nep-afr New Economics Papers
on Africa
Issue of 2021‒03‒01
five papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Quality of sub-national government and regional development in Africa By Iddawela, Yohan; Lee, Neil; Rodríguez-Pose, Andrés
  2. Gender Inclusive Intermediary Education, Financial Stability and Female Employment in the Industry in Sub-Saharan Africa By Simplice A. Asongu; Yann Nounamo; Henri Njangang; Sosson Tadadjeu
  3. The socioeconomic attainments of second-generation Nigerian and other black Americans: Evidence from the Current Population Survey, 2009–2019 By Sakamoto, Arthur; Amaral, Ernesto F. L.; Wang, Sharron Xuanren; Nelson, Courtney
  4. Health financing policy reforms for universal health coverage in eastern, central and southern Africa (ECSA)-health community region By Takondwa Mwase
  5. On the economic desirability of the West African monetary union: would one currency fit all? By Cécile Couharde; Carl Grekou; Valérie Mignon

  1. By: Iddawela, Yohan; Lee, Neil; Rodríguez-Pose, Andrés
    Abstract: Despite widespread interest in government quality and economic development, the role of sub-national government has been largely overlooked. This represents an omission in Africa, given ongoing processes of devolution in much of the continent. In this article, we consider the impact of sub-national government institutions on economic development in 356 regions across 22 African countries. We create a novel index of sub-national government quality based on large-scale survey data and assess its impact on regional economies using satellite data on night light luminosity. To address causality concerns, we instrument sub-national government quality with data from pre-colonial societies. Our results show a positive and significant relationship between sub-national government quality and regional economic development, even when controlling for the quality of national level institutions. Better sub-national governments are a powerful but often overlooked determinant of development in Africa.
    Keywords: institutions; quality of government; regions; Africa; decentralisation
    JEL: R14 J01
    Date: 2021–02–01
  2. By: Simplice A. Asongu (Yaounde, Cameroon); Yann Nounamo (University of Douala, Cameroon); Henri Njangang (University of Dschang , Cameroon); Sosson Tadadjeu (University of Dschang , Cameroon)
    Abstract: The study examines how financial stability modulates the effect of inclusive intermediary education on female employment in the industry for the period 2008-2018 in Sub-Saharan Africa. The empirical evidence is based on Tobit, Ordinary Least Squares (OLS) and Quantile regressions. There are positive interactive or conditional effects between inclusive intermediary education and financial stability in the Tobit, OLS and bottom quantiles estimations. A net positive (negative) effect is apparent in the 10th quantitle (median) of female employment in the industry distribution. Implications are discussed.
    Keywords: inclusive education; financial sustainability, gender economic inclusion
    JEL: E23 F21 F30 L96 O55
    Date: 2021–02
  3. By: Sakamoto, Arthur; Amaral, Ernesto F. L. (Texas A&M University); Wang, Sharron Xuanren; Nelson, Courtney
    Abstract: Second-generation Black Americans have been inadequately studied in prior quantitative research. We seek to ameliorate this research gap by using the Current Population Survey to investigate education and wages among second-generation Black Americans with a focus on Nigerian Americans. The latter group has been identified in some qualitative studies as having particularly notable socioeconomic attainments. The results indicate that the educational attainment of second-generation Nigerian Americans exceeds other second-generation Black Americans, third-and-higher generation African Americans, third-and-higher generation whites, second-generation whites, and second-generation Asian Americans. Controlling for age, education, and disability, the wages of second-generation Nigerian Americans have reached parity with third-and-higher generation whites. The educational attainment of other second-generation Black Americans exceeds third-and-higher generation African Americans, but has reached parity with third-and-higher generation whites only among women. These results indicate significant socioeconomic variation within the African-American/Black category by gender, ethnicity, and generational status that merit further research.
    Date: 2021–02–09
  4. By: Takondwa Mwase (College of Medicine, Malawi)
    Abstract: Providing access to health care services and goods to all citizens has long been a cornerstone of modern health financing systems in many countries. In sub-Saharan Africa (SSA), this became evident soon after independence in the 1960s: in order to redress the significant levels of inequality and deprivation during the colonial era, most countries introduced free public health care services, as a way of increasing access to (and utilisation of) modern health services and, hence, achieving the equity goal. However, with the passage of time, countries in SSA have been faced with an increased disease burden and growing demand for quality health care services, amidst limited economic resources, low economic growth, a large informal sector with unregulated labour markets, and high population growth rates. In order to respond to this crisis, in the 1980s and 1990s, many governments with the influence/support of international organisations undertook health sector reforms, with regard to health financing, which saw the reversal of the policy of the provision of free public health care services. User fees for health services at the point of use in public health facilities were introduced in almost all countries in SSA—only a few countries, such as Malawi and Mauritius, resisted the temptation of introducing user fees for public health services at all levels nationally.
    Date: 2021–02
  5. By: Cécile Couharde; Carl Grekou; Valérie Mignon
    Abstract: In this paper, we investigate from a policy coordination viewpoint the desirability of the West African monetary union project, ECO. Our approach is built around the inclusion of national objectives in the regional integration perspective. Thanks to cluster analysis, we identify two groups of countries with relatively homogenous sustainable exchange rate paths in West Africa. We also find that no single currency peg nor a freely floating exchange rate regime would be preferable for any of the countries or groups of economies. Overall, our findings argue in favor of two ECOs —at least in a first step, i.e., one for each of the two identified zones. Each ECO would serve as a virtual anchor —with some flexibility— for the considered group, and would be determined by a basket of currencies mainly composed of euro and US dollar.
    Keywords: Monetary integration;West Africa;CFA franc zone;ECOWAS
    JEL: F33 F45 C38 O55
    Date: 2021–02

This nep-afr issue is ©2021 by Sam Sarpong. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.