An econophysics non-monetized theory of value

2018 ◽  
Vol 19 (3) ◽  
pp. 519-535 ◽  
Author(s):  
Wolfgang Baer ◽  
Ahmed Bounfour ◽  
Thomas J. Housel
Keyword(s):  
South African ◽  
Distance Measure ◽  
Banking System ◽  
Sub Saharan Africa ◽  
Vector Model ◽  
Social Implications ◽  
African Countries ◽  
High Stake ◽  
Content Type ◽  
Sub Saharan

Purpose Mobile phones are radically transforming micro-finance in Sub-Saharan Africa, and Kenya, in particular. The introduction of the micro-financial transaction mobile phone application, “MPesa,” created a means to facilitate micro-transactions without the need for an intermediary, such as a banking system. The purpose of this paper is to posit an econophysics model to predict the value of Mpesa for Kenyan and South African consumers. The econophysics framework posits several fitness matrices and a distance measure that can account for the concepts of mass, distance, momentum, velocity, action, and force. The authors begin with a table of the match between the physics concepts and the economic concepts followed by the vector model that utilizes these concepts for the MPesa application case. In this paper, the authors will argue that MPesa succeeded in Sub-Saharan African countries, such as Kenya, because the fit between what this group of customers needed and the solutions Safaricom’s MPesa offered was a better fit with a smaller distance to adoption than in the South African case. Design/methodology/approach The research develops an econophysics approach to the assessment of micro-finance development in Sub-Saharan countries. Findings The research shows clearly the reasons of the success of MPesa in Kenya in comparison of its relative failure in South Africa: the distance between customers’ expectations and the system supply. Research limitations/implications The research is limited to two case studies and needs to be extended to other contexts, in order to demonstrate its robustness, especially with regard to the intangible dimension, e.g., the distance between a system potential and what it really offers. Practical implications The research shows the importance of system’s characteristics in its success. Social implications The social implications are very high, especially in this case, where micro-finance is a high stake for developing societies. Originality/value This is one of the first works to develop an econophysics approach for the evaluation of the key characteristics of a system.

Freedom, competition and bank efficiency in Sub-Saharan Africa

2017 ◽  
Vol 59 (6) ◽  
pp. 1359-1380 ◽  
Author(s):  
Emmanuel Sarpong-Kumankoma ◽  
Joshua Abor ◽  
Anthony Q.Q. Aboagye ◽  
Mohammed Amidu
Keyword(s):  
Market Power ◽  
Cost Efficiency ◽  
Stochastic Frontier ◽  
Banking System ◽  
Sub Saharan Africa ◽  
Tobit Regression ◽  
African Countries ◽  
Bank Efficiency ◽  
Content Type ◽  
Sub Saharan

Purpose This study aims to consider the effect of financial (banking) freedom and competition on bank efficiency. Design/methodology/approach With data from 11 Sub-Saharan African countries over the period 2006-2012, the study estimates both competition (market power) and bank cost efficiency using the same stochastic frontier framework. Subsequently, Tobit models, including instrumental variable Tobit regression, are used to assess how financial freedom affects the relationship between competition and bank efficiency. Findings The results show that increase in market power (less competition) leads to greater bank cost efficiency, but the effect is weaker with higher levels of financial freedom. This is not consistent with the quiet life hypothesis. Practical implications Policymakers usually take the view that opening up banking markets to greater competition may lead to higher efficiency. However, the results have shown that allowing banks to maintain some level of market power may be necessary to ensure banking system efficiency. Originality/value This study deepens the understanding of the inconsistent relationship between competition and bank efficiency, by using the same framework to measure both competition and efficiency, and by providing new empirical evidence on how the level of financial freedom affects this relationship.

scholarly journals Conservation research output in sub-Saharan Africa is increasing, but only in a few countries

Oryx ◽  
2020 ◽  
pp. 1-10
Author(s):  
P. Christy Pototsky ◽  
Will Cresswell
Keyword(s):  
South African ◽  
Agricultural Land ◽  
Research Output ◽  
Sub Saharan Africa ◽  
Search Term ◽  
African Countries ◽  
Research Papers ◽  
North American Country ◽  
Conservation Research ◽  
Sub Saharan

Abstract We tested if peer-reviewed conservation research output has increased in sub-Saharan African countries over the last 30 years in response to increased development. We carried out a bibliometric analysis to identify the number of conservation research papers published by national authors of 41 sub-Saharan African countries during 1987–2017, to provide an index of national conservation research output. We identified country-specific development factors influencing these totals, using general linear modelling. There were positive relationships between conservation research output and population size, GDP, literacy rate, international tourism receipts and population growth rate, and negative relationships with urban population and agricultural land cover, in total explaining 77% of variation. Thirty-eight per cent of countries contributed < 30 conservation research papers (of 12,701) in 30 years. Analysis of trends in primary authorship in a random subsample of 2,374 of these papers showed that primary authorship by sub-Saharan African authors has increased significantly over time but is now at a lower rate than primary authorship for authors from countries outside the country associated with the search term, usually a European or North American country. Overall, 46% of papers had national primary authors, but 67% of these were South African. The results show that conservation research output in sub-Saharan Africa overall is increasing but only significantly in a few countries, and is still dominated by non-national scientists, probably as a result of a lack of socio-economic development.

scholarly journals Estimating the burden of cardiovascular risk in community dwellers over 40 years old in South Africa, Kenya, Burkina Faso and Ghana

2021 ◽  
Vol 6 (1) ◽  
pp. e003499
Author(s):  
Ryan G Wagner ◽  
Nigel J Crowther ◽  
Lisa K Micklesfield ◽  
Palwende Romauld Boua ◽  
Engelbert A Nonterah ◽  
...  
Keyword(s):  
Risk Factors ◽  
Risk Factor ◽  
South African ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Cvd Risk ◽  
Genomic Studies ◽  
Sub Saharan ◽  
Context Specific ◽  
The Impact

IntroductionCardiovascular disease (CVD) risk factors are increasing in sub-Saharan Africa. The impact of these risk factors on future CVD outcomes and burden is poorly understood. We examined the magnitude of modifiable risk factors, estimated future CVD risk and compared results between three commonly used 10-year CVD risk factor algorithms and their variants in four African countries.MethodsIn the Africa-Wits-INDEPTH partnership for Genomic studies (the AWI-Gen Study), 10 349 randomly sampled individuals aged 40–60 years from six sites participated in a survey, with blood pressure, blood glucose and lipid levels measured. Using these data, 10-year CVD risk estimates using Framingham, Globorisk and WHO-CVD and their office-based variants were generated. Differences in future CVD risk and results by algorithm are described using kappa and coefficients to examine agreement and correlations, respectively.ResultsThe 10-year CVD risk across all participants in all sites varied from 2.6% (95% CI: 1.6% to 4.1%) using the WHO-CVD lab algorithm to 6.5% (95% CI: 3.7% to 11.4%) using the Framingham office algorithm, with substantial differences in risk between sites. The highest risk was in South African settings (in urban Soweto: 8.9% (IQR: 5.3–15.3)). Agreement between algorithms was low to moderate (kappa from 0.03 to 0.55) and correlations ranged between 0.28 and 0.70. Depending on the algorithm used, those at high risk (defined as risk of 10-year CVD event >20%) who were under treatment for a modifiable risk factor ranged from 19.2% to 33.9%, with substantial variation by both sex and site.ConclusionThe African sites in this study are at different stages of an ongoing epidemiological transition as evidenced by both risk factor levels and estimated 10-year CVD risk. There is low correlation and disparate levels of population risk, predicted by different risk algorithms, within sites. Validating existing risk algorithms or designing context-specific 10-year CVD risk algorithms is essential for accurately defining population risk and targeting national policies and individual CVD treatment on the African continent.

Shadow economy in Africa: how relevant is financial inclusion?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Folorunsho M. Ajide
Keyword(s):  
Shadow Economy ◽  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Content Type ◽  
Development Indicators ◽  
Panel Data Estimation ◽  
Sub Saharan ◽  
Data Estimation ◽  
Toda And Yamamoto

Purpose This study aims to investigate the possible relationship between financial inclusion and shadow economy in selected African countries. Design/methodology/approach The study uses panel data estimation technique and Toda and Yamamoto causality approach. The data of selected African counties over a period of 2005–2015 are sourced from World Bank Development Indicators, International Monetary Fund International Financial statistics database and International Country Risk Guide. Findings The results show that financial inclusion reduces the size of shadow economy. The causality results show that there is a unidirectional causality moving from financial inclusion to shadow economy. The results demonstrate that a country with lower level of corruption and higher level of growth can benefit more in reducing the size of shadow economy through financial inclusion. Originality/value This study provides the first evidence of the link between financial inclusion and shadow economy from the Sub-Saharan Africa perspective. The study suggests that financial inclusion may be useful in affecting the size of shadow economy in Africa.

A critical analysis of water PPP failures in sub-Saharan Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salman Tariq ◽  
Xueqing Zhang
Keyword(s):  
Construction Management ◽  
Design Methodology ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Content Type ◽  
Rigorous Approach ◽  
First Case ◽  
Management Perspective ◽  
Sub Saharan

PurposeTop-down pressure from donors, public sector inefficiencies and fund deficits have steered the introduction of public–private partnerships (PPPs) in sub-Saharan Africa. However, PPP activities in the water sector have been quite insignificant compared to other infrastructure sectors in this region. In addition, a number of water PPPs have encountered great difficulties and subsequent failures. This study aims at unveiling the underlying reasons behind failures.Design/methodology/approachThis study has classified the failure types of water PPPs and reviewed the development of water PPPs in sub-Saharan Africa to identify failed ones. Eight failed case studies are completed through the rigorous approach of event sequence mapping.FindingsNine root causes of water PPP failure are identified through a thorough examination of these failed water PPP cases and the interrelationships between these failure causes are established. The failure causes are further generalized through literature focusing on water PPP failures in developing countries and problematic issues that hinder the implementation of successful water PPPs across different Sub-Saharan African countries. Recommendations are provided for future improvements in carrying out water PPPs in Sub-Saharan Africa by learning past lessons and drawing experiences.Originality/valueThis is the first case study on water PPP failures in Sub-Saharan Africa from a construction management perspective. This study will help governments and the private sector in developing stronger future water PPPs.

Perspectives from Four Stages of Development

2019 ◽  
pp. 159-178
Author(s):  
Eleanor M. Fox ◽  
Mor Bakhoum
Keyword(s):  
South African ◽  
Gold Standard ◽  
Developed Countries ◽  
The United States ◽  
Point Of View ◽  
Sub Saharan Africa ◽  
The European Union ◽  
African Countries ◽  
Sub Saharan ◽  
The Developed Countries

This chapter identifies four clusters of nations based on state of development, in order to highlight significant qualitative differences that may call for different law and policies. The first cluster comprises the least developed sub-Saharan African countries with the most resource-challenged competition authorities, such as Benin and Togo. The second cluster compromises nations that have advanced economically to a perceptibly higher level. The third cluster is a “group” of one—South Africa. With all of its challenges, the South African competition regime is as close to a gold standard as there is in sub-Saharan Africa. Finally, for comparison, the fourth cluster comprises the developed countries, led in particular by the European Union and the United States. These nations have open economies, fairly robust markets, good infrastructure, and good institutions. The chapter proceeds to identify, from the point of view of each of the clusters, the most fitting competition framework nationally and globally. The chapter proposes how the divergences can be brought into sympathy.

scholarly journals The state of business sustainability reporting in sub-Saharan Africa: an agenda for policy and practice

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carol A. Tilt ◽  
Wei Qian ◽  
Sanjaya Kuruppu ◽  
Dinithi Dissanayake
Keyword(s):  
Sustainability Reporting ◽  
New Institutional Economics ◽  
The State ◽  
Data Availability ◽  
Policy Implications ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Content Type ◽  
Reporting Practices ◽  
Sub Saharan

Purpose Developing countries experience their own social, political and environmental issues, but surprisingly limited papers have examined sustainability reporting in these regions, notably in sub-Saharan Africa. To fill this gap and understand the state of sustainability reporting in sub-Saharan Africa, this paper aims to investigate the current state of reporting, identifies the major motivations and barriers for reporting and suggests an agenda of future issues that need to be considered by firms, policymakers and academics. Design/methodology/approach This paper includes analysis of reporting practices in 48 sub-Saharan African countries using the lens of New Institutional Economics. It comprises three phases of data collection and analysis: presentation of overall reporting data collected and provided by Global Reporting Initiative (GRI). analysis of stand-alone sustainability reports using qualitative data analysis and interviews with key report producers. Findings The analysis identifies key issues that companies in selected sub-Saharan African countries are grappling within their contexts. There are significant barriers to reporting but institutional mechanisms, such as voluntary reporting frameworks, provide an important bridge between embedding informal norms and changes to regulatory requirements. These are important for the development of better governance and accountability mechanisms. Research limitations/implications Findings have important implications for policymakers and institutions such as GRI in terms of regulation, outreach and localised training. More broadly, global bodies such as GRI and IIRC in a developing country context may require more local knowledge and support. Limitations include limited data availability, particularly for interviews, which means that these results are preliminary and provide a basis for further work. Practical implications The findings of this paper contribute to the knowledge of sustainability reporting in this region, and provide some policy implications for firms, governments and regulators. Originality/value This paper is one of only a handful looking at the emerging phenomenon of sustainability reporting in sub-Saharan African countries.

“Does the poor matter” in pro-poor driven sub-Saharan African cities? towards progressive and inclusive pro-poor tourism

2019 ◽  
Vol 5 (3) ◽  
pp. 392-411 ◽  
Author(s):  
Regis Musavengane ◽  
Pius Siakwah ◽  
Llewellyn Leonard
Keyword(s):  
Sustainable Development ◽  
Good Governance ◽  
Urban Tourism ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Content Type ◽  
African Cities ◽  
The Poor ◽  
Sub Saharan ◽  
The Impact

Purpose The purpose of this paper is to question the extent to which Sub-Saharan African cities are progressing towards promoting pro-poor economies through pro-poor tourism (PPT). It specifically examines how African cities are resilient towards attaining sustainable urban tourism destinations in light of high urbanization. Design/methodology/approach The methodological framework is interpretive in nature and qualitative in an operational form. It uses meta-synthesis to evaluate the causal relationships observed within Sub-Saharan African pro-poor economies to enhance PPT approaches, using Accra, Ghana, Johannesburg, South Africa, and Harare, Zimbabwe, as case studies. Findings Tourism development in Sub-Saharan Africa has been dominantly underpinned by neoliberal development strategies which threaten the sustainability of tourism in African cities. Research limitations/implications The study is limited to three Sub-Saharan African countries. Further studies may need to be done in other developing countries. Practical implications It argues for good governance through sustainability institutionalization which strengthens the regulative mechanisms, processes and organizational culture. Inclusive tourism approaches that are resilient-centered have the potential to promote urban tourism in Sub-Saharan African cities. These findings contribute to the building of strong and inclusive Institutions for Sustainable Development in the Sub-Saharan African cities to alleviate poverty. Social implications These findings contribute to the building of strong and inclusive institutions for sustainable development in the Sub-Saharan African cities to alleviate poverty. Originality/value The “poor” are always within the communities, and it takes a community to minimise the impact of poverty among the populace. The study is conducted at a pertinent time when most African government’s development policies are pro-poor driven. Though African cities provide opportunities of growth, they are regarded as centres of high inequality.

Does economic freedom improve health outcomes in sub-Saharan Africa?

2020 ◽  
Vol 47 (12) ◽  
pp. 1633-1649
Author(s):  
Anand Sharma
Keyword(s):  
Mortality Rate ◽  
Life Expectancy ◽  
Health Outcomes ◽  
Economic Freedom ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Content Type ◽  
The World ◽  
Sub Saharan ◽  
The Impact

PurposeThe purpose of this study is to examine the impact of economic freedom on four key health indicators (namely, life expectancy, infant mortality rate, under-five mortality rate and neonatal mortality rate) by using a panel dataset of 34 sub-Saharan African countries from 2005 to 2016.Design/methodology/approachThe study obtains data from the World Development Indicators (WDI) of the World Bank and the Fraser Institute. It uses fixed effects regression to estimate the effect of economic freedom on health outcomes and attempts to resolve the endogeneity problems by using two-stage least squares regression (2SLS).FindingsThe results indicate a favourable impact of economic freedom on health outcomes. That is, higher levels of economic freedom reduce mortality rates and increase life expectancy in sub-Saharan Africa. All areas of economic freedom, except government size, have a significant and positive effect on health outcomes.Research limitations/implicationsThis study analyses the effect of economic freedom on health at a broad level. Country-specific studies at a disaggregated level may provide additional information about the impact of economic freedom on health outcomes. Also, this study does not control for some important variables such as education, income inequality and foreign aid due to data constraints.Practical implicationsThe findings suggest that sub-Saharan African countries should focus on enhancing the quality of economic institutions to improve their health outcomes. This may include policy reforms that support a robust legal system, protect property rights, promote free trade and stabilise the macroeconomic environment. In addition, policies that raise urbanisation, increase immunisation and lower the incidence of HIV are likely to produce a substantial improvement in health outcomes.Originality/valueExtant economic freedom-health literature does not focus on endogeneity problems. This study uses instrumental variables regression to deal with endogeneity. Also, this is one of the first attempts to empirically investigate the relationship between economic freedom and health in the case of sub-Saharan Africa.

scholarly journals The mobile phone as an argument for good governance in sub-Saharan Africa

2019 ◽  
Vol 32 (4) ◽  
pp. 897-920 ◽  
Author(s):  
Simplice Asongu ◽  
Sara le Roux ◽  
Jacinta C. Nwachukwu ◽  
Chris Pyke
Keyword(s):  
Mobile Phone ◽  
Mobile Phones ◽  
Good Governance ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Content Type ◽  
Empirical Inquiry ◽  
Governance Indicators ◽  
Sub Saharan ◽  
Mobile Phone Usage

Purpose The purpose of this paper is to present theoretical and empirical arguments for the role of mobile telephony in promoting good governance in 47 sub-Saharan African countries for the period 2000–2012. Design/methodology/approach The empirical inquiry uses an endogeneity-robust GMM approach with forward orthogonal deviations to analyze the linkage between mobile phone usage and the variation in three broad governance categories – political, economic and institutional. Findings Three key findings are established: first, in terms of individual governance indicators, mobile phones consistently stimulated good governance by the same magnitude, with the exception of the effect on the regulation component of economic governance. Second, when indicators are combined, the effect of mobile phones on general governance is three times higher than that on the institutional governance category. Third, countries with lower levels of governance indicators are catching-up with their counterparts with more advanced dynamics. Originality/value The study makes both theoretical and empirical contributions by highlighting the importance of various combinations of governance indicators and their responsiveness to mobile phone usage.

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