nep-afr New Economics Papers
on Africa
Issue of 2020‒09‒21
six papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. The impact of tourism development on economic growth in Sub-Saharan Africa By Nyasha, Sheilla; Odhiambo, Nicholas M; Asongu, Simplice A
  2. Mediating roles of institutions in the remittance-growth relationship: evidence from Nigeria By Ibrahim A. Adekunle; Tolulope O. Williams; Olatunde J. Omokanmi; Serifat O. Onayemi
  3. Contemporary issues on the sustainable rural development in Sub-Saharan Africa: A survey of salient literature By Abdullahi Shagali, Aminu; Sani Ibrahim, Saifullahi; Mukhtar, Shuaibu
  4. Commodity Prices and Policy Stabilisation in South Africa By Byron Botha; Eric Schaling
  5. The West and Central Africa Advantage By Soma, Chakrabarti
  6. The role of globalization in modulating the effect of enviromental degradation on inclusive human development By Asongu, Simplice A; Odhiambo, Nicholas M

  1. By: Nyasha, Sheilla; Odhiambo, Nicholas M; Asongu, Simplice A
    Abstract: This study examines the dynamic impact of tourism development on economic growth in sub-Saharan Africa (SSA) using the Generalised Method of Moments and data covering the period from 2002 to 2018. The increasingly important role of tourism and the limelight the tourism sector has been enjoying of late, on the one hand, and the lack of sufficient coverage of tourism-growth nexus studies in Africa in general and in SSA in particular, motivated this study. Unlike most of the known panel data-based studies on tourism development and economic growth, this study has split the sub-Saharan African countries into low-income and middle-income sub-Saharan African countries. The results of the study show that tourism expenditure negatively affects economic growth while tourism receipts have the opposite effect in SSA. The findings are robust to the low-income sub-sample while only the effect of tourism expenditure is robust in the middle-income sub-sample.
    Keywords: Tourism Development; Economic Growth; Sub-Saharan Africa, SSA, Middle Income Countries, Low Income Countries, Generalised Method of Moments, GMM
    Date: 2020–07
  2. By: Ibrahim A. Adekunle (Olabisi Onabanjo University, Ago-Iwoye, Nigeria); Tolulope O. Williams (Olabisi Onabanjo University, Ago-Iwoye, Nigeria); Olatunde J. Omokanmi (Crown-Hill University, Eiyenkorin,Nigeria); Serifat O. Onayemi (Olabisi Onabanjo University, Ogun State, Nigeria)
    Abstract: In this study, we examine the mediating roles of institutions in the remittances growth relationship for some reasons. We found that no country-specific study has towed this line leaving a vacuum in the literature of development and international finance. Most studies along this dimension have been done as a continental panel study with significant attendant deficiencies. Heterogeneous nature of institutional arrangements in African nations makes findings on the moderation roles of institutions in the remittance-growth relationship regional specific. We rely on the autoregressive distributed lag (ARDL) estimation procedure to establish a clear line of thought on the interactions of the variables of interest. Short-run results revealed that remittances inflow positively influence growth, but when institutional factors interact with the remittances variables, only the regulatory quality measures from the product of interactions matters for growth. Nonetheless, long run results revealed that remittances inflow was negatively related with growth, but when interacted with institutional measures and regressed on growth outcomes, we found remittances to positively and statistically influence growth outcomes for all the institutional measures adopted. Therefore, recipient nations should improve on the design and enforcement of laws particularly about their regulatory quality and as well as quality assurance such that they could be positioned to attract increased remittances inflow as well as other sources of external financing needed to augment domestic productivity and growth.
    Keywords: Economic Growth, Remittances, Institutions, ARDL, Nigeria
    JEL: E01 E44 F24
    Date: 2020–01
  3. By: Abdullahi Shagali, Aminu; Sani Ibrahim, Saifullahi; Mukhtar, Shuaibu
    Abstract: The concept of ‘sustainable rural livelihoods’ is increasingly central to the debate about rural development, poverty reduction and environmental management. A livelihood is sustainable if it enables a household to cope with and recover from stress and shocks, maintain or enhance assets and capabilities, and provide extended opportunities for the next generation; and contributes net benefits to other livelihoods at the local and global levels both in the short and long term. This study aims to survey literature dealing with contemporary issues on sustainable rural development in Sub-Saharan Africa (SSA). The paper argues for a holistic measure aimed at curbing the social inequalities, demographic transition, and environmental problems so as to achieve sustainable development goals.
    Keywords: Rural development, poverty, resource-driven conflicts
    JEL: O12
    Date: 2020–06–29
  4. By: Byron Botha; Eric Schaling
    Abstract: In order to account for the effects of commodity exports on the South African business cycle we use a multivariate extension of the Hodrick Prescott (HP) filter that incorporates commodity prices. We find that ignoring commodity prices results in a monetary policy stance that is more dovish than the one implied by our multivariate measure of the business cycle. This may partly explain why inflation breached the inflation target from 2007Q2 to 2009Q4, and overshot the upper bound of the target again by mid-2014. In addition we find that incorporating information about commodity prices implies smaller revisions of the estimated output gap. This in turn, enables a more consistent narrative around economic slack and monetary policy over time.
    Date: 2020–09–04
  5. By: Soma, Chakrabarti
    Abstract: A new report from the International Fund for Agricultural Development (IFAD) shows that by working with women, men, young people and indigenous peoples as change agents we are best placed to beat back the impact of climate change on rural communities in West and Central Africa (WCA). The report, the West and Central Africa Advantage, shows that the integration of initiatives that fight climate change, improve nutrition, and foster women’s and youth empowerment give IFAD’s programmes a higher chance of success and bigger impact, minimizing trade-offs and risks.
    Keywords: Agricultural and Food Policy
    Date: 2019–11–01
  6. By: Asongu, Simplice A; Odhiambo, Nicholas M
    Abstract: This study assesses how globalisation modulates the effect of environmental degradation on inclusive human development in 44 countries in Sub-Saharan Africa (SSA), using data for the period 2000 to 2012. The empirical results are based on the Generalized Method of Moments (GMM). The following main findings are established. First, a trade openness (imports + exports) threshold of between 80-120% of GDP is the maximum level required for trade openness to effectively modulate CO2 emissions (metric tonnes per capita) and induce a positive effect on inclusive human development. Second, a minimum threshold required for trade openness to modulate CO2 intensity (kg per kg of oil-equivalent energy use) and induce a positive effect on inclusive human development is 200% of GDP. Third, there is a net positive effect on inclusive human development from the relevance of trade openness in modulating the effect of CO2 emissions per capita on inclusive human development and a negative net effect on inclusive human development from the importance of trade openness in moderating the effect of CO2 intensity on inclusive human development.
    Keywords: CO2 emissions; Economic development; Africa
    Date: 2020–01

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