nep-afr New Economics Papers
on Africa
Issue of 2017‒02‒12
eleven papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. The impact of mining on spatial inequality: Recent evidence from Africa By Tony Addison; Amadou Boly; Anthony Mveyange
  2. The Macrogenoeconomics of Comparative Development By Ashraf, Quamrul; Galor, Oded
  3. Relative Winners and Losers from Efficiency Spillovers in Africa with Policy Implications for Regional Integration By Glass, Anthony J.; Kenjegalieva, Karligash; Ajayi, Victor; Adetutu, Morakinyo; Sickles, Robin C.
  4. Does Keeping Adolescent Girls in School Protect against Sexual Violence? Quasi-experimental Evidence from East and Southern Africa By Tia Palermo; Michelle Mills; UNICEF Office of Research - Innocenti
  5. How does petty corruption affect tax morale in sub-Saharan Africa? An empirical analysis By Björn Jahnke
  6. Working Paper 246 - Why is inequality high in Africa? By AfDB AfDB
  7. Debt Sustainability and direction of trade: What does Africa’s shifting engagement with BRIC and OECD tells us? By Megersa, kelbesa; Cassimon, Danny
  8. Industrial clusters: The case for Special Economic Zones in Africa By Carol Newman; John Page
  9. Gendered internal migration patterns in Senegal By Isabelle Chort; Philippe De Vreyer; Thomas Zuber
  10. Industries without smokestacks: Implications for Ethiopia’s industrialization By Mulu Gebreeyesus
  11. Jobs, FDI and Institutions in Sub-Saharan Africa: Evidence from Firm-Level Data By Sotiris Blanas; Adnan Seric; Christian Viegelahn

  1. By: Tony Addison; Amadou Boly; Anthony Mveyange
    Abstract: This paper investigates the relationship between mining and spatial inequality in Africa during 2001–12. The identification strategy is based on a unilateral causation between mining and district inequality. The findings show that when minerals are aggregated, mining increases district inequality. But an analysis of individual minerals shows that mining affects district inequality both positively and negatively, suggesting that mineral wealth can be both a curse and a blessing. Further analysis suggests that these results largely depend on whether mining is active or closed, the scale of mining operations, the value of minerals extracted, and the nature of mining activities—important dimensions for shaping mining policies aimed at bolstering socio-economic development in Africa.
    Keywords: mineral resources, mining, spatial inequality, Africa
    Date: 2017
  2. By: Ashraf, Quamrul (Williams College); Galor, Oded (Brown University)
    Abstract: The importance of evolutionary forces for comparative economic performance across societies has been the focus of a vibrant literature, 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 human traits. This essay surveys this literature and examines the contribution of a recent hypothesis regarding the evolutionary origins of comparative economic development, set forth in Nicholas Wade's A Troublesome Inheritance: Genes, Race and Human History, to this important line of research.
    Keywords: comparative development, human evolution, natural selection, genes, race, the "out of Africa" hypothesis, genetic diversity
    JEL: O11 N10 N30 Z10
    Date: 2017–01
  3. By: Glass, Anthony J. (Loughborough University); Kenjegalieva, Karligash (Loughborough University); Ajayi, Victor (Loughborough University); Adetutu, Morakinyo (Nottingham Trent University); Sickles, Robin C. (Rice University and Loughborough University)
    Abstract: Studies that have analyzed the efficiency of developing countries have estimated non-spatial frontier models. We extend this approach by accounting for spatial dependence among African countries. In particular, we estimate a spatial Durbin stochastic production frontier model. We also make novel use of the efficiency scores from our spatial model to suggest a direction for regional integration policy for Africa that policy makers can consider. A previous suggestion to promote regional integration in Southern Africa has been to use South Africa as a regional integration hub and to encourage other countries in the region to improve economic links with the hub. We continue with this line of enquiry and although we conclude that there are currently no African countries that are ideal candidates to be a regional integration hub, we suggest three other countries that policy makers may consider using as hubs in the future. We therefore suggest that it would be prudent to consider implementing policies to expedite the readiness of these countries to act as integration hubs.
    JEL: C23 O19 O47 O55
    Date: 2016–11
  4. By: Tia Palermo; Michelle Mills; UNICEF Office of Research - Innocenti
    Abstract: Sexual violence against women and girls is widespread globally. In their lifetime, one in three women will experience intimate partner physical or sexual violence and 7 per cent will experience forced sex by someone other than an intimate partner. This study finds protective effects of educational attainment against lifetime experience of sexual violence among women in Uganda, but not in Malawi. Further, in our pathway analyses, we find large impacts on delaying marriage in both countries. These results suggest that policies aimed at increasing educational attainment among girls may have broad-ranging long-term benefits.
    Keywords: adolescents; education of girls; gender based violence; research methodology; sexual violence; violence;
    Date: 2017
  5. By: Björn Jahnke
    Abstract: Revenues from taxation gain importance to finance economic development in sub-Saharan Africa. Extortion of bribes by public officials can provide one obstacle for tax compliance. This paper uses micro-level data from the Afrobarometer to analyse how petty corruption erodes tax morale. A mediation analysis shows that petty corruption directly reduces tax morale but also diminishes trust in the tax department and hence indirectly affects tax morale. The effect on tax morale is more severe in countries and regions where fewer people are affected by petty corruption and becomes insignificant if extortion of bribes is particularly prevalent.
    Keywords: corruption, tax morale, economic development, mediation analysis, regional disaggregation
    Date: 2017
  6. By: AfDB AfDB
    Date: 2017–02–06
  7. By: Megersa, kelbesa; Cassimon, Danny
    Abstract: This study assesses the evolution of debt sustainability in the Sub Saharan African (SSA) region. It also examines the respective contributions of OECD and BRIC to debt sustainability in the region. We reveal how the external demand for SSA goods and services from OECD and BRIC helps to lower ‘debt-to-exports’ and ‘debt-service-to-exports’ ratios, two of the main gauges of debt sustainability. Furthermore, using simple growth accounting, we assess how the net exports by SSA to the OECD and BRIC contributes to the region’s GDP growth, and thus indirectly helps to lower the ‘debt-to-GDP’ ratio, which is another important measure of indebtedness. Our study also compares the ‘actual’ debt levels of SSA with ‘hypothetical’ debt levels that simulate the contributions of OECD and BRIC. On the basis of debt sustainability thresholds of the joint IMF-World Bank Debt Sustainability Framework (DSF), we test how the sustainability of SSA debt has evolved overtime and how much the OECD and BRIC contribute to three classes of ‘weak’, ‘medium’ and ‘strong’ debt sustainability targets.
    Keywords: debt sustainability, threshold effects, international trade, Growth Accounting
    JEL: E01 E62 F34 H63 N17 O11 P33
    Date: 2016–05
  8. By: Carol Newman; John Page
    Abstract: Firms tend to cluster in close geographic proximity to each other to benefit from reduced transport costs, shared inputs, and productivity spillovers due to learning and technology transfers. Evidence from low-income countries suggests that such agglomeration economies may be substantial in endogenously formed clusters. This raises the question of whether spatial industrial policies can be designed to facilitate clustering. In this paper, we consider the case for creating Special Economic Zones (SEZs) in Africa. We document at the country level the state of current SEZ programmes and the policy measures in place for their promotion. We give an overview of the evidence on their success and provide a set of policy recommendations to improve SEZs performance.
    Keywords: agglomeration, Special Economic Zones, spatial industrial policy, Africa
    Date: 2017
  9. By: Isabelle Chort (LEDa, UMR DIAL-Paris-Dauphine); Philippe De Vreyer (Université Paris-Dauphine, PSL Research University,IRD, LEDa, DIAL); Thomas Zuber (Columbia University. Department of Middle Eastern, South Asian and African Studies/History, New York)
    Abstract: Using individual panel data from Senegal collected in 2006-07 and 2010-12, this study explores internal migration patterns of men and women. The data used contain the GPS coordinates of individuals' location, allowing us to calculate precise migration distances and map individual mobilities.Women are found to be more likely to migrate than men. However, they move less far and are more likely to migrate to rural areas, especially when originating from rural areas. Education is found to increase the likelihood of migration to urban destinations, especially for women. An analysis of the motives for migrating con rms the existence of gendered migration patterns, as female mobility is mostly linked to marriage while labor mobility is frequently observed for men.
    Keywords: Internal migration ; gender; rural-urban migration; Senegal.
    JEL: R23 O15 O18 J16
    Date: 2017–01
  10. By: Mulu Gebreeyesus
    Abstract: Although the manufacturing sector is known to have a unique role in structural transformation, the industries without smokestacks that include tradable services (e.g., IT, tourism, transport), horticulture, and agro-industry can provide new opportunities for export development in low-income countries and in turn drive economic growth. With vast natural and man-made tourist attractions and diversified agroecological advantage, Ethiopia is particularly well positioned to exploit the opportunities in industries without smokestacks. This study takes the case of Ethiopia and examines the current state and contribution of the industries without smokestacks to the economy and exports with the aim of improving our understanding of the major bottlenecks and solutions to unlocking the potential of these industries. It gives special attention to the horticulture and tourism industries, given the huge unexploited potential of these sectors in Ethiopia.
    Keywords: Ethiopia, exports, tourism, horticulture
    Date: 2017
  11. By: Sotiris Blanas; Adnan Seric; Christian Viegelahn
    Abstract: Using firm-level data, we study the differences in the quantity and quality of jobs offered by foreign-owned and domestic firms in Sub-Saharan Africa, and identify how country-level institutional factors determine these differences. After controlling for numerous firm-level characteristics in regressions, we find that foreign-owned firms, especially those whose main business purpose is to serve the home or foreign markets, offer more stable and secure jobs than domestic firms. Specifically, they have more permanent full-time workers, a lower probability of offering temporary work and employ less temporary workers. The job stability and security advantage of foreign-owned firms is smaller in countries with higher firing costs and governance quality, where domestic firms are induced to offer more stable and secure jobs. In addition, foreign-owned firms are less likely to offer unpaid work and have less of these workers. They also invest more in training, especially of managers, and pay higher wages to non-production and managerial workers, particularly those firms whose main business purpose is to serve the home or foreign markets. A higher wage to production workers is paid only by those whose owners are from high-income countries. The wage premia of foreign-owned firms are lower in countries with higher governance and social policy standards, where domestic firms are induced to pay higher wages.
    Keywords: Job quantity, Job quality, FDI, Institutions, Sub-Saharan Africa
    JEL: F14 F16 F21 F23 F66
    Date: 2017

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