nep-afr New Economics Papers
on Africa
Issue of 2015‒08‒25
eight papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. What do we know about the mineral resource rent sharing in Africa? By Celine De Quatrebarbes; Bertrand Laporte
  2. Financial Development, Institutions and Economic Growth: Evidence from Sub-Saharan Africa By Effiong, Ekpeno
  3. Stunted growth : why don't African firms create more jobs ? By Iacovone,Leonardo; Ramachandran,Vijaya; Schmidt,Martin
  4. Is Smallholder Horticulture the Unfunded Poverty Reduction Option in Zambia? A Comparative Assessment of Welfare Effects of Participation in Horticultural and Maize Markets By Hichaambwa, Munguzwe; Chamberlin, Chamberlin; Kabwe, Stephen
  5. Is Smallholder Horticulture the Unfunded Rural Poverty Reduction Option in Zambia? By Hichaambwa, Munguzwe; Kabwe, Stephen; Chamberlin, Jordan
  6. What do we know about the role of bank competition in Africa? By Florian LEON
  7. Developmental States: How Algeria makes the best of China to promote its development By Thierry Pairault
  8. School attendance and poverty in an oil boom context in Chad By Aristide Mabali; Bobdingam Bonkeri

  1. By: Celine De Quatrebarbes (FERDI - Fondation pour les Etudes et Recherches sur le Développement International - FERDI); Bertrand Laporte (CERDI - Centre d'études et de recherches sur le developpement international - CNRS - Université d'Auvergne - Clermont-Ferrand I)
    Abstract: Governments that lack the capacity to mine resources themselves have to attract foreign direct investment. However, since resources are not renewable, countries need to capture a ‘fair’ share of mineral resource rent to promote their development. While the third raw materials super cycle increased the global turnover of the mining sector by a factor of 4.6 between 2002 and 2010, the tax revenues from the non-renewable natural resource sector earned by African governments only grew by a factor of 1.15. The sharing of mineral resource rent between governments and investors is often criticised for being unfavourable to African governments. But what do we really know about the mineral resource rent sharing in Africa? The aim of this study is to review theoretical and empirical studies on rent sharing in Africa and note their limits for the knowledge of the actual mineral rent sharing.
    Date: 2015–07–23
  2. By: Effiong, Ekpeno
    Abstract: The paper investigates the effect of financial development on economic growth conditional on the level of institutional quality for a panel of 21 Sub-Saharan African countries for the period 1986-2010. A standard growth regression is estimated with linear interaction between financial development and institutional quality. Our findings indicate that financial development has not significantly contributed to SSA economic growth, contrary to the significant positive effect of institutional quality. The interaction effect of both financial and institutional development is positive but insignificant. This evidence suggest the existing institutions has not enhanced the finance-growth relationship in the region. Therefore, improving institutions relevant to the financial sector is desired.
    Keywords: Financial development, Institutions, Economic growth, Sub-Saharan Africa
    JEL: C23 G21 O16 O55
    Date: 2015–08
  3. By: Iacovone,Leonardo; Ramachandran,Vijaya; Schmidt,Martin
    Abstract: Many countries in Africa suffer high rates of underemployment or low rates of productive employment; many also anticipate large numbers of people to enter the workforce in the near future. This paper asks the question: Are African firms creating fewer jobs than those located elsewhere? And, if so, why? One reason may be that weak business environments slow the growth of firms and distort the allocation of resources away from better-performing firms, hence reducing their potential for job creation. The paper uses data from 41,000 firms across 119 countries to examine the drivers of firm growth, with a special focus on African firms. African firms, at any age, tend to be 20-24 percent smaller than firms in other regions of the world. The poor business environment, driven by limited access to finance, and the lack of availability of electricity, land, and unskilled labor have some value in explaining this difference. Foreign ownership, the export status of the firm, and the size of the market are also significant determinants of firm size. However, even after controlling for the business environment and for characteristics of firms and markets, about 60 percent of the size gap between African and non-African firms remains unexplained.
    Keywords: Labor Policies,E-Business,Environmental Economics&Policies,Small Scale Enterprise,Microfinance
    Date: 2013–12–01
  4. By: Hichaambwa, Munguzwe; Chamberlin, Chamberlin; Kabwe, Stephen
    Abstract: Recent significant agricultural growth without rural poverty reduction in Zambia is causing concern to policy makers, development specialists, and other sector stakeholders. It is generally agreed that agricultural growth is the most powerful tool out of poverty for developing countries where the majority of the population is in agriculture. Zambia’s policy focus since the pre- and post-independence period has been on a single crop, maize, for which it has in the past decade spent over 60% of the annual public expenditure in the sector through maize input and output subsidies.
    Keywords: Agricultural and Food Policy, Food Security and Poverty,
    Date: 2015–03
  5. By: Hichaambwa, Munguzwe; Kabwe, Stephen; Chamberlin, Jordan
    Keywords: Agricultural and Food Policy,
    Date: 2015–07
  6. By: Florian LEON (CERDI - Centre d'études et de recherches sur le developpement international - Université d'Auvergne - Clermont-Ferrand I - CNRS)
    Abstract: This paper reviews the literature regarding the consequences of interbank competition. The literature has identified three reasons why competition in the financial sector is important: firstly, for efficient functioning of financial intermediaries and markets, secondly, for firms and households access to financial services and thirdly, for stability of the financial system. While special attention is dedicated to empirical papers focusing on African banking systems, this review also considers works on other developing and developed economies.
    Date: 2015–06–18
  7. By: Thierry Pairault (CCJ - Chine, Corée, Japon - CNRS - UP7 - Université Paris Diderot - Paris 7 - EHESS - École des hautes études en sciences sociales)
    Abstract: Socialist Algeria had friendly relations with Maoist China; it is paradoxically during the 1990s and the 2000s, while Algeria abandoned the official reference to socialism, that the two countries began experiencing an unprecedented expansion of their economic, commercial and human relations in such a way one could feed fantasies about the Chinese presence and expectations in Algeria. This contribution will examine the sudden acceleration of the Sino-Algerian economic relations to show how Algeria's government has been making the best of the Chinese presence to lead its development drive and to pursue new industrial policies.
    Date: 2014–10–30
  8. By: Aristide Mabali (CERDI - Centre d'études et de recherches sur le developpement international - CNRS - Université d'Auvergne - Clermont-Ferrand I); Bobdingam Bonkeri (INSEED - Institut national de la statistique, des études économiques et démographiques, Ndjamena, Tchad - Institut national de la statistique - des études économiques et démographiques - Ndjamena - Tchad)
    Abstract: Oil resources have enabled Chad to increase public financing for education and to achieve high economic growth rates. Regarding these policies to supporting the education sector, we assume that the standard of living of households does not explain the school attendance. We test empirically this hypothesis using data from the MICS conducted in 2010 and Education Statistical Yearbooks. Using a bivariate probit model, the results show that school attendance and child labor depend of households’ standard of living after controlling for other relevant characteristics. In particular, a child from a non-poor household has a lower (higher) probability to be involved in the child labor (enrolled in school) compared to a child from a poor household. Although these results are classical in the economic literature, they are rather surprising in the case of Chad regarding the priority given to education by authorities. We identify four possible explanations, (i) the low level of these investments compared to international standards; (ii) the loss of public expenditures, caused by institutional factors; (iii) the misallocation of educational infrastructures and human resources by region and (iv) an inequity sharing of spin-offs of economic growth induced by oil resources. These results raise the issue of the sustainability of the Chadian economy after oil.
    Date: 2014–11–26

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