nep-afr New Economics Papers
on Africa
Issue of 2021‒06‒28
six papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Economic growth and Co2 emissions: Evidence from heterogeneous panel of African countries using bootstrap Granger causality By Espoir, Delphin Kamanda; Sunge, Regret; Bannor, Frank
  2. African regional integration: A problem-driven approach to delivering regional public goods By Bruce Byiers; Antoine Cazals; Alfonso Medinilla; Jaime de Melo
  3. Infrastructure development as a prerequisite for structural change in Africa By Yselle F. Malah Kuete; Simplice A. Asongu
  4. Corporate taxation and firm-level investment in South Africa By Mashekwa Maboshe
  5. Human Rights in Sub Saharan Africa: Understanding the Influence of Militarization, Governance and Democracy By Chimere O. Iheonu; Shedrach A. Agbutun; Chinedum J. Chiemela
  6. Women’s voices in civil society organizations: Evidence from a civil society mapping project in Mali By Bleck, Jaimie; Gottlieb, Jessica; Kosec, Katrina; Boss, Lindsey

  1. By: Espoir, Delphin Kamanda; Sunge, Regret; Bannor, Frank
    Abstract: The relationship between economic growth and environmental pollution continues to attract undying research interest. While existing studies focused on examining the relationship from growth to pollution or pollution to growth, research on the causal relationship between the two variables is still lacking. This study examined the causal relationship between growth and Co2 emissions across 47 African countries using annual panel data from 1995-2016. Unlike other studies in Africa, the uniqueness of this paper is that we employed the methodology developed by Emirmahmutoğlu and Kose (2011), which considers cross-sectional dependence and slope heterogeneity. The empirical results of the study are as follows: (1) the analysis underpinned a bidirectional causal relationship between growth and Co2 emissions in three countries (Burkina Faso, Mauritania, and the Congo Republic), (2) a unidirectional relationship running from growth to Co2 emissions in seven countries (Niger, Sierra Leone, Angola, Mauritius, Mozambique, Uganda, and Kenya), and (3) a unidirectional relationship running from Co2 emissions to growth in nine countries (Lesotho, Namibia, Tanzania, Egypt, Libya, Chad, Ethiopia, Gabon, and Central African Republic (CAR). The results also suggested the neutrality hypothesis for the rest of the countries that were not part of these three groups. Henceforth, we provided policy implications based on the four groups’ results.
    Keywords: Economic development,Environmental pollution,Cross sectional dependence,Heterogeneity,Granger Causality,Africa
    JEL: Q53 Q54 Q56
    Date: 2021
  2. By: Bruce Byiers (ECDPM - European Centre for Development Policy Management); Antoine Cazals (Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres, DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Alfonso Medinilla (ECDPM - European Centre for Development Policy Management); Jaime de Melo (FERDI - Fondation pour les Etudes et Recherches sur le Développement International, University of Geneva [Switzerland])
    Abstract: Africa is well endowed with organizations to promote regional cooperation and integration. It has 8 African Union (AU)-recognized regional economic communities (RECs), 7 other economic organizations and 25 specialized regional organizations (ROs). On average each country is member of 3 RECs and 4 other ROs. The number of continental treaties signed by African Union member states has accelerated over the last four decades. At the same time, progress on ratifying and implementing these and their regional equivalents is slow, undermining their impacts. This has led to calls to rationalize memberships. At its 50th anniversary in 2013, the AU launched the 50year AU2063 programme, "The Africa we want, " with 15 flagship projects, heralding a renewed push towards continent-wide projects.
    Keywords: Public goods,Regional public goods,Cooperation,Regional cooperation
    Date: 2021–05–28
  3. By: Yselle F. Malah Kuete (University of Yaoundé 2, SOA, P.O. Box 1365); Simplice A. Asongu (Yaoundé, Cameroon)
    Abstract: Structural change is seen by development economics theorists as a driver of sustained and sustainable economic growth. African countries that have understood this prioritize structural change policies in their national development programs in order to reduce poverty and promote employment through commodity-based industrialization. How does infrastructure development contribute to this process? The purpose of this paper is to answer this question by examining empirically whether the state of infrastructure development in Africa stimulates structural change, understood as the development of the manufacturing sector. After outlining the state of infrastructure quality in the region, and discussing some theoretical channels through which this relationship might pass, we estimate fixed effects models from 52 African countries over the period 2003-2018. Results which are robust to controlling for institutional dynamics and the natural resource curse hypothesis suggest that structural change in Africa is optimized with the development of infrastructure, particularly energy and information and communication technologies. Among other policy implications arising from these findings, the establishment of partnership projects with other developed countries in terms of superstructure for enhanced industrialization is recommended.
    Keywords: Infrastructure development, structural change, manufacturing sector, Africa
    JEL: N67 N77 C23
    Date: 2021–06
  4. By: Mashekwa Maboshe
    Abstract: This paper investigates the responsiveness of firm-level investment to corporate tax changes in South Africa over the period 1999 to 2012. The study exploits rare changes in corporate tax policy to assess the responsiveness of firm-level investment among Johannesburg Stock Exchange listed non-financial firms. Our estimation of a neoclassical investment model using GMM techniques shows that although changes in corporate tax policy reduced the tax-adjusted marginal cost of capital over time, the reductions did not translate into significant investments in fixed assets. We speculate that the well-documented financial frictions in the capital markets could explain the failure of neoclassical investment theory in South Africa. Our findings are similar to those in other developing countries and crucially suggest that investment policies should look beyond the use of corporate tax incentives.
    Keywords: corporate taxation, capital investment, user cost of capital
    JEL: E22 H32 C23
    Date: 2021–06
  5. By: Chimere O. Iheonu (Abuja, Nigeria); Shedrach A. Agbutun (University of Nigeria, Nsukka, Nigeria); Chinedum J. Chiemela (University of Nigeria, Nsukka, Nigeria)
    Abstract: This study provides empirical evidence on the impact of militarization, governance, and democracy on human rights in sub-Saharan Africa (SSA) for the period 2002 to 2018. The study employed the instrumental variable Fixed Effects model to account for simultaneity/reverse causality, and unobservable heterogeneity as well as the instrumental variable quantile regression with Fixed Effects to account for existing levels of human rights in SSA. Based on the Fixed Effects results, it is revealed that militarization significantly increases human rights violation in the region, while governance and democracy significantly improve human rights. Results from the quantile regression show that (1) the negative impact of militarization on human rights is observable across all quantiles, (2) the positive impact of the control of corruption on human rights is more pronounced in countries where the existing level of human rights is high, while political stability and rule of law exerts stronger impact on human rights in countries where the existing level of human rights is low, (3) the positive impact of democracy on human rights is stronger in countries where the existing level of human rights is high. Policy recommendations based on these findings are discussed.
    Keywords: Human Rights; Militarization; Governance; Democracy; Sub-Saharan Africa
    JEL: C21 C23 K38
    Date: 2021–01
  6. By: Bleck, Jaimie; Gottlieb, Jessica; Kosec, Katrina; Boss, Lindsey
    Abstract: Tremendous optimism prevails around bottomup accountability — a situation in which citizens effectively hold their government to account. This contrasts with top-down accountability, whereby higher tiers of governments, donors, or nongovernmental organizations (NGOs) fulfill this role by restraining, monitoring, and rewarding or sanctioning government. Bottom-up accountability can involve direct citizen participation (often involving efforts to provide them information, voice, and involvement in policymaking) or can be mediated through civil society organizations (CSOs) that monitor and potentially reward or sanction government. A large variety of different types of CSOs exist, distinguished both by their organizational purpose and the composition of their membership, possibly with different willingness and ability to hold government accountable.
    Keywords: MALI; WEST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; gender; women; civil society organizations; civil society; organizations; social participation; community involvement
    Date: 2021

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.
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