Geographical Orientation of Export in Manufacturing Sector in Sub-Sahara Africa

2015 ◽  
Vol 15 (3) ◽  
pp. 337-351
Author(s):  
Didier Yelognisse Alia
Keyword(s):  
Choice Model ◽  
Manufacturing Sector ◽  
Multinomial Logistic Regression ◽  
Manufacturing Firms ◽  
Sub Saharan Africa ◽  
Explanatory Variables ◽  
Sub Saharan ◽  
Multinomial Choice ◽  
Export Decision ◽  
Export Destination

This paper analyses firm’s decision to export and the geographical orientation of manufacturing firms in selected countries in Sub-Saharan Africa. It uses a dataset collected by Rankin, Söderbom, and Teal (2006) on manufacturing firms in Kenya, Ghana, Tanzania Nigeria and South Africa over the period 1991–2004. The paper develops a multinomial choice model of export destination in which profit maximizing firms choose between selling only on domestic market, export only to another African country, and export only outside Africa or export to both destinations. The model is estimated using a multinomial logistic regression. The paper finds evidence of a positive effect of firm size and firm efficiency on export decision and its geographical orientation, especially for the decision to export outside Africa. There is also significant industry, country and time effects in explaining export orientation. Unlike many previous studies, this paper finds that foreign ownership does not substantially determine firm decision to export. Using non-parametric regression, the paper finds that there is a lot of heterogeneity in the relation between the explanatory variables and the propensity to export or to export to various geographical destinations.

scholarly journals OWNERSHIP STRUCTURE AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS IN SUB-SAHARAN AFRICA

2021 ◽  
pp. 187
Author(s):  
Mayowa Gabriel Ajao ◽  
Jude Osazuwa Ejokehuma
Keyword(s):  
Financial Performance ◽  
Ownership Structure ◽  
Critical Mass ◽  
Institutional Ownership ◽  
Manufacturing Firms ◽  
Sub Saharan Africa ◽  
Government Ownership ◽  
Explanatory Variables ◽  
Integration Test ◽  
Sub Saharan

This study investigates the effect of ownership structure on the financial performance of listed manufacturing firms in three Sub-Saharan Africa countries (Nigeria, Kenya and South–Africa) based on the critical mass indices of their respective bourse. Relevant data from the financial reports of sampled firms were analyzed using the co-integration test and the system-GMM for a period 2010-2019 using Return on Asset, and Tobin-Q as dependent variables while government ownership, block ownership and institutional ownership concentrations were explanatory variables. The empirical results revealed that all the explanatory variables have significant effect on the performance indicators (ROA, TOBIN Q). The result of robustness checks also revealed that both government and institutional ownership concentrations have predominately negative effect on financial performance for the respective countries while block ownership concentration is largely positive for most of the manufacturing firms. The study recommends that policy makers should create favorable policies to encourage balanced investment from all categories of investors and ensure only few owners who have the wherewithal to diversify and attract skills and competencies to improve firm performance. Government should also retain some ownership in foreign and local firms to enhance shareholders’ confidence

scholarly journals Factors That Matter for Financial Inclusion: Evidence from Sub-Sharan Africa - The Zimbabwe Case

2021 ◽  
Vol 10 (6) ◽  
pp. 48
Author(s):  
David Mhlanga
Keyword(s):  
Smallholder Farmers ◽  
Multinomial Logistic Regression ◽  
Multinomial Logit Model ◽  
Financial Inclusion ◽  
Sub Saharan Africa ◽  
Farm Income ◽  
Smallholder Farming ◽  
Hand Off ◽  
Sub Saharan ◽  
The Government

The study intended to investigate the factors that are important in influencing the financial inclusion of smallholder farming households in Sub-Saharan Africa with a specific focus on Zimbabwe. Motivated by the fact that there is an increase in the evidence of the importance of financial inclusion in fighting poverty and the fact that by merely having a bank account, financial inclusion cannot be guaranteed, the study went further to interrogate factors that influence smallholder farmers to have a transaction account, to borrow and to have insurance. Since the dependent variable of financial inclusion had more than two categories, with three unordered categories, transaction account, savings/credit account, and insurance, the multinomial logistic regression was used to estimate the determinants of financial inclusion from these three categories of the dependent variable. The multinomial logit model results, with insurance as the reference category, indicated that the size of the household, transaction costs, gender and agricultural extension service were the factors influencing the demand for a household to open a transaction account. On the other hand, off-farm income and age of the household were the only two factors significantly influencing households to borrow. Therefore, it is imperative for, the government of Zimbabwe to come up with more policies that encourage farmers to participate in the formal financial market as financial inclusion can help to fight poverty and the general developments of societies.   Received: 28 April 2021 / Accepted: 31 August 2021 / Published: 5 November 2021

scholarly journals BARRIERS OF SMES’ SUSTAINABILITY IN SUB-SAHARAN AFRICA: A PLS-SEM APPROACH

2021 ◽  
Vol 9 (1) ◽  
pp. 10-24
Author(s):  
John Amoah ◽  
Abdul Bashiru Jibril ◽  
Bayuasi Nammei Luki ◽  
Michael Amponsah Odei ◽  
Charles Yawson
Keyword(s):  
Developing Countries ◽  
Developing Economies ◽  
Manufacturing Sector ◽  
Business Owners ◽  
Partial Least Square ◽  
Least Square ◽  
Sub Saharan Africa ◽  
Future Research ◽  
Global Business ◽  
Sub Saharan

Undoubtedly, entrepreneurial knowledge is a prerequisite for the survival of every business organization. To this, the contribution of Small and Medium Enterprises (SMEs) in the socio-economic development in most developing economies cannot be underestimated. Both developed and developing countries are living testimonies of their contributions to their nation’s growth and development. However, extant literature shows that as competition and innovation intensify in the global business market, many SMEs in developing countries are constrained by external forces that hinder the sustainability of these businesses.   Hence, this paper aims to find out the mitigating factors warranting SMEs’ sustainability from the viewpoint of entrepreneurs and business owners, particularly in the manufacturing sector of Ghana, a Sub-Saharan Africa region. To achieved this objective, the study deployed a simple random sampling technique with 370 valid responses through a structured questionnaire for the analysis. Relying on PLS-SEM (partial least square and structural modeling) with the aid of ADANCO 2.2.1 software version revealed that factors such as financial challenges, technology; market penetration & acceptability; and research & development are barriers facing SMEs sustainability in the Ghanaian manufacturing sector. This study would be beneficial to entrepreneurs and business owners of SMEs in most developing countries and provide deeper insight into the SME literature at large. This study would further strengthen SME entrepreneurs and business owners to fully devise strategies that can help them to override such migrating challenges and equipped them to effectively stay competitive in the long term for the firm’s growth and survival. The limitation and future research directions are equally presented in the paper.

scholarly journals The Nexus between Financial Development and Economic Growth: Panel Data Evidence from Developing Countries

2021 ◽  
Vol 14 (10) ◽  
pp. 489
Author(s):  
E. M. Ekanayake ◽  
Ranjini Thaver
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Least Squares ◽  
Financial Development ◽  
Panel Cointegration ◽  
Sub Saharan Africa ◽  
Explanatory Variables ◽  
Cointegration Tests ◽  
Sub Saharan

The objective of this study is to investigate the nexus between financial development (FD) in economic growth (GROWTH) in developing countries. The study uses panel data from 138 developing countries during the period 1980–2018. The relationship between financial development and economic growth is investigated using four explanatory variables that are commonly used to measure the level of financial development and several other control variables, including a dummy variable representing the financial and banking crises. The sample of 138 developing countries is also classified into six geographic regions. We have carried out panel unit-root tests and panel cointegration tests before estimating the specified models using both Panel Least Squares (Panel LS) and Panel Fully Modified Least Squares (FMOLS) methods. In addition, panel Granger causality tests have been conducted to identify the direction of causality between FD and GROWTH for each of the regions. The results of the study provide evidence of a direct relationship between FD and GROWTH in developing countries. Furthermore, there is evidence of bi-directional causality running from FD to GROWTH and from GROWTH to FD in samples of Europe and Central Asia, South Asia, and all countries, but not in East Asia and Pacific, Latin America and the Caribbean, Middle East and North Africa, and Sub-Saharan Africa.

Languages and National Identity in Sub-Saharan Africa: A Multilevel Approach

2016 ◽  
Author(s):  
Katalin Buzási
Keyword(s):  
Positive Relationship ◽  
Multilevel Models ◽  
Sub Saharan Africa ◽  
Explanatory Variables ◽  
Country Level ◽  
National Identification ◽  
Positive Attitudes ◽  
Language Knowledge ◽  
French Colonies ◽  
Sub Saharan

This chapter contributes to the recent strand of the empirical political and economic literature that attempts to reveal the determinants of national identification in Sub-Saharan Africa. Although previous survey-based studies provide evidence that the socio-economic characteristics of individuals, the properties of ethnic groups they belong to, and certain country-level variables influence the probability of having positive attitudes toward the ethnic group or the nation, the role of languages has not been studied in this context yet. Inspired by findings of psycholinguistics and related disciplines, we utilize the fourth round of the Afrobarometer Project (surveyed in 2008 and 2009) to conduct analysis on the possible positive relationship between language knowledge and identification in national versus ethnic terms. We introduce two language-related explanatory variables. First, the Index of Communication Potential (ICP) reflects the probability that an individual can communicate with another randomly selected person within the society relying on commonly spoken languages. Second, we take into account the number of spoken languages in one’s repertoire. The multilevel models show that although speaking more than two languages increases the chance of identifying in national compared to ethnic terms, the ICP is not significant in this sense on the whole sample. But, when we consider the nationality of the former colonizers, the ICP exhibits positive relationship with national identification on the sub-sample of the former French colonies.

The Causes and Consequences of Terrorism in Sub-Saharan Africa

2019 ◽  
pp. 606-620
Author(s):  
Juliet U. Elu ◽  
Gregory N. Price
Keyword(s):  
Climate Change ◽  
Rational Choice ◽  
Choice Model ◽  
Sub Saharan Africa ◽  
Security Measures ◽  
Rational Choice Model ◽  
Economic Good ◽  
Sub Saharan ◽  
Counterterrorism Policy

This chapter provides an overview and recapitulation on the causes and consequences of terrorism in sub-Saharan Africa (SSA). While terrorism is a global phenomenon, counterterrorism policy could constitute a challenge in SSA. As an economic good, terrorism can be explained within a standard rational choice model of optimizing agents, or an existential good explained by individuals who are present-aim oriented. Such a consideration is important for enabling security measures that are likely to be effective against terrorism in SSA. As many countries in SSA are in a geography subject to climate change, the chapter also considers the extent to which climate change can enable terrorism in SSA.

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