nep-afr New Economics Papers
on Africa
Issue of 2024‒01‒08
six papers chosen by
Sam Sarpong, Xiamen University Malaysia Campus

  1. Internal Evaluation of External Sector Statistics Capacity Development in Select African Countries By Mr. Rodolfo Maino; Theodore Pierre Bikoi; Mr. Marcelo Dinenzon; Dilek Goncalves; Nelnan Fidèle Koumtingué
  2. Supporting African Union: Do Macroeconomic Fluctuations matter? By Samba Diop; Simplice A. Asongu; Cheikh Tidiane Ndiaye
  3. Opportunities for US–Africa Space Cooperation and Development By Rose Croshier
  4. Digital Tax Policy and Tax Revenue Collection in Cameroon By Derrick, Fossong; Mc Moi Ndi, Ashu
  5. Assessing the Drivers of Steady State Economic Growth in Nigeria By ATOI, VICTOR NGOZI (PhD)
  6. Illuminating Africa? By Tanner Regan; Giorgio Chiovelli; Stelios Michalopoulos; Elias Papaioannou

  1. By: Mr. Rodolfo Maino; Theodore Pierre Bikoi; Mr. Marcelo Dinenzon; Dilek Goncalves; Nelnan Fidèle Koumtingué
    Abstract: This technical note provides an assessment of how external sector statistics capacity development has improved the availability of balance of payments and international investment position data in select countries of sub-Saharan Africa over the period FY2015–22. All countries assessed have made strides to sustain the benefits of capacity development despite continuing challenges.
    Keywords: external sector statistics; capacity development; OECD Development Assistance Committee criteria; balance of payments and international investment position; IMF country team; IMF surveillance; ESS CD essential; IMF capacity development; evaluation team; IMF Library; Balance of payments statistics; International investment position; Data collection; Special Data Dissemination Standard (SDDS); Africa; Sub-Saharan Africa
    Date: 2023–12–18
  2. By: Samba Diop (Gaston Berger University, Saint-Louis, Senegal); Simplice A. Asongu (Johannesburg, South Africa); Cheikh Tidiane Ndiaye (Gaston Berger University, Saint-Louis, Senegal)
    Abstract: In this paper, we contribute empirically to the debate on the legitimacy of the African Union by exploring the question on whether individual opinions in support of African integration are sensitive to macroeconomic fluctuations? For this purpose, we use the 4th, 5th, 6th and 8thAfrobarometer survey data waves and a contextual logistic model. We find that an increase in GDP per capita is associated with a decline in the probability to support the African Union. Accordingly, economic growth discourages citizens’ positive appraisal for the union. Our results also show an asymmetry in the relationship between public opinion on supporting the African Union and economic growth. Policy implications are discussed.
    Keywords: Afrobarometer survey, African Union, Institutional support, macroeconomic fluctuations
    JEL: C23 E32 O55
    Date: 2023–01
  3. By: Rose Croshier (Center for Global Development)
    Abstract: The United States has a unique opportunity to establish enduring diplomatic, commercial, and security ties with African nations through space cooperation, with the potential to yield substantial development benefits. The African Union is preparing to open the African Space Agency. African nations are prioritizing the development of their own space infrastructure and applications – be it communications, remote sensing, or navigation/timing. The US space sector is robust, an area of comparative strength vis-à-vis Europe, Russia, and China. The US could work with African nations to reinforce a rules-based order in space, implement greater inclusivity in the space sector, and accelerate achievement of United Nations’ Sustainable Development Goals. A Space Development Program could include building and launching satellites, but its first objective should be to maximize the utility of space-based resources (e.g., orbits and frequency spectrum) and shared, publicly available, or commercial space applications, as an enabler of the Partner’s national and economic interests. To move forward, the US should develop a whole-of-government approach to US-Africa space cooperation and development, with a clear lead agency and a specific point of contact for foreign States. The US should expand bilateral and multilateral space cooperation and assistance, and specifically pilot a space development program in Africa. To support the most efficient and fair use of space resources, the US should increase support for African nations in managing their spectrum. Lastly, the US should raise internal and African awareness of US space-related support to the public good and clarify its intentions for the space ecosystem.
    Date: 2022–03–31
  4. By: Derrick, Fossong; Mc Moi Ndi, Ashu
    Abstract: Cameroon adopted a digital tax policy some eight years ago. Before full implementation of the digital tax policy in 2016, councils in Cameroon, especially local councils, reported many challenges due to delays and irregularities in central government revenue-sharing (shared taxes). The direct taxes and fees collected by the councils were felt to be low, given the effort needed to collect them. It is important to understand whether adoption of the digital tax policy has increased the much-needed tax revenue for local council projects, and enhanced general tax revenue. General tax revenue refers to compulsory transfers to the central government for public purposes, and is made up of resource rent, direct and indirect taxes, and trade taxes. This study examines the impact of the digital tax policy on tax revenue collection in Cameroon using quarterly data from 2010 to 2021, employing an autoregressive distributed lag (ARDL) estimation technique. The results reveal that the digital tax policy put in place in 2016 had a positive and significant long-term impact on general tax revenue, but a negative and significant short-term impact on general tax revenue. The impact was positive but insignificant on council tax revenue in both the long and short term. Findings indicate that full positive gains from the digital tax policy in Cameroon have not yet been achieved due to local constraints in rural areas. Based on our findings, we recommend that business owners should be trained to use the online declaration and payment system. This will improve ease of use, reduce dependence on agents, and boost collection of general and council tax revenue.
    Keywords: Finance, Technology,
    Date: 2023
    Abstract: This study assesses the effects of foreign direct investment (FDI), government expenditures on education and health, trade openness, and initial income on steady state economic growth in Nigeria. The study utilised the Nonlinear Autoregressive Distributed Lag model with data obtained from the world bank development indicator database covering the period 2000Q1 to 2021Q4. The long run results showed evidence of asymmetric response of steady state economic growth to shocks emanating from FDI and health expenditure only. The impact of positive changes in FDI is greater than that of negative changes, while positive changes in health expenditure, although statistically insignificant, exert lesser influence than negative changes. Also, education expenditure is found to influence steady state economic growth positively. These findings are consistent with endogenous growth theory, which highlights the importance of technological innovation and human capital accumulation for sustainable growth. Furthermore, the estimated parameter of initial income is positive, indicating a possibility of convergence, however, trade openness has a marginal negative effect on steady state economic growth, reflecting the effect of unequal international trade competition. The study emphasized the need to intensify effort in attracting and retaining FDI, as well as re-evaluating trade policies to foster sustainable growth in Nigeria.
    Keywords: Steady state, asymmetry, endogenous growth
    JEL: C5 O4
    Date: 2023–09–30
  6. By: Tanner Regan (George Washington University); Giorgio Chiovelli (Universidad de Montevideo); Stelios Michalopoulos (Brown University); Elias Papaioannou (London Business School)
    Abstract: Satellite images of nighttime lights are commonly used to proxy local economic conditions. Despite their popularity, there are concerns about how accurately they capture local development in low-income settings and different scales. We compile a yearly series of comparable nighttime lights for Africa from 1992 to 2020, considering key factors that affect accuracy and comparability over time: sensor quality, top coding, blooming, and, importantly, variations in satellite systems (DMPS and VIIRS) using an ensemble, machine learning, approach. The harmonized luminosity series outperforms the unadjusted series as a stronger predictor of local development, particularly over time and at higher spatial resolutions.
    Keywords: Night Lights, Economic Development, Measurement, Africa
    JEL: O1 R1 E01 I32
    Date: 2023–11

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