Firms' Investment under Financial and Infrastructure Constraints: Evidence from In-House Generation in Sub-Saharan Africa

2012 ◽  
Vol 12 (1) ◽  
Author(s):  
Jevgenijs Steinbuks
Keyword(s):  
Economic Development ◽  
Power Supply ◽  
Financial Constraints ◽  
Sub Saharan Africa ◽  
External Financing ◽  
Economic Returns ◽  
Public Power ◽  
The Public ◽  
Electric Generators ◽  
Sub Saharan

Abstract While it is well known that financing and infrastructure constraints negatively affect economic development, the correlations between these constraints have been underexplored in the economics literature. This paper focuses on the implications of financing and infrastructure constraints by studying firms’ investments in electric generators as a response to public power interruptions. A theoretical model demonstrates that financial constraints lower economic returns on owning electric generators, making firms less likely to install private generators if the public power supply becomes unreliable. The empirical results show that, controlling for other factors, firms with a lower cost of external financing are more likely to own private generators in areas where the public power supply is less reliable. Observed correlations among reliability of power supply, financial constraints, and investment in electric generators thus appear consistent with the hypothesis that underdeveloped financial markets and inadequate infrastructure can be a greater barrier for economic development than either of these constraints separately.

Responsiveness in Botswana Politics: Do Elections Matter?

1995 ◽  
Vol 33 (3) ◽  
pp. 381-402 ◽  
Author(s):  
Andreas Danevad
Keyword(s):  
Economic Development ◽  
Public Service ◽  
Research Agenda ◽  
Political Change ◽  
Sub Saharan Africa ◽  
The Public ◽  
Sub Saharan ◽  
The Way

Prospects for political change figure prominently on the research agenda in sub-Saharan Africa, and in current debates within individual countries. Democracy is advocated not only as a goal in itself, since it is also frequently argued that elections and openness are required to make governments really responsive to the needs of the population and properly accountable for their actions. In addition, greater transparency is held to be necessary in order to make the public service behave in accordance with bureaucratic norms. Although the general principles of responsiveness, accountability, and transparency are embraced by a large number of scholars and observers of the African scene as a means of countering the detrimental effects of clientelism and personalistic rule, important nuances are found in the literature with regard to the way in which democracy is perceived to facilitate economic development in general, and presently needed reforms in particular.

scholarly journals Implications of Governance, Natural Resources, and Security Threats on Economic Development: Evidence from Sub-Saharan Africa

2021 ◽  
Vol 18 (12) ◽  
pp. 6236
Author(s):  
Husam Rjoub ◽  
Chuka Uzoma Ifediora ◽  
Jamiu Adetola Odugbesan ◽  
Benneth Chiemelie Iloka ◽  
João Xavier Rita ◽  
...  
Keyword(s):  
Economic Development ◽  
Natural Resources ◽  
Causal Effect ◽  
Sub Saharan Africa ◽  
Security Threats ◽  
African Countries ◽  
Significance Level ◽  
Long Run ◽  
Short Run ◽  
Sub Saharan

Sub-Saharan African countries are known to be bedeviled with some challenges hindering the economic development. Meanwhile, some of these issues have not been exhaustively investigated in the context of the region. Thus, this study aimed at investigating the implications of government effectiveness, availability of natural resources, and security threats on the regions’ economic development. Yearly data, spanning from 2007 to 2020, was converted from low frequency (yearly) to high frequency (quarterly) and utilized. Data analysis was conducted using Dynamic heterogeneous panel level estimators (PMG and CS-ARDL). Findings show that while PMG estimator confirms a long-run causal effect of governance, natural resources, and security threats on economic development, only natural resources show a short-run causal effect with economic development, while the CS-ARDL (model 2) confirms the significance of all the variables both in the long and short-run. Moreover, the ECT coefficients for both models were found to be statistically significant at less than 1% significance level, which indicates that the systems return back to equilibrium in case of a shock that causes disequilibrium, and in addition, reveals a stable long-run cointegration among the variables in the model. Finally, this study suggests that the policy makers in SSA countries should place more emphasis on improving governance, managing security challenges, and effectively utilizing rents from the natural resources, as all these have severe implications for the economic development of the region if not addressed.

scholarly journals Circular Bioeconomy Research for Development in Sub-Saharan Africa: Innovations, Gaps, and Actions

2021 ◽  
Vol 13 (4) ◽  
pp. 1926 ◽  
Author(s):  
Shiferaw Feleke ◽  
Steven Michael Cole ◽  
Haruna Sekabira ◽  
Rousseau Djouaka ◽  
Victor Manyong
Keyword(s):  
Gap Analysis ◽  
Farming Systems ◽  
Crop Productivity ◽  
Sub Saharan Africa ◽  
International Institute ◽  
The Public ◽  
Secondary Sources ◽  
Use Efficiency ◽  
Sub Saharan

The International Institute of Tropical Agriculture (IITA) has applied the concept of ‘circular bioeconomy’ to design solutions to address the degradation of natural resources, nutrient-depleted farming systems, hunger, and poverty in sub-Saharan Africa (SSA). Over the past decade, IITA has implemented ten circular bioeconomy focused research for development (R4D) interventions in several countries in the region. This article aims to assess the contributions of IITA’s circular bioeconomy focused innovations towards economic, social, and environmental outcomes using the outcome tracking approach, and identify areas for strengthening existing circular bioeconomy R4D interventions using the gap analysis method. Data used for the study came from secondary sources available in the public domain. Results indicate that IITA’s circular bioeconomy interventions led to ten technological innovations (bio-products) that translated into five economic, social, and environmental outcomes, including crop productivity, food security, resource use efficiency, job creation, and reduction in greenhouse gas emissions. Our gap analysis identified eight gaps leading to a portfolio of five actions needed to enhance the role of circular bioeconomy in SSA. The results showcase the utility of integrating a circular bioeconomy approach in R4D work, especially how using such an approach can lead to significant economic, social, and environmental outcomes. The evidence presented can help inform the development of a framework to guide circular bioeconomy R4D at IITA and other research institutes working in SSA. Generating a body of evidence on what works, including the institutional factors that create enabling environments for circular bioeconomy approaches to thrive, is necessary for governments and donors to support circular bioeconomy research that will help solve some of the most pressing challenges in SSA as populations grow and generate more waste, thus exacerbating a changing climate using the linear economy model.

scholarly journals Potential returns to yam research investment in sub-Saharan Africa and beyond

2020 ◽  
Vol 49 (3) ◽  
pp. 215-224 ◽  
Author(s):  
Djana Babatima Mignouna ◽  
Adebayo Akinboye Akinola ◽  
Tahirou Abdoulaye ◽  
Arega D Alene ◽  
Victor Manyong ◽  
...  
Keyword(s):  
Poverty Reduction ◽  
Net Present Value ◽  
Sub Saharan Africa ◽  
Cost Ratio ◽  
Economic Returns ◽  
Severe Problem ◽  
Adoption Of Technology ◽  
Benefit Cost Ratio ◽  
Sub Saharan ◽  
Knowledge Intensive

Lack of good-quality planting materials has been identified as the most severe problem militating against increased agricultural productivity in sub-Saharan Africa (SSA) and beyond. However, investment of research efforts and resources in addressing this menace will only be feasible and worthwhile if attendant economic gains are considerable. As a way of investigating the economic viability of yam investment, this research has been initiated to address problems confronting yam productivity in eight countries of SSA and beyond: Nigeria, Ghana, Benin, Togo, Côte d’Ivoire, Papua New Guinea, Jamaica, and Columbia. Research options developed were to be deployed and disseminated. Key technologies include the adaptive yam minisett technique (AYMT), varieties adapted to low soil fertility and drought, nematode-resistant cultivars (NRC), and crop management and postharvest practices (CMPP). This article aims at estimating the potential economic returns, the expected number of beneficiaries, and poverty reduction consequent to the adoption of technology options. Estimates show that the new land area that will be covered by the technologies in the eight countries will range between 770,000 ha and 1,000,000 ha with the highest quota accounted for by AYMT. The net present value will range between US$584 and US$1392 million and was highest for the NRC. The CMPP had the lowest benefit-cost ratio of 7.74. About 1,049,000 people would be moved out of poverty by these technologies by 2037 in the region. These technologies are less responsive to changes in cost than that in adoption rate. Therefore, the realization of the potential economic gains depends on the rate and extent of adoption of these technologies. Giving the knowledge-intensive nature of some of these interventions, capacity building of potential adopters will be critical to increasing the sustainability of the yam sector, thereby enhancing food security and reducing poverty.

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