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.

scholarly journals The role of finance in inclusive human development in Africa revisited

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Simplice Asongu ◽  
Rexon Nting
Keyword(s):  
Human Development ◽  
Financial Development ◽  
Fixed Effects ◽  
Generalized Method Of Moments ◽  
African Countries ◽  
Content Type ◽  
Credit Bureaus ◽  
Public Credit ◽  
Private Credit

PurposeThis study aims to investigate the direct and indirect linkages between financial development and inclusive human development in African countries.Design/methodology/approachThe study employs a battery of estimation techniques, notably: two-stage least squares, fixed effects, generalized method of moments and Tobit regressions. The dependent variable is the inequality adjusted human development index. All dimensions of the Financial Development and Structure Database of the World Bank are considered.FindingsThe main finding is that financial dynamics of depth, activity and size improve inclusive human development, whereas the inability of banks to transform mobilized deposits into credit for financial access negatively affects inclusive human development.Practical implicationsPolicies should be tailored to improve mechanisms by which credit facilities can be provided to both households and business operators. Surplus liquidity issues resulting from the inability of banks to transform mobilized deposits into credit can be resolved by enhancing the introduction of information sharing offices (like public credit registries and private credit bureaus) that would reduce information asymmetry between lenders and borrowers.Originality/valueThis study complements the extant literature by assessing the nexus between financial development and inclusive human development in Africa.

The role of financial development and corruption in environmental degradation of Sub-Saharan African countries

2020 ◽  
Vol 31 (4) ◽  
pp. 895-913 ◽  
Author(s):  
Nura Sani Yahaya ◽  
Mohd Razani Mohd‐Jali ◽  
Jimoh Olajide Raji
Keyword(s):  
Financial Development ◽  
Environmental Degradation ◽  
Empirical Studies ◽  
Ordinary Least Squares ◽  
Efficient Technology ◽  
African Countries ◽  
Credit Allocation ◽  
Content Type ◽  
Sub Saharan

PurposeThis study examines the role of financial development and its interaction with corruption in the environmental degradation of eight Sub-Saharan African countries from 2000–2014.Design/methodology/approachThe study utilizes Pedroni cointegration and fully modified ordinary least squares (FMOLS) techniques for the estimation of the models.FindingsThe results of the cointegration test reveal that there exist long-run relationships among the variables in the model with the interaction of financial development and corruption, and in the model without interaction. The FMOLS estimates show that in the former model, the interaction of financial development with corruption is positively significant in determining the level of environmental degradation in those countries. Moreover, in the latter, financial development, trade openness, and corruption have a positive effect on their environmental degradationResearch limitations/implicationsUnavailability of data, the study was limited to only eight Sub-Saharan African nationsPractical implicationsThe finding that financial development and its interaction with corruption have an adverse effect on the environments of the Sub-Saharan African countries implies the need to focus on how efficient credits are being allocated in those countries. For better management of environmental quality, this may require the implementation of policies that enhance credit allocation to users with energy-efficient technology and appliances that promote the quality of environments. In addition, stringent policies could be embarked upon to curtail all acts of corruption in the region for an efficient credit allocation and a better environment in the development of Sub-Saharan African society.Originality/valueThe dearth in empirical studies on the Sub-Saharan African countries motivates this study. In particular, little is known about the interaction effect of corruption and financial development on the environmental degradation of those countries, as the work on this is limited in the existing literature.

Institutional quality and innovation: some cross-country evidence

2017 ◽  
Vol 6 (1) ◽  
pp. 26-40 ◽  
Author(s):  
Christopher John Boudreaux
Keyword(s):  
Free Trade ◽  
Legal System ◽  
Fixed Effects ◽  
Economic Freedom ◽  
Innovation Policy ◽  
Ordinary Least Squares ◽  
Market Institutions ◽  
Content Type ◽  
Global Innovation ◽  
Cross Country

Purpose The purpose of this paper is to examine the cross-country variation in innovation and propose that it can be explained by the presence of market institutions using the Global Innovation Index. Design/methodology/approach This paper uses ordinary least squares with region and OECD fixed effects to test whether more economic freedom is associated with more innovation. Findings The findings reveal that the effect of market institutions on innovation is promoted by both knowledge and creativity. When innovation is broken down into its component measures, the results suggest that a high-quality legal system is associated with more creativity and free trade is associated with greater knowledge. Originality/value These findings provide evidence that economic freedom matters for innovation through both creativity and knowledge, particularly through the protection of property rights and the legal system and free trade. Policy makers desiring to spur innovation may want to examine the level of freedom in private ownership and the reduction of trade barriers as a prerequisite for innovation policy.

Internal and external determinants of banks’ profitability

2016 ◽  
Vol 43 (1) ◽  
pp. 90-107 ◽  
Author(s):  
Maria Teresa Medeiros Garcia ◽  
João Pedro Silva Martins Guerreiro
Keyword(s):  
Time Series ◽  
Comparative Analysis ◽  
Fixed Effects ◽  
Design Methodology ◽  
Time Series Data ◽  
Ordinary Least Squares ◽  
Series Data ◽  
Content Type ◽  
Independent Variables ◽  
Net Interest Margin

Purpose – The purpose of this paper is to analyze the profitability of 27 universal banks in Portugal over the period from 2002 to 2011. Design/methodology/approach – The paper conducts ordinary least squares estimations with fixed effects using three measures of profitability: the return on average assets, the return on average equity and the net interest margin. Several independent variables were included concerning both bank-specific and macroeconomic and industry-specific characteristics which have not been considered in previous studies. In addition, the sub-sample between 2008 and 2011 was considered for comparative analysis. Findings – The authors concluded that the independent variables selected, with few exceptions, behaved accordingly to what was expected. Originality/value – To the best of the author’s knowledge, this is the first attempt to examine determinants of banks’ profitability in Portugal, both internal and external, using time series data, which have not been considered in previous studies.

scholarly journals The role of inclusive development and military expenditure in modulating the effect of terrorism on governance

2019 ◽  
Vol 46 (3) ◽  
pp. 681-709 ◽  
Author(s):  
Simplice Asongu ◽  
Jacinta Nwachukwu ◽  
Sara le Roux
Keyword(s):  
Human Development ◽  
Military Expenditure ◽  
Inclusive Development ◽  
African Countries ◽  
Transnational Terrorism ◽  
Content Type ◽  
Governance Indicators ◽  
Generalised Method Of Moments ◽  
Policy Syndromes

Purpose The purpose of this paper is to investigate the role of inclusive human development and military expenditure in modulating the effect of terrorism on governance. Design/methodology/approach It is based on 53 African countries for the period 1998–2012 and interactive generalised method of moments is employed. Six governance indicators from the World Bank and two terrorism variables are used, namely, domestic and transnational terrorism dynamics. Findings The following main findings are established. There is a negative net effect on governance (regulation quality and corruption-control) when inclusive human development is used to reduce terrorism. There is a positive net impact on governance (voice and accountability and rule of law) when military expenditure is used to reduce domestic terrorism. Originality/value The authors have complemented the sparse literature on the use of policy variables to mitigate the effect of policy syndromes on macroeconomic outcomes.

scholarly journals Market power and cost efficiency in the African banking industry

2020 ◽  
Vol 47 (6) ◽  
pp. 1247-1264
Author(s):  
Simplice Asongu ◽  
Rexon Nting ◽  
Joseph Nnanna
Keyword(s):  
Empirical Evidence ◽  
Market Power ◽  
Cost Efficiency ◽  
Fixed Effects ◽  
Unobserved Heterogeneity ◽  
Ordinary Least Squares ◽  
Data Availability ◽  
African Countries ◽  
Content Type ◽  
Availability Constraints

PurposeIn this study, we test the so-called “Quiet Life Hypothesis” (QLH), which postulates that banks with market power are less efficient.Design/methodology/approachWe employ instrumental variable Ordinary Least Squares, Fixed Effects, Tobit and Logistic regressions. The empirical evidence is based on a panel of 162 banks consisting of 42 African countries for the period 2001–2011. There is a two-step analytical procedure. First, we estimate Lerner indices and cost efficiency scores. Then, we regress cost efficiency scores on Lerner indices contingent on bank characteristics, market features and the unobserved heterogeneity.FindingsThe empirical evidence does not support the QLH because market power is positively associated with cost efficiency.Originality/valueOwing to data availability constraints, this is one of the few studies to test the QLH in African banking.

Intellectual Property Rights and Access to Energy Services in Africa

2018 ◽  
Author(s):  
Professor Adebambo Adewopo ◽  
Dr Tobias Schonwetter ◽  
Helen Chuma-Okoro
Keyword(s):  
Intellectual Property ◽  
Property Rights ◽  
Intellectual Property Rights ◽  
Energy Access ◽  
African Countries ◽  
Energy Services ◽  
Proper Role ◽  
The Law

This chapter examines the proper role of intellectual property rights (IPRs) in achieving access to modern energy services in Africa as part of a broader objective of a pro-development intellectual property agenda for African countries. It discusses the role of intellectual property rights, particularly patents, in consonance with pertinent development questions in Africa connected with the implementation of intellectual property standards, which do not wholly assume that innovation in Africa is dependent on strong intellectual property systems. The chapter examines how existing intellectual property legal landscapes in Africa enhance or impede access to modern energy, and how the law can be directed towards improved energy access in African countries. While suggesting that IPRs could serve an important role in achieving modern energy access, the chapter calls for circumspection in applying IP laws in order not to inhibit access to useful technologies for achieving access to modern energy services.

The role of digital economy in China's sustainable development in a post-pandemic environment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Malin Song ◽  
Chenbin Zheng ◽  
Jiangquan Wang
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Supply Chain ◽  
Social Development ◽  
Environmental Protection ◽  
Digital Economy ◽  
Series Data ◽  
Content Type ◽  
The Relationship

PurposeThe COVID-19 pandemic is still raging, which calls for an exploration of how to prevent and control pandemics to promote sustainable development. The purpose of this paper is to examine the role of the digital economy in sustainable development, the relationship between the two, the impacts of the outbreak on economic and social development, and changes in China's digital economy.Design/methodology/approachThe study used the time-series data from 2002 to 2019 and an unconstrained VAR model to examine the relationship between the digital economy and sustainable development before the pandemic.FindingsChina's digital economy has promoted the country's sustainable economic and social development; it has advanced rapid economic growth, improved people's living standards, increased efficient utilization of resources, and strengthened environmental protection.Research limitations/implicationsAmid the pandemic, China's digital economy developed effectively; it showed strong resilience because of its unique advantages. The digital economy in China has helped the country to control the pandemic in a short period, reduced the risk of supply chain disruption, promoted China's economic growth, and ensured the orderly operation of society. Therefore, countries worldwide are encouraged to prioritize their digital economies.Originality/valueCompared with the extant literature, this study explores the sustainable supply chain in a broader sense in the context of a pandemic, and how the supply chain is influenced by the digital economy. It not only includes the stability, resilience, and viability of the supply chain in economic development but also involves aspects of people's life, resource utilization, and environmental protection.

Teacher-principal race and teacher satisfaction over time, region

2017 ◽  
Vol 55 (6) ◽  
pp. 624-639
Author(s):  
Samantha L. Viano ◽  
Seth B. Hunter
Keyword(s):  
Job Satisfaction ◽  
Fixed Effects ◽  
White Teachers ◽  
Ordinary Least Squares ◽  
Teacher Job Satisfaction ◽  
Southern Region ◽  
Content Type ◽  
Black Principals ◽  
The Relationship ◽  
Over Time

Purpose The purpose of this paper is to replicate prior findings on teacher-principal race congruence and teacher job satisfaction and extend the literature by investigating trends over time and if the relationship between race congruence and teacher job satisfaction differs by principal race and region. Design/methodology/approach The study sample comes from four waves of cross-sectional data, the nationally representative Schools and Staffing Survey, administered between 2000 and 2012. The analysis is conducted using ordinary least squares and school-year fixed effects with a comprehensive set of covariates. Findings The relationship between race congruence and teacher job satisfaction is attenuating over time and is likely explained by the lower job satisfaction of white teachers who work for black principals. Some evidence indicates teacher-principal race congruence has greater salience in the Southern region of the country. Find evidence that teachers with race-congruent principals report more workplace support than their non-race congruent colleagues. Research limitations/implications Future studies should investigate why racial congruence has more salience in the Southern region of the country and for white teachers who work with black principals. At the same time, results indicate that teacher-principal race congruence might no longer be a determinant of teacher job satisfaction, although further studies should continue investigating this relationship. Originality/value Findings on the changing nature of the relationship between principal-teacher race congruence and teacher job satisfaction over time as well as the differing nature of race congruence in the Southern region of the country are both novel findings in the literature.

Serendipitous opportunities, entry strategy and knowledge in firms' foreign market entry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mikael Hilmersson ◽  
Martin Johanson ◽  
Heléne Lundberg ◽  
Stylianos Papaioannou
Keyword(s):  
Market Entry ◽  
Foreign Market ◽  
Ordinary Least Squares ◽  
Experiential Knowledge ◽  
Foreign Market Entry ◽  
Learning Theories ◽  
Content Type ◽  
Entry Strategy ◽  
Regression Tests

PurposeFew researchers and even fewer practitioners would deny that serendipitous events play a central role in the growth process of firms. However, most international marketing models ignore the role of serendipity in the opportunity discovery process. The authors provide a nuanced view on international opportunities by developing the role of serendipitous opportunities in the foreign market entry process. The authors develop a model integrating the notions of serendipity, entrepreneurial logic, experiential knowledge and network knowledge redundancy. From the study’s model, the authors condense three sets of hypotheses on the relationships among experiential knowledge and entry strategy, network knowledge redundancy, entry strategy and serendipity.Design/methodology/approachThe authors confront the study’s hypotheses with data collected on-site at 168 Swedish firms covering 234 opportunities, and to test the hypotheses, the authors ran ordinary least squares (OLS) regression tests in three steps.FindingsThe results of the study’s analysis reveal that experiential knowledge and network knowledge redundancy both lead to a logic based on rigid planning and systematic search, which in turn reduces the likelihood that serendipitous opportunities will be realized in the foreign market entry process.Originality/valueThis is the first study that develops a measure of opportunities that are the outcome of serendipitous events. In addition, the authors integrate network and learning theories and internationalization theory by establishing antecedents to, and outcomes of, the entry strategy.

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