nep-afr New Economics Papers
on Africa
Issue of 2016‒12‒04
four papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Learning from China?: Manufacturing, investment, and technology transfer in Nigeria: By Chen, Yunnan; Sun, Irene Yuan; Ukaejiofo, Rex Uzonna; Xiaoyang, Tang; Bräutigam, Deborah
  2. Food Security Implications of Staple Food Substitution in Sahelian West Africa By Haggblade, Steven; Me-Nsope, Nathalie M.; Staatz, John M.
  3. Did Africa’s First Choices Matter? Growth Legacies of Leaders at Independence By Christina Mangaard Jørgensen; Christian Bjørnskov
  4. Global shocks and their impact on the Tanzanian Economy By Haile, Fiseha

  1. By: Chen, Yunnan; Sun, Irene Yuan; Ukaejiofo, Rex Uzonna; Xiaoyang, Tang; Bräutigam, Deborah
    Abstract: The question of how to promote structural transformation is central in fostering sustainable growth and poverty reduction in low-income countries in Africa. Following China’s domestic economic transformation and its growing outward investments in the developing world, we seek to understand how Chinese investment in Africa, particularly in manufacturing, may help to foster industrialization and in turn the structural transformation of African economies. We focus on Chinese investments and partnerships in Nigeria, a salient destination for Chinese manufacturing foreign direct investment in Africa, and examine the potential mechanisms of technology transfer that might catalyze such transformation. We find some small but significant cases of potential technology transfer, particularly through technical partnerships between firms. However, the future potential of such mechanisms will depend on the initiative of Nigerian actors to leverage Chinese investment to their interest.
    Keywords: technology transfer, industrialization, supply chains, manufacturing,
    Date: 2016
  2. By: Haggblade, Steven; Me-Nsope, Nathalie M.; Staatz, John M.
    Abstract: Low-income households in Sahelian West Africa face multiple shocks that risk compressing their already-low food consumption levels. This paper develops a multi-market simulation model to evaluate the impact of common production and world-price shocks on food consumption of vulnerable groups in Sahelian West Africa. Empirical analysis confirms that poor households bear the brunt of ensuing consumption risks, particularly in closed markets, where trade barriers restrict imports, and the poor find themselves in a bidding war with richer consumers for limited food supplies.
    Keywords: Agricultural and Food Policy, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, International Development,
    Date: 2016–11
  3. By: Christina Mangaard Jørgensen; Christian Bjørnskov
    Abstract: We explore the potential effects of the first leaders of Sub-Saharan Africa. We first outline a set of theoretical reasons for why leaders may matter particularly at the critical juncture of African independence and why this influence may be persistent. In an unbalanced panel from 40 African countries observed since independence, we find evidence of strongly persistent effects of the education of African leaders. Only military coups seem able to break the persistent negative influence of this characteristic.
    Keywords: Africa; leaders; institutions; development
    JEL: O11 O43 O55 P16
    Date: 2016–11–23
  4. By: Haile, Fiseha
    Abstract: Plummeting commodity prices, China's economic malaise, and global financial market turbulence have recently wreaked havoc on African economies. This paper investigates whether, and to what extent, these intertwined shocks spillover into the Tanzanian economy. The author finds that a 1 percentage point (ppts) drop in China's investment growth is associated with a decline in Tanzania's export growth of roughly 0.60 ppts. A 1 percent fall in commodity prices leads to 0.65 percent lower exports value. The results suggest that a hard landing of the Chinese economy to its 'new normal' would doubtless send shock waves through the Tanzanian economy by further driving down commodity demand and prices as well as lowering development finance. In contrast, financial market volatility has a fairly negligible impact on economic growth. The main results stand up well to a wide-array of robustness checks.
    Keywords: China,Tanzania,commodity prices,investment,exports,cointegrated VAR model
    JEL: C32 F4 O11
    Date: 2016

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