Linkage between alcohol consumption and economic growth in sub-Saharan Africa: Linear effect, threshold effect, or both?

Threshold Effect ◽

Sustainable Growth ◽

Sub Saharan Africa ◽

African Countries ◽

Linear Effect ◽

This paper contributes to the literature on the relationship between alcohol consumption and economic growth. Despite growing attention on the topic, existing studies have demonstrated the existence of a threshold beyond which alcohol consumption leads to disease, negatively influences professions such as driving and leads to death. However, the threshold literature has not yet explored the nonlinear relationship between alcohol consumption and economic growth. The per capita alcohol consumption expenditure is used to capture the alcohol variable. The empirical evidence is based on the Pooled Mean Group (PMG) and System Generalized Method of Moments (GMM) with a 32 sub-Saharan African countries dataset over the period 2000-2016. The empirical evidence indicates that alcohol consumption fosters economic growth in sub-Saharan African countries. Moreover, the results show that an alcohol consumption threshold exists below which greater alcohol consumption has beneficial effects on economic growth and above which the alcohol consumption has a perverse effect on economic growth. This result materializes the existence of an inverted U-shape (Laffer Curve of alcohol). Therefore, Sub-Saharan African countries must control the level of alcohol consumption of their citizens in order not only to protect them against alcohol diseases but also to ensure sustainable growth.

THE EFFECT OF HUMAN CAPITAL ON ECONOMIC GROWTH IN SOME SUB SAHARA AFRICAN COUNTRIES (SSA)

American Journal of Economics ◽

10.47672/aje.884 ◽

2021 ◽

Vol 5 (1) ◽

pp. 1-24

Author(s):

AISHA AHMAD SAJOH

Keyword(s):

Economic Growth ◽

Human Capital ◽

Data Base ◽

Sub Saharan Africa ◽

Unique Contribution ◽

African Countries ◽

Sub Saharan ◽

Table Data ◽

The Impact

Purpose: This research looked into debate on the possible impact of human capital on economic growth in Sub-Saharan Africa (SSA) and considers two alternative measures of human capital: health and education. Methodology: The research used a dynamic model based on the system generalized method of moments (SGMM) and analysed a balanced panel data covering 35 countries from 1986–2018. The research used Microsoft excel to record all the data gotten from the world indicator data base from world bank, penn world table data base and CANA database. The analysis was presented in a tabular form. Findings: This study found that human capital has an overall positive and statistically significant impact on economic growth in the SSA region, although, democracy has a negative and statistically significant impact on economic growth in the region. This finding shows the importance of both measures of human capital and aligns with the argument in the literature that neither education nor health is a perfect substitute for the other as a measure of human capital. Unique contribution to theory, practice and policy:Generally, the finding emphasised that both education and health measures of human capital are important, and that policymakers must consider the level of economic development while formulating policies that can enhance the impact of human capital on economic growth in the Sub-Saharan Africa region.

Exploring the Channels of Transmission between External Debt and Economic Growth: Evidence from Sub-Saharan African Countries

Economies ◽

10.3390/economies9020050 ◽

2021 ◽

Vol 9 (2) ◽

pp. 50

Author(s):

Adewale Hassan ◽

Daniel Meyer

Keyword(s):

Economic Growth ◽

Public Investment ◽

External Debt ◽

Private Investment ◽

African Countries ◽

Linear Effect ◽

Negative Effect ◽

Sub Saharan ◽

Ssa Countries

This study aimed to determine the channels through which external debt transmits its impact on economic growth in sub-Saharan African (SSA) countries. To this end, panel data comprising 30 SSA countries were investigated for the period 1985–2019, using the system generalized method of moments (GMM) estimation technique. The study identified public investment, private investment and total factor productivity as channels transmitting the non-linear effect from external debt to economic growth. Furthermore, the interest rate was also confirmed as a channel but with a direct effect. Contrariwise, the estimates indicated that savings are not a channel of transmission from external debt to economic growth in SSA. These findings call for urgent action from SSA countries to reduce their external debt stocks and implement alternative macroeconomic non-debt strategies to improve the identified channels to counteract the negative effect of high external debt on them.

EFFECT OF TRADE OPENNESS ON ECONOMIC GROWTH IN SUB-SAHARAN AFRICA: DYNAMIC PANEL ANALYSIS

EPRA International Journal of Economics, Business and Management Studies ◽

10.36713/epra6388 ◽

2021 ◽

pp. 23-35

Author(s):

Wycliffe Mugun

Keyword(s):

Economic Growth ◽

Capital Stock ◽

Trade Openness ◽

Sub Saharan Africa ◽

Allocation Of Resources ◽

African Countries ◽

Regional Trade ◽

Explanatory Variables ◽

Theoretically, proponents of traditional trade theories argue that trade openness can enhance economic growth by providing access to goods and services, achieving efficiency in allocation of resources through comparative advantage, creation of employment opportunities and generation of capital that leads to better living standards in terms of higher level of GDP per capita,trade openness may strengthen economic growth through different channels such as efficient allocation of resources. However, owing to the fact that there are limited studies on trade openness, various studies indicate divergent views on the effect of trade openness on economic growth. For this reason, it is not clear whether or not trade openness affect economic growth in Sub-Saharan Africa. The main objective of this study was to investigate the effect of trade openness on economic growth in Sub-Saharan Africa. Control variables used in the regression included oversees development assistance, population growth rate, domestic credit and foreign direct investment. Trade openness, inflation and capital stock were explanatory variables and economic growth the dependent variable. This study was modeled using the Neoclassical Growth theory. One- step difference Generalized Method of Moments results revealed that trade openness had a positive and significant effect on economic growth, capital stock positive and insignificant relationship, while inflation had positive and insignificant relationship with economic growth in SSA.The study thus recommends that there is a need for improving balance of trade by increasing exports diversification and balanced growth and the policy makers of SSA countries should have to give a priority for trade and investment policies which requires some reforms to adjust with changing economic environment. The study concluded that extra-regional trade spurs higher output than intra-regional trade. This may be due to lack of efficiency in the implementation of trade agreements among the intra-regional constituent countries such as Sub-Saharan African countries and lack of full commitment by the member states governments to trade more intensively. KEYWORDS: Trade openness, economic growth, Sub-Saharan Africa

TAX REVENUE PERFORMANCE IN SUB-SAHARAN AFRICA COUNTRIES: ARE THERE EMPIRICAL EVIDENCE FOR MACROECONOMIC VARIABLES?

Oradea Journal of Business and Economics ◽

10.47535/1991ojbe098 ◽

2020 ◽

Vol 5 (Special) ◽

pp. 69-81

Author(s):

Nosakhare Arodoye ◽

Dickson Oriakhi ◽

Milton Iyoha

Keyword(s):

Empirical Evidence ◽

Method Of Moments ◽

Sub Saharan Africa ◽

Tax Revenue ◽

African Countries ◽

Macroeconomic Factors ◽

Macroeconomic Variables ◽

Sub Saharan ◽

Ssa Countries

This study, examines the dynamic effects of macroeconomic factors on the overall tax revenue performance of thirty-three (33) Sub-Saharan African countries for eighteen years that range from 2000-2017 employing the system generalized method of moments methodology. This study provides empirical evidence for the dynamic and significant effects of macroeconomic variables on tax revenue performance in SSA countries. Arising from our empirical findings, the study recommends that, on the average, governments of SSA countries should establish the necessary macroeconomic preconditions for the effective and efficient administration of the countries’ tax systems to further boost her taxable capacity and fiscal surpluses.

Healthcare Expenditure and Economic Growth in Sub-Saharan Africa

Asian Journal of Economics Business and Accounting ◽

10.9734/ajeba/2019/v13i230170 ◽

2020 ◽

pp. 1-7

Author(s):

Birhanu Yimer Ali ◽

Robert Moracha Ogeto

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

Direct Investment ◽

Health Expenditure ◽

Health Sector ◽

Sub Saharan Africa ◽

Domestic Saving ◽

African Countries ◽

This paper investigated the effect of health expenditure on economic growth in Sub Saharan Africa. The linear dynamic generalized method of moments instrumental variable (GMM-IV) was used on a panel data of 38 Sub-Saharan African countries over the period 2000-2016. Findings reveal that health expenditure significantly improves economic growth in Sub Saharan Africa. The separate effects of Public and private health expenditures have also shown a significant positive relationship on economic growth. In addition to health expenditure, other determinants like gross domestic saving, foreign direct investment, and labor force brought a statistically significant improvement on economic growth, whereas official development assistance has a statistically insignificant effect on economic growth. This study concluded that health expenditure is an important element in attaining improved economic growth in Sub-Saharan African Countries as it assured a healthy workforce and the country’s populace. Therefore, increasing the amount of health expenditure allocated to the health sector yields a better economy. More on, revising policies to improve gross domestic savings and foreign direct investment also assure a better economic growth.

Managing African Urbanization in the Context of Environmental Change

INTERdisciplina ◽

10.22201/ceiich.24485705e.2014.2.46528 ◽

2014 ◽

Vol 2 (2) ◽

Cited By ~ 13

Author(s):

Shuaib Lwasa

Keyword(s):

Climate Change ◽

Economic Growth ◽

Social Services ◽

Urban Areas ◽

Urban Governance ◽

Sub Saharan Africa ◽

African Countries ◽

Sub Saharan ◽

Urbanization Rate ◽

Development And Management

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 .

Financial Inclusion, Income Inequality and Sustainable Economic Growth in Sub-Saharan African Countries

Sustainability ◽

10.3390/su13041780 ◽

2021 ◽

Vol 13 (4) ◽

pp. 1780

Author(s):

Chima M. Menyelim ◽

Abiola A. Babajide ◽

Alexander E. Omankhanlen ◽

Benjamin I. Ehikioya

Keyword(s):

Economic Growth ◽

Income Inequality ◽

Financial Services ◽

Sub Saharan Africa ◽

Kuznets Curve ◽

African Countries ◽

Financial Access ◽

Sub Saharan ◽

Sustainable Economic Growth ◽

The Impact

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.

Foreign Direct Investment - Growth Linkage in Sub-Saharan Africa: Is Governance a Mediating Factor?

International Journal of Business Economics and Management ◽

10.18488/journal.62.2019.62.111.129 ◽

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 ◽

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.

Alcohol

African Studies ◽

10.1093/obo/9780199846733-0220 ◽

2021 ◽

Keyword(s):

Alcohol Consumption ◽

20Th Century ◽

Leisure Activities ◽

Sub Saharan Africa ◽

Critical Element ◽

African Countries ◽

Trade Networks ◽

Archaeological Work ◽

Sub Saharan ◽

Postcolonial Africa

There are no single-volume studies that address the whole topic of alcohol in Africa or its modern history. Globally, fermented alcohol has a very ancient history, with archaeological findings documenting such drinks many thousands of years ago. Given the relative lack of archaeological work in sub-Saharan Africa, the evidence for the ancient consumption of fermented drinks on the continent is thin, but the earliest records in combination with ethnographic research point to a very long history and to the ubiquity of fermented drinks. Virtually every African society produced one or more kinds of fermented drinks, whether it was palm wine in coastal regions, various wines made from honey or local fruits such as bananas, or, especially, beers produced from millet and sorghum and later maize. In Muslim societies, these fermented drinks, often classified as foods by local peoples, were not seen to violate Qurʾanic prohibition. Ethnographic studies often include detailed accounts of the complex processes through which such drinks were produced and the equally complicated social practices related to drinking. Such drinks were often bought and sold through local trade networks, but fermented drinks are expensive to transport and until the development of modern bottling technology had very short shelf lives. Distillation technology dates only to the 11th century and its spread was closely connected to international trade. During the 20th century, alcohol regulation emerged as a critical element in colonial hegemony, and the importance of alcohol to state revenue persists to the present day. Following independence, with the end of international prohibitions on distilling, industrial brewing and distilling grew rapidly in many African countries, generally led by international enterprises. South African Breweries ultimately emerged as a major international player, with large stakes across the continent. Racist thinking dominated colonial policy on alcohol sales and consumption across much of eastern, central, and southern Africa, and colonial states in those regions used revenue from alcohol monopolies to reinforce racial segregation and domination. This thinking incorporated a racially defined view of collective dependency and abuse which was fueled by colonial expediency and in turn shaped public perceptions and response to African alcohol consumption. Such perspectives have persisted in “expert” discourse in postcolonial Africa. Yet alcohol consumption has been, for men, among the most important leisure activities in many African societies, and in the 20th century, drinking establishments emerged as very important sites of popular culture.

Financial development and economic growth: Empirical evidence from Sub‐Saharan Africa

International Journal of Finance & Economics ◽

10.1002/ijfe.1967 ◽

2020 ◽

Author(s):

Kong Yusheng ◽

Jonas Bawuah ◽

Agyeiwaa O. Nkwantabisa ◽

Samuel O. O. Atuahene ◽

George O. Djan

Keyword(s):

Economic Growth ◽

Empirical Evidence ◽

Financial Development ◽

Sub Saharan Africa ◽