nep-afr New Economics Papers
on Africa
Issue of 2024–04–08
six papers chosen by
Sam Sarpong, Xiamen University Malaysia Campus


  1. Tax revenue data in Africa: the Government Revenue Dataset and African Tax Outlook in comparison By Frankie Mbuyamba; Kyle McNabb
  2. The impact of G7 trade policies on economic development in Africa By Moritz Wolf
  3. Climate change and migration: the case of Africa By Bruno Conte
  4. The legacy of coercive cotton cultivation in colonial Mozambique By Henrique Barros; Rute Martins Caeiro; Sam Jones; Patricia Justino
  5. Perceptions, Quality, and Uncertainty in Ghanaian Fertilizer Markets By Seth Asante; Kwaw Andam; Andrew M. Simons
  6. Bank business model identification evolution and outcomes evidence for South Africa By John O S Wilson; Linh Nguyen; Anna Sobiech; Lechedzani Kgari

  1. By: Frankie Mbuyamba; Kyle McNabb
    Abstract: This paper compares two important sources of tax revenue statistics for African countries, namely the Africa Tax Administration Forum's African Tax Outlook and the United Nations University World Institute for Development Economics Research's Government Revenue Dataset. We consider the background, construction, sources, and user bases of each dataset before comparing the scope and attempting to understand where commonalities and differences lie. The bulk of the paper focuses on a quantitative comparison of ten key variables across the two datasets.
    Keywords: Data, Development, Tax revenue, Revenue, Statistics, Africa
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-13
  2. By: Moritz Wolf (Friedrich Schiller University Jena)
    Abstract: Economic development in Africa is among the most important global challenges today. Meanwhile, the G7 is under pressure due to system competition and the question of legitimacy and effectiveness. The recent PGII initiative uses investment to improve economic development in Africa. But what about other tools, like trade? While the literature suggests positive effects of trade on economic development, the trade efforts by the G7 have been underwhelming. Moreover, the trade share between Africa and the G7 has decreased over the last two decades. The question if both sides have incentives to reinforce trade links remains and leads to another question, namely if trading with the G7 countries offers specific benefits to African countries. This paper answers this question by using a system-GMM estimator and G7-specific trade data between 1997 and 2020. Using the relative G7 trade share as the explanatory variable and GDP and the HDI as indicators for economic development, the results suggest that both economic growth and human development have been positively affected by G7 trade shares. Moreover, this paper identifies potential channels and concludes that reinforcing the trade relations between the G7 countries and Africa is beneficial for both sides.
    Keywords: Africa, Economic Development, Trade, International Organizations
    JEL: I31 O19 O24 O55
    Date: 2024–03–27
    URL: https://d.repec.org/n?u=RePEc:jrp:jrpwrp:2024-005
  3. By: Bruno Conte
    Abstract: How will future climate change affect rural economies like sub-Saharan Africa (SSA) in terms of migration and welfare losses? How can policy enhance SSA’s capacity to adapt to this process? I answer these questions with a quantitative framework that, coupled with rich spatial data and forecasts for the future, estimates millions of climate migrants and sizeable and unequal welfare losses in SSA. Investigating migration and trade policies as mitigating tools, I find a tradeoff associated with the former: reducing SSA migration barriers to the European Union (EU) standards eliminates aggregate welfare losses at the cost of more climate migration and high regional inequality. Reducing tariffs to the EU levels attenuates this cost.
    Keywords: climate change, migration, economic geography
    JEL: O15 Q54 R12
    Date: 2023–10
    URL: https://d.repec.org/n?u=RePEc:upf:upfgen:1880
  4. By: Henrique Barros; Rute Martins Caeiro; Sam Jones; Patricia Justino
    Abstract: We examine the long-term impact of forced labour on individual risk behaviour and economic decisions. For that, we focus on a policy of coercive cotton cultivation enforced in colonial Mozambique between 1926 and 1961. We combine archival sources about the boundaries of historical cotton concessions with survey data collected specifically for this study. By employing a regression discontinuity design to compare individuals living in areas inside and outside the historical cotton concessions, we document significant disparities in risk aversion and agricultural patterns between communities.
    Keywords: Long-run effects, Forced labour, Colonialism, Risk attitudes, Behaviour, Regression discontinuity
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-12
  5. By: Seth Asante (International Food Policy Research Institute Accra, Ghana); Kwaw Andam (International Food Policy Research Institute Abuja, Nigeria); Andrew M. Simons (Fordham University, Department of Economics)
    Abstract: Fertilizer use among small holder farmers in Africa is often thought of as a pathway to improved agricultural productivity and reduced poverty. We examine the perceptions of fertilizer quality along the input supply chain in Ghana and also chemically test collected fertilizer samples. Our objective is to understand whether substandard quality hinders the adoption of fertilizers by farmers. We find that agricultural input dealers perceive fertilizer quality to be lower than farmers do, though both estimate the prevalence of substandard fertilizer at much higher rates than what chemical tests find. Chemical tests at an international laboratory, on average, found fertilizer had the labeled quantity of plant nutrients. Adding to the complicated learning environment farmers face, many local media outlets report on fake or substandard fertilizers and local laboratory tests reported misleading incorrect results when testing the same fertilizer samples.
    Keywords: Fertilizer, Technology Adoption, Asymmetric Information, Sub-Saharan Africa, Farmer Beliefs, Agricultural Supply Chains, Learning Challenges
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:frd:wpaper:dp2024-02er:dp2024-02
  6. By: John O S Wilson; Linh Nguyen; Anna Sobiech; Lechedzani Kgari
    Abstract: This paper presents the findings of an investigation of the type, evolution and impacts on performance of bank business models in South Africa. We identify the various business models used by South African banks using data on the monthly balance sheets of commercial banks made available by the South African Reserve Bank between 1993 and 2022. We cluster banks into different business models based on the composition of their balance sheets. Based on these clusters, we identify business models oriented to wholesale and retail funding, as well as to universal, investment and interbank activities. Overall, our clustering exercise returns six distinct business models. We observe large differences in terms of business size, performance and risk profiles across the business models. We also analyse the evolution of business models over time. The results suggest that banks exhibit relatively stable business models, but where transition exists it tends to be between certain business models. Increased risk is associated with a higher probability of banks shifting business models.
    Date: 2024–03–28
    URL: https://d.repec.org/n?u=RePEc:rbz:wpaper:11059

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