nep-afr New Economics Papers
on Africa
Issue of 2022‒10‒17
four papers chosen by
Sam Sarpong
Xiamen University Malaysia Campus

  1. Fintech in sub-Saharan Africa By Njuguna Ndung'u
  2. Climate Change and Agricultural Productivity in West Africa By Chimere O. Iheonu; Simplice A. Asongu; Ekene T. Emeka; Ebuka C. Orjiakor
  3. Can Information and Alternatives to Irregular Migration Reduce “Backway” Migration from The Gambia? By Tijan L. Bah; Catia Batista; Flore Gubert; David McKenzie
  4. Does E-governance reduce income inequality in sub-Saharan Africa? Evidence from a dynamic panel By Toyo Amègnonna Marcel Dossou; Emmanuelle Ndomandji Kambaye; Mesfin Welderufael Berhe; Simplice A. Asongu

  1. By: Njuguna Ndung'u
    Abstract: This paper traces the development of fintech in sub-Saharan Africa, its evolution over time, and the unfolding benefits attained at each stage of its adoption and market evolution. From the onset, fintechs have revolutionized retail electronic payment systems—a revolution that has evolved into a technological platform to manage micro-savers' accounts, virtual savings and credit systems, public financial management, and cross-border remittances, and has led to the adoption of new monetary policy frameworks.
    Keywords: Fintech, Financial inclusion, Saving, Technology, Sub-Saharan Africa
    Date: 2022
  2. By: Chimere O. Iheonu (Research Analyst, Kwakol, Abuja, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon); Ekene T. Emeka (University of Nigeria, Nsukka, Nigeria); Ebuka C. Orjiakor (University of Nigeria, Nsukka, Nigeria)
    Abstract: Agriculture remains one of the major sources of livelihood in West Africa. The sector accounts for a significant share of output and employment in the sub-region. However, extreme weather events have been signaled to affect the sector’s productivity in recent times. In this study, we investigate the heterogeneous long-run relationship between climate change and agricultural productivity in West Africa from 1990 to 2020. Using the Augmented Mean Group (AMG) and the Common Correlated Effect Mean Group (CCEMG) estimators, we show that rising temperatures significantly reduce agricultural productivity in Gambia, Mali, Niger, and Togo. However, after accounting for endogeneity, we find that the negative relationship between temperature and agricultural productivity becomes insignificant for Niger while the positive relationship between rising temperature and agricultural productivity becomes significant for Ghana. Also, the results show that temperature Granger cause agricultural productivity in West Africa. We discussed some policy implications based on these findings.
    Keywords: Climate Change, Temperature, Agricultural Productivity, West Africa, Augmented Mean Group, Common Correlated Effect Mean Group
    Date: 2022–01
  3. By: Tijan L. Bah; Catia Batista; Flore Gubert; David McKenzie
    Abstract: Irregular migration from West Africa to Europe across the Sahara and Mediterranean is extremely risky for migrants and a key policy concern. A cluster-randomized experiment with 3,641 young men from 391 settlements in The Gambia is used to test three approaches to reducing risky migration: providing better information and testimonials about the risks of the journey, facilitating migration to a safer destination by providing information and assistance for migration to Dakar, and offering vocational skill training to enhance domestic employment opportunities. Current migration to Senegal was increased by both the Dakar facilitation and vocational training treatments, partially crowding out internal migration. The vocational training treatment reduced intentions to migrate the backway and the number of steps taken toward moving. However, the backway migration rate from The Gambia collapsed, even in the control group, resulting in no space for a treatment effect on irregular migration from any of the three interventions.
    Keywords: Irregular migration, Migration deterrence, Information interventions, Vocational training, Cash transfer, Randomized experiment
    JEL: O15 F22 J61
    Date: 2022
  4. By: Toyo Amègnonna Marcel Dossou (Chengdu, China.); Emmanuelle Ndomandji Kambaye (Chengdu, China.); Mesfin Welderufael Berhe (Chengdu, China.); Simplice A. Asongu (Yaoundé, Cameroon)
    Abstract: The ICT-income inequality relationship and the governance quality-income inequality nexus have been investigated in recent years. However, the moderating effect of ICT on the governance quality-income inequality linkage has been largely ignored. To fill this gap in the literature, this study examines the moderating effect of ICT on the relationship between governance quality and income inequality for a panel of 42 sub-Saharan African economies over the period 1996-2020. To achieve this goal, the generalized method of moments (GMM) estimation technique has been adopted. The results reveal that while ICT contributes to the improvement of income distribution, governance quality contributes to the exacerbation of income inequality. Interestingly, the results unveil that the promotion of E-governance could contribute to improve social welfare and reduce income inequality. ICT thresholds at which the positive incidence of governance on income inequality is completely nullified is for governance effectiveness and 19.7 for regulatory quality. Policy implications are given based on the findings of this study.
    Keywords: ICT, governance quality, income inequality, GMM, sub-Saharan Africa
    Date: 2022–01

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