Economic impact of data localization in five selected African countries

2018 ◽  
Vol 20 (4) ◽  
pp. 337-357
Author(s):  
Mona Farid Badran
Keyword(s):  
South Africa ◽  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Research Paper ◽  
Policy Recommendations ◽  
African Countries ◽  
Content Type ◽  
Cross Border ◽  
The Impact ◽  
The Eu

Purpose The purpose of this study is to quantify the impact of laws and regulations that govern the cross-border flow of data on the economies of five selected African countries, namely, Egypt, Morocco, South Africa, Kenya and Mauritius. Moreover, this study addresses the state of cloud computing in Africa. Finally, policy recommendations are provided in this respect. Design/methodology/approach To reach accurate finding the Global Trade Analysis Project (GTAP) data was used, and then the computable general equilibrium (CGE) was computed to estimate the total cost on the economy. Using the three data regulations linkages indexes (DRLs), the increased administrative cost effect was analyzed on five to six major economic sectors in the target countries. This was followed by estimating the loss in sector-wide total factor productivity (TFP) (for the five to six shortlisted sectors). Using this data, the computable general equilibrium model (CGE) was computed, in order to estimate the economy-wide impact. Based on these findings, a set of recommendations were offered to the policy maker, reflecting the obtained results and conclusions and their implications on drafting data-related policies. Findings The obtained data indexes reveal that Mauritius is the country with the most laws and regulations governing the cross border flow of data, followed by South Africa Egypt to a lesser extent and finally Morocco and Kenya both showing an obvious lack of data regulations. The small value of the estimated elasticity of the selected countries compared to the value of the estimated elasticity in the EU-0.347 shows that the impact of data localization is less in the selected African countries than in the other set of EU countries examined in the research paper. This is because the former has smaller economies with fewer linkages to the global economy and are less reliant on sectors that are heavy users of data. Thus, the overall impact of data localization was not as profound on TFP as is the case in advanced economies. This research paper arrives at the conclusion that fighting the trend of data localization is crucial. In fact, data localization hinders the necessary and essential role of global trade in realizing economic development. Specifically, this is evident in the increase in production costs as reflected in the increase of the prices of goods, which would lead to a decline in incomes. Originality/value Global studies looked at the impact of data localization on the EU, as well as China, India, Korea and Vietnam, providing some data on Asia Pacific. However, no study has ever been conducted on the Middle East and Africa. This study aims to fill this gap. The approach of this study is to capture the extent of data localization mandates encoded in the laws of each of the selected five African countries showing how these mandates govern their cross-border data flow and, in turn, affect their economies. Furthermore, the policy recommendations section of this research paper makes a contribution to the existing literature.

Social enterprises and organizational learning in South Africa

2018 ◽  
Vol 10 (1) ◽  
pp. 117-133 ◽  
Author(s):  
Boris Urban ◽  
Elena Gaffurini
Keyword(s):  
South Africa ◽  
Organizational Learning ◽  
Social Innovation ◽  
Emerging Market ◽  
Cross Sectional Study ◽  
Social Enterprises ◽  
African Countries ◽  
Cross Sectional ◽  
Content Type ◽  
The Impact

Purpose The purpose of this study is to determine the relationship between different dimensions of organizational learning capabilities (OLC) and levels of social innovation in social enterprises. Design/methodology/approach The empirical strategy adopted is a cross-sectional study based on primary survey data. Following a survey of social enterprises in South Africa, statistically analysis is conducted using regression analyses to test the study hypotheses. Findings The findings show that the OLC dimensions of knowledge conversion, risk management, organizational dialogue and participative decision-making all have a significant and positive relationship with social innovation. Research limitations/implications In many emerging economies, the notion of organizational learning appears to have considerable potential relevance, particularly as African countries are moving toward knowledge-based economies. By focusing on OLC, it is anticipated that social enterprises can configure and leverage the different factors in ways that enable them to overcome the constraints of the complex and unpredictable environments and increase their levels of social innovation. Originality/value The paper provides a pioneering empirical investigation into the impact that OLC has on levels of social innovation, in an under-researched emerging market context.

Impact investing in South Africa: managing tensions between financial returns and social impact

2019 ◽  
Vol 31 (3) ◽  
pp. 397-419 ◽  
Author(s):  
Eunivicia Matlhogonolo Mogapi ◽  
Margaret Mary Sutherland ◽  
Anthony Wilson-Prangley
Keyword(s):  
South Africa ◽  
Social Impact ◽  
Emerging Market ◽  
Financial Returns ◽  
African Countries ◽  
Financial Return ◽  
Impact Investing ◽  
Content Type ◽  
Trade Offs ◽  
The Impact

Purpose Impact investment is an emergent field worldwide and it can play an especially important role in Africa. The aim of this study was to examine how impact investors in South Africa manage the tensions between financial returns and social impact. Design/methodology/approach The research was based on 15 semi-structured interviews with key stakeholders in the impact investment community in South Africa to understand the related challenges, trade-offs and tensions. Findings There are two opposing views expressed as to whether the tensions between financial return and social impact result in trade-offs. It is proposed that impact investors embrace this duality and seek to approach it through a contingency and a paradox view. The tensions can be approached by focussing on values alignment, contracting processes, engaged leadership and sector identification. The authors integrate the findings into a proposed framework for effective tension management in an impact investment portfolio. Research limitations/implications This study was limited to selected South African interviewees. It would be valuable to extend the study to other African countries. Practical implications The issue of values alignment between investors, fund managers and investee firms is an important finding for practice. As is the four-part iterative framework for sensing the operating environment, defining impact, organising internally and defining the investment approach. Originality/value This study contributes empirical evidence to scholarship around organisational tensions, especially work in hybrid organisations. It affirms the value of a nuanced application of paradox theory. It examines these tensions through the lived experience of impact investing professionals in an emerging market context.

Government transfers, income inequality and poverty in South Africa

2019 ◽  
Vol 46 (12) ◽  
pp. 1349-1368
Author(s):  
Charity Gomo
Keyword(s):  
South Africa ◽  
Income Inequality ◽  
General Equilibrium ◽  
Labor Supply ◽  
South African ◽  
Percent Reduction ◽  
Content Type ◽  
Simulation Results ◽  
Government Transfers ◽  
The Impact

PurposeThe purpose of this paper is to quantify the impact of social or government transfers on income inequality and poverty in South Africa.Design/methodology/approachA top-down, bottom-up (TD-BU) model which combines an econometrically estimated labor supply model, a detailed tax-benefit module and a computable general equilibrium model is used in order to analyze the impact of government transfers on income inequality and poverty in South Africa. The paper uses a merged South African income and expenditure household survey and labor force survey for the year 2000, and a South African social accounting matrix as the main data sets.FindingsSimulation results suggest that doubling of government transfers lead to a 5.5 percent reduction in poverty if a relative poverty measure is used and a 7 percent reduction if an absolute poverty line is used. In addition, simulation results show differences in poverty and inequality measures between the MS-only model and the linked TD-BU model confirming the importance of linking the two models.Originality/valueThe TD-BU approach is important since it explicitly accounts for the following aspects: that labor supply should adjust to changes in the tax-benefit model, general equilibrium effects and the heterogeneity of economic agents. This allows for a richer micro-household modeling.

scholarly journals Carbon Leakage in the context of increasing the EU greenhouse gas emission reduction targets – the ways the EU and global emission behave and what influences its scale

2019 ◽  
Vol 30 (2) ◽  
pp. 6-23
Author(s):  
Jan Gąska ◽  
Maciej Pyrka ◽  
Robert Jeszke ◽  
Wojciech Rabiega ◽  
Monika Sekuła
Keyword(s):  
General Equilibrium ◽  
Technical Change ◽  
Computable General Equilibrium ◽  
Emission Reduction ◽  
Carbon Leakage ◽  
Direct Result ◽  
Carbon Intensity ◽  
The World ◽  
The Impact ◽  
The Eu

Abstract The lack of equal globally binding GHG’s emission reduction targets is currently leading to a set of diverging GHG’s emission prices across the world (or even no price for GHG’s emission in some regions). This may result in distortions with direct implications on competitiveness of the industries in regions with strict climate policies (as the European Union) and can cause the issue of carbon leakage. Carbon leakage is defined as ‘the increase in emission outside a region as a direct result of the policy to cap emission in this region’. This paper is the first part of the set of two analysis aiming at the carbon leakage assessment. In the following paper (aimed to be published this year), we will assess the impact of free allowances for emission intensive trade exposed industries (EITE) and the NDCs in the rest of the world countries – for the sake of brevity, we decided to remove these results from the current paper, but they will be presented later this year. The purpose of this paper is to assess the possible scale of the carbon leakage using different assumptions and policy scenarios and identify channels to efficiently prevent the carbon leakage phenomenon. The analysis has been carried out using the computable general equilibrium d-PLACE model developed within the Centre for Climate and Policy Analysis (CAKE). See: http://climatecake.pl/?lang=en Our model is a recursive dynamic multi-regional and multi-commodity tool in which emissions are modelled in great detail, for example, the process and each fossil fuel combustion related emission are modelled separately. Furthermore, the big advantage of the applied model is a very detailed modelling of EU ETS as well as non-ETS emission targets. In the paper, the simulations using two versions of model was presented – with and without endogenous technical change to elaborate on how the assumptions on technical change affect the modelling results and consequent scale of the carbon leakage. Moreover, this paper aims mainly at the assessment of different channels of carbon leakage; therefore, we do not take into account either NDCs in the rest of the world or free allowances for emission intensive trade exposed sectors. These problems will be handled in the next paper, aimed to be published later this year. Using the above mentioned CGE (computable general equilibrium model, we captured the main factors, that determine the carbon leakage rates. We assessed the contribution of three channels – demand channel, competitiveness channel and carbon intensity channel to the risk of carbon leakage. It turned out that carbon intensity channel and competitiveness channel are the most important, while demand channel contributes to changes in GHG’s emission only in the most restrictive scenario. Moreover, energy channel was further decomposed to the impact of sectoral structure and influence in emission intensity within each sector – the impact of these two channels is also similar, but dependent on the analysed scenario. Such a decomposition allowed us to determine the main channels through which the carbon leakage occur and pursue relevant policy recommendations.

scholarly journals The impact of securities regulation in the European Union on M&A: Does it compensate to go beyond borders?

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rita Monteiro ◽  
Sónia Silva
Keyword(s):  
European Union ◽  
Investor Protection ◽  
Equal Treatment ◽  
The European Union ◽  
Content Type ◽  
Cross Border ◽  
Eu Directive ◽  
Takeover Bids ◽  
The Impact ◽  
The Eu

Purpose The purpose of this study is to examine the impact of the transposition of the EU directive that regulates M&As on cross-border deals. Acquirers of targets located in the European Union (EU) must comply not only with takeover rules set individually by member states but also with European Council Directives. The most significant of these Directives in the context of mergers and acquisitions (M&As) is the Takeover Bids Directive (TBD). The intent of the Directive is to ensure equal treatment for all companies launching takeover bids or that are subject to a change in control, providing minimum harmonization rules in view of creating a transparent environment for cross-border takeovers. Design/methodology/approach This study uses the event-study and difference-in-differences approaches. Findings Using a sample of 2,129 M&As conducted between 2000 and 2015, this paper finds positive acquisition synergy for acquirers targeting firms from countries with stronger investor protection rules compared to the average of the EU, but no evidence regarding cross-border deals. The results support the prediction that regulation makes countries diverge more depending on their ex ante level of investor protection. Originality/value This study examines the impact of the enactment of the TBD on announcement returns of M&As in the EU.

scholarly journals The impact of the trade liberalization on the women work: Comparative analyzes between the South Africa and the Ethiopia with an impact of the general equilibrium calculable

2008 ◽  
Vol 55 (1) ◽  
pp. 69-88 ◽  
Author(s):  
Mitik Lulit ◽  
Claude Berthomieu
Keyword(s):  
South Africa ◽  
General Equilibrium ◽  
Trade Liberalization ◽  
Computable General Equilibrium ◽  
Computable General Equilibrium Model ◽  
Labor Market Participation ◽  
Employment Sector ◽  
Structural Differences ◽  
Gender Based ◽  
The Impact

The effects of trade liberalization on female labor depend on a country?s socio-economic and employment sector characteristics. A Gender-aware computable general equilibrium model is applied to Ethiopia and South Africa from a comparative perspective. Tariff reduction results in opposite outcomes regarding gender-based wage and labor market participation inequalities in the two countries due to their structural differences in men?s and women?s employment.

Economy-wide impact of drought induced productivity losses

2018 ◽  
Vol 27 (5) ◽  
pp. 636-648 ◽  
Author(s):  
Nicholas Kilimani ◽  
Jan van Heerden ◽  
Heinrich Bohlmann ◽  
Louise Roos
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Geographical Area ◽  
Computable General Equilibrium Model ◽  
Equilibrium Analysis ◽  
Content Type ◽  
Productivity Losses ◽  
Drought Mitigation ◽  
Agricultural Industries ◽  
The Impact

Purpose The purpose of this paper is to investigate how a drought which initially affects agricultural productivity can ultimately affect an entire economy. The study aims to assess the magnitude of the impact as well as highlight key issues that can inform the implementation of drought mitigation programmes. Design/methodology/approach The paper presents the literature on the economic impact of drought and uses a computable general equilibrium model where productivity shocks are applied to the agricultural industries following which the resulting impacts on the rest of the sectors of the economy are obtained. Findings The findings show that the key macroeconomic variables, namely, real GDP, industry output, employment, the trade balance and household consumption are negatively affected by the drought shock. Practical implications The results point to the fact that in the absence of drought mitigation mechanisms, the occurrence of even a short drought as modelled in this paper can impose substantial socioeconomic losses. Originality/value First, a general equilibrium framework which uses climate and economic data when evaluating the social-economic impacts of drought is used. Most studies employ partial equilibrium analysis in analysing drought impacts on specific sectors or crops within a limited geographical area. Others use global or multi-regional models which impose averages on the observed impacts. The current study provides valuable insights on the potential damage which droughts can impose on a single economy. This gives a basis for decision making to support drought mitigation policies and programmes.

Brexit: what are the options for the financial services industry?

2016 ◽  
Vol 17 (4) ◽  
pp. 45-53 ◽  
Author(s):  
David Sahr ◽  
Mark Compton ◽  
Alexandria Carr ◽  
Guy Wilkes ◽  
Alexander Behrens
Keyword(s):  
Financial Services ◽  
Political Development ◽  
The European Union ◽  
Content Type ◽  
Cross Border ◽  
The Future ◽  
Financial Services Firms ◽  
The Uk ◽  
The Impact ◽  
The Eu

Purpose To explain the impact for financial services firms of the UK’s vote to leave the European Union (EU) and to assess the possible options for conducting cross-border financial services between the UK and EU in the future. Key to this is the likely loss of the EU “passport” for financial services that allows a firm licensed in one EU state to offer its services freely throughout all EU states. Design/methodology/approach Explains the process by which the UK will leave the EU and negotiate future trading arrangements; the key considerations for financial services firms doing cross-border business in the EU; the various options for cross-border business in the future; and the key steps financial services firms should be taking to respond to the vote to leave the EU. Findings Many issues still remain uncertain and are unlikely to be resolved for a number of years, but long lead times to implement solutions mean that firms should be considering their options now. Practical implications Firms should be evaluating their current reliance on EU passports and the alternative options that might be suited to their business, such as the “quasi-passports” available under certain specific EU laws or relocation of part or all of their business. Originality/value Legal analysis and practical guidance concerning an unprecedented political development with profound impacts on financial services in Europe, by experts with long-term experience of EU negotiations and financial services gained from working for the British government, regulators and regulated firms.

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