Industrialization, FDI and absorptive capacities: evidence from African Countries

2021 ◽  
Author(s):  
Sami Ben Mim ◽  
Abir Hedi ◽  
Mohamed Sami Ben Ali
Keyword(s):  
African Countries ◽  
Absorptive Capacities

scholarly journals Foreign Financial Flows, Human Capital and Economic Growth in North African Countries

2021 ◽  
Vol 27 (3) ◽  
pp. 355-371
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
North African ◽  
African Countries ◽  
Financial Flows ◽  
The North ◽  
Absorptive Capacities ◽  
North African Countries ◽  
The Relationship

The purpose of this study is to analyze the relationship between foreign financial flows (i.e., FDI inflows and remittances), human capital, and its effects on economic growth in 4 North African countries. Annual panel data from 2000 to 2018 are examined using the system GMM. First, we found strong evidence of a positive link between FDI and economic growth. Moreover, the results indicate that the complementarity between FDI and human capital positively influences economic growth. Second, the remittances are found to be positive factors for economic growth. In fact, higher human capital accumulation of receiving countries increases these positive impacts. Overall, the results indicate that foreign financial flows are positively correlated with human capital in influencing economic growth in the North African countries. Therefore, it becomes pertinent for policymakers to pursue a human capital policy to improve their absorptive capacities to exploit full benefits of foreign financial flows.

Investigating the role of disaggregated economic freedom measures and FDI on human development in Africa

2020 ◽  
Vol 36 (4) ◽  
pp. 303-321 ◽  
Author(s):  
Kofi Korle ◽  
Anthony Amoah ◽  
George Hughes ◽  
Paragon Pomeyie ◽  
Godson Ahiabor
Keyword(s):  
Property Rights ◽  
Human Development ◽  
Fixed Effects ◽  
Economic Freedom ◽  
Ordinary Least Squares ◽  
Series Data ◽  
African Countries ◽  
Content Type ◽  
Absorptive Capacities

PurposeThe purpose of the study is to investigate the role of disaggregated economic freedom measures in the foreign direct investment (FDI) and human development nexus.Design/methodology/approachThe study uses a panel data of 32 selected African countries from 1996 to 2017. A dynamic ordinary least squares (DOLS) with fixed effects and instrumental variable (IV) econometric techniques was used to address issues of endogeneity and serial correlation commonly associated with panel time series data.FindingsThe Results indicate that FDI without accounting for absorptive factors has a positive but insignificant effect on human development for the selected African countries. However, FDI has a positive and significant effect on human development when interacted with measures of economic freedom such as investment freedom, business freedom and financial freedom. In contrast, yet plausible, FDI has a negative influence when interacted with property rights, trade freedom, government integrity and tax burden.Practical implicationsThe study posits that to attract FDI into Africa with the purpose of improving human development, relevant absorptive capacities such as business, investment and financial freedom environment are critical. However, excessive capital flight and government interference through taxation and abuse of property rights should be controlled if the continent seeks to promote human development through FDI.Originality/valueThe novelty and originality of the study, are evident in the use of disaggregated measures of economic freedom as comprehensive absorptive capacities to examine how they complement FDI to impact on human development in Africa.

An Application of the HFACS Method to Aviation Accidents in Africa

2016 ◽  
Vol 6 (1) ◽  
pp. 33-38 ◽  
Author(s):  
Isaac Munene
Keyword(s):  
Human Factors ◽  
Physical Environment ◽  
Human Factor ◽  
Flight Training ◽  
African Countries ◽  
Causal Factors ◽  
Aviation Accidents ◽  
Factors Analysis ◽  
Adverse Weather ◽  
Decision Errors

Abstract. The Human Factors Analysis and Classification System (HFACS) methodology was applied to accident reports from three African countries: Kenya, Nigeria, and South Africa. In all, 55 of 72 finalized reports for accidents occurring between 2000 and 2014 were analyzed. In most of the accidents, one or more human factors contributed to the accident. Skill-based errors (56.4%), the physical environment (36.4%), and violations (20%) were the most common causal factors in the accidents. Decision errors comprised 18.2%, while perceptual errors and crew resource management accounted for 10.9%. The results were consistent with previous industry observations: Over 70% of aviation accidents have human factor causes. Adverse weather was seen to be a common secondary casual factor. Changes in flight training and risk management methods may alleviate the high number of accidents in Africa.

Exploring the World Trade Organisation's Trade and Environment/Public Health Jurisprudence as a Model for Incorporating a Trade–Labour Linkage into the Organisation's Multilateral Trade Regime: Should African Countries Accept a Policy Shift?

2017 ◽  
Vol 25 (1) ◽  
pp. 47-65
Author(s):  
Tapiwa V. Warikandwa ◽  
Patrick C. Osode
Keyword(s):  
Public Health ◽  
Developing Countries ◽  
World Trade ◽  
African Countries ◽  
Trade Regime ◽  
Multilateral Trade ◽  
Appellate Body ◽  
The World ◽  
Labour Standards ◽  
The Impact

The incorporation of a trade-labour (standards) linkage into the multilateral trade regime of the World Trade Organisation (WTO) has been persistently opposed by developing countries, including those in Africa, on the grounds that it has the potential to weaken their competitive advantage. For that reason, low levels of compliance with core labour standards have been viewed as acceptable by African countries. However, with the impact of WTO agreements growing increasingly broader and deeper for the weaker and vulnerable economies of developing countries, the jurisprudence developed by the WTO Panels and Appellate Body regarding a trade-environment/public health linkage has the potential to address the concerns of developing countries regarding the potential negative effects of a trade-labour linkage. This article argues that the pertinent WTO Panel and Appellate Body decisions could advance the prospects of establishing a linkage of global trade participation to labour standards without any harm befalling developing countries.

The Contribution of Foreign Direct Investment for Economic Growth of Ethiopia: Time Series Analysis

2018 ◽  
Vol 9 (02) ◽  
Author(s):  
Addissie Melak
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Time Series Analysis ◽  
Direct Investment ◽  
Policy Framework ◽  
Annual Growth Rate ◽  
African Countries ◽  
Series Analysis ◽  
Integration Test

Economic growth of countries is one of the fundamental questions in economics. Most African countries are opening their economies for welcoming of foreign investors. As such Ethiopia, like many African countries took measures to attract and improve foreign direct investment. The purpose of this study is to examine the contribution of foreign direct investment (FDI) for economic growth of Ethiopia over the period of 1981-2013. The study shows an overview of Ethiopian economy and investment environment by the help of descriptive and econometric methods of analysis to establish empirical investigation for the contribution of FDI on Ethiopian economy. OLS method of time series analysis is employed to analyse the data. The stationary of the variables have been checked by using Augmented Dickey Fuller (ADF) Unit Root test and hence they are stationery at first difference. The co- integration test also shows that there is a long run relationship between the dependent and independent variables. Accordingly, the finding of the study shows that FDI, GDP per capita, exchange rate, total investment as percentage of GDP, inflow of FDI stock, trade as percentage of GDP, annual growth rate of GDP and liberalization of the economy have positive impact on Ethiopian GDP. Whereas Gross fixed domestic investment, inflows of FDI and Gross capital formation influence economic growth of Ethiopia negatively. This finding suggests that there should be better policy framework to attract and improve the volume of FDI through creating conducive environment for investment.

The Coin of the African Realm

2017 ◽  
Author(s):  
Jeffrey Herbst
Keyword(s):  
Twentieth Century ◽  
West Africa ◽  
West African ◽  
Regional Economies ◽  
African Countries ◽  
New Strategies

This chapter examines the politics of the currency in West Africa from the beginning of the twentieth century. A public series of debates over the nature of the currency occurred in West Africa during both the colonial and independence periods. Since 1983, West African countries have been pioneers in Africa in developing new strategies to combat overvaluation of the currency and reduce the control of government over the currency supply. The chapter charts the evolution of West African currencies as boundaries and explores their relationship to state consolidation. It shows that leaders in African capitals managed to make the units they ruled increasingly distinct from the international and regional economies, but the greater salience of the currency did not end up promoting state consolidation. Rather, winning the ability to determine the value of the currency led to a series of disastrous decisions that severely weakened the states themselves.

Creative Reconstruction: A Systematic Approach to Reinventing Large Cities in Democratic Republic of Congo

2015 ◽  
Vol 8 (1) ◽  
pp. 1485-1497
Author(s):  
Mia Nsokimieno Misilu Eric
Keyword(s):  
Cultural Values ◽  
Democratic Republic ◽  
Democratic Republic Of Congo ◽  
Mineral Resources ◽  
Capital City ◽  
African Countries ◽  
Republic Of Congo ◽  
Large Cities ◽  
Current State ◽  
Legacy Cities

The current state of large cities in Democratic Republic of Congo highlights the necessity of reinventing cities. More than fifty years after the independence, these major cities, like Kinshasa the capital city, are in a state of are in a state of disrepair. They are damaged, dysfunctional, and more vulnerable. Today, these legacy cities do not meet the international requirements of livable cities. Democratic Republic of Congo faces the challenge of rebuilding its cities for sustainability. The movement for independence of African countries enabled the shift from colonial cities to legacy cities. It is important to understand the cultural and ideological foundations of colonial city. Commonly, colonial cities served as purpose-built settlements for the extraction and transport of mineral resources toward Europe. What's required is a creative reconstruction to achieve a desired successful urban change. Creative reconstruction tends to ensure urban transformation in relation with urbanization, by making continuous and healthy communities. Creative reconstruction seems appropriate way of building back cities in harmony with cultural values. The article provides a framework for urban regeneration. The study is based on principle of thinking globally and acting locally in building back better cities.

National Human Rights Institutions and Sustainable Development with Specific Reference to Selected African Examples

2020 ◽  
Vol 53 (1) ◽  
Author(s):  
John Mubangizi
Keyword(s):  
Sustainable Development ◽  
Human Rights ◽  
Best Practice ◽  
Specific Reference ◽  
African Countries ◽  
The Sustainable Development ◽  
Study Approach ◽  
National Human ◽  
Development Goals ◽  
National Human Rights Institutions

That National Human Rights Institutions (NHRIs) play an important role in the protection and promotion of human rights is a well-known fact. This has been widely acknowledged by the United Nations (UN). Also well-known is the fact that several African countries have enacted new constitutions during the last two to three decades. One of the most salient features of those new constitutions is that they establish NHRIs, among other things. Given their unique role and mandate, these NHRIs can and do play an important role in the realisation of the sustainable development goals contained in the UN 2030 Agenda for Sustainable Development. Adopting a case study approach, this article explores the role NHRIs have played in the promotion and protection of human rights in selected African countries and implications for sustainable development in those countries. The main argument is that there are several lessons African countries can learn from each other on how their NHRIs can more meaningfully play that role. Accordingly, best practice and comparative lessons are identified and it is recommended that NHRIs can contribute to sustainable development more meaningfully if they can make themselves more relevant, credible, legitimate, efficient and effective.

Rethinking the Agency of Women in the Shea Industry

Politeia ◽  
2018 ◽  
Vol 37 (1) ◽  
Author(s):  
Abiba Yayah
Keyword(s):  
Rural Women ◽  
Field Work ◽  
Northern Region ◽  
African Countries ◽  
Good Source ◽  
Everyday Practices ◽  
Home Based

The agency of women in most African countries is often affected by the socio-economic and political policies that are almost always disadvantageous to women, especially women who have little to no knowledge of their rights. Using the shea industry in Ghana as a case study, I chronicle the challenges as recounted by rural women involved in this home-based work in the Northern Region of Ghana and critically analyse these challenges and their implications. Focusing mainly on the results of my recent field work, I present some of the accounts relating to the lack and exclusion of recognition of and respect for the experiences of rural women who are in fact the linchpin of the shea industry in Ghana. Initiatives and strategies of non-governmental organisations and some governmental policies have attempted to address these challenges that have implications for the livelihoods of rural women. Research and policies have only offered “band-aid solutions” to the economic disempowerment of rural women in the shea industry in Ghana as they have not dealt with the causes. This article seeks to refute the claim that equity exists by indicating the lack of equity and justice in the policies in the shea industry. In an attempt to provide an understanding of the economic disempowerment of women in this industry, I consider my field work as a good source as it exposes the experiences and everyday practices as narrated by rural women in the industry. This article seeks to analyse the existing discourses especially those pertaining to the contributions and experiences of rural women in the shea industry.

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