nep-afr New Economics Papers
on Africa
Issue of 2023‒01‒02
five papers chosen by
Sam Sarpong
Xiamen University Malaysia Campus

  1. In Gravity no Veritas: Dubious Trade Elasticity and Weak Effects of Regional Trade Agreements in Africa By Fabien Candau; G Guepie; R Kouakou
  2. Liberation Technology? The Impact of Broadband Internet on Mass Mobilization in Sub-Saharan Africa By Guiffard, Jean-Baptiste
  3. Foreign Direct Investment and Inclusive Green Growth in Africa: Energy Efficiency Contingencies and Thresholds By Ofori, Isaac K.; Gbolonyo, Emmanuel Y.; Ojong, Nathanael
  4. Electric Vehicles Market and Policy Conditions: Identifying South African Policy ``Potholes" By Jacobus Nel; Roula Inglesi-Lotz
  5. Does Khat Consumption Affect Work Performance ? A Micro-Perspective from Djibouti By Mohamed Abdallah Ali; Mazhar Mughal; Charles Kodjo Mawusi

  1. 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); G Guepie (UNECA - United Nations Economic Commission for Africa - United Nations); R Kouakou (Université Alassane Ouattara)
    Abstract: This article puts into question the use of the gravity equation to analyze Regional Trade Agreements (RTAs) in Africa. By surveying the field qualitatively and quantitatively (via a meta-analysis) and by leading our own estimations (with bilateral fixed effects, exporter-time and importer-time effects) on different trade flow databases (UN COMTRADE, DOTS and BACI), we find that the RTAs elasticity of trade in Africa are unreliable due to their unrealistic high level. By introducing intranational trade and bilateral trends into the regression specification, we show that the coefficient of RTAs in Africa are either not significant or drastically reduced. Only COMESA is still significant. We then use a simple general equilibrium model to compare the results obtained with these new elasticities regarding the terms of trade and welfare for members of the COMESA. We find strong trade creation effects that are largely compensated by trade diversion. The welfare gain of COMESA is for most members very low (less than 0.2% of growth).
    Date: 2021–10–12
  2. By: Guiffard, Jean-Baptiste
    Abstract: I use the gradual arrival of submarine Internet cables on the coast and the route of the backbone cables network to demonstrate how high-speed Internet (fixed and mobile jointly considered) has an impact on political mobilization in Africa. I obtained robust difference-indifferences estimates using Afrobarometer data from ten countries, which reveal a positive effect on the likelihood of participating in a protest. Since having access to high-speed Internet allows access to social networks and other content, two mechanisms are explored to explain this positive impact: information and coordination channels. The main explanatory channel appears to be the enhanced coordination.
    Keywords: Governance,Development,Political Mobilization,Telecom,High-speed Internet,Sub-Saharan Africa
    Date: 2022
  3. By: Ofori, Isaac K.; Gbolonyo, Emmanuel Y.; Ojong, Nathanael
    Abstract: Despite the growing number of empirical studies on foreign direct investment (FDI) and energy efficiency (EE) as they relate to green growth, there remains an empirical research gap with respect to whether EE can engender positive synergy with FDI to foster inclusive green growth (IGG) in Africa. Also, little has been done to show the IGG gains from improving EE in both the short and long terms. Thus, this paper aims to investigate whether there exists a relevant synergy between EE and FDI in fostering IGG in Africa by using macrodata for 23 countries from 2000 to 2020. According to our findings, which are based on dynamic GMM estimator, FDI hampers IGG in Africa, while EE fosters IGG. Notably, in the presence of EE, the environmental-quality-deterioration effect of FDI is reduced. Additional evidence by way of threshold analysis indicates that improving EE in Africa generates positive sustainable development gains in both the short and long terms. This study suggests that a country’s drive to attract FDI needs to be accompanied by appropriate policy options to promote energy efficiency.
    Keywords: Africa; Energy efficiency; FDI; Inclusive Green Growth; Greenhouse Gases; Environmental Sustainability
    JEL: F2 F21 O11 O44 O55 Q01 Q43 Q56
    Date: 2022–07–17
  4. By: Jacobus Nel (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Roula Inglesi-Lotz (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa)
    Abstract: This study investigates the policy environment, specifically the policy ``potholes" (shortcomings), in South Africa and provides policy recommendations to accelerate electric vehicle (EV) adoption in the country. The EV markets in South Africa and Europe in a novel way, to add to the depth of the analysis and associated recommendations. To accomplish this, EV sales are forecasted by fitting an S-curve to the available sales data and assuming a 40 percent market share in 2050. Secondly, the number of years the South African EV market is lagging behind Europe's is estimated, both dynamically and statically. We make policy recommendations in the wake of a detailed analysis of the literature on the effects of policy intervention on EV adoption, the evaluation of the current policy environment, and the comparison. A supply-side policy might be best suited for the country's political environment.
    Keywords: electric vehicles in developing countries, market comparison, policy analysis, forecasting technology adoption
    JEL: P25 R41 D78 G18
    Date: 2022–12
  5. By: Mohamed Abdallah Ali (TREE - Transitions Energétiques et Environnementales - UPPA - Université de Pau et des Pays de l'Adour - CNRS - Centre National de la Recherche Scientifique, IRMAPE - Institut de Recherche en Management et Pays Emergents - ESC PAU - Ecole Supérieure de Commerce, Pau Business School); Mazhar Mughal (ESC PAU - Ecole Supérieure de Commerce, Pau Business School); Charles Kodjo Mawusi (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Khat consumption has become a widespread habit with immense socioeconomic and cultural significance in Djibouti. As a cash crop, its production provides an important source of employment and income. Yet, its widespread consumption is of grave concern to policymakers. While the poor health implications of Khat use are well established, its impact particularly on the labor market remains relatively unknown. The present study, therefore, seeks to investigate the relationship between khat consumption and work performance using data comprising, 737 chewers and non-chewers based in six major urban centers of Djibouti. Using an instrumental variable identification strategy, and several econometric techniques, we find a negative and statistically significant relationship between the habitual use of Khat and work performance. The result is robust across all specification, econometric techniques, and even after accounting for the differences across income groups and educational levels. Our findings underscore the need for community sensitization on the negative labor market implications of khat use.
    Keywords: Instrumental approach,Work performance,Khat,Djibouti
    Date: 2021–10–13

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