nep-afr New Economics Papers
on Africa
Issue of 2022‒08‒29
five papers chosen by
Sam Sarpong
Xiamen University Malaysia Campus

  1. Labour Market Effects of Digital Matching Platforms: Experimental Evidence from Sub-Saharan Africa By Jones, Sam; Sen, Kunal
  2. E-Money in Ghana: A Case Study By Samuel Senyo Okae; Eugene Yarboi Mensah
  3. How does Agriculture Adapt to Changes in Irrigation Infrastructure? Insights from sub-Saharan Africa. By Lachhab, Rania; Gammans, Matthew
  4. The Comparative Economics of Globalisation and Governance in Sub-Saharan Africa By Simplice A. Asongu; Nicholas M. Odhiambo
  5. Remittances and employment in family-owned firms: Evidence from Nigeria and Uganda By Ainembabazi, John Herbert; Kemeze, Francis H.

  1. By: Jones, Sam (UNU-WIDER); Sen, Kunal (University of Manchester)
    Abstract: Can digital labour market platforms reduce search frictions in formal or informal labour markets? We study this question using a randomized experiment embedded in a tracer study of the work transitions of graduates from technical and vocational colleges in Mozambique. We implement an encouragement design, inviting graduates by SMS to join established digital platforms: Biscate, a site to find freelancers for informal manual tasks; and Emprego, a conventional formal jobs website. In contrast to positive estimates of the contribution of both platforms to job outcomes from naïve (per-treatment) estimates, both intent-to-treat and complier average treatment effects are consistently zero in the full sample, while the impact on life satisfaction is negative. However, use of the informal jobs platform leads to better work outcomes for women, especially those with manual qualifications, for whom earnings rise by over 50%.
    Keywords: digital labour platforms, search frictions, technical and vocational education, unemployment, Mozambique
    JEL: J64 J68 O15
    Date: 2022–06
  2. By: Samuel Senyo Okae (Bank of Ghana); Eugene Yarboi Mensah (Ghana Deposit Protection Corporation)
    Abstract: The usage of electronic money (e-money) for transactions has grown across Ghana and has the potential to revolutionise the cash-dominant economy to become cashless. Propelling this growth are mobile money operators (MMOs), which have developed to offer a specific type of e-money, termed mobile money (MM). With the increased use of mobile-money services and growth in the payment systems sector each day, it is imperative for Ghana to design a holistic approach to the use of e-money as well as consider its operationalisation of the coverage by the deposit insurer. The Ghana Payment Systems Act, 2019 (Act 987) sets out the rules for the issuance of e-money within Ghana and the supervision of the business of e-money institutions (EMIs), which includes MMOs. There are growing concerns about safeguarding client funds held by EMIs worldwide. In Ghana, client funds held by EMIs must be placed in custodial accounts at banks. As a result, it has become necessary for Ghana's deposit insurance system to consider how to protect these funds. Funds backing the electronic value belonging to customers of MMOs are kept in a custodian account which resides with banks and hence the need for these funds to be protected in case of a bank failure is being discussed. This brief describes the distinctions between deposits and e-money and provides a description of the key features of e-money in the Ghanaian context. It discusses the factors influencing the protection of e-money wallets and the float (defined as the cash equivalent of outstanding electronic money liabilities of an electronic money issuer with partner banks) kept with commercial banks. Finally, options to be considered for the possible protection of these wallets in case of bank liquidation are presented.
    Keywords: deposit insurance, bank resolution
    JEL: G21 G33
    Date: 2022–08
  3. By: Lachhab, Rania; Gammans, Matthew
    Keywords: Environmental Economics and Policy, International Development, Research Methods/Statistical Methods
    Date: 2022–08
  4. By: Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa)
    Abstract: This study investigates the effect of globalisation on governance in 40 Sub-Saharan African countries for the period 2000-2019, with particular emphasis on income levels (low income versus middle income), legal origins (English common law versus French civil law), landlockedness (landlocked versus unlandlocked), resource wealth (oil-rich versus oil-poor) and political stability (stable versus unstable). The empirical evidence is based on Fixed Effects in order to control for the unobserved heterogeneity. Political, economic, social, and general globalisation variables are used, while three bundled governance indicators are also employed to assess five main hypotheses. From baseline findings, while all globalization dynamics negatively affect political governance, only political and social globalisation have a negative incidence on economic governance. Social and general globalisation dynamics positively affect institutional governance. The hypotheses that higher income, English common law, unlandlocked, oil poor, and politically-stable countries are associated with higher levels of globalisation-driven governance, are valid, invalid, and partially valid contingent on the globalisation and governance dynamics.
    Keywords: Africa; Governance; Globalization; Panel; Fixed Effects
    JEL: F30 O10 O55
    Date: 2022–01
  5. By: Ainembabazi, John Herbert; Kemeze, Francis H.
    Keywords: Community/Rural/Urban Development, Agribusiness, Research Methods/Statistical Methods
    Date: 2022–08

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