scholarly journals Determinants of fiscal effort in sub-Saharan African countries: Does conflict matter?

2021 ◽  
Vol 7 (2) ◽  
pp. 50-73
Author(s):  
Princewill U. Okwoche ◽  
Chimere O. Iheonu
Keyword(s):  
Fixed Effects ◽  
African Countries ◽  
Fiscal Effort ◽  
Econometric Methods ◽  
Reaction Functions ◽  
Fiscal Reaction Function ◽  
Sub Saharan ◽  
Generalised Method Of Moments ◽  
Ssa Countries

This study investigates the determinants of fiscal effort in sub-Saharan African (SSA) within the framework of fiscal reaction functions. Whereas previous studies focusing on SSA have mainly considered the economic non-debt determinants this study accounts for the role of conflict given its persistence in many SSA countries. It employs a variety of panel econometric methods that are applicable in tackling the problem of endogeneity. Specifically the study employs the instrumental variables fixed effects, the two-step generalised method of moments (GMM) and the traditional two-stage least squares techniques. Mainly the evidence shows that although SSA governments have made fiscal adjustments in response to the escalating levels of debt, conflict impacts negatively on this response in SSA. Furthermore, the results affirm the presence of fiscal fatigue in SSA’s fiscal reaction function. Recommendations based on these findings are discussed.

scholarly journals Are Resource-Rich Countries More Attractive than Countries with Good Institutions to Foreign Direct Investors in Sub-Saharan Africa?

2018 ◽  
Vol 10 (6) ◽  
pp. 65 ◽  
Author(s):  
Muhammad Akhtaruzzaman ◽  
Shaohua Yang ◽  
Azizah Omar
Keyword(s):  
Fixed Effects ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Standard Deviation Increase ◽  
Empirical Estimates ◽  
Resource Endowment ◽  
Main Driver ◽  
Sub Saharan ◽  
Panel Fixed Effects ◽  
Ssa Countries

Africa is no longer behind in the race of acquiring global share of foreign direct investment (FDI) compared to other developing regions. This study uses FDI dataset of 27 sub-Saharan African (SSA) countries and examines what drives the recent trend of higher FDI flows to Africa. A variety of empirical techniques (e.g. cross-section OLS, panel fixed effects and dynamic GMM) are employed for identifying main drivers of FDI in African countries. The finding of this research suggests that resource endowment is the main driver attracting FDI to SSA countries. More specifically, empirical estimates suggest that a one-standard deviation increase in resource endowment in the SSA countries is associated with an increase in FDI ranging from 34% to 83%. Empirical result also suggests that between institutions and resource endowment, resource endowment is the most robust determinant of FDI in SSA countries.

scholarly journals Remittances and health outcomes in Sub-Saharan African countries: Understanding the role of financial development and institutional quality

2021 ◽  
Vol 66 (229) ◽  
pp. 119-144
Author(s):  
Uweis Bare ◽  
Yasmin Bani ◽  
Normaz Ismail ◽  
Anitha Rosland
Keyword(s):  
Health Outcomes ◽  
Financial Development ◽  
Institutional Quality ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Dynamic Panel ◽  
Sub Saharan ◽  
Ssa Countries

Sub-Saharan Africa (SSA) is one of the highest recipients of remittances; however, this is inconsistent with the region?s growth and the state of its weak healthcare systems. This paper therefore analyses the effect of remittances on health outcomes for 39 selected SSA countries over the period 1996 to 2016. It considers the channels through which remittances affect health outcomes, including financial development and institutional quality. Using dynamic panel estimation, we find that remittances sustain health outcomes, while both financial development and institutional quality complement remittances in this respect. SSA countries should therefore continue to improve their financial sectors and develop the quality of institutions to an adequate level. Achieving sound financial systems and institutions would both allow and attract a substantial amount of remittances, benefitting human capital and health outcomes and alleviating poverty.

scholarly journals The Role of Institutions in the Finance-Inequality Nexus in Sub-Saharan Africa

2017 ◽  
Vol 137 (1-2) ◽  
pp. 173-192
Author(s):  
Ngozi Adeleye ◽  
Evans Osabuohien ◽  
Ebenezer Bowale
Keyword(s):  
Income Inequality ◽  
Financial Development ◽  
Sub Saharan Africa ◽  
Jel Codes ◽  
Domestic Credit ◽  
Sub Saharan ◽  
Generalised Method Of Moments ◽  
Control Of Corruption ◽  
Ssa Countries

This study contributes to the literature on income inequality by providing evidence that financial development not only impacts income distribution, but the effects can improve when there is a strong institutional framework. Using the system-generalised method of moments (sys-GMM) technique on a sample of 42 Sub-Saharan African (SSA) countries from 1996 to 2015, our major findings are summarised as follows: (1) inequality is persistent in the region (2) financial development does not significantly reduce income inequality; and (3) the control of corruption and its interaction with domestic credit exhibit an inverted-U relation with income inequality. Thus, policies that will reduce income inequality require that corruption be controlled given increase in domestic credit. JEL Codes: F36; G21; O15

Financing Energy Access in Africa

2018 ◽  
Author(s):  
Peter Kayode Oniemola ◽  
Jane Ezirigwe
Keyword(s):  
Oil And Gas ◽  
Sub Saharan Africa ◽  
Capital Investments ◽  
Energy Access ◽  
African Countries ◽  
Sustainable Technologies ◽  
Energy Technologies ◽  
Sub Saharan ◽  
Diesel Motors

To achieve universal energy access will attract huge capital investments. If sub-Saharan Africa is to realize anything close to the ambitious goals set for its energy access, then new actors, innovative funding mechanisms and sustainable technologies will have to be attracted. Finance is needed for activities such as rural electrification, clean cooking facilities, diesel motors and generators, other renewable energy technologies, oil and gas infrastructures, etc. Finance is also needed in research and development of suitable technologies and funding options as well as investment in the capacity to formulate and implement sound energy policies. This chapter examines the varied financing options for energy access in sub-Saharan Africa. It argues that with appropriate laws in place and effective mechanism for implementation, African countries can significantly engage private sector financing, international financial institutions and foreign donors. The role of the law here will be in creating an enabling environment for financing.

Banking technology and cashless economy in selected Sub-Saharan African countries: does education matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ese Urhie ◽  
Ogechi Chiagozie Amonu ◽  
Chiderah Mbah ◽  
Olabanji Olukayode Ewetan ◽  
Oluwatoyin Augustina Matthew ◽  
...  
Keyword(s):  
Panel Study ◽  
Positive Sign ◽  
African Countries ◽  
Content Type ◽  
Bank Branches ◽  
Mobile Cellular ◽  
Sub Saharan ◽  
The Relationship ◽  
Ssa Countries ◽  
Practical Implications

Purpose This study aims to analyze the effect of banking technology [automated teller machine (ATM) and mobile cellular devices (MOBs)] and other traditional factors on the level of currency in circulation for a sample of 21 selected sub-Saharan African (SSA) countries. It also assessed the mitigating effect of education on the relationship between banking technology and the cashless economy. Design/methodology/approach The study used a panel data approach to design a cashless economy model with banking technology – ATM and MOBs – as well as their interaction with education as regressors. Findings This study finds that MOB is significant for promoting a cashless economy, whereas ATM is insignificant in sample SSA countries. The level of education and the number of bank branches were also found to be significant in promoting a cashless economy. The interaction between education and ATM was insignificant but negatively signed, whereas that between education and MOB was significant but had a positive sign. Research limitations/implications Non-availability of data restricted this work to a panel study of selected SSA countries. Subsequent studies should consider single-country case studies. Practical implications Findings from the study imply that for banking technology to drive a cashless economy effectively, education has to be improved. Originality/value The ratio of cash in circulation to total money supply was used as a measure of the cashless economy. The study also evaluated the moderating effect of education on banking technology.

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 Relationship Between Governance and Trade: Evidence From Sub-Saharan African Countries

2020 ◽  
Vol 11 (6) ◽  
pp. 139
Author(s):  
Ali Madina Dankumo ◽  
Suryati Ishak ◽  
Yasmin Bani ◽  
Hanny Zurina Hamzah
Keyword(s):  
Political Instability ◽  
Government Expenditure ◽  
High Rate ◽  
African Countries ◽  
Group Approach ◽  
Pooled Mean Group ◽  
Growth Increase ◽  
Governance Index ◽  
Sub Saharan ◽  
Ssa Countries

This paper investigates the effect of governance in Sub-Saharan African towards trade. This study utilized panel data from 1996-2017. This employed Pooled Mean Group approach by categorizing the Sub-Sharan African (SSA) countries into Low Governance Index (LGI) and Very Low Governance Index (VLGI) countries, considering its abundant resources. The results of the findings indicate that corruption does not affect trade in LGI countries but increases that of VLGI countries, signifying that corruption “greases the wheels” of trade in countries with a high rate of corruption. However, political instability reduces trade for LGI countries, whereas, in VLGI countries, it does not affect trade, indicating that political instability only impacts in countries with relatively better governance. Government expenditure, income, and population growth increase trade in LGI countries but does not show any evidence of impacting trade in the VLGI countries. The study concludes that governance (corruption and political instability) is a significant determinant of trade in the SSA; hence, the importance of dealing with corruption and ensuring a stable political environment.

Interactive effects of human capital in finance–economic growth nexus in Sub-Saharan Africa

2018 ◽  
Vol 45 (6) ◽  
pp. 1192-1210 ◽  
Author(s):  
Muazu Ibrahim
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Interactive Effect ◽  
Financial Sector ◽  
Content Type ◽  
Long Run ◽  
The World ◽  
Sub Saharan ◽  
Ssa Countries

Purpose The purpose of this paper is to examine the interactive effect of human capital in financial development–economic growth nexus. Relative to the quantity-based measure of enrolment rates, the main aim was to determine how quality of human capital proxied by pupil–teacher ratio influences the relationship between domestic financial sector development and overall economic growth. Design/methodology/approach Data are obtained from the World Development Indicators of the World Bank for 29 sub-Saharan African (SSA) countries over the period 1980–2014. The analyses were conducted using the system generalised method of moments within the endogenous growth framework while controlling for country-specific and time effects. The author also follows Papke and Wooldridge procedure in examining the long-run estimates of the variables of interest. Findings The key finding is that, while both human capital and financial development unconditionally promotes growth in both the short and long run, results from the interactive terms suggest that, irrespective of the measure of finance, financial sector development largely spurs growth on the back of quality human capital. This finding is also confirmed by the marginal and net effects where the interactive effect of pupil–teacher ratio and indicators of finance are consistently huge relative to the enrolment. Statistically, the results are robust to model specification. Practical implications While it is laudable for SSA countries to increase access to education, it is equally more crucial to increase the supply of teachers at the same time improving on the limited teaching and learning materials. Indeed, there are efforts to develop rather low levels of the financial sector owing to its unconditional growth effects. Beyond the direct benefit of finance, however, higher growth effect of finance is conditioned on the quality level of human capital. The outcome of this study should therefore reignite the recognition of the complementarity role of human capital and finance in economic growth process. Originality/value The study makes significant contributions to existing finance–growth literature in so many ways: first, the auhor extend the literature by empirically examining how different measures of human capital shape the finance–economic growth nexus. Through this the author is able to bring a different perspective in the literature highlighting the role of countries’ human capital stock in mediating the impact of financial deepening on economic growth. Second, the author makes a more systematic attempt to evaluate the relative importance of finance and human capital in growth process while controlling for several ancillary variables.

scholarly journals Shaping the Role of sub-Saharan African Nurses and Midwives: Stakeholder’s perceptions of the Nurses’ and Midwives’ tasks and roles

2013 ◽  
Vol 18 (1) ◽  
Author(s):  
Naomi M. Seboni ◽  
Mabel K.M. Magowe ◽  
Leana R. Uys ◽  
Mary B. Suh ◽  
Komba N. Djeko ◽  
...  
Keyword(s):  
Nursing Education ◽  
Role Expectations ◽  
Sub Saharan Africa ◽  
Job Descriptions ◽  
Community Members ◽  
African Countries ◽  
Sub Saharan ◽  
Future Of Nursing ◽  
Nurses And Midwives

To explore the role expectations of different stakeholders in the health care system on the roles and tasks that nurses and midwives perform, in order to clarify and strengthen these roles and shape the future of nursing education and practice in sub-Saharan Africa. Qualitative focus group discussions were held with different stakeholders (nurses, health service managers, patients and their caregivers, community members and leaders and other health professionals) in eight African countries in order to establish their role expectations of nurses and midwives. Three questions about their role expectations and the interviews were taped, transcribed, and translated into English and analysed. There was consensus amongst the stakeholders regarding eight role functions: taking care of patients; giving health information; managing the care environment; advocating for patients; services and policies; providing emergency care; collaborating with other stakeholders; and providing midwifery care to women, infants and their families. There was disagreement amongst the stakeholders about the role of diagnosis and prescribing treatment. Nursing derives its mandate from communities it serves, and the roles expected must therefore form part of nursing regulation, education and practice standards. Health planners must use these as a basis for job descriptions and rewards. Once these are accepted in the training and regulation of nursing, they must be marketed so that recipients are aware thereof.Om die rol verwagtings van verskillende rolspelers in die gesondheidsisteem aangaande die rolle en take van die verpleegkundiges en vroedvroue te ondersoek, om daardeur uitklaring en helderheid en bekragtiging van hierdie rolle te verkry, waardeur die toekoms van verpleeg-onderwys en praktyk in sub-Sahara Afrika gevorm kan word. Kwalitatiewe fokus groepe is met verskillende rolspelers (verpleegkundiges, gesondheidsdiens bestuurders, pasiënte en hulle versorgers, lede van die gemeenskap, leiers en lede van andere gesondheidsprofessies) in agt Afrika lande gehou om hul rolverwagtings van verpleegkundiges en vroedvroue te bepaal. Drie vrae is oor die rolverwagtings gevra. Die onderhoude is opgeneem, getranskribeer, in Engels vertaal, en geanaliseer. Daar was konsensus tussen rolspelers oor agt rol funksies: versorging van pasiënte; die gee van gesondheidsinligting; bestuur van die sorgomgewing; voorspraak vir pasiënte; dienste en beleid; voorsiening van nooddienste; samewerking met ander rolspelers; en voorsiening aan moeder en kindersorg vir vroue en hul gesinne. Ooreenstemming is nie bereik aangaande die rol van diagnose en voorskryf van behandeling nie. Verpleging kry sy mandaat van die gemeenskappe wat gedien word en daarom behoort die rolverwagtings deel te vorm van verpleeg-regulasie, onderwys en praktyk- standaarde. Gesondheidsdiensbeplanners behoort hierdie verwagtings as basis te gebruik vir werksbeskrywings en erkenning. Na die aanvaarding van hierdie verwagtings in verpleegopleiding en regulering, moet dit bekend gemaak word sodat die gemeenskap daarvan bewus is. 

More Finance or Better Finance in Feldstein–Horioka Puzzle: Evidence from SSA Countries

2017 ◽  
Vol 18 (1) ◽  
pp. 132-143 ◽  
Author(s):  
Ibrahim Dolapo Raheem
Keyword(s):  
Financial Development ◽  
Resource Mobilization ◽  
Financial Reforms ◽  
Retention Coefficient ◽  
Substantial Investment ◽  
Sub Saharan ◽  
Saving Retention ◽  
Ssa Countries ◽  
Domestic Resource

This study examined the role of financial development in the Feldstein–Horioka (FH) puzzle for 31 sub-Saharan African (SSA) countries for the period 1999–2011. Unlike previous studies that used traditional measures of finance (‘more finance’), we advocated for superior measures of financial development (‘better finance’). The baseline regression shows that ‘more finance’ increases the FH estimate, while ‘better finance’ serves as drag to the same retention coefficients. The reverse of these results was obtained when the baseline regression was extended to account for the interaction between savings and proxies for finance. The results obtained show a considerable improvement in the saving retention coefficient when ‘better finance’ was used as against ‘more finance’. This concretely reinforces the superior role of ‘better finance’ in mobilizing, distributing and utilizing savings for investment within these economies. Based on these findings, domestic resource mobilization can be a veritable vehicle for plugging the substantial investment gap in these SSA economies. However, such policy thrust must be complemented by far-reaching financial reforms.

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