nep-afr New Economics Papers
on Africa
Issue of 2021‒02‒01
five papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Not all that glitters is gold: political stability and trade in Sub-Saharan Africa By Simplice A. Asongu; Thales P. Yapatake Kossele; Joseph Nnanna
  2. Trade Facilitation and its Impacts on the Economic Welfare and Sustainable Development of the ECOWAS Region By Shahrzad Safaeimanesh; Glenn P. Jenkins
  3. The Journey towards Dollarization: The Role of the Tourism Industry By Ibrahim D. Raheem; Kazeem B. Ajide
  4. When and how China’s real exchange rate affects African industry? By Sylviane Guillaumont Jeanneney; Ping Hua
  5. Can technology improve the classroom experience in primary education? An African experiment on a worldwide program By Joana Cardim; Teresa Molina-Millán; Pedro C. Vicente

  1. By: Simplice A. Asongu (CEREDEC, Bangui, CAR); Thales P. Yapatake Kossele (CEREDEC, Bangui, CAR); Joseph Nnanna (Abuja, Nigeria)
    Abstract: This study examines linkages between political stability and trade openness dynamics in a panel of 44 countries in SSA from 1996 to 2016. The empirical evidence is based on the generalized method of moments. From the findings, the negative relationship between political stability and merchandise trade is not significant while the negative relationship between political stability and trade openness (exports plus imports) is significant. Hence, the findings do not validate the tested hypothesis that political stability/no violence increases trade in the sub-region. The perspective that some forms of political stability can slow down and prevent international trade is consistent with Oslon in Rise and Decline of Nations (RADON) and recent contributions to the economic development literature which have shown that not all forms of political stability are development friendly because much depends on the extent to which stability translates into, inter alia, good governance. The principal policy implication is that standards of political governance need to be boosted in order to improve the anticipated effects of political stability on trade, especially in the light of the ambitious African Continental Free Trade Area (AfCFTA). Other policy implications are discussed.
    Keywords: Political Stability; Trade; Sub-Saharan Africa
    JEL: F52 K42 O17 O55 P16
    Date: 2021–01
  2. By: Shahrzad Safaeimanesh (Department of Economics, Eastern Mediterranean University, North Cyprus); Glenn P. Jenkins (Department of Economics, Queen's University, Kingston, Canada and Eastern Mediterranean University, North Cyprus)
    Abstract: The facilitation of trade is a principal objective in the context of increasing regional trade integration for the achievement of sustainable development goals. The purpose of this study is to estimate the potential annual economic gain to be had from trade facilitation by the coastal countries of the Economic Community of West African States (ECOWAS). These measures would decrease border and documentary compliance time and costs of the administration of international trade. A partial equilibrium welfare economics framework is used that employs sets of export supply and import demand elasticities for each country that are derived using a general equilibrium estimation method. The annual economic welfare gains resulting from the reduction of excessive trade compliance costs for the region are estimated to between US$1.6 billion to US$2.7 billion (2019 prices). This is between 0.24% and 0.42% of the combined GDPs of these countries. The welfare gain is between 6% and 10% of the combined governments’ budgets assigned for education, and is between 33% and 58% of their budgets allocated for health. In the absence of reform, these inefficient practices waste an amount equal to between 15% and 26% of the annual net official development assistance these countries receive.
    Keywords: Trade facilitation, West Africa, Economic Community of West African States (ECOWAS), Regional integration, Trade Compliance Costs, Trade reform, Economic welfare gains, Sustainable Development, SDGs 2030
    JEL: F13 F14 F15 D60 O12 O24
    Date: 2021–01–01
  3. By: Ibrahim D. Raheem (ILMA University, Karachi, Pakistan); Kazeem B. Ajide (University of Lagos, Lagos, Nigeria)
    Abstract: There has been an increasing wave of globalization since the turn of the millennium. This study focuses on two by-products of globalization: dollarization and tourism. Empirical studies have ignored the possible relationship between dollarization and tourism. However, we hypothesize that a booming tourism industry will fuel increase in the usage and circulation of foreign currencies. The objective of this study is to examine the extent to which the tourism industry exacerbates the dollarization process of selected Sub-sahara African (SSA) countries. Using Tobit regression, we found that tourism positively affects dollarization. This result is robust to: (i) alternative measures of tourism; (ii) accounting for endogeneity and outlier effects.
    Keywords: C11, E41, F31
    Date: 2021–01
  4. By: Sylviane Guillaumont Jeanneney (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Ping Hua (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique)
    Date: 2020
  5. By: Joana Cardim; Teresa Molina-Millán; Pedro C. Vicente
    Abstract: Primary school coverage has been increasing in most developing countries. Yet, it has not been accompanied by significant improvements in learning indicators. We implemented a randomized experiment in Angola around the introduction of ProFuturo, a worldwide educational program. The program includes a Computer-assisted Learning (CAL) software directed at improving the regular classroom experience. One year after the program started, we find higher familiarity with technology. Teachers miss fewer days of classes and implement better teaching practices. Students become more interested in learning and pro-social. Finally, the program improves students’ test scores in the most popular subject in the CAL platform.
    Keywords: Primary education, computer-assisted learning, CAL, field experiment, RCT, Africa, Angola
    JEL: O12 I21
    Date: 2021

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