scholarly journals Infrastructure and Manufacturing Value Added in Sub-Saharan African Countries

2020 ◽  
Author(s):  
Obianuju Nnadozie ◽  
Isiaka Akande Raifu
Keyword(s):  
Manufacturing Sector ◽  
Value Added ◽  
Policy Option ◽  
Sub Saharan Africa ◽  
Panel Estimation ◽  
African Countries ◽  
Dynamic Panel ◽  
Information And Communication ◽  
Sub Saharan ◽  
Ssa Countries

Abstract This paper examines the nexus between infrastructure and manufacturing value added (MVA) in sub-Saharan Africa (SSA). It employs panel data for 34 SSA countries spanning 2003 to 2018. The empirical results obtained from the static and dynamic panel estimation techniques applied suggest that infrastructure is essential for the improvement of manufacturing value added in SSA. Furthermore, our findings reveal that the infrastructure-MVA nexus varies by infrastructure types (electricity, transportation, information and communication technology (ICT) and water and sanitation) and across the different sub-regions that make up SSA. This study therefore posits that massive investment in infrastructure is a viable policy option for enhancing the growth and development of the manufacturing sector in SSA.

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.

DEINDUSTRIALIZATION OF SUB-SAHARAN AFRICA

2019 ◽  
Vol 19 (02) ◽  
pp. 1950001
Author(s):  
DON CLARK
Keyword(s):  
Manufacturing Sector ◽  
Value Added ◽  
Sub Saharan Africa ◽  
Logistic Growth ◽  
Growth Functions ◽  
Minerals Production ◽  
Industrialization Process ◽  
Diffusion Rates ◽  
Sub Saharan ◽  
Ssa Countries

Sub-Saharan African (SSA) countries as a group have been deindustrializing for more than three decades. Logistic growth functions of the share of manufacturing value added in Gross Domestic Product (GDP) provide estimates of the rate at which the manufacturing sector has diffused into each SSA economy. Deindustrializers (industrializers) have negative (positive) manufacturing sector diffusion rates. Sixteen SSA countries experienced significant deindustrialization. Factors associated with deindustrialization trends are identified. Countries with low real per capita incomes and those unable to diversify their manufacturing base, expand production for export, or export sophisticated products more frequently experienced deindustrialization. These countries also had relatively low gross capital formation and educational expenditure shares of GDP. Starting with a small manufacturing base does not appear to constrain the industrialization process. Excessive reliance on minerals production did not encourage deindustrialization. Policies are identified that will help countries avoid deindustrialization.

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 Remittances, ICT and doing business in Sub-Saharan Africa

2019 ◽  
Vol 46 (1) ◽  
pp. 35-54 ◽  
Author(s):  
Simplice Asongu ◽  
Nicholas Biekpe ◽  
Vanessa Tchamyou
Keyword(s):  
Generalized Method Of Moments ◽  
Sub Saharan Africa ◽  
Negative Effects ◽  
Content Type ◽  
Doing Business ◽  
Time To Build ◽  
Start Up ◽  
Information And Communication ◽  
Sub Saharan ◽  
Ssa Countries

Purpose The purpose of this paper is to examine how linkages between information and communication technology (ICT) and remittances affect the doing of business. Design/methodology/approach The focus is on a panel of 49 Sub-Saharan African (SSA) countries for the period 2000–2012. The empirical evidence is based on the generalized method of moments. Findings While the authors establish some appealing results in terms of net negative effects on constraints to the doing of business (i.e. time to start a business and time to pay taxes), some positive net effects are also apparent (i.e. number of start-up procedures, time to build a warehouse and time to register a property). The authors also establish ICT penetration thresholds at which the unconditional effect of remittances can be changed from positive to negative, notably: for the number of start-up procedures, an internet level of 9.00 penetration per 100 people is required, while for the time to build a warehouse, a mobile phone penetration level of 32.33 penetration per 100 people is essential. Practical and theoretical implications are discussed. Originality/value To the best of the authors’ knowledge, this is the first study to assess linkages between ICT, remittances and doing business in SSA.

scholarly journals Clusters of sub-Saharan African countries based on sociobehavioural characteristics and associated HIV incidence

2019 ◽  
Author(s):  
Aziza Merzouki ◽  
Janne Estill ◽  
Erol Orel ◽  
Kali Tal ◽  
Olivia Keiser
Keyword(s):  
National Level ◽  
Principal Component ◽  
Sub Saharan Africa ◽  
Demographic And Health Surveys ◽  
People Living With Hiv ◽  
Hiv Incidence ◽  
African Countries ◽  
Aggregated Data ◽  
Sub Saharan ◽  
Ssa Countries

AbstractIntroductionHIV incidence varies widely between sub-Saharan African (SSA) countries. This variation coincides with a substantial sociobehavioural heterogeneity, which complicates the design of effective interventions. In this study, we investigated how sociobehavioural heterogeneity in sub-Saharan Africa could account for the variance of HIV incidence between countries.MethodsWe analysed aggregated data, at the national-level, from the most recent Demographic and Health Surveys of 29 SSA countries [2010-2017], which included 594’644 persons (183’310 men and 411’334 women). We preselected 48 demographic, socio-economic, behavioural and HIV-related attributes to describe each country. We used Principal Component Analysis to visualize sociobehavioural similarity between countries, and to identify the variables that accounted for most sociobehavioural variance in SSA. We used hierarchical clustering to identify groups of countries with similar sociobehavioural profiles, and we compared the distribution of HIV incidence (estimates from UNAIDS) and sociobehavioural variables within each cluster.ResultsThe most important characteristics, which explained 69% of sociobehavioural variance across SSA among the variables we assessed were: religion; male circumcision; number of sexual partners; literacy; uptake of HIV testing; women’s empowerment; accepting attitude toward people living with HIV/AIDS; rurality; ART coverage; and, knowledge about AIDS. Our model revealed three groups of countries, each with characteristic sociobehavioural profiles. HIV incidence was mostly similar within each cluster and different between clusters (median(IQR); 0.5/1000(0.6/1000), 1.8/1000(1.3/1000) and 5.0/1000(4.2/1000)).

Developing a User-Based Decision-Aid Framework for Water Storage Systems in Sub-Saharan Africa: The Case of Blue Nile Basin in Ethiopia

2015 ◽  
Vol 01 (04) ◽  
pp. 1550012
Author(s):  
Stefanos Xenarios ◽  
Heracles Polatidis ◽  
Matthew McCartney ◽  
Attila Nemes
Keyword(s):  
National Level ◽  
Water Storage ◽  
Feasibility Studies ◽  
Data Availability ◽  
Sub Saharan Africa ◽  
Crop Modeling ◽  
African Countries ◽  
Promethee Ii ◽  
Sub Saharan ◽  
Ssa Countries

The development of water storage schemes in Sub-Saharan Africa (SSA) is considered a major aid for those regions with unequal water distribution, limited accessibility and anticipated climate change impacts. Great attention is given by many SSA countries to set up different water storage schemes that may improve rural and urban development on a national level. The funding for the water storage schemes is often derived from foreign agencies which conduct feasibility studies for the financing of potential investments. Often however, the feasibility studies rely on a single monetary criterion which may not identify the most appropriate water storage in each case. In addition, limited data availability in many SSA countries increases the difficulty of identifying the most suitable storage option. This paper develops a multicriteria framework for the integrated evaluation of water storage strategies in Sub-Saharan African countries. A set of economic, agronomic and opinion-based criteria are assessed through the PROMETHEE II outranking approach. The introduction of crop modeling complements the limited field data available in agronomic criteria and enhances the scientific rigor of the method. Ethiopia is adopted as a representative case of SSA countries where a diverse set of water storage options is currently under construction, often financed by foreign agencies.

Dynamics of energy consumption, real sector value added and growth in energy deficient economies

2020 ◽  
Vol 14 (5) ◽  
pp. 1001-1022 ◽  
Author(s):  
Ebere Ume Kalu ◽  
Uchenna Florence Nwafor ◽  
Chinwe R. Okoyeuzu ◽  
Vincent A. Onodugo
Keyword(s):  
Energy Consumption ◽  
Development Policy ◽  
Value Added ◽  
Real Sector ◽  
Panel Estimation ◽  
Dynamic Panel ◽  
Content Type ◽  
Energy Deficiency ◽  
Ssa Countries ◽  
Increase Energy Consumption

Purpose The purpose of this study is to investigate the energy–growth linkage in sub-Saharan Africa (SSA), with emphasis on real sectors’ contribution to aggregate growth using dynamic panel estimation techniques that are practically and conceptually superior to the static models. Design/methodology/approach Dynamic panel econometric techniques pooled mean group, mean group and dynamic fixed effect were used to investigate the linkage among energy consumption, real sector value added and economic growth from 1967 to 2016 in 48 SSA countries. Findings A strong empirical evidence in favor of energy dependence and growth hypothesis in the investigated SSA countries was found. The finding that real sector value added and overall growth rate adjust reasonably to the shocks and dynamics of the energy consumption variables makes energy consumption an enabler for growth. This indicates that well thought-out and implemented energy development policy will not only increase energy consumption but also elicit multi-sectoral growth while addressing the obvious energy deficiency in the SSA region. Research limitations/implications It is also important to note the policy implications of the high adjustment profiles indicated by the error correction representations. All the speeds of adjustment of the three models denominated in time are slightly above a year and are all within predictable limits (they fall below unity or 100%). We found that when agriculture value added, manufacturing value added and overall economic growth rate in our SSA panel estimation exceed equilibrium levels as a result of deviations arising from energy related variables, downward adjustments at 66%, 62% and 78% per year, respectively, take place. Practical implications The study indicates that well thought-out and implemented energy development policy will not only increase energy consumption but also elicit multi-sectoral growth while addressing the obvious energy deficiency in the SSA region. Social implications Much as this study has made some addition to the literature on energy-growth nexus in the SSA region, which undoubtedly is an unveiling of economic forces in a collection of developing and energy deficient economies, it will be of great research significance if the form and style of this study is adopted for other economic blocs in the shapes and sizes of the SSA region. Originality/value This study ensured currency of data, novelty of approach and disaggregated energy consumption into emerging sources, traditional sources and geographical access.

scholarly journals Digital oases and digital deserts in Sub-Saharan Africa

2016 ◽  
Vol 7 (1) ◽  
pp. 77-100 ◽  
Author(s):  
Robert Wentrup ◽  
Patrik Ström ◽  
H. Richard Nakamura
Keyword(s):  
Digital Divide ◽  
Sub Saharan Africa ◽  
Online Service ◽  
African Countries ◽  
Service Usage ◽  
Content Type ◽  
Internet Firms ◽  
Internet Users ◽  
Information And Communication ◽  
Sub Saharan

Purpose – This paper aims to investigate whether Sub-Saharan African countries are catching up with the rest of the world in terms of online usage. Online service usage is an important component of the discourse of the “digital divide”, an emblematic term for the inequality of information and communication technology access. Design/methodology/approach – This paper is a quantitative analysis of internet and Facebook penetration coupled with economic strength (GDP/capita), literacy and degree of rural population. Findings – The findings reveal a heterogeneous pattern with a few African countries being digital oases and close to European levels, whereas the majority of the countries are still digital deserts. A strong correlation is found between economic strength and internet penetration. A generalist picture that Sub-Saharan is on the trajectory of closing the digital divide is an imprecise reflection of the reality. Research limitations/implications – It is argued that instead of measuring supply-side data, which has been the trend till now, the use of demand-side elements such as online service usage tells more about digital inequalities between countries. Practical implications – The research encourages internet firms to open up their eyes for Sub-Saharan Africa as an investment opportunity with an untapped gap of online usage. Social implications – The three-billion internet users on the planet are unevenly spread and under-represented in Africa. By drawing a heterogeneous online usage landscape, digital policy can be accurately steered toward countries with the largest needs. Originality/value – There is a paucity of research going into the depth of online usage in Africa. The paper is a contribution to fill that gap.

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.

Is ICT the panacea to sub-Saharan Africa’s development problems? Rethinking Africa’s contentious engagement with the global information society

2012 ◽  
Vol 12 (2-3) ◽  
pp. 231-244 ◽  
Author(s):  
Peter A. Kwaku Kyem
Keyword(s):  
Information And Communication Technology ◽  
Technological Innovation ◽  
Communication Technology ◽  
Information Society ◽  
Sub Saharan Africa ◽  
Ict Adoption ◽  
Global Information Society ◽  
Information And Communication ◽  
Sub Saharan ◽  
Ssa Countries

The explosion in mobile phone subscription notwithstanding, benefits from ICT deployment are far from being realized in sub-Saharan Africa (SSA). A clash between the rationality for development and local systems of reasoning, and the failure to cultivate behaviours that support technological innovation provide little hope for sustained information and communication technology (ICT) adoption in the region. The article discusses failures in technological innovation and then explores ways that SSA countries can manage ICT deployment to stimulate sustained adoption.

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