nep-afr New Economics Papers
on Africa
Issue of 2019‒03‒18
four papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Stock Market Volatility Clustering and Asymmetry in Africa: A Post Global Financial Crisis Evidence By Emenike, Kalu O.
  2. Chinese development assistance and household welfare in sub-Saharan Africa By Bruno Martorano; Laura Metzger; Marco Sanfilippo
  3. Africa Agriculture Transformation Scorecard: Performance and Lessons for the Southern Africa Development Community-SADC By Matchaya, G.; Nhemachena, C.; Nhlengethwa, S.; Muchero, M.; Elago, P.
  4. The red meat industry and employment in South Africa. Evidence based on statutory levies By Phaleng, L.; Mazibuko, N.; Lubinga, M.; Phaleng, L.

  1. By: Emenike, Kalu O.
    Abstract: This paper evaluates the nature of stock market volatility in Africa after the global financial crisis. Specifically, the paper examines volatility clustering and volatility asymmetry in aftermath of the global financial crisis for Botswana, Régionale des Valeurs Mobilières (BRVM), Egypt, Ghana, Kenya, Malawi, Mauritius, Morocco, Namibia, Nigeria, Rwanda, South Africa, Tunisia, Uganda, and Zambia. The paper employs autoregressive asymmetric generalized autoregressive conditional heteroscedasticity (AR(i)-GJR-GARCH(1,1)) model. The major findings are as follows: (i) there is evidence of volatility clustering in Africa stock markets returns after the global financial crisis, although with varying degrees; (ii) there is existence of volatility persistence in the African stock market returns after the global financial crisis except for few countries, which are not very persistent; (iii) after the global financial crisis, Africa stock markets returns are asymmetric, with negative shocks producing higher volatility in the immediate future than positive shocks of the same magnitude in some countries, and positive shocks producing higher volatility in other countries. The findings provide comparative basis for assessing market patterns, predicting market risk, and gauging market sentiment in Africa stock markets, as well as provide foreign portfolio managers required evidence for harvesting volatility through portfolio rebalancing for optimal performance.
    Keywords: stock market returns, volatility clustering, asymmetry, GARCH models, Africa
    JEL: C22 G0 N27
    Date: 2018–10–07
  2. By: Bruno Martorano; Laura Metzger; Marco Sanfilippo
    Abstract: We combine data on Chinese development projects with data from Demographic and Health Surveys to study the impact of Chinese aid on household welfare in sub-Saharan Africa. We use a novel methodology to test the effect of Chinese aid on three important development outcomes: education, health, and nutrition. For each outcome, we use difference-in-difference estimations to compare household areas near Chinese project sites to control areas located farther away, before and after receiving Chinese aid. This empirical strategy rules out many confounding factors that can bias measuring the impact of Chinese aid on our outcome variables. First, we find that Chinese projects significantly improve education and child mortality in treatment areas, but do not significantly affect nutrition. Second, social sector projects have a larger effect on outcomes than economic projects. Third, we do not find significant effects for projects that ended more than five years before the post-treatment survey wave. Our results are robust to a host of robustness checks.
    Keywords: aid effectiveness, Chinese aid, household welfare, DHS, geocoded data
    JEL: F35 O19 R20
    Date: 2019–02
  3. By: Matchaya, G.; Nhemachena, C.; Nhlengethwa, S.; Muchero, M.; Elago, P.
    Abstract: This paper describes preliminary lessons and experiences from the African Union/NEPAD Planning and Coordinating Agency�s Biennial Reviews process in which agricultural investment plans for every African Union Member State are reviewed every two years in order to track the country�s progress in the implementation of the Comprehensive African Agricultural Development Program (CAADP) and Malabo commitments that were made by African Union Heads of State in June 2014 in Equatorial Guinea, on how to improve agriculture. We have analysed documents from the African Union, previous meeting notes and other literature to in order to understand the Biennial review processes and draw conclusions on how best countries can improve their processes and possibly their biennial reviews scores going forward.
    Keywords: Research and Development/Tech Change/Emerging Technologies
    Date: 2018–09–25
  4. By: Phaleng, L.; Mazibuko, N.; Lubinga, M.; Phaleng, L.
    Abstract: We empirically evaluated the role of the red meat industry towards employment in South Africa�s agricultural sector. The paper used liner regression and delta method in the analysis. The results indicate that overall, a two-year extension of statutory levy regime in the red meat industry will positively influence employment (by 38%) in the economy. Although the focus was on the red meat industry, the increase in employment will occur along the various stages of the sheep and cattle value chains as well as in the other closely associated industries like the agro-processing and services industries.
    Keywords: Livestock Production/Industries
    Date: 2018–09–25

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