nep-afr New Economics Papers
on Africa
Issue of 2021‒11‒22
seven papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. The African Continental Free Trade Area: Trading Africa into Sustainability? By Janssens, Charlotte; Havlik, Petr; Boere, Esther; Palazzo, Amanda; Mosnier, Aline; Maertens, Miet
  2. Intergenerational Social Mobility in Africa Since 1920 By Rasmane Ouedraogo; Nicolas Syrichas
  3. The effect of fiscal drag on income distribution and work incentives: A microsimulation analysis on selected African countries By Adnan Abdulaziz Shahir; Francesco Figari
  4. Can Smallholder Farmers Benefit from Mechanization in Sub-Saharan Africa? Evidence from Rice Farming in Tanzania By Nakano, Yuko; Magezi, Francis; Sakurai, Takeshi
  5. An assessment of presumptive tax in Uganda: Evaluating the 2020 reform and four alternative reform scenarios using UGAMOD, a tax-benefit microsimulation model for Uganda By Ronald Waiswa; Jesse Lastunen; Gemma Wright; Michael Noble; Joseph Okello Ayo; Milly Isingoma Nalukwago; Tina Kaidu Barugahara; Susan Kavuma; Isaac Arinaitwe; Martin Mwesigye; Wilson Asiimwe; Pia Rattenhuber
  6. Hungry hosts? Refugee camps and host community nutritional outcomes in subSaharan Africa By Anti, Sebastian; Salemi, Colette
  7. The Synergy between Governance and Economic Integration in Promoting Female Economic Inclusion in Sub-Saharan Africa By Pamela E. Ofori; Simplice A. Asongu; Vanessa S. Tchamyou

  1. By: Janssens, Charlotte; Havlik, Petr; Boere, Esther; Palazzo, Amanda; Mosnier, Aline; Maertens, Miet
    Keywords: International Relations/Trade, International Development
    Date: 2021–08
  2. By: Rasmane Ouedraogo; Nicolas Syrichas
    Abstract: The COVID-19 crisis has a severe impact on education and employment and exposed the many social inequities that make some populations more vulnerable to shocks. Despite a vast literature on social mobility in advanced economies, little is known about it in African countries, mainly due to data limitations. Using a large harmonized dataset of more than 72 million individuals, we fill this gap and examine socioeconomic status mobility across generations, measured by educational and occupational attainment. We uncover the substantial geographical variations in the degree of upward/downward educational and occupational mobility across and within African countries, and the gender and rural/urban divide. Additionally, we explore the determinants of social mobility in the African region. We find that social mobility on the continent could be partly explained by observable individual characteristics (gender, marital status, age, etc.), and that educational mobility is a driver of occupational mobility. Lastly, we show that the quality of institutions, the level of public spending on education, social protection coverage, natural resource endowments, and countries' fragility are strong predictors of social mobility in Africa.
    Keywords: intergenerational mobility; occupational mobility; social mobility; educational mobility; socioeconomic status mobility; Africa
    Date: 2021–08–06
  3. By: Adnan Abdulaziz Shahir; Francesco Figari
    Abstract: Although the effect of fiscal drag is well studied in the industrialized world, empirical evidence from developing economies remains limited. Against this backdrop, this study aims to explore the effect of fiscal drag on income distribution and work incentives. To this end, the study employs SOUTHMOD, the tax-benefit microsimulation model, for six African countries: Ethiopia, South Africa, Tanzania, Uganda, Mozambique, and Zambia. Three important conclusions are drawn from our empirical investigation.
    Keywords: Inflation, Income tax, Fiscal drag, Fiscal redistribution, Africa, Microsimulation, Income distribution
    Date: 2021
  4. By: Nakano, Yuko; Magezi, Francis; Sakurai, Takeshi
    Keywords: Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies
    Date: 2021–08
  5. By: Ronald Waiswa; Jesse Lastunen; Gemma Wright; Michael Noble; Joseph Okello Ayo; Milly Isingoma Nalukwago; Tina Kaidu Barugahara; Susan Kavuma; Isaac Arinaitwe; Martin Mwesigye; Wilson Asiimwe; Pia Rattenhuber
    Abstract: Presumptive tax, a final tax on business income, was introduced in Uganda in 1997. The latest reform to the regime in July 2020 sought to make the system more progressive, simpler, and fairer to small firms. In this work, we evaluate the reform, focusing on its revenue implications based on simulations using UGAMOD, a tax-benefit microsimulation model for Uganda. Our findings suggest that, assuming full compliance, the reform reduces tax revenue potential by between 48-72 per cent from the previous rules.
    Keywords: presumptive tax, Tax administration, Small business, Tax compliance, Impact evaluation, Microsimulation modelling
    Date: 2021
  6. By: Anti, Sebastian; Salemi, Colette
    Abstract: We examine nutritional outcomes in host communities exposed to refugee camps within a multi-country difference-in-differences framework across sub-Saharan Africa (SSA). Our study uses new spatially explicit data on refugee camps in SSA merged with the Demographic and Health Surveys to estimate the cross-country average treatment effect of camps. To test against bias in the coefficients of interest under staggered treatment timing, we use a diagnostic test to evaluate treatment effect homogeneity. We find that being within 10 kilometers of a camp decreases children’s weight-for-age z-scores by 10 percent of the sample mean. Children with married household heads experience improved nutrition outcomes near camps. We consider adult loss of employment and worsening child health as explanatory mechanisms: we find no significant evidence of worsening child health or a reduction in employment opportunities. We argue that rising child malnutrition among hosts is due to the changing composition of the host population or to price shocks under localized price dispersal.
    Keywords: Food Security and Poverty
    Date: 2021
  7. By: Pamela E. Ofori (University of Insubria, Varese, Italy); Simplice A. Asongu (Yaoundé, Cameroon); Vanessa S. Tchamyou (Yaoundé, Cameroon)
    Abstract: The debate on the need for Sub-Saharan African (SSA) countries to increase female participation in the economic sector has intensified the coming into force of the African Continental Free Trade Area (AfCFTA) and good governance. This study investigates the joint effects of governance (comprising of political, economic and institutional governance) and economic integration on female economic participation in sub-Saharan Africa (SSA). The study employs panel data of 42 countries in SSA spanning 1996-2020 for the analysis. The empirical strategy uses the dynamic System Generalized Method of Moments (SGMM) estimation technique. The findings reveal that the single effect of economic integration on female economic participation is necessary but not sufficient. Hence, complementing economic integration with good governance further enhances female economic participation in SSA. In general, the joint effect of economic integration and good governance should be a concern for policymakers to promote female economic inclusion.
    Keywords: economic integration; governance; female economic participation; sub-Saharan Africa
    JEL: G20 I10 I32 O40 O55
    Date: 2021–10

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