scholarly journals Economic Implications of Business Dynamics for KE-Associated Economic Growth and Inclusive Development in African Countries

Author(s):  
Simplice A. Asongu ◽  
Voxi Heinrich S. Amavilah ◽  
Antonio R. Andrrs
Author(s):  
Takaaki Masaki ◽  
Nicolas van de Walle

There is still an ongoing debate over the economic implications of democracy, and this has gained critical importance particularly in the African context, where a wave of democratization in the early 1990s coincided with the start of a new era of rapid economic growth. In this chapter, it is argued that the existing literature is inadequate in distinguishing the effects of regime transitions and democratic consolidation on economic growth. Through the analysis of the latest economic and political data, which include up to 43 countries in sub-Saharan Africa for the period of 1982–2012, strong evidence is found that democracy is positively associated with economic growth, and that this “democratic advantage” is more pronounced for those African countries that have remained democratic for longer periods of time. The findings call for more nuanced studies that carefully distinguish potentially divergent effects of regime transitions and democratic consolidation on economic growth.


2021 ◽  
pp. 135481662110132
Author(s):  
Rukmani Gounder

This study investigates the dynamic linkages between tourism growth and economic growth in the African island nation of Mauritius using the spillover index framework based on the monthly data from 2003M11–2020M02. The Granger causality results reflect bidirectional static linkages between tourism-led economic growth (TLEG) and economic-driven tourism growth (EDTG). The dynamic spillover findings show a varying magnitude and direction of TLEG and EDTG hypotheses that are time-dependent. These relationships indicate distinct outcomes where tourism growth or economic growth is the net transmitter or recipient of shocks. The level of spillovers is influenced by economic events, climatic disasters and the coronavirus-19 pandemic crisis. Some inclusive and sustainable development policy implications are drawn for Mauritius and other tourism-dependent African countries.


Author(s):  
Addissie Melak

Economic growth of countries is one of the fundamental questions in economics. Most African countries are opening their economies for welcoming of foreign investors. As such Ethiopia, like many African countries took measures to attract and improve foreign direct investment. The purpose of this study is to examine the contribution of foreign direct investment (FDI) for economic growth of Ethiopia over the period of 1981-2013. The study shows an overview of Ethiopian economy and investment environment by the help of descriptive and econometric methods of analysis to establish empirical investigation for the contribution of FDI on Ethiopian economy. OLS method of time series analysis is employed to analyse the data. The stationary of the variables have been checked by using Augmented Dickey Fuller (ADF) Unit Root test and hence they are stationery at first difference. The co- integration test also shows that there is a long run relationship between the dependent and independent variables. Accordingly, the finding of the study shows that FDI, GDP per capita, exchange rate, total investment as percentage of GDP, inflow of FDI stock, trade as percentage of GDP, annual growth rate of GDP and liberalization of the economy have positive impact on Ethiopian GDP. Whereas Gross fixed domestic investment, inflows of FDI and Gross capital formation influence economic growth of Ethiopia negatively. This finding suggests that there should be better policy framework to attract and improve the volume of FDI through creating conducive environment for investment.


2018 ◽  
Vol 57 (2) ◽  
pp. 121-143
Author(s):  
Nasim Shah Shirazi ◽  
Sajid Amin Javed ◽  
Dawood Ashraf

This paper investigates the impact of remittance inflows on economic growth and poverty reduction for seven African countries using annual data from 1992-2010. By using the depth of hunger as a proxy for poverty in a Simultaneous Equation Model (SEM), we find that remittances have statistically significant growth enhancing and poverty reducing impact. Drawing on our estimates, we conclude that financial development level significantly increases the remittances inflows and strengthens poverty alleviating impact of remittances. Results of our study further show a signficant interactive imapct of remittances and finacial develpment on economic growth, suggesting the substitutability between remittance inflows and financial development. We further find that 3 percentage point increase in credit provision to the private sector (financial development) can help eliminate the severe depth of hunger in the region. Remittances, serving an alternative source of private credit, can be effective in this regard. Keywords: Remittance Inflow, Poverty Alleviation, Financial Development, Simultaneous Equation Model


2014 ◽  
Vol 2 (2) ◽  
Author(s):  
Shuaib Lwasa

Africa’s urbanization rate has increased steadily over the past three decades and is reported to be faster than in any other region in the world . It is estimated that by 2030, over half of the African population will be living in urban areas . But the nature of Africa’s urbanization and subsequent form of cities is yet to be critically analyzed in the context of city authorities’ readiness to address the challenges . Evidence is also suggesting that urbanization in African countries is increasingly associated with the high economic growth that has been observed in the last two decades . Both underlying and proximate drivers are responsible for the urbanization, and these include population dynamics, economic growth, legislative designation, increasing densities in rural centers, as well as the growth of mega cities such as Lagos, Cairo and Kinshasa, that are extending to form urban corridors . With the opportunities of urbanization in Sub–Saharan Africa, there are also challenges in the development and management of these cities . Those challenges include provision of social services, sustainable economic development, housing development, urban governance, spatial development guidance and environmental management, climate change adaptation, mitigation and disaster risk reduction . The challenge involves dealing with the development and infrastructure deficit, in addition to required adaption to and mitigation of climate change . This paper examines the current state of urban management in Africa .


2021 ◽  
Vol 13 (4) ◽  
pp. 1780
Author(s):  
Chima M. Menyelim ◽  
Abiola A. Babajide ◽  
Alexander E. Omankhanlen ◽  
Benjamin I. Ehikioya

This study evaluates the relevance of inclusive financial access in moderating the effect of income inequality on economic growth in 48 countries in Sub-Saharan Africa (SSA) for the period 1995 to 2017. The findings using the Generalised Method of Moments (sys-GMM) technique show that inclusive financial access contributes to reducing inequality in the short run, contrary to the Kuznets curve. The result reveals a negative effect of financial access on the relationship between income inequality and economic growth. There is a positive net effect of inclusive financial access in moderating the impact of income inequality on economic growth. Given the need to achieve the Sustainable Development Targets in the sub-region, policymakers and other stakeholders of the economy must design policies and programmes that would enhance access to financial services as an essential mechanism to reduce income disparity and enhance sustainable economic growth.


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