scholarly journals Econometric Analysis of Dutch Disease Implication of China-Africa Trade

2021 ◽  
Vol 7 (1) ◽  
pp. 13-30
Author(s):  
Tirimisiyu F Oloko ◽  
Muritala O Ogunsiji ◽  
Musefiu A Adeleke
Keyword(s):  
Agricultural Sector ◽  
Value Added ◽  
Mineral Resources ◽  
Econometric Analysis ◽  
Dutch Disease ◽  
Method Of Moment ◽  
African Countries ◽  
Trade Relationship ◽  
Econometric Analyses ◽  
Generalized Method Of Moment

This study revisits the analysis of the Dutch disease implication of China-Africa trade for Africa’s non-mineral resources sectors; specifically, manufacturing and agricultural sectors, while focusing on the trade relationship between China and 27 African countries for the period of 19years, 2001 to 2019. This prompted an econometric analysis with the use of two-step dynamic (difference and system) panel Generalized Method of Moment (GMM) models, which was also complemented with dynamic least squares panel econometric regression. The preliminary analysis revealed that Ethiopia is the largest African trading partner with China, with an average of about 21percent China-Ethiopia trade ratio, while Botswana has the least trade relation with China, with 1.5percent Botswana-China trade ratio. The result of our econometric analyses suggests that higher China-Africa trade has the potential to reduce Africa’s manufacturing value-added. In other words, China-Africa trade is not causing Dutch disease in Africa but has the potential to cause Dutch disease in the future. Furthermore, the result suggests that higher China-Africa trade has the potential to increase Africa’s agricultural sector productivity. This implies that China-Africa trade has no tendency of causing Dutch disease in the agricultural sector. Our results are robust to different data structures for the dynamic GMM model.

scholarly journals Accelerating Economic Recovery Post-Covid19 through Strengthening Priority Sectors in ASEAN+6 Countries: A Generalized Method of Moment (GMM) Approach

2021 ◽  
Vol 39 (12) ◽  
Author(s):  
Setyo Tri Wahyudi ◽  
Kartika Sari ◽  
Rihana Sofie Nabella
Keyword(s):  
Economic Growth ◽  
Agricultural Sector ◽  
Value Added ◽  
Industrial Sector ◽  
The Philippines ◽  
Economic Recovery ◽  
Method Of Moment ◽  
Industrial Sectors ◽  
Generalized Method Of Moment ◽  
Two Sectors

The Covid-19 pandemic has undermined the achievements of economic growth in various countries, including in the Southeast Asia region. The characteristics of the Southeast Asian region, which are based on the agricultural and industrial sectors, have become the foundation for economic recovery efforts. Therefore, this study chose the agricultural and industrial sectors as the database of research. Further, this study aims to analyze the influence of the agricultural sector and the industrial sector on economic growth in ASEAN+6, covering Indonesia, Thailand, Vietnam, Malaysia, the Philippines, and Singapore. In this study, secondary data will be used for the period from 1991 to 2020 and the sources is from the official website of the World Bank by taking world development indicator data with the Generalized Method of Moment (GMM) method. It was found that the share of value-added in the agricultural sector and the industrial sector in the ASEAN+6 has a significant contribution to economic recovery efforts in the region. The increase in these two sectors has shown a real impact on accelerating economic recovery through increased production activity. The findings of this study are expected to be a reference for policies to increase output in the two sectors, encourage economic growth, and accelerate economic recovery in each country.

scholarly journals Impacts of Aid for Innovation on Economic Growth in the Sub-Saharan African Countries

2018 ◽  
Vol 9 (4) ◽  
pp. 99-108
Author(s):  
Beáta Udvari ◽  
Isaac Kwesi Ampah
Keyword(s):  
Value Added ◽  
Sustainable Growth ◽  
Sub Saharan Africa ◽  
Technological Advancement ◽  
Method Of Moment ◽  
African Countries ◽  
Sub Saharan ◽  
Generalized Method Of Moment ◽  
Ssa Countries ◽  
Value Added Products

Abstract For several years, sub-Saharan Africa (SSA) countries continue to struggle with poverty, hunger, epidemics, access to proper sanitation and potable water etc. even though the continent is considered to be endowed with half of the world’s natural resources. Low value-added products continue to be the primary export of countries in the continent since it lacks the technical know-how to manage its resources for sustainable growth and development it envisages. This paper examines the effectiveness of aid for innovation in enhancing growth and innovative performance of SSA using the Generalized Method of Moment (GMM) and fixed effect models for the period 2002 to 2015. The empirical results revealed that growth and innovation in the continent could be improved significantly if aid is more advanced to innovation and research. Also, the paper noticed that aid for innovation have more impacts in countries with the lower level of innovation and technological advancement.

scholarly journals Does financial and agriculture sector development reduce unemployment rates? Evidence from Southern African countries

2019 ◽  
Vol 65 (No. 5) ◽  
pp. 223-231 ◽  
Author(s):  
Gbolahan Olowu ◽  
Godwin Oluseye Olaseinde-Williams ◽  
Murad Bein
Keyword(s):  
Financial Development ◽  
Agricultural Sector ◽  
Value Added ◽  
African Countries ◽  
Causality Test ◽  
Negatively Associated ◽  
Agriculture Sector ◽  
Long Run ◽  
Financial Depth ◽  
Short Run

The paper examines empirically the impacts of agricultural sector value added and financial development on unemployment, using yearly data from 1995–2015. Eleven developing Southern African Development Community countries were selected for the study. The empirical analysis was carried out using second-generation econometric methods. The regression results revealed that both agricultural value added and financial development are important determinants of unemployment within the region. The results specifically show that agricultural value added is negatively associated with unemployment in both the short and long-run, although the long-run effect is many times bigger than the short-run impact. The results also show that in the long-run, both financial depth and financial efficiency are negatively associated with unemployment. Interactions between agricultural value added financial development and unemployment were further tested via panel bootstrap causality tests. The causality test results revealed the existence of significant one-way causality from agricultural value added to unemployment and from financial depth to unemployment for the region. It also showed that causality varies across individual countries within the region with different conditions, indicating the heterogeneous nature of the countries that make up the regional bloc.<br />

Macroeconomic Indicators and Economic Performance in Selected Sub Sahara African Countries: Panel Generalized Method of Moment Approach

2018 ◽  
Vol 9 (12) ◽  
pp. 21179-21189
Author(s):  
Adejumo Musibau Ojo ◽  
Ogunbunmi S.T
Keyword(s):  
Economic Performance ◽  
Unit Root ◽  
Unit Root Test ◽  
Cointegration Test ◽  
Method Of Moment ◽  
African Countries ◽  
Panel Unit Root ◽  
Long Run ◽  
Macroeconomic Indicators ◽  
Generalized Method Of Moment

This study empirically examined the effect of macroeconomic indicators on economic performance of selected sub Sahara African Countries between 1990 and 2017. The study employed four variables: GDP growth rate, Inflation rate, Monetary policy rate and Exchange rate and panel unit root test using two criteria to test for stationarity, panel cointegration test was also conducted to test for long run cointegration between the variables employed and Generalized Method of Moment method of estimation was employed to check the relationships between the variables. The results of the panel unit root test result from the LLC and IPS methods shows that the order of integrations mixed with some of the variables being stationary at levels (GDPgr and INFL) and first difference (MPR and EXHR) at the same time.  The result of Pedroni cointegration test indicated the bivariate long-run cointegration equation between the variables employed. The GMM result revealed that all explanatory variables accounted for 23% variation of Economic performance in SSA. However, the study made the following policy implications: More balanced but flexible approach towards the MPR should be embraced to allow more room for impressive economic growth in these countries. Macroeconomic policy decision is not enough to stimulate growth in the economy of any nation. The interplay of fiscal instruments and monetary instruments backed with political will of the government on genuine implementation of well-thought out programmes can be employed as the  antidote to ensure that the macroeconomic objectives are achieved both in the short and long-run.

scholarly journals PENGARUH DIVERSIFIKASI EKSPOR TERHADAP PERTUMBUHAN NILAI TAMBAH PER TENAGA KERJA SEKTOR MANUFAKTUR BERBASIS AGRO DAN NON-AGRO

2015 ◽  
Vol 9 (2) ◽  
pp. 179-200
Author(s):  
Yudi Risman Hadiyanto
Keyword(s):  
Positive Impact ◽  
Manufacturing Sector ◽  
Value Added ◽  
Positive Influence ◽  
Product Diversification ◽  
Method Of Moment ◽  
Export Markets ◽  
Explanatory Variables ◽  
Generalized Method Of Moment ◽  
Competitive Products

Penelitian ini menganalisis pengaruh diversifikasi ekspor terhadap pertumbuhan nilai tambah per tenaga kerja sektor manufaktur berbasis agro dan non-agro. Data yang digunakan adalah data statistik industri (manufaktur) dan data ekspor periode 2000-2010 dari Badan Pusat Statistik (BPS). Metode analisis yang digunakan adalah regresi panel dengan estimasi System Generalized Method of Moment (GMM) untuk mengatasi endogenitas pada variabel penjelas dan otokorelasi antara dependen variabel dengan lag-nya. Hasil penelitian menunjukkan bahwa diversifikasi pasar ekspor berkorelasi negatif dengan pertumbuhan nilai tambah per tenaga kerja manufaktur non-agro tapi tidak berpengaruh pada manufaktur agro. Diversifikasi produk horizontal ekspor berpengaruh positif bagi manufaktur non-agro tapi pengaruhnya negatif bagi manufaktur agro. Ini menunjukkan bahwa menambah varian produk ekspor dapat mendorong pertumbuhan nilai tambah per tenaga kerja manufaktur non-agro sedangkan manufaktur agro sebaliknya. Diversifikasi produk vertikal ekspor berpengaruh positif bagi pertumbuhan nilai tambah per tenaga kerja manufaktur non-agro namun tidak memberikan pengaruh bagi pertumbuhan nilai tambah per tenaga kerja manufaktur agro. Ini berarti bahwa -peningkatan ekspor produk-produk hilir manufaktur non-agro mampu mendorong pertumbuhan nilai tambah per tenaga kerja sektor manufaktur. Untuk menumbuhkan sektor manufaktur Pemerintah perlu mendorong investasi dan ekspor produk hilir dari manufaktur non-agro serta meningkatkan ekspor produk berdaya saing tinggi dari manufaktur agro. This study analyzes the effect of export diversification on the value added growth per labor of agro and non-agro based manufacturing sector. This research used the statistical data of industry (manufacturing) and export data in the period of 2000-2010, provided by the Central Statistics Agency (BPS). As a method of analysis, panel regression is utilized using Generalized Method of Moment (GMM) in order to overcome the endogeneity problem on the explanatory variables and autocorrelation between the dependent variable and its lag. The results showed that the diversification of export markets has a negative correlation with the value added growth per labor of non-agro manufacturing sector but has no effect on agro manufacture. The horizontal product diversification of export has a positive impact on nonagro manufacture while for agro manufacture is negative. This indicates that the increasing of exported products can encourage the value added growth per labor, but it has the opposite effect on the agro manufacturing. The diversification of the vertical exported product has a positive influence on the value added growth per labor of non agro manufacture but does not give effect on the agro manufacture. This means that the increase of export of final products of non-agro manufacture is able to encourage the growth of the manufacturing sector. To support the growth of manufacturing sector, the goverment needs to encourage investment and exports of downstream industry products of non-agro manufacture and increase the export of highly competitive products in the agro manufacture.

Credit Market Depth and Income Inequality in Vietnam: A Panel-Data Analysis

2016 ◽  
pp. 5-18
Author(s):  
Hoi Le Quoc ◽  
Hoi Chu Minh
Keyword(s):  
Data Analysis ◽  
Panel Data ◽  
Income Inequality ◽  
Financial Development ◽  
Inflection Point ◽  
Panel Data Analysis ◽  
Credit Market ◽  
Method Of Moment ◽  
Market Depth ◽  
Generalized Method Of Moment

Financial development could exert various effects on income distribution of a country. By employing Generalized Method of Moment, this paper aims at examining the impacts of credit market depth, one of most used financial development barometers, on income inequality in Vietnam. The empirical findings show that expanding credit market in the country could lead to higher income inequality. We have not found evidence that supports the hypothesis of an inverted U-shaped relation ever introduced by Greenwood and Jovanovich, although this hypothesis may still hold in a sense that Vietnam has not reached to the inflection point to generate such a curve alike.

Creative Reconstruction: A Systematic Approach to Reinventing Large Cities in Democratic Republic of Congo

2015 ◽  
Vol 8 (1) ◽  
pp. 1485-1497
Author(s):  
Mia Nsokimieno Misilu Eric
Keyword(s):  
Cultural Values ◽  
Democratic Republic ◽  
Democratic Republic Of Congo ◽  
Mineral Resources ◽  
Capital City ◽  
African Countries ◽  
Republic Of Congo ◽  
Large Cities ◽  
Current State ◽  
Legacy Cities

The current state of large cities in Democratic Republic of Congo highlights the necessity of reinventing cities. More than fifty years after the independence, these major cities, like Kinshasa the capital city, are in a state of are in a state of disrepair. They are damaged, dysfunctional, and more vulnerable. Today, these legacy cities do not meet the international requirements of livable cities. Democratic Republic of Congo faces the challenge of rebuilding its cities for sustainability. The movement for independence of African countries enabled the shift from colonial cities to legacy cities. It is important to understand the cultural and ideological foundations of colonial city. Commonly, colonial cities served as purpose-built settlements for the extraction and transport of mineral resources toward Europe. What's required is a creative reconstruction to achieve a desired successful urban change. Creative reconstruction tends to ensure urban transformation in relation with urbanization, by making continuous and healthy communities. Creative reconstruction seems appropriate way of building back cities in harmony with cultural values. The article provides a framework for urban regeneration. The study is based on principle of thinking globally and acting locally in building back better cities.

Ghana: the State of Agriculture and Prospects for Food Security in the Context of Achieving SDGs

2018 ◽  
pp. 16-31
Author(s):  
Tatyana Denisova
Keyword(s):  
Food Security ◽  
Socioeconomic Development ◽  
Agricultural Sector ◽  
Well Being ◽  
The State ◽  
Successful Implementation ◽  
Careful Study ◽  
African Countries ◽  
Development Goals ◽  
The Government

For the first time in Russian African studies, the author examines the current state of agriculture, challenges and prospects for food security in Ghana, which belongs to the group of African countries that have made the most progress in achieving the Sustainable Development Goals (SDGs). The SDGs are a collection of 17 global goals adopted by UN member states in 2015 with a view of achieving them by 2030. The SDGs include: ending poverty in all its forms everywhere (Goal 1); ending hunger, achieving food security and improved nutrition, and promoting sustainable agriculture (2); ensuring healthy lives and promoting well-being for all at all ages (3), etc. These goals are considered fundamental because the achievement of a number of other SDGs – for example, ensuring quality education (4), achieving gender equality (5), ensuring sustainable consumption and production patterns (12), etc. – largely depends on their implementation. Ghana was commended by the world community for the significant reduction in poverty, hunger and malnutrition between 2000 and 2014, i.e. for the relatively successful implementation of the first of the Millennium Development Goals (MDGs, 2000–2015) – the eradication of extreme poverty and hunger. However, SDGs require more careful study and planning of implementation measures. In order to achieve the SDGs, the Government of Ghana has adopted a number of programs, plans and projects, the successful implementation of which often stumbles upon the lack of funding and lack of coordination between state bodies, private and public organizations, foreign partners – donors and creditors, etc., which are involved in the processes of socioeconomic development of Ghana. The author determines the reasons for the lack of food security in Ghana, gives an assessment of the state of the agricultural sector, the effective development of which is a prerequisite for the reduction of poverty and hunger, primarily due to the engagement of a significant share (45%) of the economically active population in this sector. The study shows that the limited growth in food production is largely due to the absence of domestic markets and necessary roads, means of transportation, irrigation and storage infrastructure, as well as insufficient investment in the agricultural sector, rather than to a shortage of fertile land or labor.

Revisiting the Dutch disease thesis from the perspective of value-added trade

2021 ◽  
Vol 72 ◽  
pp. 102103
Author(s):  
Kuei-Feng Chang ◽  
Jin-Xu Lin ◽  
Shih-Mo Lin
Keyword(s):  
Value Added ◽  
Dutch Disease
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