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

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.

2017 ◽  
Vol 4 (1) ◽  
Author(s):  
Simplice Asongu ◽  
Jacinta Nwachukwu

AbstractThis study extents the literature on responses to a recent World Bank report on the African poverty tragedy by assessing the effect of globalisation on inclusive human development in 51 African countries for the period 1996–2011. Political, economic, social and general globalisation variables are used. The empirical evidence is based on Generalised Method of Moments (GMM) and Instrumental Quantile Regressions (IQR). While estimated coefficients are not significant in GMM results, for IQR, globalisation positively affects inclusive human development and the favourable effect is higher in countries with high initial levels of inclusive development. The main economic implication is that in the post-2015 development agenda, countries would benefit more from globalisation by increasing their levels of inclusive development.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Simplice Asongu ◽  
Rexon Nting

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.


2020 ◽  
Vol 36 (4) ◽  
pp. 303-321 ◽  
Author(s):  
Kofi Korle ◽  
Anthony Amoah ◽  
George Hughes ◽  
Paragon Pomeyie ◽  
Godson Ahiabor

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.


2018 ◽  
Vol 11 (3) ◽  
pp. 325-341 ◽  
Author(s):  
Malgorzata Dziembala

Purpose This paper aims to analyse the competitiveness of the regions of the Visegrad countries (Czechia, Hungary, Poland and Slovakia) with respect to their sustainability and discuss the role of the EU cohesion policy in promoting regional competitiveness in this dimension. Design/methodology/approach The sustainable competitiveness of Visegrad Group countries was analysed with the use of a taxonomic method, to determine the regions with the highest, middle and low level of the sustainable development (competitiveness). The level of sustainable competitiveness of the Visegrad regions was indicated based on the author’s own set of diagnostic variables which define three dimensions of sustainability. Findings The analysis revealed that the regions of the Visegrad Group countries with high GDP per capita are not necessarily ranked high in terms of sustainable competitiveness. The obtained results confirm the assumption that traditional indicators such as GDP per capita do not capture all aspects of social and environmental sustainability. Thus, the cohesion policy in the Visegrad Group countries should be diversified and adjusted to the special needs of the regions with particular emphasis being laid on sustainability dimension and the level of their economic development. When identifying the directions of support under the cohesion policy, special attention should be paid to the development of modern technologies, including information and communication technology (ICT), that facilitate the transformation of regions towards the smart regions path. Research limitations/implications Because of the data availability, it covers only one year, 2014, where it was possible. Further investigation should focus on the comparison of the changes over a certain period and changes that took place in the ranking. In addition, a detailed analysis of the regions with regard to their development of the “sustainable path” should be considered. It is essential to support less developed regions in the field of the sustainable and inclusive development through cohesion policy which is supported in 2014-2020. However, it is also important to promote the ICT investment in the lagging regions. Practical implications The analysed 35 regions of the Visegrad countries were ranked according to their level of sustainable competitiveness. The three groups of regions were distinguished. The first place in the ranking was occupied by the region which recorded the highest value of the TMC – a taxonomic measure of sustainable competitiveness and the last region – it is the region with the lowest value of the TMC. Originality/value The paper discusses the concept of sustainable competitiveness of regions. The level of sustainable competitiveness of the Visegrad regions was indicated based on the own set of diagnostic variables which define three dimensions of sustainability. The paper makes a contribution to the discussion on the regional smart and sustainable competitiveness and the role of EU cohesion policy in supporting the sustainable competitiveness.


2020 ◽  
Vol 47 (11) ◽  
pp. 1345-1362
Author(s):  
Folorunsho M. Ajide

PurposeThe purpose of this paper is to evaluate the impact of financial inclusion (FI) on control of corruption in selected African countries.Design/methodology/approachThe study employs secondary data spanning over a period of 2005–2016. These data are sourced from IMF's International Financial Statistics, World Bank Development Indicators, Global Financial Development Database, Transparency International and International Country Risk Guide. The author uses Sarma (2008) approach to construct the FI index for 13 countries in Africa. The author applies random effect, robust least square and instrumental variable (IV) estimations to examine the impact of FI on control of corruption in Africa.FindingsThe author finds that financial inclusion improves the control of corruption. The author tests for possible FI threshold to avoid the case of extreme FI in Africa. The results show that there is a threshold level if reached, FI would have negative impacts in the control of corruption. This may likely happen mainly due to weak institutions in Africa. The results are robust to alternative proxy for control of corruption and various alternative estimation techniques.Practical implicationsThe finding indicates that FI can serve as part of toolkits for reducing corruption in Africa.Originality/valueThis study stresses the important role of FI in the economic system. It is the first paper that empirically suggests the role of FI in controlling corruption in Africa.


2017 ◽  
Vol 9 (1) ◽  
pp. 20-33
Author(s):  
Ibrahim D. Raheem ◽  
Mutiu Abimbola Oyinlola

Purpose The study seeks to examine the role of financial development (FD) in the Feldstein–Horioka (FH) puzzle. The novelty of this study is based on the fact that the measures of FD are expanded to account for the qualitative nature of the financial sector (“better finance”). Design/methodology/approach The study used annual dataset for 37 countries in sub-Saharan Africa (SSA) for the period 1999 through 2010 and relied on the system generalised method of moments (GMM) technique, which takes accounts of endogeneity-related issues. Findings The estimated FH coefficients ranged between 0.419 and 0.720. The qualitative measures of FD have higher FH coefficient relative to the traditional or quantitative measure of FD (“more finance”). Hence, improvement in both the quantity and quality of the financial sector might be helpful in the mobilization, distribution and utilization of savings for investment purposes within these economies. The high FH coefficients obtained suggest that the FH puzzle does not hold in the SSA region. Practical implications Policymakers should formulate and design policies that would seek to ensure the development of the financial sector both in terms of quantity and quality. While taking this into consideration, special attention should be devoted to the qualitative measure of finance. Originality/value The study extends the work of Adeniyi and Egwaikhide (2013) by providing different and, possibly better proxies for FD to capture the efficiency and the qualitative nature of the financial system. This crux of the study serves as the value addition to the literature, as no other study the authors are aware of, has considered the importance of “better finance” indicators in the saving – investment nexus investigation.


2020 ◽  
Vol 31 (4) ◽  
pp. 895-913 ◽  
Author(s):  
Nura Sani Yahaya ◽  
Mohd Razani Mohd‐Jali ◽  
Jimoh Olajide Raji

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.


2015 ◽  
Vol 10 (4) ◽  
pp. 622-633 ◽  
Author(s):  
Mercy Mpinganjira

Purpose – The purpose of this paper is to investigate the role of trust in understanding usage of e-government services in South Africa. Of interest are services that involve two way interactions between citizens and government. Design/methodology/approach – Qualitative and quantitative data were collected from members of the public using in-depth interviews and a structured questionnaire, respectively. Findings – The findings show that trust in internet and in government as a provider of e-services are important factors that differentiates users and non-users of e-government services. The two factors are also significantly related to willingness to start using e-government services. Trust in e-service provider unlike trust in internet was however found to be a stronger differentiator of users and non-users and to have a stronger relationship with willingness to start using e-government services. Practical implications – Efforts aimed at promoting use of e-government services need to be based on a good understanding of factors that impact on citizens’ decisions in this regard. Such efforts need to include activities targeted at improving people’s trust in government’s ability to provide reliable and secure e-services. Originality/value – While provision of government services using the online channel is a growing phenomenon in most African countries, not much research has been done into what governments should focus on in order to entice more citizens to take up this channel. This study contributes to addressing this gap.


Author(s):  
Mariana Imaz ◽  
Claudia Sheinbaum

Purpose In September 2015, the UN member states approved an ambitious agenda toward the end of poverty, the pursuit of equity and the protection of the planet in the form of 17 Sustainable Development Goals (SDGs) and 169 targets. The purpose of this paper is to raise a concern about the context and framework that science, technology and innovation have in the finalized text for adoption that frames the SDGs especially regarding environmental degradation. The authors argue that emphasizing technology transfer in the agenda has the risk to do not recognize other technological alternatives such as eco-technologies, and endorse a limited vision of the role of science and innovation in the achievement of the SDGs. Science for sustainability has to go further than technology transfer, even questioning the limits of the current patterns of intensive use of natural resources and inequity in consumption. By discussing the historical backgrounds of this paradigm and elaborating on the role of science to achieve sustainability in a broader sense. It is in these terms that inter- and intra-discipline and the roles of researchers in sustainability transitions acquire relevance. Design/methodology/approach Although many theories regarding human development are in place and under discussion, the dominant view, reflected in the UN agreement, is that the progress of a country can be measured by the growth in the per capita gross domestic product. This variable determines if a society is able to reduce poverty and satisfy its basic needs for present and future generations (Article 3: United Nations (UN), 2015). Progress and economic growth in several aspects of human development has been substantial over the past 40 years. However, at the same time, the state of the environment continues to decline (UNEP, 2012). The obvious inquiry of these opposing trends is whether progress irremediably comes at the cost of environmental degradation. In 1972, the Club of Rome’s report entitled “Limits to growth” (Meadows et al. 1972) confronted the viability of perpetual economic growth. The report alerted of the impossibility of endless growth in population and production in a finite planet (Gómez-Baggethun and Naredo, 2015). The essay forecasted future crises of food and energy if the population and economic growth continued to grow at the same rate of the first half of the twentieth century. Nevertheless, the catastrophic projections were not met, mostly because of great advances in agriculture, water and energy technologies. Findings The SDGs constitute a relevant international recognition of the importance of the three edges of sustainable development. However, the pathways toward the achievement of the SDGs need to fully recognize that poverty, inequalities and global environmental problems are expressing a deeper crisis in the shape of economic growth, patterns of production and consumption and, in general, the logic of no limits in the exploitation of natural resources (Sheinbaum-Pardo, 2015). For this reason, the science of sustainability requires a deep understanding of the technological change and that technology is not the only approach toward sustainability. Research limitations/implications The paper reflects a conceptual discussion of the narrow vision of science and technology in the SDGs and their UN framework. The most important objective in the UN documents is technology transfer. This has the risk to do not recognize other technological alternatives such as eco-technologies, and endorse a limited vision of the role of science and innovation in the achievement of the SDGs. Practical implications An important discussion of the key points regarding SDGs is developed. Social implications “Transforming our world: The 2030 agenda for sustainable development (UN, 2015)” presents a narrow vision and a limiting role to the science of sustainability. Moreover, if these issues are not recognized, the achievement of the SDGs will continue to gain only marginal success. Originality/value It brings out a very important discussion of the role of science and technology in the ambitious UN agenda of the SDGs.


2018 ◽  
Vol 25 (4) ◽  
pp. 644-666 ◽  
Author(s):  
Victor Yawo Atiase ◽  
Samia Mahmood ◽  
Yong Wang ◽  
David Botchie

Purpose By drawing upon institutional theory, the purpose of this paper is to investigate the role of four critical resources (credit, electricity, contract enforcement and political governance) in explaining the quality of entrepreneurship and the depth of the supporting entrepreneurship ecosystem in Africa. Design/methodology/approach A quantitative approach based on ordinary least squares regression analysis was used. Three data sources were employed. First, the Global Entrepreneurship Index (GEI) of 35 African countries was used to measure the quality of entrepreneurship and the depth of the entrepreneurial ecosystem in Africa which represents the dependent variable. Second, the World Bank’s data on access to credit, electricity and contract enforcement in Africa were also employed as explanatory variables. Third, the Ibrahim Index of African Governance was used as an explanatory variable. Finally, country-specific data on four control variables (GDP, foreign direct investment, population and education) were gathered and analysed. Findings To support entrepreneurship development, Africa needs broad financial inclusion and state institutions that are more effective at enforcing contracts. Access to credit was non-significant and therefore did not contribute to the dependent variable (entrepreneurship quality and depth of entrepreneurial support in Africa). Access to electricity and political governance were statistically significant and correlated positively with the dependent variables. Finally, contract enforcement was partially significant and contributed to the dependent variable. Research limitations/implications A lack of GEI data for all 54 African countries limited this study to only 35 African countries: 31 in sub-Saharan Africa and 4 in North Africa. Therefore, the generalisability of this study’s findings to the whole of Africa might be limited. Second, this study depended on indexes for this study. Therefore, any inconsistencies in the index aggregation if any could not be authenticated. This study has practical implications for the development of entrepreneurship in Africa. Public and private institutions for credit delivery, contract enforcement and the provision of utility services such as electricity are crucial for entrepreneurship development. Originality/value The institutional void is a challenge for Africa. This study highlights the weak, corrupt nature of African institutions that supposedly support MSME growth. Effective entrepreneurship development in Africa depends on the presence of a supportive institutional infrastructure. This study engages institutional theory to explain the role of institutional factors such as state institutions, financial institutions, utility providers and markets in entrepreneurship development in Africa.


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