (1996-2010) and a new indicator of human development (adjusted for inequality). The effects of Total Net Official Development Assistance (NODA), NODA from the Development Assistance Committee (DAC) and NODA from Multilateral donors on economic prosperity (at national and per capita levels) are also examined. The findings broadly indicate that development assistance is detrimental to GDP growth, GDP per capita growth and inequality adjusted human development. The magnitude of negativity (which is consistent across specifications and development dynamics) is highest for NODA from Multilateral donors, followed by NODA from DAC countries. Given concerns on the achievement of the MDGs, the relevance of these results point to the deficiency of foreign aid as a sustainable cure to poverty in Africa. Though the stated intents or purposes of aid are socio-economic, the actual impact from the findings negates this. It is a momentous epoque to solve the second tragedy of foreign aid; it is high time economists and policy makers start rethinking the models and theories on which foreign aid is based. In the meantime, it is up to people who care about the poor to hold aid agencies accountable for piecemeal results. Policy implications and caveats are discussed.
    Keywords: Foreign Aid; Political Economy; Development; Africa
    JEL: B20 F35 F50 O10 O55
    Date: 2014–08–12
  2. By: Tunde Adeleke (Iowa State University)
    Abstract: From the dawn of the Black experience in America, Africa had played and continues to play, a central role in constructions of countervailing forms/forces of resistance and empowerment. From the early nineteenth century “pioneers of protest†down to the civil and post-civil rights activists, Black Americans have invoked Africa as a critical repertoire of resistance. None more so than Malcolm X (1925-1965). Although he began his activist career in the Nation of Islam, an organization that focused less on Africa as a source of inspiration and strength, Malcolm would, shortly after his break with the NOI, position Africa at the core, and the foundation, for his philosophy of resistance and empowerment for Blacks. In his writings and speeches; and in the movement that he developed for advancing the black struggles, Malcolm X prioritized the African nexus. He advocated broadening the purview of the Black American struggles to include Africa. In his view, Africa offered much of what Black Americans lacked and desperately need in their historic struggles—the moral, cultural, political, and intellectual force and authority that would facilitate black liberation and empowerment in both America and globally.
    Keywords: liberation, resistance, empowerment, hegemony, self-esteem
    Date: 2014–10
  3. By: Audrey Nguema Bekale, Erika Botha and Jacobus Vermeulen
    Abstract: The purpose of this paper is to foresee the likely developmental impact of the proposed institutionalisation of derivatives trading in sub-Saharan Africa(n) (SSA) countries. The case of South Africa is emphasised to illustrate how domestic derivatives trading could influence economic growth and economic growth volatility; measuring growth in real GDP. From an empirical standpoint, the influence of local derivatives activity on economic growth could not be proven, even though a long-run Granger causality is reported from economic growth to the expansion of local derivatives. These results at least sustain the realistic view that developing derivatives markets is a rather long-run process, and that efficient trading could not be achieved over the short-run. GARCH (1, 1) representation of a significant negative effect of derivatives trading on growth volatility establishes the stabilising effect of derivatives markets on the economy, but this does not constitute sufficient evidence to prove that derivatives trading can contribute to economic growth. Recommendation is that further research should look into the impact of derivatives trading on the liquidity of capital markets so as to assess the extent to which derivatives markets are able induce liquidity in their underlying capital markets, and thus provide suitable conditions for their own expansion and survival.
    Keywords: African derivatives markets, capital market development, derivatives-growth relationship, growth volatility, GMM, Granger Causality with VECM, GARCH
    Date: 2015
  4. By: John Danfulani (Kaduna State University);
    Abstract: BOKO HARAM INSURGENCY: A RE-VISIT TO ECONOMIC COMMUNITY OF WEST AFRICAN STATES FREE MOVEMENT POLICY ABSTRACT Nigeria is facing security challenges occasioned by activities of a terrorist group called Boko Haram. The main objective of the group is establishment of an Islamic Theocracy with 7th century Wahhabis dictum enunciated in the Quran and Hadith. Boko Haram have demonstrated capacity to perpetrate act of terror in both military and civilian zones in most parts of Northern Nigeria and Federal Capital Territory (FCT). Testimonies of BOKO HARAM combatants caught in action and surviving victims established the fact that, most of the top echelon and other ranks are citizens of neighbouring States who used ECOWAS citizens free movement agreement to come into the country, and most of them without their national identification papers. Because of this development and its threat to national security, Nigeria needs to weigh the implication of upholding clause warranting unhindered entry and exit of citizens of neighbouring countries. It is possible to be a member of the Sub-regional body and pull out of the clause of free movement of citizens, consequent to the insecurity facing the nation. Once that is done, threat and capacity to unleashed terror by Boko Haram will be drastically scaled down to negligible proportions. National interest and survival should supersede any sub-regional solidarity policy that is becoming a threat to the survival of the state and the wellbeing of its citizens. Keywords: Boko Haram, ECOWAS, Free Movement and Security
    Keywords: Boko Haram, ECOWAS, Free Movement and Security
    JEL: A30 A39 A32
    Date: 2014–05
  5. By: André Jordaan (University of Pretoria)
    Abstract: The success of many developing countries, following an outward-orientated development strategy, became increasingly visible during the early 1980s. This stood in sharp contrast to the relatively unsuccessful inward-orientated, import substitution strategy followed by some other countries. East Asian and more recently, Latin American countries, showed the path in terms of following an outward-oriented strategy. Contrary to this, African countries have been hesitant in following this trend, with its share in world trade declining in general. Military expenditure, on the other hand, remains an important aspect in overall government expenditure in most African countries. The purpose of this paper is to determine what the effect is, if any, between the level of trade and military expenditure within a selection of African countries.The relationship between international trade and military expenditure is generally the cause of much debate. It seems that varying arguments are forwarded such as, trade enhances peaceful interaction, trade may influence and cause tension between trading partners and that trade simply has no effect in terms of conflict whatsoever. Different studies on different parts of the world (O’Loughlin and Anselin, 1996; Dorussen, 1999; Martin, Mayer and Thoenig, 2007; Dieter and Higgott, 2007; Yakolev, 2007; Mamoon and Murshed, 2009; Keshk, Reuveny and Pollins, 2010) seem to stimulate this debate of disagreement.This study attempts to empirically show the impact of trade openness on military expenditure as a proportion of gross domestic product. Using the data on a selection of southern African countries over a period of ten years, a linear panel regression model will be used to show the estimated effects of the included variables.
    Keywords: International trade, military expenditure, southern Africa
    JEL: F10 F14
    Date: 2014–07
  6. By: Mehmet Balcilar (Department of Economics, Eastern Mediterranean University); Nico Katzke (Department of Economics, University of Stellenbosch); Rangan Gupta (Department of Economics, University of Pretoria)
    Abstract: In this paper we test whether the key metals prices of gold and platinum significantly improve inflation forecasts for the South African economy. We also test whether controlling for conditional correlations in a dynamic setup, using bivariate Bayesian-Dynamic Conditional Correlation (B-DCC) models, improves inflation forecasts. To achieve this we compare out-of-sample forecast estimates of the B-DCC model to Random Walk, Autoregressive and Bayesian VAR models. We find that for both the BVAR and BDCC models, improving point forecasts of the Autoregressive model of inflation remains an elusive exercise. This, we argue, is of less importance relative to the more informative density forecasts. For this we find improved forecasts of inflation for the B-DCC models at all forecasting horizons tested. We thus conclude that including metals price series as inputs to inflation models leads to improved density forecasts, while controlling for the dynamic relationship between the included price series and inflation similarly leads to significantly improved density forecasts.
    Keywords: Bayesian VAR, Dynamic Conditional Correlation, Density forecasting, Random Walk, Autoregressive model
    JEL: C11 C15 E17
    Date: 2015
  7. By: Rafael Cortez; Seemeen Saadat; Edmore Marinda; Odutolu Oluwole
    Abstract: Nigeria is the most populous country in sub-Saharan Africa. It also has a very young population. The majority of the population is below the age of 25 years, with 22 percent of the country?s population between the ages of 10-19 years. Data on sexual and reproductive health (SRH) outcomes in Nigeria highlight the importance of focusing on adolescents. At 576 maternal deaths per 100,000 live births, Nigeria accounts for roughly 14 percent of the global burden of maternal mortality (DHS 2013/WHO 2014). Global evidence shows that young girls bear a higher burden of maternal mortality and morbidity. Data show that the average age at sexual debut is roughly 15 years of age among adolescent mothers in Nigeria (DHS 2003, 2008, 2013). This note presents the findings of a recent study on Nigeria that examines determinants of adolescent sexual behavior and fertility, with a narrower focus on knowledge, attitudes and behaviors of adolescents aged 10-19 years old in Karu Local Government Authority (LGA), a peri-urban area near the capital city of Abuja.
    Keywords: abortion, Abortion Care, abortions, access to information, access to services, adolescence, ADOLESCENT, adolescent fertility, adolescent girls, adolescent health, adolescent ... See More + mothers, adolescent pregnancies, adolescent sexual behavior, adolescent women, adolescents, Age at marriage, age groups, aged, anemia, average age, child mortality, Child Rights, condoms, contraceptive knowledge, contraceptives, dangers, doctor, early marriage, early marriages, early pregnancies, Early sexual debut, emergency contraception, ethnic groups, Family Health, female, Female condoms, fertility rate, first sexual intercourse, focus group discussions, gender, Gender Policy, Health Care Services, health facility, health service, health services, Health Surveys, HIV, HIV Education, HIV Prevention, HIV Prevention Interventions, HIV/AIDS, hospitals, human capital, Induced Abortion, Intervention, Knowledge of contraception, life skills, live births, low birth weight, male condoms, Married Adolescent Women, maternal deaths, Maternal Health, Maternal Health Care, maternal mortality, maternal mortality ratio, medicine, medicine vendors, migrant, migrant populations, Ministry of Education, modern contraception, morbidity, natal care, National Policy, National Population, National Youth Policy, negative effects, Nutrition, Obstetric Complications, Obstetric Performance, older women, Peer Education, peer educators, Pills, Population Commission, Population Knowledge, populous country, PREGNANCY, Prevalence, Prevention Interventions, Primary Health Care, privacy, promiscuity, Public awareness, public health, public health services, Quality of Care, REPRODUCTIVE HEALTH, Reproductive Health Policy, reproductive health services, respect, Rhythm method, rights to health, risk of death, risky sexual behavior, School Health, School Health Policy, School students, schools, secondary education, Secondary School, self-image, service providers, services for adolescents, sexual intercourse, sexually active, sexually active adolescents, sexually active females, sexually active girls, single parents, skilled attendance, skilled birth attendance, Slum dwellers, social attitudes, Std, teen, teenage pregnancies, teenage years, teenagers, traditional healers, Unintended Pregnancy, Unmarried Adolescents, unmarried girls, unwanted pregnancies, use of condoms, use of contraception, use of contraceptives, Women's Health, young girls, Young People, Young Women, younger adolescents, youth, youth friendly services
    Date: 2015–03
  8. By: Ummu Ibrahim (University of Ghana)
    Abstract: This is an exploratory study that sought to investigate the perceptions of people towards child sexual abuse in Ghana. It uncovers how cultural factors influence the conceptualization of child sexual abuse and how this influence children in concealing their experiences. Although some studies have been conducted on child sexual abuse in Ghana, yet its socio – cultural context is not well understood. It is against this background that, this study becomes relevant in filling such missing gap in literature. The study therefore unearthed the socio – cultural factors that define the phenomenon in the Ghanaian setting. Qualitative research methods were used to collect data from 25 sexually abused children via in – depth interviews in selected communities in Ghana. Data was collected across three selected towns in the Greater Accra Region of Ghana which were Teshie, La and James Town. Respondents were seen as active participants whose insights and feeling were essential in the discussion process. Thematic Analysis was used to organize the data into appropriate themes. The findings showed that children were blamed for their sexual abuse and perpetrators are not sanctioned. This is relevant as it would aid in cultural appropriate interventions in curbing the phenomenon of child sexual abuse in Ghana.
    Keywords: Child Sexual Abuse
    Date: 2014–06
  9. By: Jean-Benoit Falisse; Natassia Leszcynska
    Date: 2015–03
  10. By: PRINCE ABRAH BOAMAH (Univserity of Ghana, Legon)
    Abstract: The study seeks to investigate the social factors explaining persistence and desistance from crime as juvenile delinquents transition to adulthood. Specifically, it examines to what extent socio-demographic factors, labeling and the criminal justice system reinforces crime over the life course. The study further determines whether the patterns of offending and desistance from crime differ for men and women over a life time. The question of which social factors modify the tendency to persist or deist form crime is also addressed. Although the causes of crime and delinquency have been studied extensively in Ghanaian literature, in the actual sense, there is a knowledge gap on what social forces affect persistent offending behavior through adulthood. The study contributes to criminological literature on crime and the life course by presenting qualitative narrative accounts of juvenile delinquents who have transitioned to adulthood criminality and determining from the patterns of their experiences what forces within the social domains shaped their criminal trajectory. To achieve this goal, the study will rely on qualitative research method by engaging respondents in an in-depth interview session. Data would be collected from 40 adults (Males & Females) who have persisted and desisted from crime to adulthood and ten prisons officer working in the state correctional centers. Thus, 20 out of the 40 respondents will be sampled from the Nsawam Medium Security Prisons while the remaining (20 adults) will involve those once delinquents but have desisted from crime living in their private homes. The ten prisons officers will also be interviewed to share their views on the extent to which the programmes run by the prisons service effectively address the problem of youth re offending in Ghana.
    Keywords: Juvenile Delinquency, Persistence, Life course
    Date: 2014–06
  11. By: yasmine Gharieb (Faculty of Economics and Political sciences- Cairo University); Zeinab Ibrahim (Faculty of Economics and Political Sciences- Cairo University)
    Abstract: Bioenergy is considered an important source of energy in modern era that ensures the preservation of environment and achieves sustainable development. Moreover, it preserves the triple bottom line which cares about all aspects of environmental and social as well as economic aspects of development. Bioenergy is considered a wide field of generating energy from different treated material using different types of technology, while Egypt is now going for a National Program to sustain energy through the treatment of animal, agriculture and even human waste. This is initiated through the Bioenergy for Sustainable Rural Development Project which works on several levels, the first level includes household units which depend on the anaerobic fermentation from the waste of animal, in which methane gas is produced to replace butane gas; used in homes. The second level includes the production of gas from poultry farm units aiming to solve the diesel crisis in which both large poultry farms and those small ones, relaying on the cylinders, need the diesel. And finally, the third level which includes generation of electricity from rice straw. So, the goal of the study is to present an analysis of the Egyptian experience in the production of Bioenergy in addition to achieving sustainable development and ways for overcoming the obstacles that hindered the application of this experience previously.
    Keywords: Egypt- Renewables- biomass- biogas- Sustainable Rural Development- Bioenergy Technology(BET)
    JEL: Q16 Q42 Q50
    Date: 2014–05
  12. By: Mike Omilusi (Ekiti State University)
    Abstract: Nigeria’s 1999 transition to civilian government culminated a long, turbulent period of military rule and failed democratic experiments. At the time of the political handover, many Nigerians expressed hopes for a “democracy dividend†that would expand political liberties, improve the performance of government, encourage accountability among leaders, and revive the ailing economy. However, the anticipated benefits of democracy have been slow to emerge, and the new dispensation has failed to fulfill the expectations of many Nigerians. This essay examines the poverty situation in Nigeria in relation to what democracy, as a people-centered system of government, should offer the citizenry especially in a country regarded as rich in human and material resources. It traces the interface between democracy and the poor while analyzing the trends, patterns and causes of poverty in the country. The failure of the present democratic government to alleviate the alarming level of poverty is also brought into focus. It suggests ways of reversing the unpleasant trend.
    Keywords: Poverty, Democracy, Economy, State, Government
    Date: 2014–12
  13. By: Nyankomo Marwa and Meshach Aziakpono
    Abstract: In measuring technical and scale efficiency of Tanzanian Saving and Credit Cooperatives we used a sample of 103 audited financial statements during 2011. Data envelopment analysis was employed to explore the efficiency scores. The results show that average scores are 42%, 52% and 76% for technical, pure technical and scale efficiencies respectively. Since most of the inefficiencies are either technical or scale in nature, the study recommends increasing the operating scale for smaller firms. Firms operating beyond the optimal scale may need to downsize. Also the managers from technically inefficient firms should reduce the waste of the productive resources by utilizing their inputs more efficiently.
    Keywords: Efficiency, Saving and Credit Cooperatives, data envelopment analysis, Tanzania
    JEL: G21 D2 C5
    Date: 2015

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