The Impact of Real Exchange Rate Misalignment and Instability on Macroeconomic Performance in Sub-Saharan Africa

This study investigates the relationship between indicators of macroeconomic performance and real exchange rate (RER) misalignment and instability in Sub-Saharan Africa (SSA). Three measures of RER misalignment are used. There is ample evidence that countries which have pursued more predictable macroeconomic policies and lower levels of RER misalignment have experienced better economic performance. Also, it appears that higher levels of misalignments in the RER are accompanied by higher levels of macroeconomic instability. Empirical support is found for Edwards' model of the equilibrium RER and black market premia tend to show a greater degree of misalignment than alternative measures.Financial Economics, International Relations/Trade,

The influence of fibronectin modulation on tumor growth

An emerging field in cancer research consists of the study of the role of extracellular matrix proteins. The participation of fibronectin in different stages of tumorigenesis by different mechanisms has already been confirmed in numerous studies. Therefore, the potential of use of fibronectin modulation as a therapeutic approach in cancer might be promising. In this work, the effect of peptides that target fibronectin accumulation were tested in two different cancer models. pUR4 is a bacterial peptide which that prevents fibronectin fibril formation. Because fibronectin is required for collagen accumulation, this leads to a decrease in collagen. The recombinant version of pUR4 was tested in vitro and in vivo in human breast cancer cell line MDA and murine B16 melanoma cells. This peptide was then synthesized and modified in order to better understand its effect on the immune response against tumors and to investigate whether an improvement can be achieved by various modifications. The fibronectin polymerization inhibitor pUR4 diminished fibronectin accumulation by MDA cancer cells in vitro and was able to reduce tumor growth in vivo. However, growth proceeded nevertheless albeit at a slower rate. This was associated with an increase in a subpopulation of immune cells compatible with macrophages (CD11b-F4/80+) and a decrease in the mRNA expression of arginase in myeloid cells isolated from the treated tumors. The suppression of growth was confirmed using a second model of melanoma in immune competent mice. Several modifications were introduced and a new peptide was synthesized, but its effect on fibronectin accumulation in vitro was not more pronounced than pUR4. In vivo, the modification diminished cancer growth further compared to pUR4 in the immune deficient MDA model, but this could not be confirmed in the immune competent melanoma B16 model suggesting it is due to the small sample size in the MDA model, or that it is not a universal effect. Interestingly, we could not detect a change in the macrophages with the modified peptide despite the decrease in cancer growth. Attempts at characterizing the best sequence within the modified peptide led to short peptides that diminish fibronectin accumulation in vitro, but none was better than pUR4. The data indicate that pUR4 suppresses fibronectin accumulation and leads to a decrease in cancer growth. An accompanying change in the mRNA expression in the macrophages could contribute to this effect, but causality was not evaluated in this work. In summary, matrix manipulation offers new possibilities in suppressing cancer growth

World Bank adjustment lending and economic performance in sub-Saharan Africa in the 1980s : a comparison with other low income countries

The authors investigated the factors that influenced the participation of sub - Saharan African countries and all low-income countries in World Bank adjustment lending. They estimated how the Bank's adjustment programs affected economic performance in both regions. They found that the marginal contribution of Bank-supported adjustment programs to export performance has been postive and significant in sub - Saharan Africa, given the potentially important links between export growth and economic growth. But adjustment programs have not significantly affected economic growth in sub - Saharan Africa and have had a deleterious effect on investment there. This strengthens theargument of those who call for more explicit consideration of the initial conditions of the sub - Saharan African economies in the design, emphasis, and schedule of their adjustment programs. For one thing, a redefined but more important role for governments is in order for reforming African economies. Fiscal and monetary retrenchment are still indispensable, but it is critical that there be more public investment in infrastructure, human capital, and agricultural technology - to generate a supply response. Moreover, efforts must be made to make policy reforms more credible to the private sector and to improve program implementation. Also, governance and political stability - politically sensitive issues - critically affect the adoption, implementation, sustainability, and credibility of adjustment programs.Country Strategy&Performance,Economic Theory&Research,Achieving Shared Growth,Environmental Economics&Policies,Inequality

Cotton sector strategies in West and Central Africa

Cotton production is truly a success story in West and Central Africa. The region is now the second largest exporter of lint, after the United States, with a world market share of 15 percent. Despite its strong performance in the past, the sector is characterized by several institutional and structural weaknesses that jeopardize its viability in an era of increasing globalization of the cotton industry. The sector's future performance will also depend on the implications of cotton sector policies in major producing countries such as the United States, the European Union, and China. This paper examines how the above factors may affect future growth of the region's cotton industry. It also identifies the changes that are required to enable countries in the region to fully exploit the sector's significant growth potential.Environmental Economics&Policies,Agricultural Research,Markets and Market Access,Economic Theory&Research,Crops&Crop Management Systems,Markets and Market Access,Crops&Crop Management Systems,Environmental Economics&Policies,Economic Theory&Research,Agricultural Research

How commodity prices respond to macroeconomic news

This paper analyzes the immediate, delayed and group responses of 20 commodity prices in four commodity groups (foods and livestock, crops, energy and metals) to macroeconomic"news"(unexpected announcements) in the United States between 1985 and 1989. It finds that macroeconomic news generally affects commodities within groups in the same direction - but there is no clear evidence that the prices of largely unrelated commodity groups react in the same way to macroeconomic shocks. The paper also notes that the business cycle must be carefully considered in analyzing the impact of macroeconomic news on commodity prices. It looks at variables such as inflation, exchange rates, interest rates, money stock and real activity. For each of the variables, the immediate impact of news is often different from the one-day-lagged impact - and different for different commodity groups.Economic Theory&Research,Environmental Economics&Policies,Markets and Market Access,Access to Markets,Insurance&Risk Mitigation

Does Control of Corruption Matter for Entrepreneurship in Emerging Economies: Evidence from Post-Communist Countries

Corruption has been shown to discourage entrepreneurship in both developed and developing countries. However, it is less clear to what extent corruption affects the development of institutions’ impact on entrepreneurial activity in the context of emerging economies, such as those in the post-communist countries. This study used Institutional Economics as a conceptual framework with the aim of analysing the moderating effect of control of corruption (informal institution) on the relationship between formal institutions (such as the number of procedures, education and training, access to finance, and technology absorption) and entrepreneurial activity. The study used panel data of 14 post-communist countries and different secondary databases from the years 2006-2014. The article has several implications from both theoretical perspectives (advancing the application of Institutional Economics for the study of entrepreneurship) and from the practical point of view (providing insights for governmental policies interested in fostering higher entrepreneurial levels). Keywords: institutional economics, corruption, entrepreneurship, emerging economie

The interaction effect of formal and informal institutions on the development of entrepreneurial activity

This thesis was submitted for the award of Doctor of Philosophy and was awarded by Brunel University LondonVarying institutional environments have provided the foundation for a great deal of entrepreneurship research; however, relatively little empirical work has examined the interaction effect between formal and informal institutions on the development of entrepreneurial activity in emerging economies. This is surprising given the importance placed on entrepreneurship, and especially new business start-ups, as a key determinant of economic growth, prosperity and sustainable development. Drawing from entrepreneurial and institutional theories, this doctoral study addresses this gap by examining the effect of formal institutions, such as the number of procedures, education and training, access to credit and firm-level technology absorption, on the rates of entrepreneurial activity in emerging economies. It will test the thesis that this relationship becomes more instrumental when they are accompanied by lower levels of corruption as an informal institution. Moreover, this thesis suggests that entrepreneurs in emerging economies respond differently to the dynamics of the institutional environment depending on the nature of opportunities that arise from the country’s stage of development, and whether they are factor-driven, efficiency-driven, or innovation-driven economies. A review of the theoretical and empirical literature reveals that the dynamics of the institutional environment on the development of entrepreneurial activity in emerging economies is imperfectly understood, and the empirical analysis undertaken in this thesis represents a step towards greater understanding in this area. The role of the institutional environment is investigated by testing a number of hypotheses reflecting formal and informal institutions, and the extent to which these variables can explain variations in the level of entrepreneurial activity. Panel data models were constructed for 44 emerging economies over a nine-year period (2006-2014), from which a variety of hypotheses will be tested, and conclusions drawn. On the basis of the quantitative data derived from several global research projects (i.e., the World Bank, UNESCO, and the Global Competitiveness Report), the research findings will show that lower levels of corruption moderates positively the effects of a country’s number of procedures, and education and training on the rates of entrepreneurial activity, whereas it moderates negatively the effects of access to credit and technology absorption on the levels of entrepreneurial activity. Furthermore, in emerging economies, these interaction effects are similar, regardless of the stage of economic development. This study is among the first to empirically examine the dynamics of institutional variables to predict new business activity; it paints a nuanced picture of how formal institutions might be more significant in contexts characterised by weak institutions if more control of corruption supported them. Regarding the theoretical debate, this thesis may provide empirical evidence for the idea that the variations in rates of entrepreneurial activity cannot be fully understood without giving attention to the context of the institutional environment dynamics in which those variables were observed. In particular, the main results of this thesis will suggest that the interaction effects of formal and informal institutions, rather than direct effects, are useful in explaining systematic variations in new business prevalence in emerging economies. On the basis of the results reported in this study, entrepreneurship policy should attempt to address the entrepreneurial deficit and focus on developing an attractive institutional environment towards entrepreneurship in order to promote economic growth, job creation and higher levels of investment in emerging economies

Corporate entrepreneurship champions: mapping the past and present states of the field for future advancements

Purpose The purpose of this study is to critically examine and review the extant research on corporate entrepreneurship champions in the broader area of corporate entrepreneurship and to uncover the avenues for advancement of the scholarship with the purpose of engaging CE champions towards the upliftment of organisations in particular, and younger workforce in general. Design/methodology/approach In this study, authors employ bibliometric analysis through a review of 274 papers fetched from Web of Science and Scopus databases. Findings The authors set the agenda for future research and policy by elucidating research themes and potential research questions by bringing out twelve themes classified into five basic themes, three niche themes, three motor themes, and one key theme, while also providing the methodological inputs for carrying out this agenda. Originality/value This study adopts a unique lens of investigation in contextualising the role of self-efficacy, employee engagement, and career choice for the younger workforce

Sovereign bonds in developing countries : drivers of issuance and spreads

Abstract In the last decade there has been a new wave of sovereign bond issuances in Africa. What determines the ability of developing countries to issue bonds in international capital and what explains the spreads on these bonds? This paper examines these questions using a dataset that includes 105 developing countries during the period 1995–2014. We find that a country is more likely to issue a bond when, in comparison with non-issuing peers, it is larger in economic size, has higher per capita GDP, a lower public debt, and a more effective government. Spreads on sovereign bonds are lower for countries with strong external and fiscal positions, as well as robust economic growth and government effectiveness. We also find that primary spreads for the average Sub-Saharan African issuer are higher than in other regions. With regard to global factors, our results confirm the existing evidence that issuances are more likely during periods of global liquidity and high commodity prices, especially for Sub-Saharan African countries, and spreads are higher in periods of higher market volatility

Formal institutions and the development of entrepreneurial activity – the contingent role of corruption in emerging economies

© 2020, Emerald Publishing Limited. Purpose: The paper aims to analyse the interplay between formal and informal institutions' and their impact on entrepreneurship rates in emerging economies. Design/methodology/approach: This study expands previous research in examining the moderating effect of control of corruption on the relationship between formal institutions and the development of the entrepreneurial activity. The study utilizes longitudinal analyses of a dataset from 41 emerging economies over 11 years (2006–2016). Findings: Findings provided robust support for the study's hypotheses. The results suggested lower levels of corruption positively moderate the effects of a country's number of procedures and education and training on the rates of entrepreneurial activity, while negatively moderating the effects of firm-level technology absorption on the rates of entrepreneurial activity. Research limitations/implications: The study has considered only one particular aspect of high-growth entrepreneurship, which is newly registered firms with limited liability. Although newly registered firms are recognized as one of the critical drivers of entrepreneurial activity. Future research should seek to examine other aspects of growth-oriented entrepreneurship such as activities involving a high level of innovation, corporate entrepreneurship or technology developments. Practical implications: This study advanced the existing theories in the field of entrepreneurship and institutional economics as it merged the two theories as a driving framework in the design of the study in the context of emerging economies. Social implications: The study tested a theoretical model by expanding the number of emerging economies in the study and found comparable findings that explain factors that may influence the likelihood of individuals entering entrepreneurship. Originality/value: This article adds to the current literature as it highlights the importance of the interplay of formal and informal institutions in determining their impact on entrepreneurship rates in emerging economies. This is of particular importance to policy-makers, and the business world as the empirical results of this study show the benefits of control of corruption in boosting entrepreneurial rates in these economies, which strive for economic diversification in their developmental endeavours