nep-afr New Economics Papers
on Africa
Issue of 2023‒07‒24
four papers chosen by
Sam Sarpong
Xiamen University Malaysia Campus

  1. Financial development, taxation and economic growth in sub-sahara africa By Ekpeyong, Paul; Adewoyin, David
  2. Nation building in post-conflict settings: Evidence from South Africa By Thomas Gautier; Daniela Horta-Saenz; Gianluca Russo
  3. Millions for billions: Accelerating African entrepreneurial emergence for accelerated, sustainable and job-rich growth WP325 By Jean-Michel Severino
  4. Agricultural Productivity and Climate Change: An Evidence of a non-linear Relationship in Sub-Saharan Africa By Jean Galbert, ONGONO OLINGA

  1. By: Ekpeyong, Paul; Adewoyin, David
    Abstract: This study investigates the correlation between tax policies, financial development, and economic growth in Sub-Saharan Africa. The research sample comprises 12 countries from West Africa, Southern Africa, and East Africa, spanning the years 2000 to 2019. The selected countries include Nigeria, Senegal, Mali, Benin, Burkina Faso, Cameroon, Cape Verde, Ghana, South Africa, Namibia, Lesotho, Kenya, and Tanzania. To analyze the data, the study utilizes the pooled mean group (PMG) or mean group auto-regressive distributed lag (MG-ARDL) estimation method. The findings indicate that private sector credit to GDP and foreign direct investment significantly drive economic growth, while the variables of liquidity, inflation, population, and taxes do not exert a significant impact on economic growth. Moreover, the effectiveness of these policies varies across countries, suggesting that some nations benefit more from tax policies, while others benefit more from financial development. It should be noted that the variations in economic structures and institutional frameworks among the countries in the panel data may influence the relationship between the variables. Based on the study's results, policymakers should prioritize a set of policies to promote economic growth in Sub-Saharan Africa. These policies include measures to enhance financial development, improve taxation policies, foster public investment, address macroeconomic imbalances, strengthen institutional quality, and promote regional integration. The effective implementation and ongoing monitoring of these policies are crucial for achieving the desired impact and sustainable development in the region.
    Keywords: Tax policy, financial development, Economic growth, Sub Saharan Africa, pooled mean, ARDL.
    JEL: H2 H21 H24 O4 O47
    Date: 2023–06–20
  2. By: Thomas Gautier; Daniela Horta-Saenz; Gianluca Russo
    Abstract: How do states rebuild nations after a major conflict? Truth and Reconciliation Commissions (TRCs) have emerged as one of the most common interventions to achieve this objective. Despite their popularity, little is known about their efficacy to foster reconciliation and nation building. We fill this gap by studying the seminal TRC established in South Africa after the end of the Apartheid. To measure exposure to TRC across South African municipalities, we leverage quasi-random variation in media coverage of the TRC message.
    Keywords: Post-conflict, Post-conflict recovery, Trust, South Africa
    Date: 2023
  3. By: Jean-Michel Severino (FERDI - Fondation pour les Etudes et Recherches sur le Développement International, I&P - Investisseurs et Partenaires, UCA - Université Clermont Auvergne)
    Abstract: The article below argues for the need to strongly accelerate public involvement in support of entrepreneurial emergence in poor and fragile countries. After mentioning the economic and employment issue, it explains how this priority has long disappeared from the international agenda as well as from domestic public policies, particularly in Africa. Efforts to promote the private sector have in practice focused on foreign direct investment and the largest companies. Middle- and emerging income countries, and a limited number of sectors and financial instruments, such as debt, have been valued. The article evokes the gradual change of perception on this subject from the beginning of the century and the emergence of new so- called impact actors focused particularly on SMEs in poor countries, accompanied by some public private sector financing institutions (DFIs), development agencies or foundations.
    Date: 2023–06–09
  4. By: Jean Galbert, ONGONO OLINGA
    Abstract: This paper focuses on the relationship between agricultural productivity and climate change in sub-Saharan Africa. The main objective is to justify the observed upward trend in agricultural productivity as the temperature is increasing and rainfalls are decreasing. We argue that the relationship between agricultural productivity, temperature, and precipitation is non-linear. Specifically, there are thresholds from which the effect of temperature on agricultural productivity is exceeded by the effect of precipitation. We hypothesize that even if precipitation is decreasing, its level over a year is still sufficient for its positive effect on agricultural productivity to outweigh the negative effect of rising temperatures. Using data from the FAO database on seven different groups of crops, we estimate a Panel Smooth Transition regression model and results show that there is a non-linear relationship between agricultural productivity, temperature, and precipitation. On average, the effect of temperature on agricultural productivity is exceeded by the effect of precipitation observed over a year. We recommend that countries in Sub-Saharan Africa invest in agricultural research to find irrigation techniques that will mitigate the future effects of scarcity of rainwater owed to extremely hot temperatures.
    Keywords: Climate change, agriculture, PSTR
    JEL: C50 N57 O13
    Date: 2023–04–12

This nep-afr issue is ©2023 by Sam Sarpong. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.