nep-afr New Economics Papers
on Africa
Issue of 2016‒05‒14
six papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Institutions, Poverty and Economic Performance in Eastern Africa By Kebede, Temesgen
  2. The Comparative African Regional Economics of Globalization in Financial Allocation Efficiency By Asongu, Simplice; Tchamyou, Vanessa
  3. Reducing crime and violence : experimental evidence on adult noncognitive investments in Liberia By Blattman,Christopher; Jamison,Julian C; Sheridan,Margaret
  4. Megatrends and the Future of African Economies By Traub, Lulama; Yeboah, Felix; Meyer, Ferdinand; Jayne, Thomas S.
  5. Does innovation foster or mitigate the corruption obstacle? Firm-level evidence from Tunisia By Sdiri, Hanen; Ayadi, Mohamed
  6. Marketing Mix Strategies and Entrepreneurial Competence: Evidence from Micro Restaurants in Calabar Metropolis, Cross River State, Nigeria. By Umeze, Gerald E.; Ohen, Susan B.

  1. By: Kebede, Temesgen
    Abstract: East African countries are poor due to several factors particularly due to vicious circle of poverty prevalence, conflict and civil war trap, natural resource trap, land locked with bad neighbors and bad governance. These are traps discouraging the incentive for economic growth and brought about poor performance of the economy; thus, leads to difference in income associated with difference in institutional arrangement and structure. The average per capita income of the region is $333 with minimum average of $82.64 and maximum average of $882.46. Dummy intercept indicated that each country has its own unique features. On average, Kenya is performing better from members in the region followed by Tanzania, Rwanda and Eritrea respectively. Panel data technique is employed to identify factors affecting economic performance of the region and the random effects outcome shows that investment, inflation and exploded population growth affects economic performance.
    Keywords: Poverty, Institution, Economic Performance, East Africa, Panel Data, Institutional and Behavioral Economics, Public Economics,
    Date: 2014–07
  2. By: Asongu, Simplice; Tchamyou, Vanessa
    Abstract: The study assesses the role of globalization-fuelled regionalization policies on financial allocation efficiency in four economic and monetary regions in Africa for the period 1980 to 2008. Banking system and financial system efficiencies are used as dependent variables whereas seven bundled and unbundled globalization variables are employed as independent indicators. The bundling exercise is achieved by means of principal component analysis while the empirical evidence is based on interactive Fixed Effects regressions. The following findings are established. First, financial allocation efficiency is more sensitive to financial openness compared to trade openness and most sensitive to globalization. The relationship between allocation efficiency and globalization-fuelled regionalization policies is: (i) Kuznets or inverted U-shape in the UEMOA and CEMAC zones (evidence of decreasing returns to allocation efficiency from globalization-fuelled regionalization) and (ii) U-shape overwhelmingly in the COMESA and scantily in the EAC (increasing returns to allocation efficiency from globalization-fuelled regionalization). Established shapes are relevant to specific globalization dynamics within regions. ‘Economic and monetary’ regions are more prone to surplus liquidity than purely economic regions. Policy implications and measures of fighting surplus liquidity are discussed.
    Keywords: Globalization; Financial Development; Regional Integration; Panel; Africa
    JEL: D60 E40 I10 O10 P50
    Date: 2015–12
  3. By: Blattman,Christopher; Jamison,Julian C; Sheridan,Margaret
    Abstract: The paper shows that self-control, time preferences, and values are malleable in adults, and that investments in these skills and preferences reduce crime and violence. The authors recruited criminally-engaged Liberian men and randomized half to eight weeks of group cognitive behavioral therapy, fostering self-regulation, patience, and noncriminal values. They also randomized $200 grants. Cash alone and therapy alone dramatically reduced crime and violence, but effects dissipated within a year. When cash followed therapy, however, crime and violence decreased by as much as 50 percent for at least a year. They hypothesize that cash reinforced therapy's lessons by prolonging practice and self-investment.
    Keywords: Economic Theory&Research,Science Education,Educational Sciences,Health Monitoring&Evaluation,Disease Control&Prevention
    Date: 2016–04–20
  4. By: Traub, Lulama; Yeboah, Felix; Meyer, Ferdinand; Jayne, Thomas S.
    Abstract: Agri-food systems, including those in Africa, are complex and interdependent systems with the following features: (1) they develop endogenously with broader demographic and economic changes in the broader economy, hence it is difficult or impossible to predict their specific growth and income distributional trajectories; (2) their future trajectories are highly dependent on policy choices and public investment patterns and hence can be molded by public action; (3) they evolve through interdependent decisions of many actors such that few emerging patterns can be linked to a particular agent within the system; and (4) the variables influencing their development change over time with the underlying structure of local, regional and international economic systems, and with changes in technologies and institutions. In this dynamic environment, notions of equilibrium may be very short-lived. Nevertheless, we believe that there are identifiable “megatrends” with a high probability of affecting African food and broader economic systems in the coming decades. This paper investigates the evidence of ‘megatrends’ shaping African economic, political and social landscapes and asks which ones depend endogenously on processes that are within the realm of policy influence and which ones are indeed exogenous.
    Keywords: Financial Economics, International Development,
    Date: 2015
  5. By: Sdiri, Hanen; Ayadi, Mohamed
    Abstract: The aim of this paper is to analyze the extent to which Tunisian firms regard corruption as a major obstacle to their product and process innovation. Using firm-level data from the World Bank Enterprise Survey conducted in 2013, we empirically test how innovation accentuates or mitigates the corruption obstacle. We show that innovation has a negative and statistically significant effect on the corruption obstacle. Besides, we prove that competition and the obstacle to corruption are negatively related. This result teaches that the Tunisian firms face a rent-shifting corruption.
    Keywords: Innovation, Corruption obstacle, Rent-shifting.
    JEL: D73 L80 O31 O32
    Date: 2016–05–04
  6. By: Umeze, Gerald E.; Ohen, Susan B.
    Abstract: The paper assessed the utilization of marketing mix strategies and entrepreneurial competencies of micro restaurant owners in Calabar metropolis. Proportionate random sampling was used to select 132 restaurants which formed the sample of the study. Results showed that preparing quality/tasty meal was the most utilized marketing mix factor with mean value of 3.85. On entrepreneurial competence, relationship competence recorded the highest mean score of 3.92. A significant Chi Square (χ2) value of 10.739 indicated that there was an association between the use of marketing mix strategies and entrepreneurial competencies of the business owners. Kendall’s coefficient of concordance (w) value of 0.31 proved that there is a reasonable degree of agreement among the respondents regarding the ranking of the constraints facing their enterprises. The study recommended consistent application of 7Ps marketing mix strategies to eliminate most of the constraints identified by the operators and continuous capacity building on entrepreneurial skills.
    Keywords: Entrepreneurial Competence, Marketing Mix Strategies, Micro Enterprises, Restaurant., International Development, Marketing, Q13,
    Date: 2015

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