nep-afr New Economics Papers
on Africa
Issue of 2021‒07‒26
five papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. Promoting environmental sustainability in the artisanal and small-scale mining sector in Tanzania By Abel Kinyondo; Chris Huggins
  2. Digital technology and productivity of informal enterprises: Empirical evidence from Nigeria By Michael Danquah; Solomon Owusu
  3. Beyond the Income Effect of International Trade on Ethnic Wars in Africa By Fabien Candau; T Gbandi; G Guepie
  4. Africa's female entrepreneurs: Towards funding success By Hanley, Aoife; Görg, Holger; Hornok, Cecília; Ackah, Charles Godfred
  5. Reinvest the relationship between exports and economic growth in African countries: New insights from innovative econometric methods By Bakari, Sayef

  1. By: Abel Kinyondo; Chris Huggins
    Abstract: This study examines the interaction between formalization of the artisanal and small-scale mining subsector and the regulation of negative environmental impacts in Tanzania. Formalization generally seeks to move the artisanal and small-scale mining subsector to legal status. Using documents, reviews, and interviews with key informants, the study suggests that there is generally no automatic connection between formalization of artisanal and small-scale mining and improvement of environmental protection in Tanzania.
    Keywords: Formalization, Small-scale mining, Coordination incentives, Environmental enforcement, Tanzania, Sustainability
    Date: 2021
  2. By: Michael Danquah; Solomon Owusu
    Abstract: The lingering policy dilemma facing many governments in sub-Saharan Africa in recent years is what can be done in the short to medium term to boost the output and incomes of individuals and enterprises in the informal sector, given the size and persistence of the sector in the region. In this paper we examine the structural impact of access and usage of digital technology by informal enterprises on labour productivity. Using a sample of non-farm informal enterprises in Nigeria, we employ IV LASSO techniques to carry out our analysis.
    Keywords: Information technology, Informal sector, Productivity, Instrumental variable, Regression analysis, Nigeria
    Date: 2021
  3. By: Fabien Candau (TREE - Transitions Energétiques et Environnementales - UPPA - Université de Pau et des Pays de l'Adour - CNRS - Centre National de la Recherche Scientifique); T Gbandi (TREE - Transitions Energétiques et Environnementales - UPPA - Université de Pau et des Pays de l'Adour - CNRS - Centre National de la Recherche Scientifique); G Guepie (UNECA - United Nations Economic Commission for Africa - United Nations)
    Abstract: We use detailed information on the location of agricultural and mining production to approximate international trade for different ethnic groups in order to study its impact on ethnic conflicts in Africa between 1993 and 2010. The goal is to go beyond the income effects of trade to study the residual effects of globalization on conflicts. We find that once we control for income but also for a wide variety of different factors in conflicts (using political variables and fixed effects), the international trade by ethnic groups has a pacific impact on conflicts. While this peaceful impact of trade is mainly found in the trade in agricultural products, it does not have a significant impact in the international trade in mining products. Finally, we propose an original two-step analysis showing that exports significantly reduce conflicts by affecting time-varying national characteristics. We interpret this result as an indication that globalization in Africa has participated in the formation of new national identities with peaceful effects between ethnic groups.
    Keywords: Ethnic Wars,Regional Trade,Globalization,National Identity,Africa
    Date: 2021–06–18
  4. By: Hanley, Aoife; Görg, Holger; Hornok, Cecília; Ackah, Charles Godfred
    Abstract: Opportunities for well-paid employment for women are scarce in many African countries. Entrepreneurship is therefore one way in which women can earn a decent livelihood for themselves and their families. Despite the potential opportunities arising from entrepreneurship, the possibilities are often not fully exploited. Female entrepreneurs in the developing world are severely underperforming. In this PEGNet Policy Brief 'Africa's Female Entrepreneurs - Towards Funding Success' by Aoife Hanley, Holger Görg, Cecilia Hornok and Charles Ackah, the authors examine the scale of the gender productivity gap in African countries and how finance constraints underpin this gap.
    Date: 2021
  5. By: Bakari, Sayef
    Abstract: This research examined the relationship between exports and economic growth in Africa. It employed many innovation econometric methods including Panel FMOLS and DOLS Estimates; Panel VECM; Panel ARDL Model; Pooled OLS, Random Effect Model, Fixed Effect Model and Hausman Test; Panel Pairwise Granger Causality Tests; Panel Toda-Yamamoto Causality Test; and Panel GMM Model. The findings suggested that the estimates of each model prove that there is a positive bidirectionnel relationship between exports and economic growth. Data includes 49 African countries for the period 1960–2018. These empirical results have some notable policy implications.
    Keywords: Exports, Economic Growth, Innovative Econometric Methods, African countries
    JEL: F0 F1 F10 F13 F14 O4 O47 O55
    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.
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.