nep-afr New Economics Papers
on Africa
Issue of 2023‒02‒13
six papers chosen by
Sam Sarpong
Xiamen University Malaysia Campus

  1. The effectiveness of social protection in five African countries through normal times and times of crisis By Katrin Gasior; Iva V. Tasseva; Gemma Wright
  2. Financial Liberalization, Institutional Quality and Economic Growth Nexus: Panel Analysis of African Countries By Ali, Amjad
  3. Mineral resources and the salience of ethnic identities By Nicolas Berman; Mathieu Couttenier; Victoire Girard
  4. Climate Shocks and Domestic Conflicts in Africa By Rene Tapsoba; Yoro Diallo
  5. Determinants of interest in eNaira and financial inclusion information in Nigeria: role of Fintech, cryptocurrency and central bank digital currency By Ozili, Peterson K
  6. Private sector promotion of climate-smart technologies: Experimental evidence from Nigeria By Liverpool-Tasie, Lenis Saweda; Dillon, Andrew; Bloem, Jeffrey R.; Adjognon, Guigonan Serge

  1. By: Katrin Gasior; Iva V. Tasseva; Gemma Wright
    Abstract: We study the effectiveness of social protection benefits in reducing income and consumption poverty in five sub-Saharan African countries—Ghana, Mozambique, Tanzania, Uganda, and Zambia—in normal times and times of widespread economic crisis. Using tax-benefit microsimulation models with representative household survey data, first we estimate the coverage of benefits and their poverty-reducing effects in each country.
    Keywords: Income, Poverty and consumption, Social protection, Benefits, Automatic stabilizers, Crisis
    Date: 2022
  2. By: Ali, Amjad
    Abstract: The present article has investigated the impact of financial liberalization and institutional quality on economic growth in Africa from 1996 to 2021. The estimated results of the study show that the availability of physical capital, total labor force participation, political stability, and effectiveness of the government have a positive and significant impact on the economic growth of the selected countries. The availability of physical capital and total labor force participation have a bidirectional causal relationship with economic growth. Financial liberalization has an insignificant impact on the economic growth of African countries. The study recommends that to enhance economic growth in Africa, the governments of the African countries should manage physical capital, raise the number of skilled labor force participation and promote institutional quality at the same time. Moreover, to get the true benefit of financial liberalization, African nations should control the negative effect of financial liberalization so that this economic growth can be achieved.
    Keywords: financial liberalization, economic growth, political stability, government effectiveness
    JEL: D72 F60 G18 O40
    Date: 2022
  3. By: Nicolas Berman (Aix-Marseille Univ, CNRS, EHESS, AMSE, Marseille, France.); Mathieu Couttenier (University of Lyon, ENS Lyon, GATE Lyon/St-Etienne and CEPR); Victoire Girard (NOVAFRICA, Nova School of Business and Economics, Universidade NOVA de Lisboa, and LEO, Univ. Orleans.)
    Abstract: This paper shows how ethnic identities may become more salient due to natural resources extraction. We combine individual data on the strength of ethnic-relative to national-identities with geo-localized information on the contours of ethnic homelands and on the timing and location of mineral resources exploitation in 25 African countries, from 2005 to 2015. Our strategy takes advantage of several dimensions of exposure to resources exploitation: time, spatial proximity, and ethnic proximity. We find that the strength of an ethnic group identity increases when mineral resource exploitation in that group's historical homeland intensifies. We argue that this result is at least partly rooted in feelings of relative deprivation associated with the exploitation of the resources. We show that such exploitation has limited positive economic spillovers, especially for members of the indigenous ethnic group; and that the link between mineral resources and the salience of ethnic identities is reinforced among members of powerless ethnic groups, and groups with strong baseline identity feelings or living in poorer areas, or areas with a history of conflict. Put together, these finding suggest a new dimension of the natural resource curse: the fragmentation of identities, between ethnic groups and nations.
    Keywords: identity, ethnicity, natural resources
    JEL: J15 N57 O12 O55 Q32
    Date: 2023–01
  4. By: Rene Tapsoba; Yoro Diallo
    Abstract: This paper analyzes the interlinkages between climate shocks, domestic conflicts, and policy resilience in Africa. It builds on a Correlated Random Effect model to asess these interrelationships on a broad sample of 51 African countries over the 1990-2018 period. We find suggestive evidence that climate shocks, as captured through weather shocks, increase the likelihood of domestic conflicts, by as high as up to 38 percent. However, the effect holds only for intercommunal conflicts, not for government-involved conflicts. The effect is maginified in countries with more unequal income distribution and a stronger share of young male demographics. The results are robust to a wide set of sensitivity checks, including using various indicators of weather shocks and domestic conflicts, and alternative estimation techniques. The findings shed light on key policy resilience factors, including steadily improving domestic revenue mobilization, strengthening social protection and access to basic health care services, scaling up public investment in the agriculture sector, and stepping up anti-desertification efforts.
    Keywords: Weather shocks; Domestic conflicts; Demographics; Resilience; weather shock indicator; database weather shock; weather shock; baseline result; policy resilience; Natural disasters; Climate change; Natural resources; Africa; Global
    Date: 2022–12–16
  5. By: Ozili, Peterson K
    Abstract: The eNaira is the central bank digital currency of Nigeria. People who are interested in the eNaira and financial inclusion will seek information about eNaira and financial inclusion. Their interest in information about eNaira and financial inclusion will make it easier for them to adopt the eNaira and embrace other financial inclusion innovations such as financial technology (Fintech) and cryptocurrency. This paper investigates the determinants of interest in eNaira and financial inclusion information. Interest over time data were analyzed using descriptive statistics, correlation analysis and ordinary least squares (OLS) regression. The study also used the GMM and 2SLS regression methods for robustness. The findings of this study reveal that interest in Fintech and eNaira information are significant positive determinants of interest in financial inclusion information. Also, interest in financial inclusion is a significant positive determinant of interest in eNaira information. Furthermore, interest in Fintech information has a positive and significant correlation with interest in financial inclusion information. There is also a significant positive correlation between interest in central bank digital currency information and interest in Fintech information. The implication of the findings is that interest in information about new financial innovations, such as Fintech and eNaira, can stimulate interest in information about financial inclusion.
    Keywords: eNaira, Fintech, financial inclusion, central bank digital currency, cryptocurrency, information, innovation, innovation diffusion theory.
    JEL: G21 G23 G24
    Date: 2023
  6. By: Liverpool-Tasie, Lenis Saweda; Dillon, Andrew; Bloem, Jeffrey R.; Adjognon, Guigonan Serge
    Abstract: Sustainable intensification is predicated on climate-smart agricultural input adoption. We test strategies for promoting the adoption of climate-smart agricultural inputs in Nigeria with a private sector firm. We disentangle the effects of price discount promotions (25 percent discounts) relative to the firm’s standard “business as usual†marketing package. We find that the standard marketing package increases the adoption of climate-smart urea super granule (USG) fertilizer by 24 percentage points while reducing prilled urea utilization by 17 percentage points. Discounts increase adoption of USG by an additional eight percentage points, but are not profitable for the input supply firm as a scalable marketing strategy. Although treatment reduces nitrogen runoff damages valued between USD 43 and 113 per hectare, it did not lead to increased rice yields for farmers.
    Keywords: NIGERIA; WEST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; private sector; economic sectors; climate change adaptation; fertilizers; rice; climate-smart agriculture; climate-smart technologies; technology adoption; micro-dosing
    Date: 2022

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