The Comparative Economics of Catch-Up in Output per worker, total factor productivity and technological gain in Sub-Saharan Africa

After investigating the effect of external financial flows on total factor productivity and technological gain, we use the beta catch-up and sigma convergence to compare dispersions in output per worker, total factor productivity and technological gain in Sub-Saharan Africa (SSA) for the years 1980-2010. The comparative evidence is articulated with income levels, years of schooling, and health factors. We find; first, a positive association between foreign direct investment, trade openness, foreign aid, remittances and total factor productivity. However, when foreign direct investment is interacted with schooling, it is direct effect becomes negative on total factor productivity. Second, beta catch-up is between19.22% and 19.70% per annum with corresponding time to full catch-up of 25.38 years and 26.01 years respectively. Third, we find sigma-convergence among low-income nations and upper-middle income nations separately, but not for the entire sample together. Fourth, schooling in SSA is not yet a significant source of technology, but it can make external financial inflows more effective. Policies to induce external financial flows are not enough for development if absorptive capacity is low. More policy implications are discussed

Convergence in Sub-Saharan Africa: a nonstationary panel data approach

Given the development of time series econometrics and nonstationary data analysis, St. Aubyn (Empirical Economics, 24, 23–44, 1999) demonstrates a new paradigm for testing income convergence, or better defined, income stability, namely testing the stationarity of pair-wise income differentials. In this paper, a panel data set of Sub-Saharan African countries is constructed and panel cointegration and unit root tests are used to investigate the convergence properties of incomes and standards of living within Africa. Overall, little evidence is found to substantiate claims of convergence across Africa, although in some cases, smaller convergence clubs within Africa may be found. In addition the use of nonstationary panel data techniques is proposed for the testing and establishing of coherent convergence clubs.

Pleural Fluid pH Measurement at Acute Care Hospitals

Purpose: A reliable pleural fluid (PF) pH is useful in the management of pleural effusions. While the blood gas analyzer (BGA) has been considered the method of choice to determine PF pH, laboratories are under increasing pressure to find alternatives. We undertook this study to ascertain the variety and implications of different methodologies of determining PF pH. Methods: A questionnaire was mailed to laboratory directors of 1,160 acute care hospitals to ascertain the technique used to measure PF pH, the number of thoracenteses performed, and how often pH was requested on PF per year. We, also, asked whether a pulmonary specialist was on staff. Results: 409 questionnaires were returned. 116 hospitals sent their samples to reference laboratories. Sixteen hospitals had not determined a PF pH within the last year. 277 facilities tested their own PF pH. The BGA was employed in 32% of these hospitals. Fifty-six percent used either dip stick or pH indicator paper methods. pH meter was used by 12%. Only 1/3 of all PF samples were tested for pH. Hospitals with the lowest percentile of pulmonologists corresponded to those facilities that did not test for PF pH or used reference laboratories. Conclusions: A variety of methods to determine PF pH are used. The reliability of alternative means of measuring PF pH awaits validation. Since PF pH was measured on only 1/3 of PF and 4% of institutions did not test PF pH, suggests clinicians are unaware of the significance of this test

Fixed versus Flexible Exchange Rates: Evidence from Developing Countries

This paper investigates the hypothesis that in a small open economy flexible exchange rates act as a 'shock absorber' and mitigate the effects of external shocks more effectively than fixed exchange rate regimes. Using a sample of 42 developing countries, the paper assesses whether the responses of real GDP, the trade balance and the real exchange rate to world output and world real interest rate shocks differ across exchange rate regimes. The paper shows that there are significant differences in the variability of macroeconomic aggregates under fixed and flexible exchange rate regimes. Copyright (c) The London School of Economics and Political Science 2007.