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121. Positive Peace Report 2019: Analysing the factors that sustain peace

Publication Date:
10-2019
Content Type:
Special Report
Institution:
Institute for Economics & Peace
Abstract:
This report is a continuation of the prior work from the Institute for Economics and Peace (IEP), and includes updated results for the annual Positive Peace Index (PPI). It also provides analysis of countries that are improving or deteriorating in Positive Peace, as well as the developmental factors that improve or deteriorate with changes in Positive Peace. The research incorporates systems thinking to understand how nations operate and societies develop over time. The introductory section of the report describes the fundamental concepts associated with systems thinking. In doing so, IEP provides a new interdependent framework and holistic approach to understanding peace and development.
Topic:
Conflict Prevention, Development, Peace Studies, Peacekeeping, Conflict, Violence, and Peace
Political Geography:
Global Focus

122. Mexico Peace Index 2019: Identifying and measuring the factors that drive peace

Publication Date:
04-2019
Content Type:
Special Report
Institution:
Institute for Economics & Peace
Abstract:
The 2019 Mexico Peace Index (MPI), produced by the Institute for Economics and Peace (IEP), provides a comprehensive measure of peacefulness in Mexico. The MPI is based on the Global Peace Index (GPI), the world’s leading measure of global peacefulness, produced by IEP every year since 2007. This is the sixth edition of the MPI, outlining the key trends, patterns and drivers of peace in Mexico, including an analysis through the lens of Positive Peace, which reviews eight societal structures and highlight areas important for government policy. The report also estimates the economic impact of violence to the Mexican economy, highlighting the need to increase investment and capacity in the criminal justice system. Finally, the report provides quantitative evidence to aid in the development of policies for a more peaceful society. The research is of assistance to policymakers, researchers, business leaders and the general public working towards building peace in Mexico.
Topic:
Development, Economics, Peace Studies, Peacekeeping, Violence, Public Policy, and Peace
Political Geography:
Central America and Mexico

123. SDG16 in the Pacific 2019: Strengthening and legitimising institutions to achieve sustainable development

Author:
Murray Ackman, David Hammond, Clarissa Cooney, and Yangyang (Liz) Liu
Publication Date:
02-2019
Content Type:
Special Report
Institution:
Institute for Economics & Peace
Abstract:
Strengthening and increasing the legitimacy of institutions and the rule of law is fundamental for development outcomes in the Pacific region. This is especially true with significant changes projected relating to the environment, demographics and socio-economics. Strong institutions are essential to respond to these changes. However, institution building can be slow and challenging and resources are limited. Measurement of progress will help guide decision making and prioritisation. There are challenges to measurement in the region including vast geographic spreads, high cultural and linguistic diversity, small and sometimes remote populations and relatively low internal capacity. This necessitates innovative approaches to measurement. One such approach is the development of a regional index based on expert interviews.
Topic:
Development, Sustainable Development Goals, and Peace
Political Geography:
Australia/Pacific

124. China and the World Bank: How Contrasting Development Approaches affect the Stability of African States

Author:
Kai Gehring, Lennart C. Kaplan, and Melvin H.L. Wong
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
Empirical Studies of Conflict Project (ESOC)
Abstract:
China’s development model challenges the approaches of traditional Western donors like the World Bank. We argue that both aim at stability, but differ in the norms propagated to achieve that. Using fixed effects and IV estimations, we analyze a broad range of subnational stability measures in Africa. Aid by both the WB and China does not increase outright conflict nor any type of citizen protest, on average. Both even reduce outright conflict by governments against civilians. Still, Chinese aid is associated with more government repression and an increased acceptance of authoritarian norms, while WB projects strengthen democratic values.
Topic:
Development, International Political Economy, Political Economy, World Bank, and Developing World
Political Geography:
Africa and China

125. Determinants and Economic Impact of International Tourist Arrivals in Ghana

Author:
Isaac Bentum-Ennin
Publication Date:
08-2019
Content Type:
Policy Brief
Institution:
African Economic Research Consortium (AERC)
Abstract:
Given Ghana’s endowments such as attractive sites; more than 500km of beaches, and World Heritage forts and castles, tourism is seen as an important tool for promoting the socio-economic development in that it generates many economic benefits such as incomes, employment and tax revenue, both within the sector and through linkages with other sectors. This study first, analyses the factors influencing the upward trends in international tourists’ arrivals and receipts and second, quantifies the impact of the tourism sector on the Ghanaian economy. The objective of this policy brief is to inform the Ministers of Interior, Tourism and Finance that the most important factor influencing international tourists’ arrivals in Ghana is the prevailing civil liberties and political rights and that Nigeria is a significant substitute destination. Also, that the tourism sector has had the greatest impact on the whole Ghanaian economy when compared to sectors such as agriculture, industry and other services sectors. It is hoped that appropriate legislations will be passed to deepen these liberties and rights and that policy measures will be put in place to ensure macroeconomic stability in order not to lose competitiveness to Nigeria. Also, it is hoped that the Tourism Ministry would lobby for more investment and more resources from the Finance Ministry in order to expand the sector since it has a huge potential to stimulate economic growth.
Topic:
Agriculture, Development, Economics, International Political Economy, Tourism, Economic growth, and Macroeconomics
Political Geography:
Africa and Ghana

126. Performance of Small and Medium-Sized Enterprises in Uganda: The Role of Innovation

Author:
Ibrahim Okumu and Faizal Buyinza
Publication Date:
11-2019
Content Type:
Policy Brief
Institution:
African Economic Research Consortium (AERC)
Abstract:
Using the 2013 World Bank Enterprise Survey data for Uganda, this paper employs the quintile estimation technique to explain the relationship between innovation and firm performance in small and medium-sized enterprises (SMEs). Innovation involves the introduction of a new or significantly improved production process, product, marketing technique or organizational structure. Our results indicate that individual processing, product, marketing and organizational innovations have no impact on labour productivity as proxied by sales per worker. However, the results indicate the presence of complementarity between the four types of innovation. Specifically, the effect of innovation on sales per worker is positive when an SME engages in all four types of innovation. Even then the complementarity is weakly positive with incidences of a negative relationship when using any combination of innovations that are less than the four types of innovation. Policy-wise the results suggest that efforts to incentivize innovation should be inclusive enough to encourage all four forms of innovation.
Topic:
Development, Economics, International Political Economy, Economic growth, and Economic Policy
Political Geography:
Uganda and Africa

127. Household Economic Well-Being and Child Health in The Democratic Republic of Congo

Author:
Janvier Mwisha-Kasiwa
Publication Date:
11-2019
Content Type:
Policy Brief
Institution:
African Economic Research Consortium (AERC)
Abstract:
Health is both a direct component of human well-being and a form of human capital that increases an individual’s capabilities and opportunities to generate income and reduces vulnerability. It is argued that these two views are complementary, and both can be used to justify increased investment in health in developing countries. Therefore, investment in child health constitutes a potential mechanism to end the intergenerational transmission of poverty. This paper examines the empirical impact of household economic well-being on child health, and the gender differences in effects using the Demographic and Health Survey conducted in 2014. A series of econometric tools are used; the control function approach appears to be the most appropriate strategy as it simultaneously removes structural parameters from endogeneity, the sample selection and heterogeneity of the unobservable variables. Results suggest a significant positive effect of household economic well-being on child health. However, the magnitude of the effect varies by gender of household head; children from households headed by males appear healthier compared to those from female-headed households. In the context of DR Congo, female-headed households often have a single parent, therefore, the economic well-being effect on child health in the male sub-sample can be considered to include the unobserved contribution of women. These results have implications for public interventions that enable women to participate in paid labour market activities as a means of improving household economic well-being, which in turn could improve child health.
Topic:
Development, Economics, Gender Issues, Health, Health Care Policy, and Children
Political Geography:
Africa and Democratic Republic of Congo

128. The Productivity Cost of Power Outages for Manufacturing Small and Medium Enterprises in Senegal

Author:
Lassana Cissokho
Publication Date:
11-2019
Content Type:
Policy Brief
Institution:
African Economic Research Consortium (AERC)
Abstract:
This paper investigates the productivity effects of power outages on manufacturing Small Scale Enterprises (SMEs) in Senegal, using a panel data on manufacturing firms. Productivity is estimated using stochastic frontier models, and power outages measured by their frequency or their duration. We controlled for firms owning a generator as well. The main results are drawn from random effects in a linear panel model. Nonetheless, the results remain consistent to the robustness checks using different models: a double-sided truncated data model and a generalized linear model, and different productivity measures: data envelopment analysis. We find that power outages have negative significant effects on the productivity of SMEs; for example, the manufacturing sector lost up to around 11.6% of the actual productivity due to power outages in 2011, and small firms appear to be affected more than medium ones, 5% against 4.3%. Further, firms with a generator were successful in countering the adverse effect of power outages on productivity. Besides, another outstanding result is the significant positive effect of access to credit on productivity. At last, it appears that productivity increases with firms’ size.
Topic:
Development, Economics, International Political Economy, Economic structure, Economic growth, Macroeconomics, and Manufacturing
Political Geography:
Africa and Senegal

129. The Linkage between Foreign Direct Investment and Intra-Regional Trade within ECOWAS

Author:
Eme Dada
Publication Date:
08-2019
Content Type:
Policy Brief
Institution:
African Economic Research Consortium (AERC)
Abstract:
The objective of this policy brief is to inform the Ministers of Trade and Investment of Economic Community of West African State (ECOWAS) countries about the importance of the linkage between Foreign Direct Investment (FDI) and trade for developing countries. FDI is considered an important means of promoting export of the host countries. This is true of inward FDI, which comes for efficiency reasons. Conversely, there is concern that large flows of outward FDI results in a decline in the host country’s exports and loss of jobs. This in turn assumes that the exports of the source country will fall as FDI substitutes for trade.
Topic:
Development, Economics, International Trade and Finance, Foreign Direct Investment, and Economic growth
Political Geography:
Africa, Liberia, Sierra Leone, Senegal, Mali, Guinea, Guinea-Bissau, Cape Verde, and Gambia

130. Does Financial Literacy Influence Use of Mobile Financial Services in Malawi? Evidence from Malawi Household Survey Data

Author:
Mirriam Muhome-Matita and Takondwa Chauma
Publication Date:
12-2019
Content Type:
Research Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
Mobile financial services are gaining prominence and could be a possible avenue for fast-tracking financial inclusion in developing countries, including Malawi. However, adoption and usage of such services remains low among the Malawi population. This study investigates the influence of financial literacy on financial behaviour of individuals in Malawi, specifically use of mobile phone-based financial transactions. Descriptive and econometric analyses were conducted using cross-sectional data obtained from the Reserve Bank of Malawi. Findings reveal that the likelihood of using mobile financial services increases with increasing levels of financial literacy, type of employment and peri-urban residence. Furthermore, men are more likely to transact on mobile phones than females and that although income levels matter in the use of mobile financial transactions, the magnitude of effect is negligible. Results suggest opportunities for expanding access to financial services and products such as differentiation in financial literacy education by characteristics of population including gender of users. Informal settings do not preclude expansion of digital payments, and therefore financial product innovation and addressing rural resident’s constraints to access mobile financial services is crucial.
Topic:
Development, Economics, Labor Issues, Income Inequality, Labor Policies, and Banks
Political Geography:
Malawi