The Role of Telecommunication Infrastructure in the Regional Economic Growth of Africa

This paper deals with the effects of telecommunications on the economic growth in African countries. The telecommunications sector became a vital sector during the era of the economic reform that has been characterising the continent. We investigate empirically the role of telecommunication infrastructures on long-run economic growth in 40 African countries, for the span of time from 1984 to 2005. We use the panel data approach model, which evidences that telecommunications contribute in a major way to the economic development of the continent. It is a crucial determinant, as findings indicate a significant and positive correlation between telecommunication infrastructures and regional growth in Africa, after controlling for a number of other factors. Results also show that investment in telecommunications is subject to increasing returns.Infrastructure; Growth; Africa; Dynamic Panel

The trade specialization of SANE: Evidence from manufacturing industries

This paper studies the evolution of the foreign trade specialization in manufacturing sectors of South Africa, Algeria, Nigeria and Egypt. These four countries, the so-called SANE, have recently been viewed as Africa’s best chance of producing an economic bloc whose role for Africa might be comparable to that of the BRIC economies of Brazil, Russia, India and China for the world economy. Using data on trade flows since mid-1970s, the results show that the SANE group has experienced few changes in its trade structure, which is still based on low-technology and slow-growth world demand sectors. The degree of persistence in the specialization model is higher in the case of Algeria and Nigeria, where the dependence on products based on natural resources is stronger.SANE, Trade specialization, Manufacturing, Lafay index

Economic Development, Institutional Quality and Regional integration: Evidence from Africa Countries.

The aim of this paper is to provide new empirical evidence about the determinants of per capita income in African countries, with particular attention to the affects of governance institutional quality and sub regional integration on income level. We use a sample of 49 countries from the period 1996-2004 and the Generalized Method of Moments Estimation model for dynamic panel, proposed by Arellano and Bond (1991). The results show that African regional groups with better institutions, higher degrees of regional integration cooperation, higher rates of investment in human capital and lower rates of population growth, show a higher level of per capita incomeSub-Regional Integration, Institutional Quality, Economic development

How Can Economic and Political Liberalisation Improve Financial Development in African Countries?

The objective of this paper is to study the interactions between economic liberalisation, political liberalisation and financial development in African countries. More specifically, we seek to establish the impact of economic, political and institutional openness on financial deepening. The empirical approach will be two-step procedure, first using a difference in difference method to show the various aspect of financial liberalisation on economic and political freedom while the second step will be using panel data techniques from period 1990 to 2005. The estimation results can be summarised as the following, first, Economic and financial liberalisation did account significantly for the financial development performance. While political stability show a positive overall effect on financial development, the association with Political freedom is consistent only after controlling the endogeneity of Political freedom on financial development. This result indicates that the transformation of the political and economic environment has improved the performance of the financial sector.Political Liberalisation, Economic Liberalisation, Financial Development and Africa

The Trade Specialization of SANE:Evidence from Manufacturing Industries

This paper studies the evolution of the foreign trade specialization in manufacturing sectors of South Africa, Algeria, Nigeria and Egypt. These four countries, the so-called SANE, are recently viewed as Africa’s best chance of producing an economic bloc comparable to the BRIC economies of Brazil, Russia, India and China. Using data on trade flows since mid-1970s, the results show that the SANE group has experienced few changes in its trade structure, which is still based on low-technology and slow-growth world demand sectors. The degree of persistence in the specialization model is higher in the case of Algeria and Nigeria, where the dependence on products based on natural resources is stronger.SANE; Trade specialization; Manufacturing; Lafay index

Testing the weak-form market efficiency and the day of the week effects of some African countries.

The aims of this work are twofold. On the one hand, it aims to find evidence supporting the presence of the weak form efficiency of several emerging African stock markets by using both parametric as well as non parametric tests. The results indicate that none of the markets are characterised by random walks with the exception of the South African stock market. On the other hand, this study aims to detect the presence of the day of the week effects of these African stock markets. Results show the existence of day of the week effects, that is the typical negative Monday and Friday positive effects in several stock markets.African stock markets, random walk hypothesis, day of the week effects

Financial Development and Income Inequality: Evidence from African Countries

This paper present empirical evidence on how financial development is related to income distribution in a panel data set covering 22 African countries for the period between 1990 to 2004. A dynamic panel estimation technique (GMM) is employ and the findings indicate that income inequality decrease as economies develop their financial sector, which is consistent with the bulk of theoretical and empirical research. The result also confirm that educational attainment play a significant role in making income distribution more equal. We also find no evidence supporting the Greenwood-Jovanovic hypothesis of an inverted-U- shaped relationship between financial sector development and inequality.Financial development, income inequality, Africa G20, D63, 055

The Causal Relationship between Private and Public Investment in Zimbabwe

The study examines the relationship between private and public investment in Zimbabwe utilizing yearly time series data for the period 1970 to 2007. Emphasis is placed on the direction of causality and the effect of the two types of investment on each other. The paper constructs empirical models for both private and public investment, based on the flexible accelerator theory. Private investment is found to be cointegrated with public investment. A cointergration approach and VEC model are employed to assess the short run relationship existing between public and private investment. The relationship between private and public investment is found to be insignificant and the direction of causality found to be unidirectional. The results support the notion that private investment precedes public investment.Private Investment, Public Investment, Causality, Flexible Accelerator Theory, Zimbabwe

The dynamics of income inequality in Africa: An empirical investigation on the role of macroeconomic and institutional forces

Reducing income inequality is a crucial goal of sustainable development as income inequality often viewed as harmful to economic growth. The main aim of this paper was to empirically assess the macroeconomic and institutional drivers of income inequality in Africa. We use a Kuznets curve framework, which emphasises the role of income per capita in explaining the time path of inequality. In contrast to much of the literature, we explicitly examine the possibility of the existence of multiple income steady states. Using the concept of clubs of convergence, we show that per capita income is divergent and identify four steady states to which groups of economies converge (i.e., high-income to low-income economies). Using panel data models and a data set encompassing 52 African countries spanning the years 1980–2017, we show that once these multiple steady states are accounted for, the Kuznets curve relationship becomes unstable. Our findings suggest that inequality may be increasing in high-income countries in Africa, while decreasing in low-income or the least developed economies. In addition, the role of macroeconomic and institutional factors in explaining income inequality is limited and differ across convergence clubs. Evidence suggests the importance of fiscal, employment and monetary policies and the rule of law to tackle inequality in high-income economies, while they have no statistically significant role in low-income economies’ income inequality

The Impact of Regional and Institutional Factors on Labour productive Performance : Evidence from the Township and Village Enterprise sector in China

This paper investigates the impact of regional and institutional factors on labor productivity in China’s Township and Village Enterprise (TVE) sector, one of the pillar industries of the economy. Employing a balanced provincial panel dataset, we find a significant variation in the factors determining regional labor productivity between the three macro-regions. The factors of capital investment intensity, foreign intensity, and export intensity behave differently with a significant regional diversity. Only human capital, the real wage, and firm size are identified as the common determinants across regions. A strong self-reinforcing effect has been found with a high degree of persistence in the behavior of, and hence slow or negligible convergence in labor productivity between regions. We find that the labor efficiency gains have been generated more from internal rather than external economies of scale across regions as well as the country as a whole. We also find that the government privatization reforms have had both a short run and increasingly long-term positive impact on the TVE labor productivity across the regions. This finding may indicate that institutional privatization can be an effective tool in promoting industrialization and labor productive performance in China as well as in other transitional economies