Search

Begin New Search Publishing Institution African Economic Research Consortium (AERC) Publication Year within 25 Years

21. Estimating the Size and Trends of the Informal Economy in Ghana

Author:
Matthew Kofi Ocran
Publication Date:
01-2018
Content Type:
Research Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
The purpose of this paper is to quantitatively examine the evolution of the informal economy over the past four decades. The study used the currency demand approach as analytical framework for the assessment. The findings suggest that there has been an upward trend in the size of the informal economy as a proportion of the officially recorded GDP. For instance, the size of the informal economy as a proportion of the official GDP estimates increased steadily, from 14% in 1960 to 18% by 1977. The proportion fell thereafter and started picking up again from 1983 to a new high of 30% between 2003 and 2004. The outcome of the study has policy implications particularly for the design of effective monetary and fiscal policy and the selection of appropriate policy instruments.
Topic:
Development, Economics, International Political Economy, Monetary Policy, Economic growth, Fiscal Policy, and Profit
Political Geography:
Africa and Ghana

22. Econometric Analysis of Gender and Labour Market Outcomes in Urban Cameroon

Author:
Christian Zamo Akono
Publication Date:
01-2018
Content Type:
Research Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
In every country, gender disparities are observed in various aspects of daily life, the most visible ones being those related to labour market outcomes. This paper highlights the importance of the labour market related gender disparities in Cameroon with special focus on the relative contribution of identified determinants on unemployment duration, employment status and remuneration. Based on the 2010 Employment and the Informal Sector Survey by the National Institute of Statistics, both parametric and non-parametric analyses of unemployment durations have been used. They include probit model estimates for the choice of non-wage earner status, estimates of Mincer-type equations and various extensions of the Blinder-Oaxaca decomposition. The results obtained can be summarized in three main points as follows. Firstly, women have longer periods of unemployment and are less likely to leave unemployment for a job than men. Results indicate that these gender disparities in exit probabilities from unemployment are due to differences in human capital endowments and to socioeconomic factors, which have a tendency of increasing women’s reservation wage. Also, unobserved heterogeneity with greater positive duration dependence for women is confirmed. Secondly, there are gender differences in probability transitions to either wage or non-wage employment with women being more likely to be self-employed. Of these gender differences, human capital endowment and job search methods account for 20.64% and 38.20%, respectively. The remaining part is due to unobserved factors. Thirdly, gender differences in labour market earnings are around 6% and 17% among wage and non-wage earners, respectively. Observable factors in wage equations account for only for 6% and 30% in the respective groups. These results suggest the formulation of several policies to reduce the observed differences. Some of these policies relate to the conception and implementation of vocational training targeting women and, to some extent, the setting up of programmes for relocating unemployed individuals to where employment opportunities are greater. Others relate to reducing the
Topic:
Economics, Gender Issues, International Political Economy, International Trade and Finance, Labor Issues, Economic growth, Capital Flows, and Macroeconomics
Political Geography:
Africa and Cameroon

23. Is Poverty a binding constraint on Agricultural Growth in Rural Malawi?

Author:
Mirriam Muhome-Matita and Ephraim Wadonda Chirwa
Publication Date:
07-2018
Content Type:
Policy Brief
Institution:
African Economic Research Consortium (AERC)
Abstract:
Agriculture remains the most important sector in sub-Saharan Africa and is a dominant form of livelihood for a majority of the population that resides in the rural areas. In Malawi, agriculture accounts for 35 percent of GDP and generates more than 80 percent of foreign exchange. In addition, agriculture is the most important occupation for 71 percent of the rural population in which crop production accounts for 74 percent of all rural incomes. However, agriculture has failed to get Africa out of poverty, and most countries are experiencing low agricultural growth, rapid population growth, weak foreign exchange earnings and high transaction costs (World Bank, 2008).
Topic:
Agriculture, Economics, Political Economy, Poverty, World Bank, Economic growth, and Rural
Political Geography:
Africa and Malawi

24. Why northern Ghana lags behind in Ghana’s growth and poverty reduction success

Author:
John Baptist D. Jatoe, Ramatu Al-Hassan, and Bamidele Adekunle
Publication Date:
12-2017
Content Type:
Policy Brief
Institution:
African Economic Research Consortium (AERC)
Abstract:
Ghana’s post adjustment growth and poverty reduction performance has been hailed as impressive, albeit with spatial disparities in the distribution of welfare, especially between the north and south of the country. Researchers generally agree that economic growth does not always reduce poverty. Indeed, the effectiveness of growth in reducing poverty depends on the level of inequality in the population. Growth that increases inequality may not reduce poverty; growth that does not change inequality (distribution-neutral growth) and growth that reduces inequality (pro-poor growth) result in poverty reduction. Policy makers can promote pro-poor growth by empowering the poor to participate in growth directly. Policy makers can focus on interventions that improve productivity in smallholder agriculture, particularly export crops, increasing employment of semi-skilled or unskilled labour, promoting technology adoption, increasing access to production assets, as well as effective participation in input and product markets. Also, increasing public spending on social services and infrastructure made possible by redistribution of the benefits of growth benefits the poor, indirectly.
Topic:
Agriculture, Economics, Poverty, Labor Issues, Economic growth, Labor Policies, Economic Policy, and Macroeconomics
Political Geography:
Africa and Ghana

25. Post-conflict Stabilization in Africa

Author:
Anke Hoeffler
Publication Date:
06-2017
Content Type:
Working Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
Post-conflict peace is fragile, about half of all conflicts break out again during the twelve post-conflict years. In Africa this risk is even higher. Using survival analysis this paper suggests that while it is difficult to find correlates of peace stabilization, there are some policy relevant results. How a conflict ends is important. Negotiated settlements are fragile but the chances of peace surviving can be significantly improved through the deployment of UN peacekeeping operations. The data suggest that many operations start before the end of the armed conflict, thus they should be viewed as ‘peace preparation’ operations. The paper recommends the use of additional case studies, given that the small sample size prevents further quantitative examination of these important issues.
Topic:
Conflict Resolution, Conflict Prevention, Economics, Peacekeeping, Conflict, and Peace
Political Geography:
Africa and Global Focus

26. Intra-Regional Foreign Direct Investment In SADC: South Africa and Mauritius Outward Foreign Direct Investment

Author:
Onelie B. Nkuna
Publication Date:
06-2017
Content Type:
Working Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
This paper looks at intra-SADC (Southern African Development Community) Foreign Direct Investment (FDI) and focuses on Mauritius and South Africa’s outward FDI. Data from 1999 to 2010 are collated and qualitative analyses conducted. The study reveals that Mauritius’ outward FDI was mainly in the service sector and largely went to Madagascar, Seychelles and Mozambique, which were also the country’s main trading partners, except for Botswana. Meanwhile, South African investments were mainly in Mauritius, Tanzania and Mozambique, while the country’s main trading partners were Botswana, Zambia, Zimbabwe, Swaziland and Angola. The study also found the following to be potential drivers of Mauritian and South African outward investments, and hence intra-SADC FDI flows: geographical proximity, market access, liberalized markets, stable macroeconomic and political environment, natural resource availability, and policy and institutional framework. Graphical analyses and simple correlations reveal that trade and FDI are positively correlated for Mauritius and South Africa’s outward investment, suggestive of a complementarity relationship.
Topic:
Economics, International Political Economy, International Trade and Finance, Regional Cooperation, Foreign Direct Investment, and Regional Integration
Political Geography:
Africa, South Africa, and Mauritius

27. Capital Flight: Measurement and Drivers

Author:
Léonce Ndikumana, James K. Boyce, and Ameth Saloum Ndiaye
Publication Date:
09-2014
Content Type:
Working Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
This paper describes the nature of capital flight, the methodologies used to measure it, and its drivers. The paper presents updated estimates of the magnitude of capital flight from 39 African countries for which adequate data are available for the period 1970-2010. It gives a global context of the problem of capital flight from Africa by providing comparative indicators on capital flight and related flows for other developing regions. The paper undertakes a detailed econometric analysis of the drivers of capital flight from African countries. It explores empirically the role of domestic and external factors in driving capital flight, including structural factors, the macroeconomic environment, governance, risk and returns to investment, capital account openness, and financial development. The first objective of the study is to contribute to the literature by providing the most comprehensive analysis of capital flight from Africa that takes into account economic as well as non-economic dimensions, and recognizes the importance of both the domestic and global contexts. The second objective is to contribute to the policy debate on capital flight both in Africa and globally.
Topic:
Economics, International Political Economy, International Affairs, Global Markets, Global Political Economy, and Capital Flight
Political Geography:
Africa and Global Focus

28. Macroeconomic Impact of Capital Flight in Sub-Saharan Africa

Author:
John Weeks
Publication Date:
09-2014
Content Type:
Working Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
This paper assesses the impact of capital flight on growth in thirty-one sub-Saharan African countries. It first considers the “macro fundamentals” hypothesis that capital flight would be lower in a country whose government adhered to “sound” macroeconomic policies. Analytical considerations fail to support this hypothesis. Second, it develops a growth estimating equation derived from the Harrod-Domar framework. The growth estimations support the conclusion that capital flight had a major impact on growth over the last three decades, 1980–2010. The negative impact was greatest for the petroleum-exporting countries and those affected by internal conflict, but it was also substantial for the other countries, with a few exceptions.
Topic:
Economics, Markets, Global Markets, Economic growth, Economic Policy, Macroeconomics, and Capital Flight
Political Geography:
Africa, Sudan, Nigeria, Angola, Chad, Cameroon, Global Focus, Gabon, and Republic of Congo

29. Natural Resources and Capital Flight: A Role for Policy?

Author:
Lemma W. Senbet, Gregoire Rota-Graziosi, and Rabah Arezki
Publication Date:
09-2014
Content Type:
Working Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
This paper investigates the relationship between natural resources and capital flight in the form of tax avoidance from multinational corporations. In particular, it focuses on the spillover effects in terms of tax revenue mobilization and stock market development from the thin capitalization rule, a policy instrument aimed at limiting firm tax avoidance through setting limits on a firm’s foreign indebtedness. We exploit the plausibly exogenous within-country variations of data on oil discoveries for a panel of 117 countries during the period 1970–2012. We find evidence that oil discoveries significantly enhance both tax revenue mobilization and stock market development, but only when a thin capitalization rule is in place. We argue that these findings can be explained through the limiting role of a thin capitalization rule in multinational companies’ use of financial transactions among their affiliates or tax havens to transfer part of the profit. The thin capitalization rule may thus not only help limit the erosion of the domestic tax base but may also entice multinational corporations to resort to using and developing the domestic financial system.
Topic:
Development, Economics, International Trade and Finance, Financial Markets, Economic growth, Capital Flows, and Capital Flight
Political Geography:
Africa

30. Impact of China‐Africa Investment Relations: The Case of Ethiopia

Author:
Alemayehu Geda and Atenafu G. Meskel
Publication Date:
07-2013
Content Type:
Policy Brief
Institution:
African Economic Research Consortium (AERC)
Abstract:
This study investigated the growing relation between Ethiopia and China in the last decade. It is possible for Chinese-Africa relations to be either complementary or competitive (or indeed both) and it has multifaceted features. Notwithstanding this multifaceted linkage, the study focused on one of the channels – the investment (FDI) channel. Other channels are explored depending on the degree at which they shed light on understanding the Chinese-Ethiopian investment relations, which is the subject of this study.
Topic:
Economics, International Political Economy, International Trade and Finance, Foreign Direct Investment, and Macroeconomics
Political Geography:
Africa, China, Asia, and Ethiopia