nep-afr New Economics Papers
on Africa
Issue of 2015‒05‒22
seven papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Exploring strategic priorities for regional agricultural research and development investments in Southern Africa By Johnson, M.
  2. Regional integration in Africa: Challenges and prospects By de Melo, Jaime; Tsikata, Yvonne
  3. The Relevance of Certifications and Business Practices in Linking Smallholders and Large Agro-businesses in Sub-Sahara Africa By Linda Kleemann
  4. Impact of income shock on children’s schooling and labor in a West African country By Fatoke Dato, Mafaizath A.
  5. The Chinyanja triangle in the Zambezi River Basin, southern Africa: status of, and prospects for, agriculture, natural resources management and rural development By Amede, T.; Desta, L. T.; Harris, D.; Kizito, F.; Cai, Xueliang
  6. The Economic Effects of Political Violence : Evidence from the Genocide in Rwanda By Almer, Christian; Hodler, Roland
  7. Good Board Governance and Perceived Business Continuity in Tunisian Corporate Groups By Ben Rejeb, Wajdi

  1. By: Johnson, M.
    Date: 2014
  2. By: de Melo, Jaime; Tsikata, Yvonne
    Abstract: Political motives, geography, and the uneven distribution of gains trumped the traditional efficiency gains across Africa’s Regional Economic Communities (RECs). The small, sparsely populated, fragmented, and often isolated economies across Africa make a compelling case for these economies to integrate regionally to reap efficiency gains, exploit economies of scale, and reduce the thickness of borders. But lack of complementarities among partners and diminishing returns to the exploitation of resources has reduced supply response to market-integration-oriented regional policies. Additionally, a very uneven distribution of resources has sharpened the trade-off between the benefits of common policies needed to tackle cross-border externalities and their costs, which are heightened by the sharp differences in policy preferences across members. African RECs have pursued the ‘linear model’ of integration with a stepwise integration of goods, labour, and capital markets, as well as eventual monetary and fiscal integration. With the exception of the franc zone, the RECs have not yet completed goods-markets integration; the lack of adjustment funds to address the uneven distribution of benefits across partners contributing to the delay. Estimates reported here reveal the shortcomings of the linear model of integration, as behind-the-border measures aiming to reduce trade costs were largely ignored across African RECs until recently. While this is probably due to the difficulty in gaining the confidence necessary to get collection action started, many behind-the-border measures could still have been undertaken unilaterally.
    Keywords: Africa; regional integration; trade creation; trade diversion
    JEL: F12 F15
    Date: 2015–05
  3. By: Linda Kleemann
    Abstract: Smallholders often have to certify according to international standards and produce under contract for large agro-businesses to access the export market. While mostly positive effects for the farmers have been found for contracts and certifications, little is known about the role of individual firm behavior and certifications in shaping farmer-agro-business relationships and contract success. This is what this article does. Data of 386 smallholders in the pineapple export sector in Ghana is analyzed quantitatively and enriched by a detailed case study of a large-scale agro-business in Ghana called Blues Skies. The results show that certification is an agent of change in farmer–agro-business relations. Building trust and aligning expectations of farmers and firms is important for success. Additionally, individual firm behavior matters more than taken into account in previous research. Our case study shows that three “R”, reliability, reputation and respect, constitute the basis for contract relationships that benefit all
    Keywords: contract farming, certification, smallholders, Ghana, firm behavior
    JEL: D21
    Date: 2015–04
  4. By: Fatoke Dato, Mafaizath A.
    Abstract: This study measures the impact of a flood in 2010 in Benin on children’s schooling and labor. The data used are the National Demographic and Health Surveys (DHS) of 2006 and 2012. The difference in differences estimates points out a significant decrease in income between farm households and non-farm households following the shock. Enrollment has also significantly decreased by 5.99% for girls in rural areas, by 4.45% for boys in rural areas, by 7.76% for girls in urban areas and by 6.17% for boys in urban areas. The likelihood to be a domestic worker or a farmer has also significantly increased. Robustness checks, on different other groups, are in concordance with the results. Despite the removal of school fees in 2006, households still withdrew their children from school after this income shock. These results imply that income shocks could be a threat to the Universal Primary Education.
    Keywords: Natural disasters, Education, Income shock, Child labor
    JEL: I24 O55 Q54
    Date: 2015–05–12
  5. By: Amede, T.; Desta, L. T.; Harris, D.; Kizito, F.; Cai, Xueliang
    Keywords: River basins; Agricultural production; Natural resources management; Rural development; Population density; Forest management; Dryland management; Climate change; Ecosystem services; Mining; Farming systems; Foreign investment; Socioeconomic environment; Markets; Soil fertility; Watershed management; Living standards; Land tenure; Land use; Research; Institutions; Sustainability; Livestock products; Crops; Farmers; Energy generation
    Date: 2014
  6. By: Almer, Christian; Hodler, Roland
    Date: 2015–04–28
  7. By: Ben Rejeb, Wajdi
    Abstract: This research deals with the contribution of good board practices to perceived business continuity in Tunisian corporate groups. This paper aims to identify the components of good board governance that can promote business continuity in Tunisian corporate groups through the study of the directors’ perceptions. Large Tunisian business groups form the pillars of the country economic development and reflect the ownership structure as well as the management style of Tunisian companies. In this regards, corporate governance and continuity issues are particularly important for Tunisian corporate groups. In this regards, Family-controlled businesses remain the predominant form of corporate groups in Tunisia. Good corporate governance can be a driver of business continuity by introducing good management practices allowing corporate groups to face succession problems and to improve company performance and its sustainability. The conceptual study has allowed us to identify the components of good board governance: Principles (Responsibility, Transparency, Fairness and Accountability), Board Roles (Control and Strategist), Directors skills and Board procedures. The survey was conducted on a sample composed of 50 Tunisian corporate groups using a questionnaire designed to be filled by the directors and the top management members. The regression analysis revealed the perceived business continuity is positively related to Board Strategic Role, Directors Skills, Board Procedures and Board Accountability. However, the results showed that Board Control Role and Board Fairness are negatively linked to perceived business continuity in sampled Tunisian corporate groups.
    Keywords: corporate governance, business continuity, board of directors, corporate groups, developing economies, Tunisia
    JEL: G3 G30 G34 M0 M00 M1 M14
    Date: 2014–12–20

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