The effect of distance and communications costs on intra-African trade

Evans Mupela looks at the cross-sectional patterns of export intensity on the continent in relation to distance and costs of information communications technology (ICT), and finds that both play a significant role in the realisation of higher trade intensity among African countries.

Connectivity and Economic Growth

We present a simple theoretical model that illustrates the benefits of regional connectivity and specialization for growth. Starting with one community, we show how welfare measured by utility per head increases as the number of connected communities increases. We assume a common connectivity infrastructure through which a central planner is able to add new communities to the pool of already connected communities, a costly but rewarding activity that is funded by levying a tax on those already connected. We find that increasing production costs lead to faster transitions toward the steady state, whereas increasing transportation and communication costs tend to lengthen the transition. The results point to reductions in transportation and communication costs, in particular, as a suitable vehicle for speeding up growth and underline the existence of a positive scale effect that induces integration and reinforces both transitional and steady state growth

Navigating the government's development path

The challenge for South Africa lies in its ability to translate its plethora of development plans into implementable programmes and projects that culminate in the achievement of set goals and objectives within the designated timeframes. Mimi Ndokweni et al indicate why implementing the most recent of these, the National Development Plan, will remain a struggle.

“Upping the game?”: A response to the WIPHOLD CSR initiative

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