{"title":"Access to Financial Services Via Rural and Community Banks and Poverty Reduction in Rural Households in Ghana","authors":"Michael Danquah, P. Quartey, A. Iddrisu","doi":"10.5325/jafrideve.19.2.0067","DOIUrl":"https://doi.org/10.5325/jafrideve.19.2.0067","url":null,"abstract":"\u0000 This paper examines whether financial services provided by Rural and Community Banks to rural households in Ghana has a significant impact on the wellbeing of the households. The analysis utilizes data from the Round 6 of the Ghana Living Standard Survey (GLSS) and it employs several econometric techniques. We find that access to financial services via Rural and Community Banks exerts a positive and significant influence on the standard of living of rural households, suggesting that Rural and Community Banks can play a significant role in reducing poverty rates in rural households in Ghana.","PeriodicalId":81652,"journal":{"name":"Journal of Eastern African research & development","volume":"9 3-4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"72626817","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Transforming Rural Africa—Economics, Technology and Governance","authors":"Yaw Nyarko","doi":"10.5325/jafrideve.19.1.0161","DOIUrl":"https://doi.org/10.5325/jafrideve.19.1.0161","url":null,"abstract":"Mr. President and colleagues at the African Finance and Economics Association (AFEA), fellow economists and social scientists, I am extremely grateful for the opportunity to be here to give this keynote address at this wonderful luncheon. I have been a member of AFEA for N years where N is very large. I am happy to see the organization getting stronger and, as I mentioned before, I am extremely honored to be giving this address. The topic today is a central one in Economics in this era. It is the question of the economic development of Africa’s rural areas. A large number of Africans still reside in areas which are relatively rural and agricultural. Many remain very poor despite increases in world standards of living over the past several decades and very high growth rates in many African nations more recently. A fundamental question in the Economics of Development is the question of what will transform these areas into high producing technologically sophisticated economies. The question of economic transformation or structural change, or more specifically, industrialization is receiving a good deal of attention within the profession. Several years ago a new Think Tank, the African Center for Economic Transformation (ACET), was created with the sole purpose of studying and documenting transformation in Africa. The African Development Bank in its flagship publication, the African Economic Outlook, has signaled this through their titles which were “Regional development ... at the heart of Africa’s structural transformation,” in 2015; “Structural Transformation and Natural Resources,” in","PeriodicalId":81652,"journal":{"name":"Journal of Eastern African research & development","volume":"91 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85825038","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Innovation and volatility of the GDP growth rate: case of the economies of sub-Saharan Africa","authors":"Yaya Ky, François Joseph Cabral","doi":"10.5325/jafrideve.19.1.0088","DOIUrl":"https://doi.org/10.5325/jafrideve.19.1.0088","url":null,"abstract":"\u0000 The objective of this research is to assess the impact of innovation on the volatility of GDP growth rate in the economies of Sub —Saharan African (SSA) countries. Using a dynamic panel model, a volatility index that we built and an innovation index produced by United Nations Industrial Development Organization (UNIDO), we show that innovation reduces the volatility of growth rates of GDP. In other words, the likelihood to control the volatility of GDP growth rate is an increasing function of innovation. There is a threshold effect of innovation effect on volatility depending to GDP per capita. Indeed, innovation reduces volatility but until a certain level of GDP per capita. This threshold is estimated at US $ 671 with a confidence level of 90% equal to US $ 600 - US $ 740. The effect of innovation on volatility is more efficient in a politically stable environment. Local innovation and innovation imported (foreign direct investment) have different behavior. The first reduces volatility while the second increases it.","PeriodicalId":81652,"journal":{"name":"Journal of Eastern African research & development","volume":"163 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84711878","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does School Quality Matter? Primary Schools' Characteristics and Child Labor Intensity in Senegal","authors":"E. W. V. Ahouakan, Mbaye Diene","doi":"10.5325/jafrideve.19.1.0113","DOIUrl":"https://doi.org/10.5325/jafrideve.19.1.0113","url":null,"abstract":"\u0000 This study analyzes the relationship between school quality and child labor in Senegal. Unlike previous studies that consider child labor as primarily due to household poverty, economic shocks or market imperfections, it tries to assess whether the perceptions that households have about the capacity of investments in education to provide their children with a significant gain can motivate their interest or their disinterest to send them to school and / or to involve them immediately into work. From a simple theoretical model we develop, we show how school quality may influence the choices that households make for their children concerning schooling or labor. We then assess empirically that relationship using the Senegal's DHS-MICS data of 2010-2011 and the Statistical Yearbook of the Ministry of National Education. The Heckman's two-step model combined with the two-step approach proposed in Card and Krueger (1992) have been employed to deal with the problems suggested by the theoretical model. Our empirical findings confirm the theoretical model's results. They indicate that the labor options that households make for their children in Senegal depend on the schools' characteristics in this country. More precisely, we find that an increase of the pupils-teacher ratio and of the rate of grade repetition, seems be considered by households as a signal of bad quality of school. They lead respectively to an increase of the burden of works performed by children in economic and domestic activities.","PeriodicalId":81652,"journal":{"name":"Journal of Eastern African research & development","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90410330","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Child Disability and Mothers' Labour Market Participation in Cameroon","authors":"Arlette Simo Fotso","doi":"10.5325/jafrideve.19.1.0027","DOIUrl":"https://doi.org/10.5325/jafrideve.19.1.0027","url":null,"abstract":"\u0000 This study seeks to evaluate the effect of a child's disability on the mothers' labour market participation capturing heterogeneity according to mother's level of education. It uses data from the 2011 Demographic and Health-National Mutiple Indicators Cluster Survey (DHS-MICS) of Cameroon. In order to allow for endogeneity bias and the fact that a disability may impose various types of constraints on a family, two disability indicators were constructed. These distinguish between children with a healthcare-cost-intensive disability and those with a time-intensive one. The results obtained show that having a child whose disability requires high healthcare expenditures increases the probability that a non-graduated mother will be employed by 12%, and that she will work full-year by 3% and seasonally by 6%. Where the child's disability imposes time constraints, the probability of working all the year for the non-graduated mother is reduced by 14%. No significant effect is found for graduated mothers. It is important, therefore, that policymakers take account of the variety of costs imposed by a child's disability and heterogeneous effects according to mother's level of education.","PeriodicalId":81652,"journal":{"name":"Journal of Eastern African research & development","volume":"30 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82131047","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Do firms learn by exporting or learn to export? Evidence from Senegalese manufacturing firms","authors":"F. Cissé","doi":"10.5325/jafrideve.19.1.0133","DOIUrl":"https://doi.org/10.5325/jafrideve.19.1.0133","url":null,"abstract":"\u0000 This paper examines the causal relationship between exporting and productivity in the manufacturing firms in Senegal using a unique firm-level panel data for the period 1998-2011. We control for endogeneity and sample selection by jointly estimating the productivity and the export-participation equations. Our results indicate strong evidence of both self-selection of the most efficient firms enter into the export market and effect of Learning in the export market. Findings show that firms with better financial health are likely to exports. Furthermore, the ownership of intangible assets like brevet and the quality of labour positively affect the probability to export of the manufacturing firms. We investigate the sectoral heterogeneity of the Learning-by exporting effect (LBE) and find evidence of a weak heterogeneity of the learning-by-exporting effect between the sectors. From a policy relevance, the evidence of learning-by-exporting suggests Senegal has much to gain from encouraging exports by helping domestic firms to overcome the barriers to enter into foreign markets by promoting access to intangible assets like brevet. Particularly, export promotion policies could be helpful, reducing the level of financial constraints faced by firms and indirectly enhancing their investment spending and productivity. As a driver of manufacturing exports, labour quality must be carefully considered in the perspectives of industrial development. Considerable efforts are required in the Senegalese educational system in order to match the training to the requirements of the labour market.","PeriodicalId":81652,"journal":{"name":"Journal of Eastern African research & development","volume":"40 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82625423","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"How Facilitating Trade would Benefit Trade in Sub-Saharan Africa","authors":"A. Seck","doi":"10.5325/jafrideve.19.1.0001","DOIUrl":"https://doi.org/10.5325/jafrideve.19.1.0001","url":null,"abstract":"\u0000 Despite a significant trade expansion that has been above the world average in the recent period, Sub-Saharan Africa still remains relatively marginalized in the world trading system. This paper sets out to analyze the extent to which various elements of the trade cost landscape in the sub-continent may have contributed to shape trade patterns both within the region and with the outside world. Different trade facilitation measures such as border efficiency, physical infrastructure, regulatory environment, information and communication technology, and the World Bank's Logistics Performance Index are related to bilateral trade flows in a gravity framework. The study finds, based on the Poisson pseudo-maximum likelihood estimation, that raising (raising) the quality of the trading environment of (the subcontinent) the sub-continent to the level of the world average would generate significant export gains that amount to reducing bilateral geographical distance by between 1.7 to 10.1 percent or cutting ad valorem tariff by between 1.4 and 10.2 percentage-points. The extent of the gains varies greatly across the trade facilitation measures, commodity sectors, export destinations, as well as which trading partner undertakes the corresponding reforms. These results offer a strong basis for designing targeted trade facilitation reforms that would improve Africa's international trade position in the wake of the recent success of WTO's trade negotiations.","PeriodicalId":81652,"journal":{"name":"Journal of Eastern African research & development","volume":"20 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2017-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87856776","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Food Prices and Inflation in Tanzania","authors":"C. Adam, David Kwimbere, W. Mbowe, S. O’Connell","doi":"10.5325/jafrideve.18.2.0019","DOIUrl":"https://doi.org/10.5325/jafrideve.18.2.0019","url":null,"abstract":"We develop an empirical representation of inflation in Tanzania for the decade from 2001, estimating ‘multiple-determinant’ single-equation models for headline inflation and its major components (food, energy and core inflation). Our results suggest that while supply-side factors, including yield variability and international price arbitrage, play a major role in determining domestic food and fuel inflation (which together account for almost 60 percent of the total CPI basket), demand-side factors amenable to policy intervention by the monetary authorities anchor core inflation.","PeriodicalId":81652,"journal":{"name":"Journal of Eastern African research & development","volume":"36 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2016-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81428132","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Implications of Monetary Policy for Credit and Investment in Sub-Saharan African Countries","authors":"L. Ndikumana","doi":"10.5325/jafrideve.18.2.0001","DOIUrl":"https://doi.org/10.5325/jafrideve.18.2.0001","url":null,"abstract":"This paper investigates the implications of monetary policy for domestic investment through its effects on bank lending to the private sector and interest rates in sub-Saharan African countries. The study argues that the pursuit of inflation control through contractionary monetary policy carries high costs in terms of reduced investment and ultimately slower economic growth. The econometric evidence based on a sample of 37 sub-Saharan African countries over 1980-2012 shows that contractionary monetary policy affects domestic investment negatively both indirectly through the bank lending or quantity channel as well as directly through the interest rate or cost of capital channel. The results suggest that policies that maintain a low interest rate regime would stimulate bank lending to the private sector, which in turn would boost domestic investment. The results have important policy implications for African countries in their efforts to achieve and sustain high growth rates as a means of reaching their national development goals notably employment creation and poverty reduction.","PeriodicalId":81652,"journal":{"name":"Journal of Eastern African research & development","volume":"51 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2016-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90094093","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Health Expenditure, Climate Changes and Corruption in the MENA Region: A Granger Causality Approach","authors":"H. Sileem","doi":"10.5325/jafrideve.18.2.0061","DOIUrl":"https://doi.org/10.5325/jafrideve.18.2.0061","url":null,"abstract":"The growing literature on studying climate change has increased awareness about health problems, yet the job is far from done. This study contributes to understanding the granger causal links between environmental degradation and public health costs by analyzing the relationship between health costs and environmental degradation for a panel of 19 MENA economies over the period 1996 through 2013. Using panel data specifications, the paper identified a two-way relationship between public health expenditure and CO2 emissions. These empirical results link the contribution of CO2 emissions accumulation to the increase in public health expenditure. Furthermore, using Granger causality test, the empirical results highlight the presence of a two-way relationship between public health expenditure and corruption. Thus, corruption could be considered as a constraint to environmental quality and a channel through which environmental degradation triggers more health costs. Evidence of adverse health effects will strengthen the case for preventative policies and can also guide priorities for planned adaptive strategies.","PeriodicalId":81652,"journal":{"name":"Journal of Eastern African research & development","volume":"84 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2016-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80913257","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}