nep-afr New Economics Papers
on Africa
Issue of 2019‒07‒08
four papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Income Levels, Governance and Inclusive Human Development in Sub-Saharan Africa By Simplice A. Asongu; Nicholas M. Odhiambo
  2. Development of the Brazilian drug market toward Africa: myths, evidence and theoretical questions By Cohen, Corentin
  3. Governance and Happiness in African countries By Njangang, Henri
  4. Spatial Inefficiencies in Africa's Trade Network By Tilman Graff

  1. By: Simplice A. Asongu (Yaoundé/Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa)
    Abstract: This study examines how income-driven governance affects inclusive human development in Sub-Saharan Africa with data for the period 2000-2012. The empirical evidence is based on the Generalised Method of Moments (GMM) and Tobit regressions. Nine bundled and unbundled concepts of governance are used: political (voice & accountability and political stability/no violence), economic (government effectiveness and regulation quality) and institutional (corruption-control and the rule of law) governances. The main finding is that ‘middle income’-driven governance has a higher effect on inclusive human development than ‘low income’-driven governance. Policy implications are discussed in the light of: (i) the contemporary relevance of findings; (ii) the pivotal role of a higher income level in the post-2015 sustainable development agenda; and (iii) inconsistent strands in the literature and in foreign aid policies.
    Keywords: Inclusive development; Income levels; Governance; Africa
    JEL: D31 I10 I32 K40 O55
    Date: 2019–01
  2. By: Cohen, Corentin
    Abstract: Using existing research and original data, I discuss the development of a transatlantic drug market between Brazil and West Africa and its implications on Brazil’s development and drug trafficking value chain. After establishing milestones of the history of this traffic I show how a global market of protection and transatlantic networks emerged from the alliances between Latin American criminal actors and high level elites in West Africa. The second part of the article focuses on the high concentration of capital created by exportations of cocaine. I show how these global markets affect the actions of drug traffickers, namely their strategies and use of violence by analyzing the development of maritime trade and the centrality of ports in this economy. The last part of the article analyzes the market for drug mules in Sao Paulo and how the strategy networks adapt to balance their risks of failure with low cost Nigerians migrant mules. Finally, the articles shows how this market attracted cultists groups from Nigeria and connects Brazil with other illegal markets.
    Keywords: Markets; Development; Protection; Patronage; Drug mules; Transatlantic
    JEL: N0
    Date: 2019–06–04
  3. By: Njangang, Henri
    Abstract: Using Ordinary Least Squares and the Generalized Method of Moments techniques, this paper analyses the effect of governance on happiness in a panel of 31 African countries over the period 2006-2017. We find that governance quality improves happiness.
    Keywords: Governance, Happiness, Africa
    JEL: D73 I31 O55
    Date: 2019–06–07
  4. By: Tilman Graff
    Abstract: I assess the efficiency of transport networks for every country in Africa. Using rich spatial data, I simulate trade flows over more than 70,000 links covering the entire continent. I maximise over the space of networks and find the optimal road system for every African state. My simulations predict that Africa would gain 1.1% of total welfare from better organising its national road systems. I then construct a novel dataset of local network inefficiency and I find that colonial infrastructure projects significantly skew trade networks towards a sub-optimal equilibrium. I also find evidence for regional favouritism and inefficient aid provision.
    JEL: F1 O18 R4
    Date: 2019–06

This nep-afr issue is ©2019 by Sam Sarpong. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.