Impact of tourism development on inclusive growth: A panel vector autoregression analysis for African economies

2021 ◽  
pp. 135481662110611
Author(s):  
Oluwatosin Adeniyi ◽  
Terver T Kumeka ◽  
Samuel Orekoya ◽  
Wasiu Adekunle
Keyword(s):  
Vector Autoregression ◽  
Developing Economies ◽  
Generalized Method Of Moments ◽  
Error Variance ◽  
Policy Implications ◽  
Impulse Response Functions ◽  
Inclusive Growth ◽  
African Countries ◽  
African Context ◽  
Panel Vector Autoregression

The persistent debate among policy makers and academics around combating the high rates of poverty and income inequality can be further illuminated by understanding how tourism contributes to inclusive growth, especially in developing economies. Tourism sector can be regarded as one of the key contributors to inclusive growth and where it has the capacity to generate prospects for productive employment. The goal of this article is thus to investigate the link between inclusive growth and tourism in the African context. To do this, we utilized a recent panel vector autoregression (pVAR) and data for 45 African countries spanning the period 1995 to 2019. Thus, by the error variance decomposition and impulse response functions, our results showed a weak positive effect of international tourism arrivals and the composite tourism indicator on inclusive growth, while tourism receipts and tourism expenditure insignificantly decreases inclusive growth in the sampled African economies. Our result is further supported by the panel system generalized method of moments (GMM). We provide some policy implications from our findings.

Legal source, institutional quality and FDI flows in Africa

2017 ◽  
Vol 59 (5) ◽  
pp. 687-698 ◽  
Author(s):  
Godfred A. Bokpin ◽  
Lord Mensah ◽  
Michael E. Asamoah
Keyword(s):  
Panel Data ◽  
South African ◽  
Legal System ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Policy Implications ◽  
African Countries ◽  
Content Type ◽  
Panel Data Regression ◽  
Data Regression

Purpose This paper aims to find out how the legal system interacts with other institutions in attracting Foreign Direct Investment (FDI) into Africa. Design/methodology/approach The authors use annual panel data of 49 African countries over the period 1980 to 2011, and use the system generalized method of moments (GMM) estimation technique and pooled panel data regression. Findings The authors find that the source of a country’s legal system deters FDI inflow as institutions alone cannot bring in the needed quantum of FDI. In terms of trading blocs, it was found that there is negative significant relationship between institutional quality and FDI for South African Development Community (SADC) as well as Economic Community of West Africa States (ECOWAS) countries. Practical implications For policy implications, the results suggest that reliance on institutions alone cannot project the continent to attract the needed FDI. Originality/value Empiricists have devoted considerable effort to estimating the relationship between institutions and FDI on the African continent, but this paper seeks to ascertain the effect of legal systems and institutional quality within African specific trade and regional blocks.

scholarly journals Reducing information asymmetry with ICT

2019 ◽  
Vol 15 (2) ◽  
pp. 130-163 ◽  
Author(s):  
Simplice Asongu ◽  
Sara le Roux ◽  
Jacinta Nwachukwu ◽  
Chris Pyke
Keyword(s):  
Information Asymmetry ◽  
Unobserved Heterogeneity ◽  
Generalized Method Of Moments ◽  
Policy Implications ◽  
African Countries ◽  
Financial Access ◽  
Content Type ◽  
Endogenous Variables ◽  
Information And Communication ◽  
Critical Policy

PurposeThe purpose of this paper is to investigate loan price and quantity effects of information sharing offices with information and communication technology (ICT), in a panel of 162 banks consisting of 42 African countries for the period 2001–2011.Design/methodology/approachThe empirical evidence is based on a panel of 162 banks in 42 African countries for the period 2001–2011. Misspecification errors associated with endogenous variables and unobserved heterogeneity in financial access are addressed with generalized method of moments and instrumental quantile regressions.FindingsThe findings uncover several major themes. First, ICT when integrated with the role of public credit registries significantly lowered the price of loans and raised the quantity of loans. Second, while the net effects from the interaction of ICT with private credit bureaus (PCBs) do not improve financial access, the corresponding marginal effects show that ICT could complement the characteristics of PCBs to reduce loan prices and increase loan quantity, but only when certain thresholds of ICT are attained. The authors compute and discuss the policy implications of these ICT thresholds for banks with low, intermediate and high levels of financial access.Originality/valueThis is one of the few studies to assess how the growing ICT can be leveraged in order to reduce information asymmetry in the banking industry with the ultimate aim of improving financial access in a continent where lack of access to finance is a critical policy syndrome.

Financial Development, Institutional Quality and Inclusive Growth in Africa

2019 ◽  
pp. 097215091987536 ◽  
Author(s):  
Ntow-Matthew Gyamfi ◽  
Godfred A. Bokpin ◽  
Anthony Q. Q. Aboagye ◽  
Charles Godfred Ackah
Keyword(s):  
Financial Development ◽  
Policy Implications ◽  
Inclusive Growth ◽  
African Countries ◽  
Market Participants ◽  
Weak Institutions ◽  
Mobility Function ◽  
The Relationship ◽  
Moderating Role ◽  
Finance Growth Nexus

We investigate the relationship between Financial Development (FD) and Inclusive Growth (IG) unlike extant literature whose concentration has been on economic growth, which we refer to as wholesale growth. While we examine the effect of FD on IG, we investigate the moderating role played by institutions and the regulatory ambience in conveying the strides of FD towards the poor. We measure IG through a social mobility function approach and also construct an IG Index using Asian Development Bank’s framework of IG for robustness. We employ a 27-year panel data collected from across 48 African countries in our dynamic estimations of the FD-IG nexus. We find a non-linear relationship between finance and IG. Our results show that for FD to lead to IG, there is the need to have an effective institutional setup that regulates financial market participants to be inclusive in their operations. With weak institutions, FD’s effect on IG is negative. Our study does not just investigate how FD explains how much money there is overall, but how the money is shared across societies as well. This study is the first to examine the finance-growth nexus from the perspective of inclusivity. Practical policy implications are also discussed.

Economic Growth and Democracy in Africa: Revisiting the Feldstein-Horioka Puzzle

2006 ◽  
Vol 39 (4) ◽  
pp. 855-881 ◽  
Author(s):  
Emizet F. Kisangani
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
Generalized Method Of Moments ◽  
Policy Implications ◽  
African Countries ◽  
Vector Error Correction ◽  
Vector Error ◽  
Politique Économique ◽  
Close Relationship ◽  
Vector Error Correction Models

Abstract.The debate on the relationship between economic performance (sustained economic growth, saving and investment) and democracy remains unsettled. This article provides a critical review of the arguments by relying on the Feldstein-Horioka puzzle. A generalized method of moments (GMM) using 37 African countries from 1960 to 1998 reveals a close relationship among indicators of economic performance but no relationship between economic performance and democracy. Co-integration and vector error correction models contradict GMM results, however. Democracy fosters investment in eight countries, enhances saving in three other countries and sustains economic growth in five. Therefore, single country analyses using appropriate methodologies seem warranted to avoid putting forth ecological fallacies with detrimental policy implications.Résumé.Le débat sur la relation entre performance économique (croissance économique soutenue, épargne et investissement) et démocratie est encore loin d'être clos. Cet article fait une analyse critique des thèses en présence en se basant sur le paradoxe de Feldtsein-Horioka. L'analyse de 37 pays africains de 1960 à 1998 utilisant la méthode des moments généralisée (MMG) démontre un lien étroit entre les divers indicateurs de performance économique, mais aucun lien entre ceux-ci et la démocratie. Cependant, la cointégration et les modèles vectoriels à correction d'erreurs contredisent les résultats basés sur la MMG. En effet, la démocratie favorise l'investissement dans huit pays, encourage l'épargne dans trois autres pays, et soutient la croissance économique dans cinq pays. Il semble justifié, par conséquent, de recourir à des analyses individuelles par pays utilisant des méthodologies appropriées pour éviter des erreurs écologiques aux répercussions néfastes sur la politique économique.

The Size of Fiscal Multipliers in India: A State Level Analysis Using Panel Vector Autoregression Model

2019 ◽  
Vol 20 (6) ◽  
pp. 1393-1406 ◽  
Author(s):  
Bibhuti Ranjan Mishra
Keyword(s):  
Vector Autoregression ◽  
Generalized Method Of Moments ◽  
Impulse Response Function ◽  
State Level ◽  
Capital Outlay ◽  
Fiscal Multipliers ◽  
Long Run ◽  
Multiplier Effect ◽  
The Government ◽  
Panel Vector Autoregression

This study attempts to measure the fiscal multipliers in India using the state-level panel dataset of 17 non-special category states for the period 2001–2002 to 2013–2014. The study employs the panel vector autoregression (PVAR) approach with a generalized method of moments (GMM) framework and plots the generalized impulse response function to explore shocks and responses of endogenous variables. The article finds that the effects of fiscal variables on income in longer horizon are greater than the immediate impact. Both in the short run and long run, the multiplier effect of capital outlay on income is greater than the multiplier effect of revenue expenditure. The operation of reverse multiplier due to increase in tax is found to be lower than the favourable multiplier effect of expenditure. It provides a rationale for taxation wherein the government should resort to taxation with an objective to spend it on productive investment and thereby raise the economic activity.

scholarly journals COVID-19: From health crises to food security anxiety and policy implications

AMBIO ◽  
2021 ◽  
Vol 50 (4) ◽  
pp. 794-811 ◽  
Author(s):  
Linley Chiwona-Karltun ◽  
Franklin Amuakwa-Mensah ◽  
Caroline Wamala-Larsson ◽  
Salome Amuakwa-Mensah ◽  
Assem Abu Hatab ◽  
...  
Keyword(s):  
Health Economic ◽  
Food Security ◽  
Economic Impact ◽  
Probit Model ◽  
Recovery Process ◽  
Well Being ◽  
Policy Implications ◽  
African Countries ◽  
Use Of Data ◽  
Local Spread

AbstractLike the rest of the world, African countries are reeling from the health, economic and social effects of COVID-19. The continent’s governments have responded by imposing rigorous lockdowns to limit the spread of the virus. The various lockdown measures are undermining food security, because stay at home orders have among others, threatened food production for a continent that relies heavily on agriculture as the bedrock of the economy. This article draws on quantitative data collected by the GeoPoll, and, from these data, assesses the effect of concern about the local spread and economic impact of COVID-19 on food worries. Qualitative data comprising 12 countries south of the Sahara reveal that lockdowns have created anxiety over food security as a health, economic and human rights/well-being issue. By applying a probit model, we find that concern about the local spread of COVID-19 and economic impact of the virus increases the probability of food worries. Governments have responded with various efforts to support the neediest. By evaluating the various policies rolled out we advocate for a feminist economics approach that necessitates greater use of data analytics to predict the likely impacts of intended regulatory relief responses during the recovery process and post-COVID-19.

scholarly journals Degree of financialization and energy efficiency in Sub-Saharan Africa: do institutions matter?

2020 ◽  
Vol 6 (1) ◽  
Author(s):  
Philip Kofi Adom ◽  
Franklin Amuakwa-Mensah ◽  
Salome Amuakwa-Mensah
Keyword(s):  
Economic Growth ◽  
Energy Efficiency ◽  
Banking Sector ◽  
Developing Economies ◽  
Generalized Method Of Moments ◽  
Energy Utilization ◽  
Sub Saharan Africa ◽  
Political Regimes ◽  
Growth Strategies ◽  
Bank Profitability

Abstract The United Nations Sustainable Development Goal 7 emphasizes the need for economies around the world to double their efforts in energy efficiency improvements. This is because improvements in energy efficiency can trigger economic growth and considered as one of the ‘green’ growth strategies due to its carbon free content. To this end, some empirical studies have investigated the nexus between economic growth and energy efficiency, but the effects of the latter on financial indicators have not been sufficiently studied in the literature, at least in developing economies like Africa. This study examines the effect of energy efficiency improvements on commercial bank profitability under different political regimes (i.e., autocratic and democratic political regimes); something previous literature had neglected. The study uses panel data, consisting of 43 African countries and the simultaneous System Generalized Method of Moments. We found that energy efficiency improvement is more likely to induce higher bank profitability in political institutions with the characteristics of centralization of power compared with those with decentralization of power. Furthermore, for the banking sector, the findings suggest that energy utilization behavior of clients should be included in the loan or credit valuation process. For the government, the agenda of energy efficiency should be aggressively pursued while taking cognizance of creating a political environment that weans itself from a ‘grandfathering’ behavior.

scholarly journals Adapting to context: Creative strategies of video streaming services in Nigeria

2021 ◽  
pp. 135485652110173
Author(s):  
Godwin Iretomiwa Simon
Keyword(s):  
Video On Demand ◽  
Business Environment ◽  
Media Industry ◽  
Operational Environment ◽  
Structured Interviews ◽  
African Countries ◽  
Innovative Strategies ◽  
African Context ◽  
The Media ◽  
Streaming Services

This article examines the contextual challenges that characterize the video on demand (VOD) market in Africa. It provides critical analysis of the creative strategies employed by Nigeria-based streaming services to navigate the peculiar business environment on the continent. This research is on the background of the poor Internet infrastructure and economic divides in many African countries including Nigeria. Streaming services operating in these markets must understand a context where Internet access is complicated on the levels of availability and/or affordability, including significant lack of confidence in e-payment facilities. All these, together with epileptic power supply and poor standard of living, indicate that streaming services must innovate to capture subscribers within the continent. Despite the harsh operational environment, streaming services in Nigeria have continued to increase in number within the past 5 years. This is attributed to the transnational reach of the streaming services as they are patronized by Africans in diaspora across the globe, while they also enjoy popularity within African countries. This article specifically focuses on the innovative strategies employed by Nigerian streaming services to operate within their African markets in the context of their peculiar challenges. In so doing, it extends extant scholarship about Internet-distributed video using the African context. This article is situated within the Media Industry Studies framework and draws from semi-structured interviews with 7 streaming executives in Nigeria and 10 creative professionals in the Nigerian Video Film Industry (Nollywood). It also relies on desk research of press reports, industry publications, as well as the interfaces of streaming portals. This article underscores the necessity of contextualized research with the digital turn in video distribution. Through contextualized analysis of VOD market realities in a less studied terrain like Africa, it aligns with scholarly call to expand theories of Internet-distributed video to marginal contexts.

scholarly journals Conceptualizing the Moderating Role of CEO Power and Ownership Concentration in the Relationship between Audit Committee and Firm Performance: Empirical Evidence from Pakistan

2021 ◽  
Vol 13 (11) ◽  
pp. 6329
Author(s):  
Sohail Ahmad Javeed ◽  
Tze San Ong ◽  
Rashid Latief ◽  
Haslinah Muhamad ◽  
Wei Ni Soh
Keyword(s):  
Firm Performance ◽  
Audit Committee ◽  
Developing Economies ◽  
Generalized Method Of Moments ◽  
Positive Association ◽  
Least Square ◽  
Ownership Concentration ◽  
Fe Model ◽  
Ceo Power ◽  
Moderating Factors

Firms in developing economies generally find ways to enhance their reputation and growth in the international market. In this context, an Audit Committee (AC) is composed of multiple skilled members that control and monitor auditing activities and present a transparent image of their firm, which automatically attracts investors and builds investor confidence. Therefore, this study used CEO power and ownership concentration as moderating factors to examine the connection between AC and firm performance. For this purpose, this study used the data of Pakistani manufacturing firms for the period 2008 to 2018 and applied the Ordinary Least Square (OLS) method, the Fixed Effect (FE) model, and the Generalized Method of Moments (GMM). To check the robustness of the results, this study used a Feasible Generalized Least Square (FGLS) model. The findings of this study contended that AC and firm performance have a positive association with each other. Moreover, the findings revealed that CEO power positively influenced firm performance. Furthermore, lower ownership concentration is a valuable approach to maximize a firm’s performance. Importantly, the outcomes concluded that AC and firm performance have a positive connection with the moderating effects of CEO power. Moreover, AC and firm performance also have a positive association with the moderating effect of ownership concentration.

Sign in / Sign up

Export Citation Format

Share Document