nep-afr New Economics Papers
on Africa
Issue of 2021‒12‒20
six papers chosen by
Sam Sarpong
The University of Mines and Technology

  1. The Heavy Economic Toll of Gender-based Violence: Evidence from Sub-Saharan Africa By Mr. David Stenzel; Rasmane Ouedraogo
  2. Tax Treaties and Enterprise Outcomes: Evidence Across Developing African Countries By Efobi, Uchenna; Adejumo, Oluwabunmi O.
  3. Debt sustainability in Africa: state of play and future challenges By Maxime TERRIEUX; Benoît Jonveaux; Marin Ferry (Université Gustave Eiffel, DIAL)
  4. Sustainability, Growth and Impact of MFIs in Africa By Elikplimi K. Agbloyor; Simplice A. Asongu; Peter Muriu
  5. Post-Covid-19 Recovery and Resilience: Leveraging Reforms for Growth and Inclusion in Sub-Saharan Africa By Mr. Vimal V Thakoor; Mrs. Paola Ganum
  6. Agricultural Export, Growth and the Poor in Africa: A Meta Analysis By David Adeabah; Simplice A. Asongu

  1. By: Mr. David Stenzel; Rasmane Ouedraogo
    Abstract: The COVID-19 pandemic and lockdowns have led to a rise in gender-based violence. In this paper, we explore the economic consequences of violence against women in sub-Saharan Africa using large demographic and health survey data collected pre-pandemic. Relying on a two-stage least square method to address endogeneity, we find that an increase in the share of women subject to violence by 1 percentage point can reduce economic activities (as proxied by nightlights) by up to 8 percent. This economic cost results from a significant drop in female employment. Our results also show that violence against women is more detrimental to economic development in countries without protective laws against domestic violence, in natural resource rich countries, in countries where women are deprived of decision-making power and during economic downturns. Beyond the moral imperative, the findings highlight the importance of combating violence against women from an economic standpoint, particularly by reinforcing laws against domestic violence and strengthening women’s decision-making power.
    Keywords: Gender-based violence, economic development, sub-Saharan Africa
    Date: 2021–11–19
  2. By: Efobi, Uchenna; Adejumo, Oluwabunmi O.
    Abstract: Studies have noted the possibility of tax treaties constraining the tax policy autonomy of developing countries, while their impact on enterprise development within host economies remains an empirical issue. This study examines the effects and heterogeneous differences in estimated effects of tax treaties on small businesses in developing countries that agree to these agreements. The study uses the ICTD tax treaties dataset and the World Bank Enterprise Survey data to set up a quasi-experiment framework for selected African Countries. The framework compares countries’ outcomes for small businesses that ratify and enforce a tax treaty and those without a ratified tax treaty for the years pre-2005–2010 and post-2011–2019). We find that tax treaties signed and enforced by developing countries in Africa have a consistent, negative relationship with small business outcomes. These results are driven by the enterprise’s size and internationalisation status but not by the subsidiary status of the sampled small businesses. The findings have implications for policy targeted towards industrial development alongside tax treaty negotiations.
    Keywords: Governance,
    Date: 2021
  3. By: Maxime TERRIEUX; Benoît Jonveaux; Marin Ferry (Université Gustave Eiffel, DIAL)
    Abstract: Almost fifteen years after the last debt relief initiatives were implemented by the international community, some African countries have either recently defaulted on their public debt, subscribed to the Debt Service Suspension Initiative (DSSI) put in place by official lenders in 2020, or are making progress toward a possible restructuring of their debt under the aegis of the G20 and of the Paris Club, but also of so-called “emerging” and private creditors. All of this seems to validate the widespread idea that there is a new debt crisis in Africa.
    Keywords: Afrique
    JEL: E
    Date: 2021–12–09
  4. By: Elikplimi K. Agbloyor (University of Ghana, Legon, Ghana); Simplice A. Asongu (Yaoundé, Cameroon); Peter Muriu (University of Nairobi, Kenya)
    Abstract: This study provides insights into the sustainability of microfinance institutions (MFIs) in Africa with specific emphasis on documented measures of MFI sustainability, stylized facts surrounding the phenomenon, perspectives on the growth of MFIs, determinants of the growth of MFIs and the impact of MFIs.
    Keywords: Sustainability; Growth; MFIs; Africa
    Date: 2021–08
  5. By: Mr. Vimal V Thakoor; Mrs. Paola Ganum
    Abstract: Covid-19 has exacerbated economic and social vulnerabilities across Sub-Saharan Africa (SSA). There is a risk that growth could be lower for longer, with a setback to development. Post-pandemic reforms thus become even more important, especially with constrained scope for fiscal and monetary stimuli. Reforms could boost per capita growth by an additional 0.3-1.3 percentage points, relative to the 1.9 percent average since 2010. Such growth would reduce per capita income doubling time from 37 years to about 22 years. Low-income countries stand to gain the most from reforms. The largest gains come from governance, products markets, and factor accumulation. Importantly, these reforms can be implemented in the post-pandemic environment characterized by weaker social and distributional outcomes.
    Keywords: COVID-19;Growth;Development;Political Economy;Sub-Saharan Africa.;WP;product market reform;labor market market index;demand management;per capita income;frontier country;governance reform;labor market indicator;labor market rigidity;product market efficiency;SSA countries' performance;SSA economy
    Date: 2021–02–19
  6. By: David Adeabah (Legon, Ghana); Simplice A. Asongu (Yaoundé, Cameroon)
    Abstract: Over the past decade, a growing number of studies have examined the role of agricultural export in economic growth in Africa. The literature, however, provides conflicting results about the agricultural export-led growth hypothesis. In this study, we aim to examine the impact of agricultural export on economic growth by performing a meta-analysis. Our meta-analysis finds significant presence of negative publication bias in the literature. Using mixed-effect multilevel meta-regression, we find that after correction for publication bias, the average agricultural export elasticity to economic growth is 0.763 for the poor in Africa. Interestingly, agricultural export is growth for the rich in Africa, although the elasticity of GDP is 0.043. These results are consistent with the agricultural export-led growth hypothesis. The implication is that export promotion should be targeted at agricultural output in low-income and lower middle-income countries whereas upper middle-income countries in Africa may focus on non-agricultural export.
    Keywords: Africa; export-led growth; agricultural export; meta-analysis
    JEL: C10 C40 I30 N50 O55
    Date: 2021–11

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