nep-afr New Economics Papers
on Africa
Issue of 2016‒04‒23
six papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. How social media tools influence brand image and buying behaviour in the South African food retail industry By Chantal Rootman
  2. "The Macrogenoeconomics of Comparative Development" By Quamrul Ashraf; Oded Galor
  3. The Topology of African Exports: emerging patterns on spanning trees By Tanya Ara\'ujo; M. Ennes Ferreira
  4. Building local institutional capacity to improve food security: using the SATISFY approach By Sarpong, Sam
  5. Is living in African cities expensive ? By Nakamura,Shohei; Harati,Rawaa; Lall,Somik V.; Dikhanov,Yuri M.; Hamadeh,Nada; Vigil Oliver,William; Rissanen,Marko Olavi; Yamanaka,Mizuki
  6. Developing Islamic Liquidity Management Instruments: Resolving the Impasse between Central Bank of Nigeria (CBN) and Jaiz Bank Plc By Aliyu, Shehu Usman Rano

  1. By: Chantal Rootman (Nelson Mandela Metropolitan University)
    Abstract: Given the importance of a business being able to create a positive brand image and positively influence customer buying behaviour, there is a lack of research on the role that social media tools can play in this regard. Research studies have focussed on determining the advantages of using social media tools, however, the impact of social media tools specifically on businesses’ brand image and customer buying behaviour has not been investigated. In addition, this has not been researched in the context of food retailers. The South African food retail industry is an important contributor to this developing country’s economy. However, Gross Domestic Product growth and sales growth in the South African food retail industry are stagnating. Therefore, the primary objective of this study is to investigate the influence of social media tools on brand image and customer buying behaviour in the food retail industry. A questionnaire was used in an empirical investigation to gather the responses of 180 customers in Nelson Mandela Bay, South Africa. The questionnaires were subjected to various statistical analyses and significant relationships were found among the independent (Official websites, Facebook and Twitter), intervening (Brand image) and dependent (Customer buying behaviour) variables. This study’s recommendations could assist South African food retailers to use social media tools in ways to ensure a positive brand image, and to positively influence customers’ buying behaviour. This may lead to more successful food retailers and ultimately contribute positively to the South African economy.
    Keywords: brand image; customer buying behaviour; food retail industry; social media tools
    JEL: M31
  2. By: Quamrul Ashraf; Oded Galor
    Abstract: A vibrant literature has emerged in recent years to explore the influences of human evolution and the genetic composition of populations on the comparative economic performance of societies, highlighting the roles played by the Neolithic Revolution and the prehistoric “out of Africa” migration of anatomically modern humans in generating worldwide variations in the composition of genetic traits across populations. The recent attempt by Nicholas Wade’s A Troublesome Inheritance: Genes, Race and Human History to expose the evolutionary origins of comparative economic development to a wider audience provides an opportunity to review this important literature in the context of his theory.
    Date: 2016
  3. By: Tanya Ara\'ujo; M. Ennes Ferreira
    Abstract: This paper is a contribution to interweaving two lines of research that have progressed in separate ways: network analyses of international trade and the literature on African trade and development. Gathering empirical data on African countries has important limitations and so does the space occupied by African countries in the analyses of trade networks. Here, these limitations are dealt with by the definition of two independent bipartite networks: a destination share network and\ a\ commodity share network. These networks - together with their corresponding minimal spanning trees - allow to uncover some ordering emerging from African exports in the broader context of international trade. The emerging patterns help to understand important characteristics of African exports and its binding relations to other economic, geographic and organizational concerns as the recent literature on African trade, development and growth has shown.
    Date: 2016–01
  4. By: Sarpong, Sam
    Abstract: The paper provides a comprehensive analysis of the transformation of communities through the Systems Approach to Improve and Sustain Food Security (SATISFY) programme, an initiative that seeks to make rural communities in West Africa self-sufficient in food security, income-generation and health. In exploring the SATISFY initiative, the paper seeks to obtain a clear understanding of the milieu in which it can be carried out, the level and intensity of such interventions and also draw on the challenges and lessons learnt by stakeholders in the process of implementing the planned activities. The paper makes a very valuable contribution to the work of development practitioners and researchers alike by outlining key areas that make for interventions and strategies needed to ensure community participation in projects.
    Keywords: rural development; SATISFY; Ghana; poverty; NGOs; resource management
    JEL: R0
    Date: 2016–03–09
  5. By: Nakamura,Shohei; Harati,Rawaa; Lall,Somik V.; Dikhanov,Yuri M.; Hamadeh,Nada; Vigil Oliver,William; Rissanen,Marko Olavi; Yamanaka,Mizuki
    Abstract: Although several studies have examined why overall price levels are higher in richer countries, little is known about whether there is a similar relationship at the urban and city level across countries. This paper compares the price levels of cities in Sub-Saharan Africa with those of other regions by analyzing price information collected for the 2011 round of the International Comparison Program. Readjusting the calculated price levels from national to urban levels, the analysis indicates that African cities are relatively more expensive, despite having lower income levels. The price levels of goods and services consumed by households are up to 31percent higher in Sub-Saharan Africa than in other low- and middle-income countries, relative to their income levels. Food and non-alcoholic beverages are especially expensive, with price levels around 35 percent higher than in other countries. The paper also analyzes price information collected by the Economist Intelligence Unit's Worldwide Cost of Living Survey, and obtains a similar result, indicating higher prices of goods and services in African cities.
    Keywords: E-Business,Food&Beverage Industry,Economic Theory&Research,Markets and Market Access,Housing&Human Habitats
    Date: 2016–04–14
  6. By: Aliyu, Shehu Usman Rano
    Abstract: Despite tremendous growth of Islamic finance globally, the phenomenon is relatively new in Nigeria. The first full-fledged Islamic bank, Jaiz Bank Plc, was licensed as a regional bank by the Central Bank of Nigeria (CBN) in 2011 and it started its operations in January, 2012. Over 3 years now, the apex regulatory body is yet to develop robust shari’ah complainant instruments for liquidity management of Islamic banks in Nigeria. This paper assesses the predicaments of Jaiz bank Plc over the last 3 years of its operations in the face of this challenge on the basis of secondary data from the financial statements of the Bank. Evidences on the basis of CAMEL analysis show that while the Bank performs quite well in respect to capital adequacy, assets and management quality, the Bank, however, suffers most, on average, with respect to earning quality and liquidity. The paper recommends that the CBN should, while the shari’ah compliant instruments are being awaited, introduce a measure of deposit-free and loan-free for Jaiz Bank plc and consider lowering the statutory liquidity ratio, all with a view of easing financial constraints of the Bank.
    Keywords: Islamic liquidity management, CAMEL, Islamic Finance Institutions
    JEL: E52 G2 G21
    Date: 2015–04–19

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