scholarly journals Globalization, Governance, and the Green Economy in Sub-Saharan Africa: Policy Thresholds

World Affairs ◽  
2021 ◽  
Vol 184 (2) ◽  
pp. 176-212
Author(s):  
Simplice A. Asongu ◽  
Joseph Nnanna
Keyword(s):  
Generalized Method Of Moments ◽  
Maximum Level ◽  
Political Stability ◽  
Sub Saharan Africa ◽  
Green Economy ◽  
African Countries ◽  
Institutional Governance ◽  
Policy Makers ◽  
Positive Threshold ◽  
Sub Saharan

This study assesses how globalization modulates the effect of governance on carbon dioxide (CO2) emissions in sub-Saharan African countries. The empirical evidence is based on Generalized Method of Moments. The minimum level (or negative threshold) of Foreign Direct Investment required for it to interact with political stability and contribute toward the green economy is 45 percent of gross domestic product (GDP), while 90 percent of GDP is the maximum level (or positive threshold) required for trade to complement “voice and accountability” in mitigating CO2 emissions. Seventy-six percent of GDP and 80 percent of GDP are, respectively, negative trade thresholds for government effectiveness and economic governance. The corresponding negative trade thresholds for the rule of law, corruption-control, and institutional governance are, respectively, 230 percent of GDP, 63.5 percent of GDP, and 106.5 percent of GDP. Actionable openness policy thresholds are provided to inform policy makers on how governance interacts with globalization to promote the green economy.

scholarly journals Enhancing governance for environmental sustainability in sub-Saharan Africa

2020 ◽  
pp. 014459871990065 ◽  
Author(s):  
Simplice A Asongu ◽  
Nicholas M Odhiambo
Keyword(s):  
Environmental Sustainability ◽  
Generalized Method Of Moments ◽  
Political Stability ◽  
Sub Saharan Africa ◽  
Economic Governance ◽  
Institutional Governance ◽  
Government Effectiveness ◽  
Sub Saharan ◽  
Political Economic ◽  
Political Governance

This study assesses whether improving governance standards affects environmental quality in 44 countries in sub-Saharan Africa for the period 2000–2012. The empirical evidence is based on generalized method of moments. Bundled and unbundled governance dynamics are used, notably: (i) political governance (consisting of political stability and “voice and accountability”); (ii) economic governance (entailing government effectiveness and regulation quality), (iii) institutional governance (represented by the rule of law and corruption-control); and (iv) general governance (encompassing political, economic, and institutional governance dynamics). The following hypotheses are tested: (i) Hypothesis 1 ( improving political governance is negatively related to carbon dioxide (CO2) emissions); (ii) Hypothesis 2 ( increasing economic governance is negatively related to CO2 emissions); and (iii) Hypothesis 3 ( enhancing institutional governance is negatively related to CO2 emissions). Results of the tested hypotheses show that the validity of Hypothesis 3 cannot be determined based on the results; Hypothesis 2 is not valid, while Hypothesis 1 is partially not valid. The main policy implication is that governance standards need to be further improved in order for government quality to generate the expected unfavorable effects on CO2 emissions.

scholarly journals Foreign Direct Investment - Growth Linkage in Sub-Saharan Africa: Is Governance a Mediating Factor?

2019 ◽  
Vol 6 (2) ◽  
pp. 111-129
Author(s):  
Fisayo Fagbemi ◽  
Kehinde Mary Bello
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Political Stability ◽  
Business Environment ◽  
Mediating Effect ◽  
Sub Saharan Africa ◽  
Policy Framework ◽  
Investment Efficiency ◽  
African Countries ◽  
Sub Saharan

In sub – Saharan Africa, weak institutions and the rising concern for improved business environment offer considerable leverage for enhancing the effectiveness of institutional framework, capital inflows, and public investment efficiency. These have put SSA in the global spotlight in recent times. Hence, the study examines the mediating effect of governance on FDI – growth nexus in 35 SSA countries between 2002 and 2017 using panel data techniques (Pooled OLS, Fixed Effects, and Panel-Corrected Standard Error’ (PCSE) estimation) and the Dynamic One – Step Difference and System GMM. Results indicate that control of corruption, political stability and regulatory quality, including governance composite index, have a positive and significant effect on economic growth, suggesting that institutions have a salutary impact on SSA economies. The findings further show that FDI inflows adversely influence growth owing to insufficient absorptive capacity that could enhance FDI effectiveness in the region. More importantly, the pervasiveness of poor governance in SSA is identified as a critical case that undermines the development of the nexus between FDI and economic growth. Thus, the study suggests that FDI – growth linkage would be enhanced by promoting a strong institutional environment that offers a good mechanism for attaining the actual FDI spillover potential through a policy framework that points the path towards cost-effective measures in SSA. Also, there should be core investment policies across African countries that would induce the private sector in consolidating government efforts and resources aimed at improving international competitiveness by diversifying the region’s economies away from a protracted commodity – based.

scholarly journals Economic development thresholds for a green economy in sub-Saharan Africa

2019 ◽  
Vol 38 (1) ◽  
pp. 3-17 ◽  
Author(s):  
Simplice A Asongu ◽  
Nicholas M Odhiambo
Keyword(s):  
Economic Development ◽  
Population Growth ◽  
Human Development ◽  
Generalized Method Of Moments ◽  
Sub Saharan Africa ◽  
Green Economy ◽  
Kuznets Curve ◽  
Sub Saharan ◽  
Using Data ◽  
The Empirical Analysis

This study investigates how increasing economic development affects the green economy in terms of CO2 emissions, using data from 44 countries in the sub-Saharan Africa for the period 2000–2012. The Generalized Method of Moments is used for the empirical analysis. The following main findings are established. First, relative to CO2 emissions, enhancing economic growth and population growth engenders a U-shaped pattern whereas increasing inclusive human development shows a Kuznets curve. Second, increasing gross domestic product growth beyond 25% of annual growth is unfavorable for a green economy. Third, a population growth rate of above 3.089% (i.e. annual %) has a positive effect of CO2 emissions. Fourth, an inequality-adjusted human development index of above 0.4969 is beneficial for a green economy because it is associated with a reduction in CO2 emissions. The established critical masses have policy relevance because they are situated within the policy ranges of adopted economic development dynamics.

scholarly journals THE EFFECT OF HUMAN CAPITAL ON ECONOMIC GROWTH IN SOME SUB SAHARA AFRICAN COUNTRIES (SSA)

2021 ◽  
Vol 5 (1) ◽  
pp. 1-24
Author(s):  
AISHA AHMAD SAJOH
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Data Base ◽  
Generalized Method Of Moments ◽  
Sub Saharan Africa ◽  
Unique Contribution ◽  
African Countries ◽  
Sub Saharan ◽  
Table Data ◽  
The Impact

Purpose: This research looked into debate on the possible impact of human capital on economic growth in Sub-Saharan Africa (SSA) and considers two alternative measures of human capital: health and education. Methodology: The research used a dynamic model based on the system generalized method of moments (SGMM) and analysed a balanced panel data covering 35 countries from 1986–2018. The research used Microsoft excel to record all the data gotten from the world indicator data base from world bank, penn world table data base and CANA database. The analysis was presented in a tabular form. Findings: This study found that human capital has an overall positive and statistically significant impact on economic growth in the SSA region, although, democracy has a negative and statistically significant impact on economic growth in the region. This finding shows the importance of both measures of human capital and aligns with the argument in the literature that neither education nor health is a perfect substitute for the other as a measure of human capital. Unique contribution to theory, practice and policy:Generally, the finding emphasised that both education and health measures of human capital are important, and that policymakers must consider the level of economic development while formulating policies that can enhance the impact of human capital on economic growth in the Sub-Saharan Africa region.

scholarly journals Determinants of FDI in Sub-Saharan African Countries: A Review of the Evidence

2015 ◽  
Vol 5 (2) ◽  
pp. 24 ◽  
Author(s):  
Lateef Ademola Olatunji ◽  
Muhammad Sadiq Shahid
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Political Instability ◽  
Political Stability ◽  
Sub Saharan Africa ◽  
Economic Policies ◽  
Economic Management ◽  
Host Countries ◽  
African Countries ◽  
Sub Saharan

<p>Although it may seem natural to argue that foreign direct investment (FDI) can convey great advantages to host countries. This paper finds that FDI flows to Sub-Saharan Africa economies unaffected by conflict and political instability exceed those with crisis. For FDI to strive in these countries, it must introduce sound economic policies and make the country investor friendly. There must be political stability, sound economic management and well developed infrastructure.</p>

scholarly journals Effect of Financial Inclusion on Income Inequality in Sub-Saharan Africa

2020 ◽  
pp. 1-15
Author(s):  
Kipoh Mpele Esther
Keyword(s):  
Income Inequality ◽  
Low Income ◽  
Low Cost ◽  
Panel Study ◽  
Generalized Method Of Moments ◽  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Negative Effect ◽  
Sub Saharan

Aims: To analyze financial inclusion as a channel to alleviate inequality in order to provide insight into the edifice of inequality reduction. Study Design:  Dynamic panel study. Place and Duration of Study: Sub-Saharan African countries over the period 2004-2018. Methodology: Using the generalized method of moments (GMM) on a sample of 27 Sub-Saharan African countries. Results: The results show that the estimated financial inclusion index has a negative effect on income inequality. Therefore, the depth of commercial bank branches and the effective use of bank accounts reduce income inequality. Conclusion: Increase financial inclusion as well as the development of financial infrastructure and the provision of specific low-cost services tailored to low-income households.

scholarly journals Policy makers, regulators and researchers’ perspectives on genomics research and the capacity of the National Health Research Act of 2013 to regulate genomics research in Zambia

2020 ◽  
Vol 3 ◽  
pp. 32
Author(s):  
Oliver Mweemba ◽  
John Musuku ◽  
Tulani Francis L. Matenga ◽  
Michael Parker ◽  
Rwamahe Rutakumwa ◽  
...  
Keyword(s):  
Health Research ◽  
Ethics Committees ◽  
Sub Saharan Africa ◽  
Main Concern ◽  
African Countries ◽  
Future Health ◽  
Policy Makers ◽  
Genomics Research ◽  
History Of ◽  
Sub Saharan

Background: Health research in sub-Saharan Africa takes place against a lengthy history of exploitation and unfair collaboration. This has involved the export of samples and data from the continent for the benefit of institutions and researchers elsewhere. In this paper, we report the perspectives of people involved in conducting genomics research in Zambia and the capacity of the Health Research Act (HRA) of 2013 in regulating genomics research. Methods: We approached 14 purposively selected stakeholders involved in the development or implementation of the HRA in Zambia for in-depth interviews. These were members of research ethics committees, genomics researchers, Ministry of Health policy makers and institutional lawyers. Results: Participants reported that there are benefits in genomics research for Zambia such as diagnosing and treatment of diseases. Participants also expressed concerns, most of which were ethical in nature. Prominent concerns were on consent. Participants’ main concern was the possible misuse of samples in the future. These concerns resonated with the HRA, which prohibits the use of broad consent for the collection of samples and data for future unspecified research. The implications of this is that Zambians may not participate in any kind of health research for which the storage, sharing and re-use of data or samples is envisaged. The restrictive nature of HRA means that genomics research may be excluded from future health research collaborations, thus isolating the country from potentially beneficial health research. Some policy makers also worried the samples and data that comes from such research may be difficult to access by local scientists. Conclusion: In this article, we describe the views of Zambian policymakers on genomics research and the capacity of HRA in regulating genomics research. Our findings are relevant for the Zambian audience, and other African countries that are aiming to regulate health research, especially genomics research.

What determines bank interest rate spread? Evidence from Sub-Saharan Africa

2018 ◽  
Vol 9 (3) ◽  
pp. 335-348 ◽  
Author(s):  
Daniel Kipkirong Tarus ◽  
Philip Otieno Manyala
Keyword(s):  
Interest Rate ◽  
Political Stability ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Middle Income ◽  
Institutional Variables ◽  
Content Type ◽  
Interest Rate Spread ◽  
Sub Saharan ◽  
The Interest Rate

Purpose The purpose of this paper is to examine the determinants of bank interest rate spread in Sub-Saharan African countries, which were categorized into macro-specific, bank-specific and institutional variables. Design/methodology/approach The authors used fixed effects estimations to analyze the data. The data were drawn from a pool of 20 Sub-Saharan African countries for a period of ten years spanning 2003–2012. The countries were categorized into low-income, lower middle-income and upper middle-income countries based on World Bank income classifications. Findings The results show that inflation has a negative and significant effect on interest rate spread, while operating costs and bank concentration have a positive and significant effect on interest rate spread. Similarly, government effectiveness, rule of law and political stability are negatively related to the interest rate spread. Practical implications The paper provides evidence that interest rate spread is determined by both bank-specific, macro-economic and institutional variables. The paper also indicates that the income status of a country is important in explaining the variations in the interest rate spread across the region. Therefore, the policy makers should design policies that take into account the variables in order to help in planning by all economic agents, including banks. Originality/value The paper uses data from Sub-Saharan Africa and introduces institutional variables in the model, which have been found to be critical in the context.

scholarly journals EFFECT OF TRADE OPENNESS ON ECONOMIC GROWTH IN SUB-SAHARAN AFRICA: DYNAMIC PANEL ANALYSIS

2021 ◽  
pp. 23-35
Author(s):  
Wycliffe Mugun
Keyword(s):  
Economic Growth ◽  
Capital Stock ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Sub Saharan Africa ◽  
Allocation Of Resources ◽  
African Countries ◽  
Regional Trade ◽  
Explanatory Variables ◽  
Sub Saharan

Theoretically, proponents of traditional trade theories argue that trade openness can enhance economic growth by providing access to goods and services, achieving efficiency in allocation of resources through comparative advantage, creation of employment opportunities and generation of capital that leads to better living standards in terms of higher level of GDP per capita,trade openness may strengthen economic growth through different channels such as efficient allocation of resources. However, owing to the fact that there are limited studies on trade openness, various studies indicate divergent views on the effect of trade openness on economic growth. For this reason, it is not clear whether or not trade openness affect economic growth in Sub-Saharan Africa. The main objective of this study was to investigate the effect of trade openness on economic growth in Sub-Saharan Africa. Control variables used in the regression included oversees development assistance, population growth rate, domestic credit and foreign direct investment. Trade openness, inflation and capital stock were explanatory variables and economic growth the dependent variable. This study was modeled using the Neoclassical Growth theory. One- step difference Generalized Method of Moments results revealed that trade openness had a positive and significant effect on economic growth, capital stock positive and insignificant relationship, while inflation had positive and insignificant relationship with economic growth in SSA.The study thus recommends that there is a need for improving balance of trade by increasing exports diversification and balanced growth and the policy makers of SSA countries should have to give a priority for trade and investment policies which requires some reforms to adjust with changing economic environment. The study concluded that extra-regional trade spurs higher output than intra-regional trade. This may be due to lack of efficiency in the implementation of trade agreements among the intra-regional constituent countries such as Sub-Saharan African countries and lack of full commitment by the member states governments to trade more intensively. KEYWORDS: Trade openness, economic growth, Sub-Saharan Africa

scholarly journals The mobile phone in governance for environmental sustainability in Sub-Saharan Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Simplice Asongu ◽  
Rexon Nting
Keyword(s):  
Mobile Phone ◽  
Environmental Sustainability ◽  
Critical Mass ◽  
Political Stability ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Content Type ◽  
Conditional Effects ◽  
Sub Saharan ◽  
Generalised Method Of Moments

PurposeIn this study, we assess how the mobile phone can be leveraged upon to improve the role of governance in environmental sustainability in 44 Sub-Saharan African countries.Design/methodology/approachThe Generalised Method of Moments is used to establish policy thresholds. A threshold is a critical mass or level of mobile phone penetration at which the net effect of governance on carbon dioxide (CO2) emissions changes from positive to negative.FindingsMobile phone penetration thresholds associated with negative conditional effects are: 36 (per 100 people) for political stability/no violence; 130 (per 100 people) for regulation quality; 146.66 (per 100 people) for government effectiveness; 65 (per 100 people) for corruption-control and 130 (per 100 people) for the rule of law. Practical and theoretical implications are discussed.Originality/valueThe study provides thresholds of mobile phone penetration that are critical in complementing governance dynamics to reduce CO2 emissions.

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