nep-afr New Economics Papers
on Africa
Issue of 2019‒12‒23
four papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Does access to international capital markets affect investment dynamics in Sub-Saharan Africa? By Senga, Christian; Cassimon, Danny; Kigabo, Thomas
  2. Are Income Floors Viable In Sub-Saharan Africa? By Jon Jellema; Nora Lustig; Valentina Martinez Pabon
  3. Bridging the Mobile Digital Divide in Sub-Saharan Africa: Costing under Demographic Change and Urbanization By Emre Alper; Michal Miktus
  4. The economics of malaria control in an age of declining aid By Eric Maskin; Célestin Monga; Josselin Thuilliez; Jean-Claude Berthelemy

  1. By: Senga, Christian; Cassimon, Danny; Kigabo, Thomas
    Abstract: This study investigates the influence of government borrowing through international capital markets on investment dynamics in Sub-Saharan Africa (SSA). We apply the synthetic control method to Gabon, Ghana and Senegal to assess whether this kind of government borrowing affects private, public and FDI in these countries using annual data for the period 1995-2017. Our results suggest that government and private investment have not been affected by governments’ borrowing through international capital markets, but that the move may have boosted these countries’ capacity to attract foreign direct investment. They lend support to the hypothesis that these countries’ exposure to international capital markets is an opportunity to register on the investors’ radar.
    Keywords: Sub-Saharan Africa; investment; synthetic control method
    JEL: E22 F21 F34 G15 O55
    Date: 2019–12
  2. By: Jon Jellema (CEQ Institute); Nora Lustig (Stone Center for Latin American Studies, Department of Economics, Tulane University, Commitment to Equity Institute (CEQI)); Valentina Martinez Pabon
    Abstract: In this paper, we build on results generated from policy scenarios attempting to generate sufficient internal resources for providing targeted and universal basic income packages in 9 different countries in sub-Saharan Africa. We add more countries from the same region as well as account explicitly for "missing" incomes, subsidy expenditures, and tax revenues in a way that reduces the burden of increased revenue collection on the survey population). While the new scenarios create smaller burdens from increased revenue collection on poor and vulnerable populations, it is still the case that setting income floors equivalent to international poverty lines funded by internally-generated revenues is often not feasible for two reasons: there is extreme reranking of individuals (from pre- to post-fiscal income) and the tax burden on the nonpoor would be significantly higher.
    Keywords: fiscal impoverishment, fiscal policy, fiscal incidence, social spending, inequality, poverty, taxes
    JEL: H22 I38 D31
    Date: 2019–12
  3. By: Emre Alper; Michal Miktus
    Abstract: Digital connectivity, including through the modern cellular network technologies, is expected to play a key role for the Future of Work in sub-Saharan Africa (SSA). We estimate the cost of introducing a full-scale 4G network by 2025 in SSA and an operable 5G network by 2040. We adapt the costing model of Lombardo (2019) by accounting for the significant demographic transformation and rapid urbanization in SSA. We use the WorldPop and GADM databases and the UN’s medium-variant population projections to project the population densities at the highest level of administrative division for each SSA country in 2025 and 2040. For full 4G connectivity, the required capital and operational costs stands approximately at US$14 billion by 2025 and for 5G connectivity, costs amount to US$57 billion in 2040, conditional on having the 4G in place by 2025. These costs roughly translate to 8.4 percent of annual subscriber income, on a median basis, by 2025 for 4G and 4.9 percent of subscriber income by 2040 for 5G. Having the infrastructure in place is not sufficient to bridge the mobile Digital Divide. In addition, policies are needed to address affordability and knowledge gaps.
    Date: 2019–11–15
  4. By: Eric Maskin (Department of Economics, Harvard University - Harvard University [Cambridge]); Célestin Monga (BAD - Banque africaine de développement / African Development Bank); Josselin Thuilliez (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Jean-Claude Berthelemy (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, UP1 UFR02 - Université Panthéon-Sorbonne - UFR d'Économie - UP1 - Université Panthéon-Sorbonne)
    Abstract: This article examines financing in the fight against malaria. After briefly describing malaria control plans in Africa since 2000, it offers a stylized model of the economics of malaria and shows how health aid can help escape the malaria trap.
    Keywords: Health policy,Malaria,Health care economics,Developing world
    Date: 2019–12

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