nep-afr New Economics Papers
on Africa
Issue of 2021‒05‒03
three papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Is Mobile Money Changing Rural Africa? Evidence from a Field Experiment By Catia Batista; Pedro C. Vicente
  2. The impacts of public expenditure innovations on real exchange rate volatility in South Africa By Naser Yenus Nuru; Hayelom Yrgaw Gereziher
  3. Domestic Energy Consumption in Ghana: Deprivation versus Likelihood of Access By Alhassan A. Karakara; Evans S. Osabuohien; Simplice A. Asongu

  1. By: Catia Batista (Nova School of Business and Economics, CReAM, IZA and NOVAFRICA); Pedro C. Vicente (Nova School of Business and Economics, BREAD, and NOVAFRICA)
    Abstract: Rural areas in sub-Saharan Africa are typically underserved by financial services. We measure the economic impact of introducing mobile money for the first time in rural villages of Mozambique using a randomized control trial. This intervention led to consumption smoothing through increased transfers as a response to both geo-referenced village-level floods and household-level idiosyncratic shocks. Importantly, we find that the availability of mobile money increased migration out of rural areas, where we observe lower agricultural activity and investment. Our work illustrates how financial inclusion can accelerate African urbanization and structural change while improving welfare in rural areas.
    Keywords: mobile money, migration, remittances, technology adoption, insurance, consumption smoothing, investment, savings, Mozambique, Africa.
    JEL: O12 O15 O16 O33 G20 R23
    Date: 2021–04
  2. By: Naser Yenus Nuru; Hayelom Yrgaw Gereziher
    Abstract: This study investigates the impacts of public expenditure innovations on exchange rate volatility in South Africa using quarterly data for the period 1970-2019. To achieve this objective, a version of the vector autoregressive impulse response model proposed by Jordà is employed and the innovations are identified recursively. The impulse response functions indicate that public expenditure innovation has a significant depreciating trend impact on exchange rate volatility, and its impact relies on the type of fiscal expenditure innovation.
    Keywords: Public expenditure, Structural VAR, Exchange rate, Volatility, South Africa
    Date: 2021
  3. By: Alhassan A. Karakara (University of Cape Coast, Ghana); Evans S. Osabuohien (CEPDeR, Covenant University, Ota, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon)
    Abstract: Purpose – This paper analyses the extent to which households are deprived (or otherwise) of clean energy sources in Ghana. Design/methodology/approach – It engages the Ghana Demographic and Health Survey data (GDHS VI). Three different energy deprivation indicators were estimated: cooking fuel deprivation, lighting deprivation and indoor air pollution. The empirical evidence is based on logit regressions that explain whether households are deprived or not. Findings – The results show that energy deprivation or access is contingent on the area of residence. Energy access and deprivation in Ghana show some regional disparities, even though across every region, the majority of households use three fuel types: Liquefied Petroleum Gas (LPG), charcoal and wood cut. Increases in wealth and education lead to reduction in the likelihood of being energy deprived. Thus, efforts should be geared towards policies that will ensure households having access to clean fuels to reduce the attendant deprivations and corresponding effects of using dangerous or dirty fuels. Originality/value – This study complements the extant literature by analysing the extent to which households are deprived (or otherwise) of clean energy sources in Ghana.
    Keywords: Energy deprivation, Ghana, Households, Sustainable development
    JEL: O13 P28 Q42
    Date: 2021–01

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