nep-afr New Economics Papers
on Africa
Issue of 2023‒10‒16
four papers chosen by
Sam Sarpong, Xiamen University Malaysia Campus

  1. Taxation and accountability in sub-Saharan Africa By Roel Dom; Oliver Morrissey; Abrams M.E. Tagem
  2. Gains from Variety: Refugee-Host Interactions in Uganda By Mariani, Rama Dasi; Rosati, Furio C.; Scaramozzino, Pasquale; D'Errico, Marco
  3. The effects of gender political inclusion and democracy on environmental performance: evidence from the method of moments by quantile regression By Simplice A. Asongu; Cheikh T. Ndour; Judith C. M. Ngoungou
  4. Mitigating greenhouse gas emissions in Kenya's food system: Economic interdependencies and policy opportunities By Nin-Pratt, Alejandro

  1. By: Roel Dom; Oliver Morrissey; Abrams M.E. Tagem
    Abstract: Taxation can contribute to state-building through a tax bargain in which taxpayers are willing to increase compliance in return for improved government accountability. There is limited evidence for this in sub-Saharan Africa where it is argued that the fiscal state is weak, with low tax revenues and governments that are not accountable. However, since the early 2000s, sub-Saharan African countries on average have increased tax/gross domestic product ratios significantly and there have also been increases in measures of accountability.
    Keywords: Tax revenue, Accountability, Sub-Saharan Africa
    Date: 2023
  2. By: Mariani, Rama Dasi (University of Rome Tor Vergata); Rosati, Furio C. (University of Rome Tor Vergata); Scaramozzino, Pasquale (University of Rome Tor Vergata); D'Errico, Marco (University of Bologna)
    Abstract: Refugees are mainly hosted in low-income countries, where they often remain for a long time. Therefore, it is important to assess how they integrate with the local economy and to what extent their presence can contribute to the transition to a more dynamic economic environment. Proximity between refugees and hosts might improve the welfare of both groups by increasing opportunities for mutually beneficial economic exchanges. In particular, welfare gains might be generated through the availability of a greater variety of commodities. In this paper we propose a theoretical model that uses the love for variety to frame the possible benefits arising from the interaction between hosts and refugees facilitated by geographical proximity. We complement the conceptual framework with an empirical analysis that makes use of a unique dataset covering around 80% of the refugee population living in Ugandan settlements and the adjoining host households. The empirical results show that proximity between groups increases the food expenditure and the variety of food consumption of both groups. We also found that exposition to inter-group interactions rises the non-food expenditure, and the probability to run a farm and a non-farm enterprise by refugee households, while hosts are not crowding out from production.
    Keywords: forced migrations, love of variety, inter-group exchange, distance
    JEL: F12 F63 I30 O19 O55
    Date: 2023–09
  3. By: Simplice A. Asongu (Johannesburg, South Africa); Cheikh T. Ndour (Dakar, Senegal.); Judith C. M. Ngoungou (Yaoundé, Cameroon)
    Abstract: Motivated by the difficulty of ensuring gender equality and the chaotic state of democracy, we analyze the effects of gender political inclusion and democracy on environmental policy performance. The study uses a panel of 45 African countries over the period 2012-2018 and employs the method of moments by quantile regression. The results show that, gender political inclusion and democracy positively affect environmental performance in all quantiles. These positive effects tend to be stronger at higher quantiles. The magnitude is larger for gender political inclusion. When performance is decomposed into the sub-indices of environmental health and ecosystem vitality, positive effects of gender political inclusion and democracy are observed in all quantiles. The effects are larger for the gender dimension than for the democracy dimension, regardless of the sub-index used.
    Keywords: Gender political inclusion; democracy; environmental performance; regression quantile method of moments; Africa
    JEL: J13 Q56 C31 C33
    Date: 2023–01
  4. By: Nin-Pratt, Alejandro
    Abstract: Low- and middle-income countries worldwide share the common challenge of achieving sustainable economic development while reducing greenhouse gas (GHG) emissions. This challenge is complex due to the interconnectedness of economic activities, where policies targeting one industry can have ripple effects on others. Therefore, it is crucial to understand integrated GHG emissions and their relationships across industries within an economy to inform effective policy formulation. Kenya, as a middle-income country experiencing rapid economic growth, faces an urgent need to address this challenge. This study analyzes the economic relationships between agricultural production, the food industry, and other sectors of the economy in Kenya to identify key drivers of national GHG emissions from the food system. To accomplish this, an environmentally extended input-output (EEIO) table is employed to calculate both direct and indirect emissions for 38 activities of Kenya’s economy, as well as emissions embodied in final goods. Direct emissions refer to those generated during the production process of an activity, while indirect emissions are produced by other activities that provide inputs to the activity of interest. The findings reveal that agriculture is the largest contributor to GHG emissions in Kenya, with the majority of emissions stemming from direct sources such as enteric fermentation and manure management in livestock production. Additionally, the study finds that total emission intensity in the manufacturing sector is considerably higher than in most agricultural activities, except for livestock production, primarily due to the significant level of indirect emissions associated with manufacturing processes. Within the agricultural sector, cereals and livestock production exhibit high levels of direct emissions, while export crops like coffee and tea, as well as vegetable cultivation, show relatively higher indirect emissions. Addressing GHG emissions from the livestock sector emerges as a crucial step in significantly reducing agricultural emissions in Kenya. The dairy sub-sector presents an opportunity for intensification and technological advancements, as climate-smart technologies have already demonstrated their potential to enhance productivity while reducing emissions. Conversely, mitigating GHG emissions in beef production, which is primarily concentrated in ecologically fragile areas, will require institutional innovations focusing on rangeland management, disease control, and scaling up livestock marketing efforts. While the intensification of dairy production can contribute to agricultural growth and development in Kenya, its impact on mitigating GHG emissions is expected to be limited at the national scale.
    Keywords: KENYA; EAST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; economic development; food systems; greenhouse gas; emissions; input output analysis; sustainable development; policies; agricultural production; livestock production
    Date: 2023

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