scholarly journals MIGRATION-TRADE NEXUS IN SUB-SAHARAN AFRICA: EVIDENCE FROM A DYNAMIC PANEL STUDY

2020 ◽  
Vol 6 (4) ◽  
pp. 302-306
Author(s):  
SUNDAY ELIJAH ◽  
Hanny Zurina Hamzah ◽  
Law Siong Hook ◽  
Shivee Ranjanee Kaliappan
Keyword(s):  
Panel Study ◽  
Generalized Method Of Moments ◽  
Sub Saharan Africa ◽  
Large Numbers ◽  
Sub Saharan ◽  
The Impact ◽  
The Relationship ◽  
Watch List ◽  
Ssa Countries ◽  
Positive Population

This study examines the impact of migration on trade in SSA region. We used the system generalized method of moments (GMM) estimator with data for 45 sub-Saharan Africa (SSA) countries from the period 1981-2015 to examine the relationship between migration and trade. The econometric results of our model for migration is negative and significant, this vindicated and validated the Heckscher-Ohlin theory. Furthermore, the econometric results of this study for GDP showed it is significant and positive, population is negative and significant, and lastly exchange rate shows it is significant and positive. In general, the findings of this study supported the theories and previous studies. The robustness test showed similar results with the main results of this study. Our model has passed all the diagnostic tests that were conducted, that is, the Sargan, AR1 and AR2 tests, they were all consistent and are in line with the theory. Hence, we can conclude that our results from these estimations are valid and reliable. This study recommended that migration in SSA should be on control and watch list where this will aid in reducing migration in large numbers and some of the migration issues which trade is one of them.

scholarly journals Remittances, institutions and human development in Sub-Saharan Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Umar Mohammed
Keyword(s):  
Human Development ◽  
Measurement Errors ◽  
Generalized Method Of Moments ◽  
Sub Saharan Africa ◽  
Future Research ◽  
Content Type ◽  
Lagged Dependent Variable ◽  
Sub Saharan ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this paper is to examine the relationship between remittances, institutions and human development (HD) in Sub-Saharan African (SSA) countries using data from 2004 to 2018. The study attempts to answer two critical questions: Do the increasing remittances inflow to the region have any effect on human capital development? and does the effect of remittances on human development vary depending on the level of institutional quality?Design/methodology/approachThe analysis uses a dynamic model; system Generalized Method of Moments (Sys-GMM) as this approach controls for the endogeneity of the lagged dependent variable; thus, when there is a correlation between the explanatory variable and the error term, which is normally associated with remittances, it also controls for omitted variable bias, unobserved panel heterogeneity and measurement errors in the estimation.FindingsThe findings indicate a positive and significant impact of remittances on HD in SSA. The results further reveal a substitutional relationship between institutions and remittances in stimulating HD. The estimations mean that remittances promote HD in countries with a weak institutional environment. The findings also establish that the marginal significance of remittances as a source of capital for HD falls in countries with well-developed institutions.Originality/valueMost empirical research on the impact of remittances on HD does not tackle the problem of endogeneity associated with remittances. This study, however, provides empirical evidence by using Sys-GMM that solves the problem. The current study also is the first work to examine the relationship between remittances, institutions and HD in SSA and provides a new guide for future research on the remittance and HD nexus.

Financial freedom, market power and bank margins in sub-Saharan Africa

2019 ◽  
Vol 28 (2) ◽  
pp. 283-299 ◽  
Author(s):  
Emmanuel Sarpong-Kumankoma ◽  
Joshua Abor ◽  
Anthony Quame Q. Aboagye ◽  
Mohammed Amidu
Keyword(s):  
Market Power ◽  
Generalized Method Of Moments ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Content Type ◽  
Interest Margins ◽  
Sub Saharan ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose This paper examines the effect of financial (banking) freedom and market power on bank net interest margins (NIM). Design/methodology/approach The study uses data from 11 sub-Saharan African countries over the period, 2006-2012, and the system generalized method of moments to assess how financial freedom affects the relationship between market power and bank NIM. Findings The authors find that both financial freedom and market power have positive relationships with bank NIM. However, there is some indication that the impact of market power on bank margins is sensitive to the level of financial freedom prevailing in an economy. It appears that as competition intensifies, margins of banks in freer countries are likely to reduce faster than those in areas with more restrictions. Practical implications Competition policies could be guided by the insight on how financial freedom moderates the effect of market power on bank margins. Originality/value This study provides new empirical evidence on how the level of financial freedom affects bank margins and the market power-bank margins relationship.

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.

Cross-Border Funding and Microfinance Mission Drift: Evidence from Sub-Saharan Africa

2016 ◽  
Vol 17 (2) ◽  
pp. 20-40
Author(s):  
Akem Forkusam
Keyword(s):  
Sub Saharan Africa ◽  
Microfinance Institutions ◽  
Public And Private ◽  
Mission Drift ◽  
Cross Border ◽  
The Social ◽  
Sub Saharan ◽  
The Impact ◽  
Different Sources ◽  
Ssa Countries

Sub-Saharan Africa (SSA) has become the top priority for international funders and they are now increasing their cross-border funding to microfinance institutions (MFIs) in the region. This foreign funding is considered an additional source of capital for MFIs in the region who are facing difficulties in meeting the demand of the poor. However, these funds are provided by public and private funders who each have different motives. The paper examines the impact of these different sources of funding on microfinance performance and mission drift in SSA, which is the world’s poorest region. The study utilizes data from 212 MFIs in 30 SSA countries accessed over a three-year period (i.e. 2007, 2009, and 2011). The findings show that cross-border funding does not affect either the social or financial performance of MFIs when time and country effects are accounted for.

Innovation, institutions and economic growth in sub-Saharan Africa – an IV estimation of a panel threshold model

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joseph Ato Forson ◽  
Rosemary Afrakomah Opoku ◽  
Michael Owusu Appiah ◽  
Evans Kyeremeh ◽  
Ibrahim Anyass Ahmed ◽  
...  
Keyword(s):  
Economic Growth ◽  
Developing Economies ◽  
Innovation Policy ◽  
Threshold Model ◽  
Sub Saharan Africa ◽  
Content Type ◽  
Panel Regressions ◽  
Sub Saharan ◽  
The Impact ◽  
The Relationship

PurposeThe significant impact of innovation in stimulating economic growth cannot be overemphasized, more importantly from policy perspective. For this reason, the relationship between innovation and economic growth in developing economies such as the ones in Africa has remained topical. Yet, innovation as a concept is multi-dimensional and cannot be measured by just one single variable. With hindsight of the traditional measures of innovation in literature, we augment it with the number of scientific journals published in the region to enrich this discourse.Design/methodology/approachWe focus on an approach that explores innovation policy qualitatively from various policy documents of selected countries in the region from three policy perspectives (i.e. institutional framework, financing and diffusion and interaction). We further investigate whether innovation as perceived differently is important for economic growth in 25 economies in sub-Saharan Africa over the period 1990–2016. Instrumental variable estimation of a threshold regression is used to capture the contributions of innovation as a multi-dimensional concept on economic growth, while dealing with endogeneity between the regressors and error term.FindingsThe results from both traditional panel regressions and IV panel threshold regressions show a positive relationship between innovation and economic growth, although the impact seems negligible. Institutional quality dampens innovation among low-regime economies, and the relation is persistent regardless of when the focus is on aggregate or decomposed institutional factors. The impact of innovation on economic growth in most regressions is robust to different dimensions of innovation. Yet, the coefficients of the innovation variables in the two regimes are quite dissimilar. While most countries in the region have offered financial support in the form of budgetary allocations to strengthen institutions, barriers to the design and implementation of innovation policies may be responsible for the sluggish contribution of innovation to the growth pattern of the region.Originality/valueSegregating economies of Africa into two distinct regimes based on a threshold of investment in education as a share of GDP in order to understand the relationship between innovation and economic growth is quite novel. This lends credence to the fact that innovation as a multifaceted concept does not take place by chance – it is carefully planned. We have enriched the discourse of innovation and thus helped in deepening understanding on this contentious subject.

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.

The impact of political liberalisation and democratisation on ethnic conflict in Africa: an empirical test of common assumptions

2000 ◽  
Vol 38 (1) ◽  
pp. 21-39 ◽  
Author(s):  
Zeric Kay Smith
Keyword(s):  
Ethnic Conflict ◽  
Empirical Test ◽  
Sub Saharan Africa ◽  
Resource Base ◽  
Sensitive Data ◽  
Data Set ◽  
Sub Saharan ◽  
Conflict In Africa ◽  
The Impact ◽  
The Relationship

This article provides an empirical test of a set of common theoretical assumptions concerning the relationship between political liberalisation, democratisation and ethnic conflict in Africa. The theory in question posits that liberalisation will result in short-term increases in ethnic conflict and that democratisation will be followed by a decrease in ethnic conflict. The article employs a cross-national and time sensitive data set to test this hypothesis in the context of contemporary sub-Saharan Africa. A compelling benefit of this methodology is that it allows for an explanation of variation in ethnic conflict both across states and over time.The results indicate that the relationship between political liberalisation and ethnic conflict is the reverse of what the common assumptions would predict. Liberalisation has had an inverse relationship to ethnic conflict in sub-Saharan Africa between 1988 and 1997. Democratisation does not have the hypothesised effect even when lagged variables are employed. Structural variables as represented by GDP per capita and infant mortality rates are also systematically related to ethnic conflict. The author concludes that policy makers and analysts should continue to pursue both liberalisation and democratisation but should not neglect the central role of an adequate resource base in reducing ethnic conflict in Africa. Political liberalisation and democratic institutions, while providing some measure of relief, are by no means silver bullets for the difficult challenges posed by ethnic conflict in Africa.

DENOMINATIONAL AFFILIATION AND FERTILITY BEHAVIOUR IN AN AFRICAN CONTEXT: AN EXAMINATION OF COUPLE DATA FROM GHANA

2008 ◽  
Vol 40 (3) ◽  
pp. 445-458 ◽  
Author(s):  
STEPHEN OBENG GYIMAH ◽  
BAFFOUR TAKYI ◽  
ERIC YEBOAH TENKORANG
Keyword(s):  
Religious Affiliation ◽  
Sub Saharan Africa ◽  
Fertility Behaviour ◽  
Sample Data ◽  
African Context ◽  
Lower Fertility ◽  
Sub Saharan ◽  
The Impact ◽  
The Relationship ◽  
Religious Differences

SummaryAlthough studies have examined religious differences in fertility in sub-Saharan Africa, it is argued in this paper that using women-only sample data may be conceptually problematic in patriarchal African societies where the influence of husbands on their wives’ reproductive preferences is paramount. The present study contributes to this discourse by examining the relationship between religion and fertility behaviour using matched-couple data from Ghana. Guided by the ‘religious values’ and ‘characteristics’ hypotheses, the results indicate significant religious differences in fertility. Compared with Traditionalists, Christians and Muslims have lower fertility, albeit these differences diminish significantly after controlling for socioeconomic variables. The impact of wife’s religious denomination on marital fertility is attenuated after controlling for husband’s religious affiliation. Also, fertility was found to be higher if couples belong to the same faith compared with those of different faiths.

scholarly journals High variation expected in the pace and burden of SARS-CoV-2 outbreaks across sub-Saharan Africa

2020 ◽  
Author(s):  
Benjamin L Rice ◽  
Akshaya V Annapragada ◽  
Rachel E. Baker ◽  
Marjolein Bruijning ◽  
Winfred Dotse-Gborgbortsi ◽  
...  
Keyword(s):  
Large Scale ◽  
Human Mobility ◽  
Comprehensive Analysis ◽  
Sub Saharan Africa ◽  
High Burden ◽  
Viral Spread ◽  
Slow Pace ◽  
Sub Saharan ◽  
The Relationship ◽  
Ssa Countries

A surprising feature of the SARS-CoV-2 pandemic to date is the low burdens reported in sub-Saharan Africa (SSA) countries relative to other global regions. Potential explanations (e.g., warmer environments [1], younger populations [2,3,4]) have yet to be framed within a comprehensive analysis accounting for factors that may offset the effects of climate and demography. Here, we synthesize factors hypothesized to shape the pace of this pandemic and its burden as it moves across SSA, encompassing demographic, comorbidity, climatic, healthcare and intervention capacity, and human mobility dimensions of risk. We find large scale diversity in probable drivers, such that outcomes are likely to be highly variable among SSA countries. While simulation shows that extensive climatic variation among SSA population centers has little effect on early outbreak trajectories, heterogeneity in connectivity is likely to play a large role in shaping the pace of viral spread. The prolonged, asynchronous outbreaks expected in weakly connected settings may result in extended stress to health systems. In addition, the observed variability in comorbidities and access to care will likely modulate the severity of infection: We show that even small shifts in the infection fatality ratio towards younger ages, which are likely in high risk settings, can eliminate the protective effect of younger populations. We highlight countries with elevated risk of slow pace, high burden outbreaks. Empirical data on the spatial extent of outbreaks within SSA countries, their patterns in severity over age, and the relationship between epidemic pace and health system disruptions are urgently needed to guide efforts to mitigate the high burden scenarios explored here.

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