Threshold Effect of Raw Material Prices on Economic Growth of African Countries

2021 ◽  
pp. 2150009
Author(s):  
Houngbedji Sèwanoude´ Honore´
Keyword(s):  
Economic Growth ◽  
Nonlinear Effects ◽  
Threshold Effect ◽  
Raw Material ◽  
Policy Measure ◽  
African Countries ◽  
Dynamic Panels ◽  
Quality Of Governance ◽  
Material Price

We study the nonlinear effects of raw material prices measured by that of cotton product on the economic growth of a sample of African countries for the period of 1991–2019. Using the procedure for determining endogenous thresholds (Hansen, 1999) [Threshold effects in non-dynamic panels: Estimation, testing, and inference. Journal of Econometrics, 93, 345–368], the study revealed that raw material prices positively affect economic growth when the prices reach a threshold above 96.1. These results indicate that to be effective, any economic policy measure aimed at accelerating the economic growth of these commodity-dependent countries must take into account the level of raw material price indices, the quality of governance and the level of financial development.

scholarly journals The Impacts of Chinese FDI and China–Africa Trade on Economic Growth of African Countries: The Role of Institutional Quality

Economies ◽  
2020 ◽  
Vol 8 (3) ◽  
pp. 53
Author(s):  
Miao Miao ◽  
Qiaoqi Lang ◽  
Dinkneh Gebre Borojo ◽  
Jiang Yushi ◽  
Xiaoyun Zhang
Keyword(s):  
Economic Growth ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
African Countries ◽  
Policy Action ◽  
Mediating Role ◽  
Theoretical Perspectives ◽  
Chinese Foreign Direct Investment

While there is a consensus on the expanding importance of the China–Africa economic relationship, there is much more debate on how to portray the relationship. Thus, this study is aimed to examine the impacts of the China–Africa trade and Chinese foreign direct investment (FDI) on the growth of African countries controlling the mediating role of institutional quality. The two-step system Generalized method of moments (GMM) model is applied using robust data for the period of 2003–2017. Drawing on complementary theoretical perspectives, this study took into account the conditional effect of China–Africa trade and Chinese FDI subject to the institutional quality of African countries and the interdependence of China–Africa trade and Chinese FDI to African countries. The benign impacts of the China–Africa trade and Chinese FDI on economic growth to African countries remain contingent upon appropriate policy action to improve the institutional quality of African countries and the synergies between the China–Africa trade and Chinese FDI to African countries.

Effect of quality of governance on the relationship between illicit financial flows and economic growth

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hazlina Mohd Padil ◽  
Eley Suzana Kasim ◽  
Fazlida Mohd Razali ◽  
Ruhaya Atan ◽  
Haziq Aminullah
Keyword(s):  
Economic Growth ◽  
Measurement Theory ◽  
Empirical Support ◽  
Financial Flows ◽  
Content Type ◽  
Illicit Financial Flows ◽  
Quality Of Governance ◽  
Asean Countries ◽  
The Relationship

Purpose The purpose of this paper is twofold. First, the study aims to examine the direct effect of illicit financial flows (IFF) and quality of governance (QoG) on economic growth. Second, this study seeks to examine the moderating effect of QoG on the economic consequences of IFF. Design/methodology/approach This study collected data from nine The Association of Southeast Asian Nations (ASEAN) countries for the period of 10 years from 2008 to 2019. The study concerned an analysis of the testing of a conceptual framework which based on secondary data which may lack a comprehensive substantiation on the grounds of measurement theory. A partial least squares (PLS) modelling using the SmartPLS 3.2.8 version was used as a statistical tool to examine the measurement and structural model. Findings Key findings provide empirical support on the effect of IFF and QoG on economic growth. It also confirmed that QoG significantly moderated the relationship between IFF and economic growth by reducing the negative impact of IFF on economic growth. Practical implications Immediate corrective action needs to be implemented by policymakers of ASEAN countries to strengthen QoG to effectively curb IIF activities. Originality/value This study provides current empirical evidence on the relationship of IFF, QoG and economic growth within ASEAN countries.

The Impact of Terms of Trade Volatility on Economic Growth in ASEAN Countries

2018 ◽  
Vol 10 (03) ◽  
pp. 32-40
Author(s):  
Papa Kojo Christopher CONDUAH ◽  
Tae Hwan YOO
Keyword(s):  
Economic Growth ◽  
Price Index ◽  
Terms Of Trade ◽  
Oil Price ◽  
Raw Material ◽  
Terms Of Trade Volatility ◽  
Asean Countries ◽  
Trade Volatility ◽  
The Impact ◽  
Material Price

This article examines the impact of terms of trade volatility on economic growth and the sources of terms of trade volatility for selected ASEAN countries. By adopting a panel cointegraion method, this study finds that fluctuations of oil price and non-fuel raw material price index have caused terms of trade volatility, which limits economic growth.

scholarly journals Revisiting the Relationship between Poverty and Environmental Sustainability in Sub-Saharan African Countries using Dynamic Econometric Models

Economy ◽  
2021 ◽  
Vol 8 (2) ◽  
pp. 16-25
Author(s):  
Owusu Samuel Mensah ◽  
Chen Jianlin ◽  
Fu Chuambo ◽  
Hu Qio
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Environmental Sustainability ◽  
Econometric Models ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Development Goals ◽  
Sub Saharan ◽  
The Impact

Sustainable development remains an important issue in the quest to achieve a safe and a better world. The expansion of the 8 millennium development goals into the 17 sustainable development goals is a testament of the conscious desire to improve the human environment to ensure better quality of life for its citizens. This study assembles a collection of four sophisticated econometric models to determine the impact of poverty and other variables on two indicators of environmental sustainability. Beside, economic development, the study confirmed the negative impact of poverty on both indicators of sustainable development. The results prove that poverty in sub-Saharan Africa is a threat to environmental quality and its consequential challenges. The call to promote environmentally responsible behaviours should not be focused on developed countries alone. Poverty is also associated with high levels of pollution and poor countries including countries in sub-Saharan Africa contributes must equally restrategise for effective environmental goals. The study further discloses that poverty is one of the strongest factors that affect environmental sustainability. This observation is not a contradiction to the well-established fact that prosperity or economic growth is a major precursor of unsustainable environment. On the contrary the evidence in this paper amplifies a consequence of a social crisis if they fester at both ends. In one breath, whereas economic growth or economic prosperity can compromise the quality of the environment. In conclusion, this result implies that African countries in their pursuit of economic growth, education and effective healthcare to ameliorate poverty must incorporate other aggressive strategies to hasten poverty reduction.

Comparative analysis of costs of some selected infrastructure components across Africa

2017 ◽  
Author(s):  
Oliver Chinganya ◽  
Abdoulaye Adam ◽  
Marc Kouakou
Keyword(s):  
Economic Growth ◽  
Growth And Development ◽  
Poor Quality ◽  
National Accounts ◽  
African Countries ◽  
Economic Growth And Development ◽  
Doing Business ◽  
The Poor ◽  
The Cost

The economic growth and development of a country depend on a solid infrastructure and the robustness of systems that have been put in place. Together, these constitute a nation’s “engine of growth” and include housing, water, electricity, transportation, communication, and construction. It is postulated that the cost of doing business in Africa is much higher than in other regions, largely because of the poor quality of its infrastructure and to accessibility constraints. The distribution of price levels of these economic drivers, which contribute to the cost of doing business in Africa. Price level indices (PLIs) have been calculated to provide a comparison of the cost of selected infrastructure components across African countries. The data were collected from the 2005 round of the International Comparison Program (ICP) in Africa, covering 48 out of a total of 52 countries and 22 major aggregates of the national accounts.

scholarly journals Differences in Colonial Experience and the Institution-Economic Growth Nexus in West Africa

2020 ◽  
Vol 13 (2) ◽  
pp. 27-58
Author(s):  
Isiaka Akande Raifu ◽  
Obianuju Ogochukwu Nnadozie ◽  
Olaide Sekinat Opeloyeru
Keyword(s):  
Economic Growth ◽  
West Africa ◽  
West African ◽  
African Countries ◽  
Institutional Variables ◽  
Panel Data Estimation ◽  
Quality Of Institutions ◽  
Colonial Experience ◽  
The Impact

Does the quality of institutions affect economic growth in West African countries? Which institutional variable aids or harms economic growth in the region? Is the effect of institutions on economic growth in former French-colonised countries different from that of British-colonised countries? This study addresses these questions. Specifically, we first examined the effect of six institutional variables on economic growth for each of the 13 West African countries. Then, we employed panel data estimation techniques to examine the overall effect of the quality of institutions on the economies of the region. Finally, we grouped the 13 countries into French-colonised and British colonised countries following the argument of Acemoglu, Johnson and Robinson (2001,2005) and then examined the impact of institutional quality on the economic growth of these subgroups. Our findings reveal that the effect of institutional variables on the economy of each country varies. Overall, we find that government stability and democratic accountability have a positive and significant influence on economic growth, while control of corruption and socioeconomic conditions have deleterious effects on economic growth. Finally, institutions contribute positively to economic growth in French-colonised countries compared to British-colonised countries. The results imply that there is a need to strengthen institutions in West Africa, especially in former British colonies.

scholarly journals Biurokracja a wzrost gospodarczy kraju

2004 ◽  
pp. 17-32
Author(s):  
Aldona Zawojska
Keyword(s):  
Economic Growth ◽  
Public Administration ◽  
Linear Regression Analysis ◽  
Quantitative Relationship ◽  
Macroeconomic Performance ◽  
Economic Growth Rate ◽  
Quality Of Governance ◽  
State Bureaucracy ◽  
The Impact

The objective of this paper is to show that the type of state bureaucracy is a key determinant of the country' s economic growth. In its theoretical part, the paper reviews the scientific literature that addresses the impact of the state organisation and quality of governance on economic growth and development: In the second part, the author empirically examines a quantitative relationship between macroeconomic performance in Poland over the 1995-2002 period and such bureaucracy characteristics as employment in public administration, defence and compulsory social security as well as the average remunerations in this section. The findings indicate that the country's economic growth rate and its GDP per capita are directly correlated to the level of employment and wages in public administration sector. According to simple linear regression analysis, both an increase in the number of public bureaucrats and the level of their wages adversely affect the rate of economic growth.

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