nep-afr New Economics Papers
on Africa
Issue of 2020‒04‒13
four papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Foreign Direct Investment, Domestic Investment and Green Growth in Nigeria: Any Spillovers? By Akintoye V. Adejumo; Simplice A. Asongu
  2. Entrepreneurship, Capacity Development and Youth Employment Generation: A Study of Selected Sub-Saharan Africa Countries By Oyolola, Feyisayo; Otonne, Adewumi
  3. Building Knowledge-Based Economies in Africa: A Systematic Review of Policies and Strategies By Simplice A. Asongu; Nicholas M. Odhiambo

  1. By: Akintoye V. Adejumo (Obafemi Awolowo University, Ile-Ife, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon)
    Abstract: Globally, investments in physical and human capital have been identified to foster real economic growth and development in any economy. Investments, which could be domestic or foreign, have been established in the literature as either complements or substitutes in varying scenarios. While domestic investments bring about endogenous growth processes, foreign investment, though may be exogenous to growth, has been identified to bring about productivity and ecological spillovers. In view of these competing–conflicting perspectives, this chapter examines the differential impacts of domestic and foreign investments on green growth in Nigeria during the period 1970-2017. The empirical evidence is based on Auto-regressive Distributed Lag (ARDL) and Granger causality estimates. Also, the study articulates the prospects for growth sustainability via domestic or foreign investments in Nigeria. The results show that domestic investment increases CO2 emissions in the short run while foreign investment decreases CO2 emissions in the long run. When the dataset is decomposed into three sub-samples in the light of cycles of investments within the trend analysis, findings of the third sub-sample (i.e. 2001-2017) reveal that both types of investments decrease CO2 emissions in the long run while only domestic investment has a negative effect on CO2 emissions in the short run. This study therefore concludes that as short-run distortions even out in the long-run, FDI and domestic investments has prospects for sustainable development in Nigeria through green growth.
    Keywords: Investments; Productivity; Sustainability; Growth
    JEL: E23 F21 F30 O16 O55
    Date: 2019–01
  2. By: Oyolola, Feyisayo; Otonne, Adewumi
    Abstract: This study examined entrepreneurship, capacity development and youth employment generation in 20 selected sub-Saharan African countries from 2005 to 2017. The study employed the fixed effect Panel estimator on the secondary annual data sourced for the study. Findings from the study can be considered in two categories. One, findings show that human capital development and institutional quality positively but insignificantly affect youth employment generation in the selected countries while macroeconomic instability is intuitively observed to exert a positively insignificant influence on youth employment generation. Two, findings also show that entrepreneurial activities and infrastructural development are important determinants of youth employment generation in the selected countries. The implication of these findings is that entrepreneurial activities and infrastructural development should be of concern to the government and policy makers as they are observed to be significant determinant of youth employment generation. Therefore, as a matter of policy implication/recommendation the government of these African Countries should ensure that the conclusion of this study is considered and implemented, increase expenditure on health and education in order to speed up human capital development, and make considerable effort to reduce the large informal sector by putting in place laws and rule that will ensure that the activities of the self-employed people are recognized and accounted for on a large scale.
    Keywords: Capacity Development, Entrepreneurship and Youth Employment Generatiom
    JEL: J0
    Date: 2020–03–18
  3. By: Simplice A. Asongu (Yaoundé/Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa)
    Abstract: Compared to other regions of the world, Africa is lagging in its drive toward knowledge-based economies. This study systematically reviews the literature in order to highlight the policies and strategies with which African countries can accelerate their current drive towards building knowledge-based economies. These are discussed in terms of three pillars of the World Bank’s knowledge economy framework. They are the indices for: (i) education and skilled population, (ii) information and communication technology and (iii) economic incentives and institutional regime.
    Keywords: Knowledge economy; Development; Africa
    JEL: O10 O30 O38 O55 O57
    Date: 2019–01
  4. By: Kayode Bankole (University of Ibadan [Nigeria]); Israel Ukolobi; Onyuka Mcdubus
    Abstract: This Study was designed to explore the impact of money supply on savings and investment in developing countries. Nigeria was selected as the case study. Literature related to the subject matter was reviewed. Secondary data for the seventeen (17) years on money supply, savings and investment were obtained from Central Bank of Nigeria Statistical Bulletin. The models were appropriately specified and the data collected were analysed using Eviews7 Statistical package. We found a high correlation between money supply, and the independent variables. This study recommends that the government should make money available to enable individuals engage in economic activities. Also this study recommends that government should provide enabling environment for private investors to permit stress-free economic activities. Government should release enough money for training and development of youths to encourage them to engage in entrepreneurship ventures that can stimulate savings and investment.
    Date: 2020–03–26

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