Armand Totouom, Joseph P. Ngameni, Rosine F. Poumeni
{"title":"Does foreign direct investment promote access to basic services? The case of drinking water in Africa","authors":"Armand Totouom, Joseph P. Ngameni, Rosine F. Poumeni","doi":"10.1111/1467-8268.12743","DOIUrl":"10.1111/1467-8268.12743","url":null,"abstract":"<p>Addressing the challenge of limited access to drinking water requires a comprehensive understanding of its underlying causes. This study aims to evaluate the effect of foreign direct investment (FDI) on access to basic services in Africa, focusing specifically on people's access to drinking water. Utilizing data from a panel of 51 countries spanning the period 2000–2020, we employed a two-step system generalized method of moments to estimate dynamic econometric models. Our analysis reveals a positive correlation between FDI inflows and improved access to drinking water. A one-percentage point increase in FDI inflows leads to a 0.026 percentage point rise in the proportion of people with access to drinking water. Notably, the effects vary between urban and rural areas, with marginal effects of 0.022 and 0.160, respectively. Furthermore, our findings indicate an inverse U-shaped relationship between FDI and access to drinking water in Africa, signifying that while access to drinking water improves with increasing FDI, the rate of improvement diminishes. The study recommends the judicious utilization of tax revenues from multinational enterprises to fund basic service infrastructures and advocates for measures aimed at attracting additional FDIs.</p>","PeriodicalId":47363,"journal":{"name":"African Development Review-Revue Africaine De Developpement","volume":"36 2","pages":"350-361"},"PeriodicalIF":3.1,"publicationDate":"2024-03-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140224265","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Fiennasah A. Akem, Ebenezer L. Wirba, Honore Oumbe Tekam
{"title":"Educational assortative mating in the Cameroon marriage market: Role of marriage timing","authors":"Fiennasah A. Akem, Ebenezer L. Wirba, Honore Oumbe Tekam","doi":"10.1111/1467-8268.12744","DOIUrl":"10.1111/1467-8268.12744","url":null,"abstract":"<p>With the increasing education of women in developing countries, educational assortative mating has become a significant aspect in the marriage market, with educational assortative mating patterns likely to be dependent on marriage timing. Using pooled data from three recent waves of the Cameroon Demographic and Health Surveys, the paper investigates the effect of marriage timing on educational assortative mating patterns in Cameroon. To achieve the objective, the study employed the Cox proportional hazard model and a control function version of multinomial Probit. Results show that delaying marriage is expected to decrease the likelihood of women engaging in low educationally homogamous marriages while increasing the probability of women entering high educationally homogamous and hypogamous marriages. Findings further depicted that over the period 2004–2018, the likelihood of women engaging in low educationally homogamous marriages decreased meanwhile the likelihood of women considering high educationally homogamous marriages and hypogamous marriages increased. The implications of these findings are in tandem with the wisdom that, programs encouraging the girl child to delay early marriages and stay longer in school can help women engage in high educationally homogamous marriages, empower women and thus improves their socioeconomic status.</p>","PeriodicalId":47363,"journal":{"name":"African Development Review-Revue Africaine De Developpement","volume":"36 2","pages":"320-333"},"PeriodicalIF":3.1,"publicationDate":"2024-03-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1467-8268.12744","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140225929","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abdelhamid Moustabchir, Hicham Ouakil, Hicham El Ouazzani, Houda Lechheb
{"title":"A DSGE model approach to examining the impact of the Russian–Ukrainian War and oil shocks on the Moroccan economy","authors":"Abdelhamid Moustabchir, Hicham Ouakil, Hicham El Ouazzani, Houda Lechheb","doi":"10.1111/1467-8268.12741","DOIUrl":"10.1111/1467-8268.12741","url":null,"abstract":"<p>This study explores the impact of oil shocks on the Moroccan economy using a dynamic stochastic general equilibrium (DSGE) model. The DSGE simulations reveal that these shocks, exacerbated by the war in Ukraine, led to a contraction in the output gap, consumption, investment, and savings, as well as increased inflation. These results highlight the vulnerability of the Moroccan economy to external shocks, particularly those linked to energy prices. They underline the need for Morocco to diversify its energy sources and reduce its dependence on oil imports. Furthermore, our results suggest that economic policies should focus on mitigating the effects of these shocks. Future research could seek to refine this model by incorporating other factors likely to influence the Moroccan economy, such as changes in global demand or specific government policies.</p>","PeriodicalId":47363,"journal":{"name":"African Development Review-Revue Africaine De Developpement","volume":"36 S1","pages":"S94-S107"},"PeriodicalIF":3.1,"publicationDate":"2024-03-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140245539","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Issue Information - Author Guidelines","authors":"","doi":"10.1111/1467-8268.12687","DOIUrl":"https://doi.org/10.1111/1467-8268.12687","url":null,"abstract":"","PeriodicalId":47363,"journal":{"name":"African Development Review-Revue Africaine De Developpement","volume":"36 1","pages":"171"},"PeriodicalIF":2.9,"publicationDate":"2024-03-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1467-8268.12687","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140096391","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does institutional quality moderate the human capital–inequality dynamics? Comparative evidence from LAC and SSA countries","authors":"Bosede Ngozi Adeleye","doi":"10.1111/1467-8268.12740","DOIUrl":"10.1111/1467-8268.12740","url":null,"abstract":"<p>Aligning with Sustainable Development Goal 10, this study probes whether quality institutions matter in the drive towards reducing income inequality through human capital. An unbalanced panel data on the Gini index (measure of income inequality), human capital index and institutional quality index drawn across 83 Latin America and sub-Saharan African (SSA) countries from 2010 to 2019 is used. For the most part, the consensus is that the interaction of human capital and quality institutions significantly reduces income inequality. For context, inequality reduces by −7.810 and −21.30 points for the full and SSA samples. Other findings reveal that the interaction effect is consistently negative at upper quantiles. Evidence from the margin plots reveals that the effect of human capital on inequality improves as institutional quality is strengthened. The downward trend of the plot within the 95% confidence interval shows that institutional quality enhances the impact of human capital on income inequality for the full sample and in SSA. This is a novel contribution to the literature as it suggests that quality institutions matter in the drive towards reducing the menace of income inequality. Policy recommendations are discussed.</p>","PeriodicalId":47363,"journal":{"name":"African Development Review-Revue Africaine De Developpement","volume":"36 1","pages":"153-169"},"PeriodicalIF":2.9,"publicationDate":"2024-03-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1467-8268.12740","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140078954","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Bruno Emmanuel Ongo Nkoa, Luis Jacinto Ela Alene, Ludé Djam'Angai
{"title":"New wave of internal armed conflicts in developing countries: Does inequality of opportunity matter?","authors":"Bruno Emmanuel Ongo Nkoa, Luis Jacinto Ela Alene, Ludé Djam'Angai","doi":"10.1111/1467-8268.12738","DOIUrl":"https://doi.org/10.1111/1467-8268.12738","url":null,"abstract":"<p>The aim of our study is to analyze the effects of opportunity inequalities on internal armed conflict in developing countries. In a panel of 69 developing countries, over the period 2000–2020 and using the Logit model, we find a positive and significant relationship between inequality of opportunity and the risk of internal armed conflict in developing countries. The effects are higher in Africa than in Asia. As our results are validated by changing the dependent variable and estimation technique, we recommend, on the one hand, increasing investment in mobility and access to basic goods and services. On the other, we recommend the creation of decent jobs through increased investment, to improve developing countries' attractiveness to foreign direct investment as a source of formal jobs.</p>","PeriodicalId":47363,"journal":{"name":"African Development Review-Revue Africaine De Developpement","volume":"36 1","pages":"15-29"},"PeriodicalIF":2.9,"publicationDate":"2024-03-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140096512","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Appreciation to article reviewers","authors":"","doi":"10.1111/1467-8268.12739","DOIUrl":"https://doi.org/10.1111/1467-8268.12739","url":null,"abstract":"","PeriodicalId":47363,"journal":{"name":"African Development Review-Revue Africaine De Developpement","volume":"36 1","pages":"170"},"PeriodicalIF":2.9,"publicationDate":"2024-03-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140096510","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The story of dividend payment and corporate cash flow in Ghana","authors":"Benjamin Amoah","doi":"10.1111/1467-8268.12736","DOIUrl":"https://doi.org/10.1111/1467-8268.12736","url":null,"abstract":"<p>The thorny issue and contradictory conclusions on dividend payments and firm value are not ending any time soon. The existence of a divergence of findings in the literature suggests the need for further empirical studies on this subject matter. Therefore, this study focuses on how a firm's cash flow influences dividend payments in Ghana. Using data from 2015 to 2020, pooled ordinary least squares and random effects estimation, this study provides evidence of dividend payments in Ghana. The results show that dividend payments are influenced by a firm's net cash flow from operations, free cash flow to equity, firm size, and age. The relevant macroeconomic variables for dividend payments are inflation and gross domestic product growth. Another finding is that the more nonfinancial firms take on the characteristics of financial firms, the less dividends they pay. Managers of listed firms in Ghana should grow the size of their firms; however, this should be done in a manner not to expropriate value to managers as predicted in the Jensen agency problem associated with free cash flow.</p>","PeriodicalId":47363,"journal":{"name":"African Development Review-Revue Africaine De Developpement","volume":"36 1","pages":"30-40"},"PeriodicalIF":2.9,"publicationDate":"2024-03-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140096511","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Linking foreign direct investment to financial deepening: Evidence from sub-Saharan Africa","authors":"Osamede Success Abusomwan, John Norense Izevbigie","doi":"10.1111/1467-8268.12737","DOIUrl":"https://doi.org/10.1111/1467-8268.12737","url":null,"abstract":"<p>In this study, the nexus between Foreign Direct Investment (FDI) and financial deepening is critically examined. The study employed a robust dynamic panel cross-sectionally augmented distributed lag method for 31 countries in sub-Saharan Africa (SSA). The results reveal that: (1) a strong significantly positive long run impact of FDI on financial deepening exists; (2) real gross domestic product (GDP), trade openness and government effectiveness stimulate the positive FDI–financial deepening nexus; (3) the strength of the FDI–financial deepening nexus also depends on the percentile position in the income distribution of SSA countries (countries in the upper strata of the income distribution evidently had stronger FDI–financial deepening relations than those in the lower strata and (4) real GDP, trade openness and government effectiveness also enhance financial deepening in SSA. The study recommends that governments in SSA should foster fiscal, financial and regulatory incentives for attracting FDI for improved financial depth in SSA by: strengthening the regulatory frameworks and institutions of governance through the removal of unwarranted governmental interferences in the administration of justice and electoral processes; removing multiple tax regimes; and stabilizing prices and exchange rate volatility via stimulating local productivity and guaranteeing the rule of law, political stability and security of life and property in the region.</p>","PeriodicalId":47363,"journal":{"name":"African Development Review-Revue Africaine De Developpement","volume":"36 1","pages":"1-14"},"PeriodicalIF":2.9,"publicationDate":"2024-02-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140096719","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Effects of economic freedom and ease of doing business on trade in global value chains: Evidence from sub-Saharan Africa","authors":"Badassa W. Chala","doi":"10.1111/1467-8268.12735","DOIUrl":"10.1111/1467-8268.12735","url":null,"abstract":"<p>Inspired by the recent drastic shift in international trade from traditional to global value chains, this study analyzed the effects of economic freedom and ease of doing business on participation and position of sub-Saharan Africa in global value chains. Panel data from 41 sub-Saharan African countries from 2000 to 2018 were used. The study utilized a tobit estimator along with a fixed effects estimator. The findings show that economic freedom—namely, better regulation and sound money—positively influence the countries' participation in global value chains. Moreover, improving ease of doing business, such as by decreasing customs duties and simplifying procedures to register new businesses, enhances the countries' level of participation and their efforts to move upstream along the global value chains. The results are robust to different specifications. Therefore, sub-Saharan African countries should promote economic freedom and ease of doing business to participate in and reap benefits offered by the current wave of globalization. Specifically, sub-Saharan African countries should further reduce the number of procedures required to register new businesses, decrease tariffs and non-tariffs barriers to trade in global value chains to enhance their participation and position along global value chains.</p>","PeriodicalId":47363,"journal":{"name":"African Development Review-Revue Africaine De Developpement","volume":"36 1","pages":"70-83"},"PeriodicalIF":2.9,"publicationDate":"2024-02-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139849897","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}