An incentive compatible model for eliciting firms’ production function in a development process

Development plans with projects are usually designed by developing countries including African countries as a major tool for carrying out their development activities. Yet in their market oriented economies the governments have problems of allocating their scarce resources in the tender process. Thus, an incentive model is formulated for more efficient resource allocation and within this framework; decisions taken could be evaluated based on the outcomes.Keywords. Resource allocation, Tender process, Incentive compatible, Production technology, development plan, Public goods.JEL. D24, D61, H41, H57, O31, P11

AFRICA’S DEVELOPMENT: INSTITUTIONS, ECONOMIC REFORMS AND GROWTH

The paper examines the importance of relative prices, institutional quality and other factors which are regressed on the estimated total factor productivity (TFP). With panel data of 26 African countries for the period 1980-2011, the results show that relative prices have significant effects on TFP. Also the quality of institutions is an important determinant of non-input component of output growth. The macroeconomic measures to get “prices right” in sub Saharan Africa may also be constrained by the linkages of institutions to the macroeconomic variables. Thus, policies of getting prices right with establishing strong institutions are worth continuously pursuing with vigor

LONG-TERM GROWTH IN THE CFA FRANC ZONE COUNTRIES

The paper identifies and examines those factors that have affected growth in the CFA franc zone countries relative to the non CFA countries. It examines the special arrangements between franc zone countries and France, which give some advantages that seem not to have created a more rapid and sustained growth in the CFA franc zone region. However, the most important factor (which seems to reflect other factors) is found to be the institutional rigidity imposed by the monetary and exchange rate arrangement. The rigidities have negatively affected the different aspects of economies of the CFA franc countries, and therefore affect their long-term growth prospects as an examination of the different factors strongly indicates. For example the imbalances, particularly the external imbalances lacked the self-correcting mechanism. Most of the Non-CFA countries depended on external adjustment strategies by relying on the flexible exchange rate adjustment although with high inflation. The CFA franc countries tried to correct the imbalances by internal adjustment alone with much difficulty. A major difficulty is that the export base is mainly primary goods and the one time across-the-board (all countries the same rate) devaluation increase capacity utilization rather than capacity expansion in almost all the countries. Very thin trade within the zone and large trade between the zone and other countries, tend to generate much disequilibrium. Also a strong and unified monetary system has not been able to produce a strong financial and banking system in the zone. The weak banking sector has therefore encouraged capital flight. Hence for effective macro-economic policy for long-term growth, the factors and rigidities analysed in the paper must actually be taken into consideration and in some cases rigidities must be removed

The Long Run Growth Rate of the Kazakhstan’s Economy

Kazakhstan’s economy has performed very well for almost the past decade – growing on an average annual growth rate of 9%. Furthermore, over this period there has been rapid increase in production in all the sectors of the economy. Can this economy continue to grow at such a high growth rate in the long run? The scanty existing literature on the topic suggests that growth is driven by exports from the extractive industry, while growth accounting studies on Kazakhstan’s economy reveal little contribution of total factor productivity to growth. In theory, the total factor productivity (TFP) growth rate and long-run growth rate, or the steady state growth rate are equal. Hence, we examine this premise because it is as interesting and useful as policy input. In investigating the long run growth rate, we used parametric (econometric) methods with extended production functions to include learning by doing through trade (openness). We find the estimates of the TFP steady state growth rate to be around 3 percent. This study gives us better insight into the economic growth of the country, although with transitional economies like Kazakhstan’s, there are huge institutional changes

Evaluation de l'appui à l'ajustement structurel de la Commission Européenne au Cameroun

Ce rapport établi pour le compte de la Commission des Communautés Européennes développe les points suivants : l'historique des programmes d'ajustement structurel, l'appui à l'ajustement structurel de la C.E., la pertinence du programme et l'éligibilité du Cameroun à l'AAS de la communauté, l'impact des politiques d'ajustement structurel, l'impact des AAS de la communauté et le niveau d'attente des objectifs spécifiques de la C.E. (efficacité), l'efficience et la viabilité. En conclusion de cette évaluation, les auteurs font état d'un certains nombre de recommandations tirer pour la C.