nep-afr New Economics Papers
on Africa
Issue of 2016‒01‒18
six papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. How Terrorism Explains Capital Flight from Africa By Efobi, Uchenna; Asongu, Simplice
  2. Multidimensional Poverty in Sub-Saharan Africa: Levels and Trends By Sabina Alkire and Bouba Housseini
  3. Malaria and Anemia among Children in sub-Saharan Africa: the Effect of Mosquito Net Distribution By Bénédicte H. Apouey; Gabriel Picone; Joshua Wilde; Joseph Coleman; Robyn Kibler
  4. Financial globalisation dynamic thresholds for financial development: evidence from Africa By Asongu, Simplice; De Moor, Lieven
  5. Coming home without supplies: Impact of household needs on bribe involvement and gender gaps By Asiedu, Edward
  6. In need of a guardian angel: preserving the gains of the Arusha Peace and Reconciliation Agreement for Burundi By Vandeginste, Stef

  1. By: Efobi, Uchenna; Asongu, Simplice
    Abstract: We assess the effects of terrorism on capital flight in a panel of 29 African countries for which data is available for the period 1987-2008. The terrorism dynamics entail domestic, transnational, unclear and total terrorisms. The empirical evidence is based on Generalised Method of Moments (GMM) with forward orthogonal deviations and Quantile regressions (QR). The following findings are established. First, for GMM, domestic, unclear and total terrorisms consistently increase capital flight, with the magnitude relative higher from unclear terrorism. Second, for QR: (i) the effect of transnational terrorism is now positively significant in the top quantiles (0.75th and 0.90th) of the capital flight distribution, (ii) domestic and total terrorisms are also significant in the top quantiles and (iii) unclear terrorism is significant in the 0.10th and 0.75th quantiles. Policy implications are discussed.
    Keywords: Capital flight, terrorism, Africa
    JEL: C50 D74 F23 N40 O55
    Date: 2015–09
  2. By: Sabina Alkire and Bouba Housseini
    Abstract: This paper provides an overview of multidimensional poverty – levels and trends – in Sub-Saharan Africa (SSA), using the most recent estimations and analyses of the global Multidimensional Poverty Index (MPI), which was developed by the Oxford Poverty and Human Development Initiative (OPHI), launched in 2010 and reported in UNDP’s Human Development Reports. The global MPI 2014 covers 37 SSA countries, which are home to 91% of the population of the region. This paper synthesizes the main results: the levels of poverty in SSA overall as well as in West, East, Central and Southern Africa. It compares the MPI in rural and urban areas and the MPI with income poverty. It also summarizes results on inequality among the poor as this is highest in SSA countries. In terms of poverty dynamics, of the 19 SSA countries for which we have time-series data, 17 – covering 93% of the poor people across all 19 – had statistically significant reductions in multidimensional poverty. Finally, we scrutinize the situation in SSA according to a new measure of destitution, which identifies a subset of poor people as destitute if they experience a number of extreme deprivations like severe malnutrition or losing two children. Throughout this analysis, the paper demonstrates the descriptive analyses that multidimensional poverty indices enable – such as decomposition and dynamic analysis of poverty by subnational groups and ethnic groups, and the breakdown and dynamic analysis of the composition of the MPI according to its constituent indicators.
    Date: 2014–12
  3. By: Bénédicte H. Apouey (Paris School of Economics); Gabriel Picone (Department of Economics, University of South Florida); Joshua Wilde (Department of Economics, University of South Florida); Joseph Coleman (Department of Economics, University of South Florida); Robyn Kibler (Department of Economics, University of South Florida)
    Abstract: This article explores the impact of antimalarial campaigns, and in particular of the scale up in the distribution of mosquito nets, on anemia for children under 5 in sub-Saharan Africa. It uses individual-level data on more than 150,000 children and their families, combined with regionallevel data on malaria intensity before the antimalarial campaigns, for 16 countries between 2000 and 2014. Using a differences-in-differences estimation strategy, the paper tests whether the impact of the campaigns on anemia is larger in regions where the intensity of malaria was greater prior to the campaigns. The results indicate that the scale up has a negligible or small effect on moderate or severe anemia, whereas the other campaigns do not have any significant impact.
    Keywords: Anemia, Malaria, Bed Nets, Africa, Child Health
    JEL: I12 I15 I18 O55
  4. By: Asongu, Simplice; De Moor, Lieven
    Abstract: Purpose - We investigate if financial development benefits from financial globalisation are questionable until certain thresholds of financial globalisation are attained. Design/methodology/approach - Financial globalisation is proxied with Net Foreign Direct Investment Inflows as a percentage of GDP (FDIgdp) whereas financial development entails dynamics of depth, efficiency, activity and size. The empirical evidence is based on; (i) data from 53 African countries for the period 2000-2011 and (ii) interactive Generalised Method of Moments with forward orthogonal deviations. Findings- The following findings are established. First, thresholds of FDIgdp from which financial globalisation increases money supply are 20.50 and 16.00 for below- and above-median sub-samples of financial globalisation respectively. Second, FDIgdp thresholds from which financial globalisation increases banking system activity and financial system activity for below-median sub-samples of financial globalisation are 13.81 and 13.29 respectively. Third, for financial size, there is evidence of: (i) a positive threshold of 21.30 in the full sample and (ii) consistent increasing returns without a modifying threshold for the above-median sub-sample. Practical implications- Evidence of a positive threshold implies that while the initial effect of financial globalisation on financial development is negative, there is a positive marginal effect, such that at a certain level of FDIgdp (or threshold), the overall effect of financial globalisation on the given financial development dynamic becomes positive. It follows that financial globalisation is both negative and positive for financial development, with a U-shaped relationship. Therefore the appropriate role of policy should neither be to stem the tide of capital flows nor to encourage them, but to understand what levels or thresholds of capital flows are required to benefit domestic financial development. Originality/value- We have extended the debate on initial or threshold conditions for the financial development benefits from financial globalisation by providing policy makers with levels of FDI (as percentage of GDP) that are required to start materialising financial development benefits from financial globalisation.
    Keywords: Banking; International investment; Financial integration; Development
    JEL: F02 F21 F30 F40 O10
    Date: 2015–09
  5. By: Asiedu, Edward
    Abstract: Using a unique data on sub-Saharan Africa, we show that even though in absolute terms men pay more bribes, in relative terms, women are more likely to be involved in bribery or do favors that benefit the household. Additionally, running country specific regressions shows that for 65% of the countries gender differences when household needs are at stake disappear. These results underscore the importance of household needs to the woman, and that the effect of gender on corruption may well be context specific.
    Keywords: service delivery, gender, bribe-involvement, household needs, Africa, Consumer/Household Economics, Institutional and Behavioral Economics, Public Economics, D1, J16, H10, K42,
    Date: 2016–01
  6. By: Vandeginste, Stef
    Abstract: The Arusha Agreement of 28 August 2000 is an important stake of the ongoing crisis in Burundi. This paper analyses Burundi’s Arusha Agreement based achievements and suggests how they may be better protected through existing but strengthened institutional mechanisms. A political agreement of a hybrid nature, the Arusha Agreement contains a set of constitutional principles that have strongly inspired the current Constitution of 18 March 2005. The legal status of Protocol II of the Arusha Agreement has been recognised by the Constitutional Court, but its precise constitutional or supra-constitutional status needs to be further clarified. Furthermore, its enforcement of this text should not merely depend on a conjunctural political support. Two protection mechanisms, one political the other judicial, can ensure its respect. The Senate as well the Constitutional Court should be studied in more detail in order to reinforce their role as guardian angels of the Arusha Agreement. This paper intends to offer inspiration for that study and suggests some amendments of the powers of the Constitutional Court.
    Keywords: Burundi; Arusha Peace and Reconciliation Agreement
    Date: 2016–01

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