Search

Begin New Search Topic Economics Political Geography West Africa

1. Twin Deficits Phenomenon in the West African Economic and Monetary Union Countries: Panel Data Analysis

Author:
Kouassi Yeboua
Publication Date:
01-2020
Content Type:
Research Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
For a long time, the West African Economic and Monetary Union (WAEMU) countries have been experiencing persistently high budget and current deficits. This study was undertaken to empirically test the “Twin Deficits Hypothesis” in these countries. The analysis was conducted within the framework of the Panel Vector autoregressive (VAR) approach over the period 1975–2013. In contrast to the conventional view which claims a one-way relationship between budget and current account deficits, the results show that budget deficits lead to a deterioration in the current account balance, and vice versa (bilateral relationship). We also found that budget deficits have an impact on current account balance mainly through imports.
Topic:
Economics, Monetary Policy, Budget, Economic Policy, and Macroeconomics
Political Geography:
Africa and West Africa

2. A Year after the Start of the Saudi-Emirati Blockade against Qatar. What Are the Consequences for West Africa?

Author:
Benjamin Augé
Publication Date:
10-2018
Content Type:
Commentary and Analysis
Institution:
Institut français des relations internationales (IFRI)
Abstract:
On June 5th 2017, Saudi Arabia, the United Arab Emirates, Egypt and Bahrain broke off diplomatic relations with Qatar and agreed to isolate the Emirate via an air and land blockade. These countries decided to punish Qatar under the pretext of a speech the Emir of Qatar, Tamim bin Hamad Al-Thani, would have made on May 23rd, which reiterated the strong ties between his country and Iran.[1] The situation has been at a deadlock for a year, and Qatar refuses to apply the Emirati and Saudi Arabian list of the 13 demands. The latter mainly include the closure of the Al Jazeera TV station and the Turkish military base on its territory, downgrading diplomatic relations with Iran, as well as a total separation with movements such as Hezbollah or even the Muslim Brotherhood.[2] However, although this crisis only pits Persian Gulf countries against each other, apart from Egypt, both sides have tried to win support. Donald Trump has adopted the stance of the Saudi-Emirati side[3] – but the State Department under Rex Tillerson (2017-2018) has always remained cautious –, Europe remains neutral with no leader daring to choose one side rather than another. The confrontation was particularly marked in West Africa. Four countries in this area – Senegal, Mauritania, Chad and Niger – quickly downgraded their diplomatic relations with Qatar shortly after the start of the crisis. However, their strategy vis-à-vis this wealthy gas Emirate has changed considerably over the last twelve months, as Doha's efforts to obtain new support in the rest of West Africa has started to bear fruit.
Topic:
International Relations, Diplomacy, and Economics
Political Geography:
Saudi Arabia, West Africa, Senegal, Qatar, United Arab Emirates, Chad, Mauritania, Niger, and Gulf Nations

3. Credit-constrained in Risky Activities? The Determinants of the Capital Stocks of Micro and Small Firms in Western Africa

Author:
Jann Lay, Michael Grimm, and Simon Lange
Publication Date:
01-2012
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
Micro and small enterprises (MSEs) in developing countries are typically considered to be severely credit constrained. Additionally, high business risks may partly explain why the capital stocks of MSEs remain low. This article analyzes the determinants of the capital stocks of MSEs in poor economies focusing on credit constraints and risk. The analysis is based on a unique, albeit cross-sectional but backward-looking, micro data set on MSEs covering the economic capitals of seven West-African countries. The main result is that capital market imperfections indeed seem to explain an important part of the variation in capital stocks in the early lifetime of MSEs. Furthermore, the analyses show that risk plays a key role in capital accumulation. Risk-averse individuals seem to adjust their initially low capital stocks upwards when enterprises grow older. MSEs in risky activities owned by wealthy individuals even seem to over-invest when they start their business and subsequently adjust capital stocks downwards. As other firms simultaneously suffer from capital shortages, such behaviour may imply large inefficiencies.
Topic:
Development, Economics, International Trade and Finance, Markets, and Foreign Direct Investment
Political Geography:
West Africa

4. Are Borders Barriers? The Impact of International and Internal Ethnic Borders on Agricultural Markets in West Africa

Author:
Jenny C. Aker, Michael W. Klein, Stephen A. O'Connell, and Muzhe Yang
Publication Date:
04-2010
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper addresses two important economic issues for Africa: the contribution of national borders and ethnicity to market segmentation and integration between and within countries. Market pair regression analysis provides evidence of higher conditional price dispersion for both a grain and a cash crop between markets separated by the Niger-Nigeria border than between two markets located in the same country. A regression discontinuity analysis also confirms a significant price change at the international border. The international border effect is lower, however, if the cross-border markets share a common ethnicity. Ethnicity is also linked to higher price dispersion within Niger; we find a significant intranational border effect between markets in different ethnic regions of the country. This suggests that ethnic similarities diminishing international border effects could enhance international market integration, and ethnic differences could contribute to intranational market segmentation in sub-Saharan Africa. We provide suggestive evidence that the primary mechanism behind the internal border effect is related to the role of ethnicity in facilitating access to credit in agricultural markets. We argue that the results are not driven by differences in price volatility or observables across borders.
Topic:
Agriculture, Economics, Ethnic Conflict, and Markets
Political Geography:
Africa, West Africa, and Nigeria

5. Stopping Guinea's Slide

Publication Date:
06-2005
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Guinea risks becoming West Africa's next failed state. Its economy is faltering, the government has nearly ceased to provide services, and in 2004, there were isolated uprisings in at least eight towns and cities in all regions of the country. Getting it wrong in Guinea now could have disastrous consequences. Getting it right will require a greater engagement by both the Guinean population and the diplomatic and donor communities, including a focus much more on reforming institutions than on the immediate personnel issues involved in the succession to the ailing and dictatorial president, Lansana Conté.
Topic:
Conflict Prevention, Development, and Economics
Political Geography:
Africa, West Africa, and Guinea

6. War Economies in a Regional Context: Overcoming the Challenges of Transformation

Author:
Kaysie Studdard
Publication Date:
03-2004
Content Type:
Working Paper
Institution:
International Peace Institute
Abstract:
This policy report distills key findings from research commissioned by the International Peace Academy's program on Economic Agendas in Civil Wars (EACW) on the regional dimensions of war economies and the challenges they pose for peacemaking and peacebuilding. Drawing from analytical research as well as case studies of Afghanistan in Central Asia, Sierra Leone in West Africa, and Bosnia and Herzegovina in Southeast Europe, a number of key issues concerning the political economy of regional war economies and lessons for more effective peacebuilding were identified: The notion that internal conflicts have economic "spill over" or "spill into" effects on neighboring states needs to be extended and deepened. Policymakers should work to develop a more comprehensive understanding of the interstate impacts of civil conflict that gives greater weight to systemic cross-border networks and less to potentially 'one-off' transborder phenomena.
Topic:
Economics, Peace Studies, Regional Cooperation, and War
Political Geography:
Afghanistan, Europe, Central Asia, Bosnia, Herzegovina, and West Africa

7. Monetary Policy in the Franc Zone: Estimating Interest Rate Rules for the BCEAO

Author:
Anja Shortland and David Stasavage
Publication Date:
02-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper examines to what extent the central bank for the West African Economic and Monetary Union (BCEAO) has used interest rate policy in response to domestic economic developments. We show that while in the long run the BCEAO matches changes in French (Eurozone) interest rates one for one, in the short run it retains freedom to react to domestic economic variables, such as inflation, the output gap, its foreign exchange position and government borrowing.
Topic:
Economics, International Organization, International Political Economy, and International Trade and Finance
Political Geography:
Africa, France, and West Africa

8. The Economic Consequences of Violent Conflict in West Africa

Publication Date:
11-2003
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Violent conflict undoubtedly affects West Africa's prospects for economic development and integration. However, the nature of these effects is still poorly understood. As part of the SWAC regional programme on conflict and stability, the SWAC Secretariat undertook a literature review and an electronic consultation of southern and northern agencies and specialists in summer 2003. This aimed to assess the economic consequences of violent conflict at multiple levels; identify operational lessons on how best to deal with these effects; and highlight key areas for further work where the SWAC can add value. The core findings of the review are presented in this note.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:
West Africa