nep-afr New Economics Papers
on Africa
Issue of 2024‒02‒26
seven papers chosen by
Sam Sarpong, Xiamen University Malaysia Campus

  1. The differential effects of foreign aid to sub-Saharan Africa By Akame, Afuge; Mavrotas, George
  2. Capturing the Tax-Revenue Bracketing System via a predator-prey model: Evidence from South Africa By Leonard Mushunje
  3. Sacred Ecology: The Environmental Impact of African Traditional Religions By Neha Deopa; Daniele Rinaldo
  4. Technological innovation as a catalyst for change in organizational culture: Case of Moroccan SMEs. By Bourjila Mountacer; Ayoub El Bahi
  5. A decomposition analysis of the nexus between employment and credit in West Africa’s biggest economies By Nuhu, Peter; Bukari, Dramani; Sulemana, Yusif
  6. Public debt and growth in sub-Saharan Africa: Evidence from Nigeria By Christine S. Makanza; Princewill U. Okwoche
  7. Empowering the modelling for Policy with the 2015 Social Accounting Matrix for Tanzania By Andrea El Meligi; Valeria Ferreira; Victor Nechifor; Ole Boysen; Emanuele Ferrari

  1. By: Akame, Afuge; Mavrotas, George
    Abstract: This paper explores the impact of various forms of donor aid on economic growth in 39 sub-Saharan African countries from 2002 to 2020. The findings suggest that while total aid positively influences growth, different aid modalities have varying effects, with project aid and technical assistance boosting growth, while budget support and humanitarian assistance hinder it. The study emphasizes the importance of disaggregating aid types in research on aid effectiveness, challenging the traditional approach of using a single figure for aid in policy recommendations.
    Keywords: COVID-19, aid, sub-Saharan Africa
    Date: 2024–01
  2. By: Leonard Mushunje
    Abstract: Revenues obtained from the corporate tax heads play significant roles in any economy as they can be prioritized for producing public goods and employment creations, among others. As such, corporate tax revenue should be paid enough attention. This study, therefore, explores the tax-revenue harvesting system of an economy where we focused on the corporate tax head. The system comprises three players; the government and formal and informal firms. We applied the predator-prey model to model the effect of the government-gazetted tax rate on corporate survivability. It is a new approach to modeling economic system relations and games. Critical combinatory points are derived, with stability analysis provided after that. Dynamics associated with the tax-revenue system are established and critically analyzed. Lastly, we provide the mathematical way the system can be optimized for the government to harvest as much Revenue as possible, including optimal conditions.
    Date: 2023–12
  3. By: Neha Deopa; Daniele Rinaldo
    Abstract: Do religions codify ecological principles? This paper explores theoretically and empirically the role religious beliefs play in shaping environmental interactions. We study African Traditional Religions (ATR) which place forests within a sacred sphere. We build a model of non-market interactions of the mean-field type where the actions of agents with heterogeneous religious beliefs continuously affect the spatial density of forest cover. The equilibrium extraction policy shows how individual beliefs and their distribution among the population can be a key driver of forest conservation. The model also characterizes the role of resource scarcity in both individual and population extraction decisions. We test the model predictions empirically relying on the unique case of Benin, where ATR adherence is freely reported. Using an instrumental variable strategy that exploits the variation in proximity to the Benin-Nigerian border, we find that a 1 standard deviation increase in ATR adherence has a 0.4 standard deviation positive impact on forest cover change. We study the impact of historically belonging to the ancient Kingdom of Dahomey, birthplace of the Vodun religion. Using the original boundaries as a spatial discontinuity, we find positive evidence of Dahomey affiliation on contemporary forest change. Lastly, we compare observed forest cover to counterfactual outcomes by simulating the absence of ATR beliefs across the population.
    Date: 2023–11
  4. By: Bourjila Mountacer (UIT - Université Ibn Tofaïl); Ayoub El Bahi (UIT - Université Ibn Tofaïl)
    Abstract: This research investigates the impact of technological innovation adoption on the organizational culture of Small and Medium-sized Enterprises (SMEs) in Morocco. The central research question explores how the adoption of technological innovation influences cultural dynamics within Moroccan SMEs. Employing a questionnaire-based methodology with 183 responses, the study aims to shed light on the intricate relationship between technological innovation and organizational culture in the context of Moroccan SMEs. The study reveals two key findings. Firstly, it is observed that the adoption of technological innovation serves as a robust driver to stimulate a culture of efficiency within the surveyed SMEs. Secondly, the research underscores the emergence of tensions within Moroccan SMEs arising from resistance to technological change. However, the principal limitation of this study is the restricted number of respondents, which may limit the generalizability of our findings to the broader landscape of Moroccan SMEs. Despite this limitation, the insights gleaned offer valuable perspectives and a foundation for future research to further explore the nuanced interplay between technological innovation and organizational culture in Moroccan SMEs. In summary, this study contributes valuable insights into the nexus between technological innovation and organizational culture within Moroccan SMEs. The findings underscore the dual nature of this relationship, acting as both a catalyst for efficiency-driven cultural enhancement and a source of tension due to resistance to change. The implications of these findings extend beyond the confines of individual SMEs, offering guidance for policymakers, industry practitioners, and scholars seeking to understand and facilitate the positive integration of technological innovation in diverse organizational settings. Keywords: Technological innovation; Organizational culture; Moroccan SMEs.
    Keywords: Technological innovation, Organizational culture, Moroccan SMEs
    Date: 2024
  5. By: Nuhu, Peter; Bukari, Dramani; Sulemana, Yusif
    Abstract: The World Economic Forum in 2014 reports that persistent jobless growth is one of the topmost challenges the globe faces. International Labour Organisation (ILO) data indicates that Ghana’s employment elasticity of output has been fallen since 1992; from 0.76 in 1992-1999 to 0.5 since 2006. This trend implies that from 1992, the ability of the Ghanaian economy to create jobs as it grows has been shrinking. Similarly, estimates show that Nigeria’s output elasticity of employment averages 0.39% across all sectors. Through decomposition, this paper investigates the nexus between credit and employment with the view to answering the following questions. i. How does economic activity impact employment creation in developing countries like Ghana and Nigeria? ii. How does credit intensity impact employment creation? iii. How important is sectoral credit mix to creating employment? And iv. Should sectoral employment factor guide credit extension? The results for both countries show that total change in employment consequent on credit availability has been positive. However, the adoption of credit as a trigger for employment creation must not only be intensified but also deliberately targeted at the sectors of the economy that offer the greatest potential for job creation.
    Keywords: Credit, Employment, Economic Activity, Unemployment, Ghana, Nigeria
    JEL: E24 E44 E51 O55 O57
    Date: 2023–05–21
  6. By: Christine S. Makanza (School of Economics, University of Cape Town); Princewill U. Okwoche (School of Economics, University of Cape Town)
    Abstract: This study examines the relationship between public debt and growth in Nigeria and extends the literature in two unique ways. First, whereas previous studies focusing on Nigeria have mainly assumed a linear debt-growth relationship, this study examines the non-linear threshold effects of the debt. Second, instead of focusing only on external debt as in previous studies, this study employs the total debt measure along with the individual components of debt given the historical importance of both the external and domestic debt in Nigeria. Empirical analyses are carried out using annual time series data sourced from the Central Bank of Nigeria and the World Development Indicators covering the period 1970-2017. Evidence strongly confirms the presence of a nonlinear debt-growth nexus for Nigeria similar to what is widely reported in the literature. This suggests that debt may be good for growth up to a certain threshold beyond which it becomes a drag on growth. Evidence from the Sasabuchi-Lind-Mehlum test for U-shape presents a threshold estimate of 56% for total public debt and 88% for external debt. We could not pinpoint a nonlinear and threshold effect for domestic debt. Rather, the evidence points to a linear negative effect of domestic debt on growth. Policy recommendations based upon these findings are discussed.
    Date: 2023
  7. By: Andrea El Meligi (European Commission - JRC); Valeria Ferreira (Universitat Rovira i Virgili); Victor Nechifor (European Commission - JRC); Ole Boysen (European Commission - JRC); Emanuele Ferrari (European Commission - JRC)
    Abstract: A Social Accounting Matrix (SAM) is a comprehensive and economy-wide database that records data on all transactions taking place in an economy over a specific period, typically one year. The SAM serves two primary objectives. Firstly, it presents the economic structure and interrelationships among economic agents in the region under analyses. Secondly, it provides a database for analysing the economy's performance and simulating the effects of policy interventions through multisectoral linear models and computable general equilibrium (CGE) models. This report presents the 2015 SAM for Tanzania, offering a suitable database for implementing and evaluating the country's social and economic policies. The report outlines how to pass from a standard structure of the SAM to a detailed scheme by explaining all the accounts included, and covering key aspects of its construction and estimation. Considering the characteristics of the Tanzanian economy, this SAM shows a special structure to reflect the Home Production for Home Consumption (HPHC) issue and a high disaggregation of the agricultural sector. Furthermore, this SAM presents a high level of disaggregation by encompassing labour and household characteristics, considering regions, gender rural and urban areas, as well as income quintiles. The SAM is used as a database to perform a descriptive analysis of the Tanzanian economy.
    Keywords: social accounting matrix, input-output analysis, multipliers, regional studies, country report, jobs creation
    JEL: D10 D33 D57 E16 E20 N17 N37 N47 N57 N67 N77 O55 Q17 Q18 Q52 R15
    Date: 2024–01

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