nep-afr New Economics Papers
on Africa
Issue of 2019‒12‒09
five papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Polygynous family structure and child undernutrition in Africa: empirical evidence from Nigeria By Amare, Mulubrhan; Mahrt, Kristi; Mavrotas, George; Arndt, Channing
  2. The Comparative African Regional Economics of Globalization in Financial Allocation Efficiency: Pre-Crisis Era Revisited By Simplice A. Asongu; Joseph Nnanna; Vanessa S. Tchamyou
  3. Does productivity level influence the economic impacts of price support policies in Ethiopia? By Aragie, Emerta; Balié, Jean; Magrini, Emiiano
  4. Gains and Losses in a Trade Bloc: The Case of the East African Community By Julie SCHLICK; Geoffroy GUEPIE
  5. Illicit financial flows: Illicit narcotics transiting West Africa By Mark Shaw

  1. By: Amare, Mulubrhan; Mahrt, Kristi; Mavrotas, George; Arndt, Channing
    Keywords: Consumer/Household Economics, Food Consumption/Nutrition/Food Safety
    Date: 2019–09
  2. By: Simplice A. Asongu (Yaoundé/Cameroon); Joseph Nnanna (The Development Bank of Nigeria, Abuja, Nigeria); Vanessa S. Tchamyou (Yaoundé, Cameroon)
    Abstract: The study assesses the role of globalization-fuelled regionalization policies on financial allocation efficiency in four economic and monetary regions in Africa for the period 1980 to 2008. Banking system and financial system efficiency proxies are used as dependent variables whereas seven bundled and unbundled globalization variables are employed as independent indicators. The bundling exercise is achieved by means of principal component analysis while the empirical evidence is based on interactive Fixed Effects regressions. The following findings are established. First, financial allocation efficiency is more sensitive to financial openness compared to trade openness and most sensitive to globalization. The relationship between allocation efficiency and globalization-fuelled regionalization policies is: (i) Kuznets or inverted U-shape in the UEMOA and CEMAC zones (evidence of decreasing returns to allocation efficiency from globalization-fuelled regionalization) and (ii) U-shape overwhelmingly in the COMESA and scantily in the EAC (increasing returns to allocation efficiency from globalization-fuelled regionalization). Established shapes are relevant to specific globalization dynamics within regions. Economic and monetary regions are more prone to surplus liquidity than purely economic regions. Policy implications and measures of fighting surplus liquidity are discussed.
    Keywords: Globalization; Financial Development; Regional Integration; Panel; Africa
    JEL: A10 D60 E40 O10 P50
    Date: 2019–01
  3. By: Aragie, Emerta; Balié, Jean; Magrini, Emiiano
    Abstract: This study follows from the recent move by most developing economies to introduce price support programs for selected cereals. For Ethiopia, we examine the price, quantity, welfare and government intervention effects of alternative producer and consumer price policies backed-up by public cereal storage services when agriculture is faced with positive and negative productivity shocks. We find that producer price support policies are production enhancing. However, these policies work against the urban poor and rural net-buyers as food prices could not fall anymore beyond the level dictated by the support program. Meanwhile, consumer price support policies tend to harm rural households due to further losses in incomes as the control on consumer prices supresses producer prices. The analysis further shows that consumer price stabilisation policies aggravate food insecurity since domestic cereal production declines strongly.
    Keywords: price support policies,public storage,agriculture,CGE,distributional effect
    Date: 2019
  4. By: Julie SCHLICK; Geoffroy GUEPIE
    Abstract: From birth to death in the 1970s, to rebirth in the 2000s, the East African Community (EAC) had several lives. What were the economic consequences of this regional trade agreement? This paper shows that the former EAC was ine?cient in term of trade creation while on the contrary the current one has increased trade by 75%. These results are obtained with a structural gravity equation with importer-year, exporter-year e?ects and bilateral ?xed e?ects. To assess the global e?ect of the EAC, including trade diversion and general equilibrium e?ects, we then use a multi-sector and multi-country model. We ?nd that despite trade creation, the total welfare gains of the EAC is small for most countries. All members endured a depreciation of the terms of trade, trade diversion and a decrease in real wages at the exception of Kenya.
    Keywords: Trade integration, Gravity, RTA
    JEL: F1 F13 F15
    Date: 2019–12
  5. By: Mark Shaw
    Abstract: This paper explores the flow of illicit narcotics transiting West Africa. It is divided into four sections, providing an overview of the nature and scope of the illicit narcotic economy, the networks and actors involved and its development impacts, including its resulting illicit financial flows, the movement and impact of those financial flows, both to buy protection and to invest drug profits from West Africa, and finally, it provides concluding remarks that could inform future policy action. The paper is based on a review of the available secondary literature and interviews, and focuses on the cocaine trade due to the preponderance of available information and data compared to other types of drug trafficking. Comparisons or distinctions are also drawn between other illicit narcotics and emerging trends are highlighted where credible evidence is available.
    Keywords: cocaine trafficking, corruption, criminal markets, development, illicit financial flows (IFFs), illicit narcotics, illicit trade, informal economy, political instability, protection payments, West Africa
    JEL: F63 K42 O17 O55 Q01
    Date: 2019–12–03

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