Remittances, financial development and poverty reduction in Sub-Saharan Africa: Implications for post-COVID-19 macroeconomic policies

2021 ◽  
Author(s):  
Alex O. Acheampong ◽  
Isaac Appiah-Otoo ◽  
Janet Dzator ◽  
Kwabena Koforobour Agyemang
Keyword(s):  
Financial Development ◽  
Poverty Reduction ◽  
Sub Saharan Africa ◽  
Macroeconomic Policies ◽  
Sub Saharan

scholarly journals Financial Development and Poverty in Developing Countries: Evidence from Sub-Saharan Africa

2016 ◽  
Vol 9 (1) ◽  
pp. 211 ◽  
Author(s):  
Pam Zahonogo
Keyword(s):  
Developing Countries ◽  
Financial Development ◽  
Poverty Reduction ◽  
Sub Saharan Africa ◽  
Method Of Moment ◽  
African Countries ◽  
Poverty Measures ◽  
Sub Saharan ◽  
Using Data ◽  
Poverty Indicators

The paper investigates how financial development affects poverty indicators in developing countries. We implement this analysis with a poverty model using data from 42 Sub-Saharan African countries and covering the period 1980-2012. We employ the System Generalized Method-of-Moment (GMM) that is appropriate to control country specific effects and the possible endogeneity. The empirical evidence shows that there indeed exists a financial development threshold below which financial development has detrimental effects on poor and above which financial development could be associated with less poverty. The evidence then points an inverted U curve type response and the findings are robust to changes in poverty measures and to alternative model specifications, suggesting thus the non-fragility of the linkage between financial development and poverty for sub-Saharan African countries. Our findings are then promising and support the view that the relation between financial development and poverty reduction is not linear for sub-Saharan African countries.

scholarly journals Effect of Financial Development on Energy Diversification in Sub-Saharan Africa

2020 ◽  
pp. 29-38
Author(s):  
Florence Blanche Limi
Keyword(s):  
Financial Development ◽  
Poverty Reduction ◽  
Wiener Index ◽  
Sub Saharan Africa ◽  
Energy Sources ◽  
African Countries ◽  
Energy Projects ◽  
Moments Method ◽  
Sub Saharan ◽  
Generalized Moments

The objective of this paper is to analyse the effect of financial development on energy diversification in 20 sub-Saharan African countries between 2000 and 2015. Our specificity is the calculation of the energy diversification index using the Shannon Wiener index (Stirling 1998-2000) and the estimation using the generalized moments method (GMM) on a dynamic panel. The results show that financial development positively and significantly affects the diversification of energy sources. Thus, these countries need to improve their financial systems to promote energy sources diversification to improve access to energy and improve the process of financing energy projects as a response to poverty reduction.

The Urban Transition in Sub-Saharan Africa: Challenges and Opportunities

10.1068/c3p ◽  
2007 ◽  
Vol 25 (4) ◽  
pp. 466-485 ◽  
Author(s):  
Christine Kessides
Keyword(s):  
Urban Areas ◽  
Local Governments ◽  
Poverty Reduction ◽  
National Development ◽  
Favourable Outcome ◽  
Sub Saharan Africa ◽  
Urban Transition ◽  
Energy Needs ◽  
Challenges And Opportunities ◽  
Sub Saharan

In this paper I ask how the ongoing processes of urban and local government development in Sub-Saharan Africa can and should benefit the countries, and what conditions must be met to achieve this favourable outcome. The region faces close to a doubling of the urban population in fifteen years. This urban transition poses an opportunity as well as a management challenge. Urban areas represent underutilised resources that concentrate much of the countries' physical, financial, and intellectual capital. Therefore it is critical to understand how they can better serve the national growth and poverty reduction agendas. The paper challenges several common ‘myths’ that cloud discourse about urban development in Africa. I also take a hard look at what the urban transition can offer national development, and what support cities and local governments require to achieve these results. I argue that, rather than devoting more attention to debating the urban contribution to development in Africa, real energy needs to be spent unblocking it.

scholarly journals Towards the attainment of sustainable development goal 7: what determines clean energy accessibility in sub-Saharan Africa?

Green Finance ◽  
2021 ◽  
Vol 3 (3) ◽  
pp. 268-286
Author(s):  
Paul Adjei Kwakwa ◽  
◽  
Frank Adusah-Poku ◽  
Kwame Adjei-Mantey ◽  
◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Poverty Reduction ◽  
Random Effect ◽  
Clean Energy ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Sub Saharan Africa ◽  
Political Regime ◽  
Sub Saharan

<abstract> <p>Access to clean energy is necessary for environmental cleanliness and poverty reduction. That notwithstanding, many in developing countries especially those in sub-Saharan Africa region lack clean energy for their routine domestic activities. This study sought to unravel the factors that influence clean energy accessibility in sub-Saharan Africa region. Clean energy accessibility, specifically access to electricity, and access to clean cooking fuels and technologies, were modeled as a function of income, foreign direct investment, inflation, employment and political regime for a panel of 31 sub-Saharan countries for the period 2000–2015. Regression analysis from fixed effect, random effect and Fully Modified Ordinary Least Squares show that access to clean energy is influenced positively by income, foreign direct investment, political regime and employment while inflation has some negative effect on its accessibility. The policy implications from the findings among other things include that expansion in GDP per capita in the sub-region shall be helpful in increasing accessibility to clean energy. Moreover, strengthening the democratic institutions of countries in the region shall enhance the citizens' accessibility to clean energy. Ensuring sustainable jobs for the citizens is necessary for access clean energy.</p> </abstract>

scholarly journals Financing innovative development of the African economies: the role of digitalization and financial innovations

2020 ◽  
Vol 28 (3) ◽  
pp. 429-439
Author(s):  
Tijani Forgor Alhassan ◽  
Ahou Julie Kouadio ◽  
Dadson Etse Gomado
Keyword(s):  
Financial Development ◽  
Financial Services ◽  
Positive Relationship ◽  
Financial Innovation ◽  
Sub Saharan Africa ◽  
Innovative Development ◽  
Mobile Banking ◽  
Data Set ◽  
Financial Innovations ◽  
Sub Saharan

The article examines the relationship between financial innovation (mobile banking) variables in sub-Saharan Africa. Mobile banking (also known as mobile money) is one of the main financial innovations in the sub-Saharan region, and it is a system through which non-bank residents (residents without bank accounts, etc.) receive financial services. The overall importance of financial innovation in today’s digital and knowledge-based economy, and indeed, innovative development, inspired this study. Using a partial linear regression model, we analysed the International Monetary Fund data set, the World Bank’s national economic data, and mobile banking data from GSMA for the period from 2011 to 2017. A negative correlation was found between these variables and growth, as well as financial development, but a positive relationship was established between financial development and economic development. This positive relationship re-confirms the argument that financial development affects economic growth. It is recommended that policy makers develop and implement the necessary policy tools that can promote this form of financial innovation, and thus link its benefits to the national economy in general.

scholarly journals THE ROLE OF FINANCIAL DEVELOPMENT AND INSTITUTIONAL QUALITY ON ENVIRONMENTAL SUSTAINABILITY IN SUB-SAHARAN AFRICAN COUNTRIES

2018 ◽  
Vol 6 (9) ◽  
pp. 156-177
Author(s):  
Aliyu Alhaji Jibrilla
Keyword(s):  
Financial Development ◽  
Environmental Sustainability ◽  
Carbon Dioxide Emissions ◽  
Early Stage ◽  
Institutional Quality ◽  
Environmental Conservation ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Pooled Mean Group ◽  
Sub Saharan

This study addresses the question of financial development and institutional quality influence on the environmental sustainability of some 13 countries from the sub-Saharan Africa. Relying upon pooled mean group (PMG) for panel data, we provide evidence which suggest that both financial development and institutional quality are statistically significant determinants of per capita carbon dioxide emissions in the region. More specifically, we found that without healthy institutions and sound financial system sub-Saharan African countries might not avoid environmental degradation experienced by advanced nations during their early stage of economic progress. Our results also support the EKC hypothesis in the region.  In addition, the paper also shows that more openness to FDI inflows is good for the environment across the SSA. These findings suggest the need for institutional and financial service reform that supports robust environmental conservation.

scholarly journals The Nexus between Financial Development and Economic Growth: Panel Data Evidence from Developing Countries

2021 ◽  
Vol 14 (10) ◽  
pp. 489
Author(s):  
E. M. Ekanayake ◽  
Ranjini Thaver
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Least Squares ◽  
Financial Development ◽  
Panel Cointegration ◽  
Sub Saharan Africa ◽  
Explanatory Variables ◽  
Cointegration Tests ◽  
Sub Saharan

The objective of this study is to investigate the nexus between financial development (FD) in economic growth (GROWTH) in developing countries. The study uses panel data from 138 developing countries during the period 1980–2018. The relationship between financial development and economic growth is investigated using four explanatory variables that are commonly used to measure the level of financial development and several other control variables, including a dummy variable representing the financial and banking crises. The sample of 138 developing countries is also classified into six geographic regions. We have carried out panel unit-root tests and panel cointegration tests before estimating the specified models using both Panel Least Squares (Panel LS) and Panel Fully Modified Least Squares (FMOLS) methods. In addition, panel Granger causality tests have been conducted to identify the direction of causality between FD and GROWTH for each of the regions. The results of the study provide evidence of a direct relationship between FD and GROWTH in developing countries. Furthermore, there is evidence of bi-directional causality running from FD to GROWTH and from GROWTH to FD in samples of Europe and Central Asia, South Asia, and all countries, but not in East Asia and Pacific, Latin America and the Caribbean, Middle East and North Africa, and Sub-Saharan Africa.

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