nep-afr New Economics Papers
on Africa
Issue of 2024‒02‒05
four papers chosen by
Sam Sarpong, Xiamen University Malaysia Campus

  1. Foreign Debt, Institutional Quality and Economic Performance in Nigeria: An Experimental Evaluation By Ekpe, John Polycarp; Ogbuabor, Jonathan E.
  2. Accountability failure in isolated areas: the cost of remoteness from the capital city By Provenzano, Sandro
  3. The Socio-Economic Context of Africa and its Impact on Doping and Anti-Doping By Jean-Christophe Lapouble
  4. Can monetary and fiscal policy account for South Africas economic stagnation By Tumisang Loate; Nicola Viegi

  1. By: Ekpe, John Polycarp; Ogbuabor, Jonathan E.
    Abstract: Nigeria is the largest economy in Africa and the largest exporter of crude oil in Africa, yet Nigeria has a huge foreign debt portfolio and weak institutions. It is against this backdrop that this study examines the impact of foreign debt and institutional quality on economic performance in Nigeria. Data used for the analysis were quarterly data that ranges from 1996Q1 to 2019Q1. Foreign debt service was used as a measure of foreign debt while corruption control and government effectiveness were used as measures of institutional quality. Economic performance which is the dependent variable was measured using Gross Domestic Product. The study also examines how institutional quality influences the relationship between foreign debt and economic performance in Nigeria. Autoregressive Distributed Lag Model was used to specify and estimate the relationship between the variables. The result of the analysis indicates that foreign debt has an insignificant negative effect on economic performance in the short run and also negative insignificant effect in the long run too, corruption control has a significant positive effect on economic performance only in the short run, Government effectiveness does not have a significant effect in the economy, being the two; the short run and the long run, on that account corruption control influences the relationship between foreign debt and economic performance significantly and negatively only in the short run but also positively and insignificantly in long run. Mechanism should be put in place to ensure that foreign debts are properly utilized to embark on the projects they were meant for”.
    Keywords: Foreign Debt, Institutional Quality, Economic Performance, ARDL Model
    JEL: F34
    Date: 2023–07–07
  2. By: Provenzano, Sandro
    Abstract: This paper documents that in Sub-Saharan Africa areas isolated from the capital city are less economically developed and examines potential underlying mechanisms. We apply a boundary-discontinuity design using national borders that divide pre-colonial ethnic homelands to obtain quasi-experimental variation in distance to the national capital city. We find that a one percent increase in distance to the capital city causes a decrease in the probability of detecting nightlights by 0.12 times the average probability to be lit, or to a reduction in household wealth corresponding to 3.5 percentiles of the national wealth distribution. Our results suggest that a lower provision of public goods in isolated areas is a key link between remoteness and economic performance. Despite receiving worse services, people who are isolated exhibit a higher level of trust in their political leaders. Further, isolated citizens consume the news less frequently and penalize their leaders less for misgovernance. We interpret these findings as pointing towards dysfunctional accountability mechanisms that reduce the incentives of vote-maximizing state executives to invest into isolated areas.
    Keywords: accountability; boundary discontinuity; capital city; development; public goods; spatial inequality; Sub-Saharan Africa; PhD Studentship; Elsevier deal
    JEL: D72 H41 O10 O40 R12
    Date: 2023–11–22
  3. By: Jean-Christophe Lapouble (LAM - Les Afriques dans le monde - IEP Bordeaux - Sciences Po Bordeaux - Institut d'études politiques de Bordeaux - IRD - Institut de Recherche pour le Développement - Institut d'Études Politiques [IEP] - Bordeaux - UBM - Université Bordeaux Montaigne - CNRS - Centre National de la Recherche Scientifique, LéP - Laboratoire d'économie de Poitiers - Université de Poitiers)
    Abstract: The fight against doping is organized at the global level under the aegis of the World Anti-Doping Agency (WADA) in application of the 2005 UNESCO convention which made the application of the World Anti-Doping Code mandatory for all countries wishing to participate and organize international sports competitions. In fact, it appears that for a variety of reasons, the application of the World Anti-Doping Code is largely theoretical in Africa. Indeed, if most African countries adhere to the system set up by WADA, it appears that very few are able to apply it effectively. The numerous difficulties that African countries may experience due to a degraded socioeconomic context confine anti-doping policies to the rank of non-priority public policies. Thus, the difficulties experienced by different countries in terms of development, structuring of the sports movement through associations, public administration, public health and corruption must lead us to consider that the fight against doping in Africa cannot be free of the socioeconomic context and must therefore be adapted accordingly. This adaptation must be based on the reality of the functioning of sports organizations in the countries and not on theoretical considerations that are far removed from reality.
    Keywords: Corruption development doping public administration public health, Corruption, Development, Doping, Public administration, Public health
    Date: 2024
  4. By: Tumisang Loate; Nicola Viegi
    Abstract: This paper examines the interaction between macroeconomic variables and the fiscal and monetary policy mix between 2012 and 2019, a period characterised by increases in public debt and the sovereign risk premium, and low economic growth. Using a large Bayesian vector autoregression, we find that monetary and fiscal policy fail to account for the observed lower real gross domestic product between 2012 and 2019. Based on the historical relationship between monetary and fiscal policy in South Africa, the results indicate that we should have observed much higher growth, especially during the 20152019 period. In addition, we find little evidence that low growth during the period can be explained by the much-criticised anti-growth monetary policy.
    Date: 2024–01–19

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