nep-afr New Economics Papers
on Africa
Issue of 2017‒04‒30
four papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Mobile banking in Sub-Saharan Africa: setting the way towards financial development By Rouse, Marybeth; Verhoef, y Grietjie
  2. Entrepreneurship, risk perception and firm performance By M.A. Boermans; Daan Willebrands
  3. Effects of globalization on peace and stability: Implications for governance and the knowledge economy of African countries By Voxi Amavilah; Simplice Asongu; Antonio Andrés
  4. The Role of Social and Economic Infrastructure in Manufacturing Sector Performance in Nigeria By Mesagan, Ekundayo P.; Ezeji, Amarachi C.

  1. By: Rouse, Marybeth; Verhoef, y Grietjie
    Abstract: The importance of financial development for long-term economic growth has been recognised by policy-makers arounds the world. Fast growing economies with limited formal banking services experience greater financial exclusion. The explosion in mobile phone technology in Africa saw the rapid development of mobile banking. Many countries in Africa have poor retail banking network infrastructure especially in the rural areas. Mobile communication networks introduced innovative products to extend mobile banking into remote rural locations. The development of mobile banking has contributed towards enhanced financial inclusion in Sub-Saharan Africa (SSA). In less than ten years, Kenya has become the leading country in SSA for mobile banking penetration and mobile banking has been instrumental in providing access to financial services to the previously unbanked. This article surveys the state of economic development in Africa as contextualisation of subsequent trends in banking developments in SSA.
    Keywords: financial development, financial inclusion, mobile technology, retail banking, Sub-Saharan Africa (SSA)
    JEL: G21 O1 O3 O5
    Date: 2017–03
  2. By: M.A. Boermans; Daan Willebrands
    Abstract: Risk attitudes of entrepreneurs are well-established drivers of business performance. Most empirical studies in this field only take into account risk propensity, leaving out the complementary concept of risk perception. Using data on 611 entrepreneurs from Tanzania, we show that risk perception is positively associated with business performance. In addition, we classify the entrepreneurs in four different groups based on their risk profile. The results show that the worst performing entrepreneurs are those with low risk perception and high risk propensity.
    Keywords: risk attitude, risk perception, risk propensity, entrepreneurship, business performance, Africa
    Date: 2017–04
  3. By: Voxi Amavilah (REEPS, Arizona, USA); Simplice Asongu (Yaoundé/Cameroun); Antonio Andrés (Barranquilla, Colombia)
    Abstract: We argue that there exists an indirect link between globalization and the knowledge economy of African countries in which globalization influences ‘peace and stability’ and peace and stability affects governance, and through governance the knowledge economy. We model the link as a three-stage process in four testable hypotheses, which permits an empirical analysis without sacrificing economic relevance for statistical significance. The results indicate that the impacts on governance of peace and stability from globalization defined as trade are stronger than those of peace and stability resulting from globalization taken to be foreign direct investment. We conclude that foreign direct investment is not a powerful mechanism for stimulating and sustaining the African knowledge. However, since the effects of globalization on peace and stability can influence governance both positively and negatively, we also conclude that the prospect for the knowledge economy in African countries may be realistic and attainable, as long as these countries continue to engage in the kind of globalization that enhances peace and stability.
    Keywords: Globalization; peace and stability; Governance; knowledge economy, African countries
    JEL: I20 I28 K42 O10 O55
    Date: 2017–01
  4. By: Mesagan, Ekundayo P.; Ezeji, Amarachi C.
    Abstract: This study examined the role of economic and social infrastructure in manufacturing sector performance in Nigeria. The main concern of the study was to ascertain the degree of impact of economic and social infrastructure variables on manufacturing sector performances in Nigeria and to know if inflation and lending rates are responsible for the depression in the manufacturing sector. Government expenditures on capital, education and health, as well as electricity generation and consumption, and teledensity, inflation rate and prime lending rate were considered variables of analytical relevance in the paper. The results showed that teledensity had positive impact on manufacturing performance in Nigeria. Also, growth of government capital expenditure and growth of government expenditure on education positively and significantly enhanced the manufacturing value added while growth of government expenditure on health, electricity generation, electricity consumption, inflation rate and prime lending rate had insignificant negative effects on manufacturing value added. Government was therefore encouraged to improve the country’s industrial environment and reduce wasteful spending in government.
    Keywords: Manufacturing; Social Infrastructure; Economic Infrastructure; Inflation.
    JEL: C32 H54 H55 L60
    Date: 2016–12–12

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