scholarly journals Financial Development and Poverty in Developing Countries: Evidence from Sub-Saharan Africa

2016 ◽  
Vol 9 (1) ◽  
pp. 211 ◽  
Author(s):  
Pam Zahonogo
Keyword(s):  
Developing Countries ◽  
Financial Development ◽  
Poverty Reduction ◽  
Sub Saharan Africa ◽  
Method Of Moment ◽  
African Countries ◽  
Poverty Measures ◽  
Sub Saharan ◽  
Using Data ◽  
Poverty Indicators

The paper investigates how financial development affects poverty indicators in developing countries. We implement this analysis with a poverty model using data from 42 Sub-Saharan African countries and covering the period 1980-2012. We employ the System Generalized Method-of-Moment (GMM) that is appropriate to control country specific effects and the possible endogeneity. The empirical evidence shows that there indeed exists a financial development threshold below which financial development has detrimental effects on poor and above which financial development could be associated with less poverty. The evidence then points an inverted U curve type response and the findings are robust to changes in poverty measures and to alternative model specifications, suggesting thus the non-fragility of the linkage between financial development and poverty for sub-Saharan African countries. Our findings are then promising and support the view that the relation between financial development and poverty reduction is not linear for sub-Saharan African countries.

scholarly journals Effect of Financial Development on Energy Diversification in Sub-Saharan Africa

2020 ◽  
pp. 29-38
Author(s):  
Florence Blanche Limi
Keyword(s):  
Financial Development ◽  
Poverty Reduction ◽  
Wiener Index ◽  
Sub Saharan Africa ◽  
Energy Sources ◽  
African Countries ◽  
Energy Projects ◽  
Moments Method ◽  
Sub Saharan ◽  
Generalized Moments

The objective of this paper is to analyse the effect of financial development on energy diversification in 20 sub-Saharan African countries between 2000 and 2015. Our specificity is the calculation of the energy diversification index using the Shannon Wiener index (Stirling 1998-2000) and the estimation using the generalized moments method (GMM) on a dynamic panel. The results show that financial development positively and significantly affects the diversification of energy sources. Thus, these countries need to improve their financial systems to promote energy sources diversification to improve access to energy and improve the process of financing energy projects as a response to poverty reduction.

Information technology and insurance development in Sub-Saharan Africa

2021 ◽  
pp. 026666692110289
Author(s):  
Taiwo Akinlo
Keyword(s):  
Information Technology ◽  
Mobile Phone ◽  
Life Insurance ◽  
Sub Saharan Africa ◽  
Method Of Moment ◽  
African Countries ◽  
Insurance Premiums ◽  
Negative Effect ◽  
Sub Saharan ◽  
Insurance Development

The study examined the relationship between information technology and insurance development in 40 sub-Saharan African countries during the period 2000-2017. The study employed System Generalised Method of Moment for the estimations. Life insurance premiums, non-life insurance premiums and total insurance premiums are used to measure life insurance, non-life insurance and total insurance, respectively. The information technology is measured by mobile phone, fixed telephone and Internet penetrations. The study found that the Internet promotes non-life insurance while its effect on life and total insurance is insignificant. The mobile phone produced a negative effect on life insurance, non-life insurance and total insurance. However, fixed telephone significantly contributed to life insurance, non-life insurance and total insurance. Based on these findings, there is a need for insurers to encourage their client to use information technology tools for insurance activities and also increase their interaction with their customers.

scholarly journals THE ROLE OF FINANCIAL DEVELOPMENT AND INSTITUTIONAL QUALITY ON ENVIRONMENTAL SUSTAINABILITY IN SUB-SAHARAN AFRICAN COUNTRIES

2018 ◽  
Vol 6 (9) ◽  
pp. 156-177
Author(s):  
Aliyu Alhaji Jibrilla
Keyword(s):  
Financial Development ◽  
Environmental Sustainability ◽  
Carbon Dioxide Emissions ◽  
Early Stage ◽  
Institutional Quality ◽  
Environmental Conservation ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Pooled Mean Group ◽  
Sub Saharan

This study addresses the question of financial development and institutional quality influence on the environmental sustainability of some 13 countries from the sub-Saharan Africa. Relying upon pooled mean group (PMG) for panel data, we provide evidence which suggest that both financial development and institutional quality are statistically significant determinants of per capita carbon dioxide emissions in the region. More specifically, we found that without healthy institutions and sound financial system sub-Saharan African countries might not avoid environmental degradation experienced by advanced nations during their early stage of economic progress. Our results also support the EKC hypothesis in the region.  In addition, the paper also shows that more openness to FDI inflows is good for the environment across the SSA. These findings suggest the need for institutional and financial service reform that supports robust environmental conservation.

scholarly journals The Nexus between Financial Development and Economic Growth: Panel Data Evidence from Developing Countries

2021 ◽  
Vol 14 (10) ◽  
pp. 489
Author(s):  
E. M. Ekanayake ◽  
Ranjini Thaver
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Least Squares ◽  
Financial Development ◽  
Panel Cointegration ◽  
Sub Saharan Africa ◽  
Explanatory Variables ◽  
Cointegration Tests ◽  
Sub Saharan

The objective of this study is to investigate the nexus between financial development (FD) in economic growth (GROWTH) in developing countries. The study uses panel data from 138 developing countries during the period 1980–2018. The relationship between financial development and economic growth is investigated using four explanatory variables that are commonly used to measure the level of financial development and several other control variables, including a dummy variable representing the financial and banking crises. The sample of 138 developing countries is also classified into six geographic regions. We have carried out panel unit-root tests and panel cointegration tests before estimating the specified models using both Panel Least Squares (Panel LS) and Panel Fully Modified Least Squares (FMOLS) methods. In addition, panel Granger causality tests have been conducted to identify the direction of causality between FD and GROWTH for each of the regions. The results of the study provide evidence of a direct relationship between FD and GROWTH in developing countries. Furthermore, there is evidence of bi-directional causality running from FD to GROWTH and from GROWTH to FD in samples of Europe and Central Asia, South Asia, and all countries, but not in East Asia and Pacific, Latin America and the Caribbean, Middle East and North Africa, and Sub-Saharan Africa.

scholarly journals Impacts of Climate Change on Outdoor Workers and their Safety: Some Research Priorities

2019 ◽  
Vol 16 (18) ◽  
pp. 3458 ◽  
Author(s):  
Moda ◽  
Filho ◽  
Minhas
Keyword(s):  
Climate Change ◽  
Developing Countries ◽  
Heat Exposure ◽  
Extreme Heat ◽  
Sub Saharan Africa ◽  
Limited Attention ◽  
African Countries ◽  
Outdoor Workers ◽  
Sub Saharan ◽  
Impacts Of Climate Change

The literature on the potential impacts of climate change on the health of outdoor workers has received limited attention as a whole, and in sub-Saharan African countries in particular. Yet, substantial numbers of workers are experiencing the health effects of elevated temperature, in combination with changes in precipitation patterns, climate extremes and the effects of air pollution, which have a potential impact on their safety and wellbeing. With increased temperatures within urban settlements and frequent heats waves, there has been a sudden rise in the occurrence of heat-related illness leading to higher levels of mortality, as well as other adverse health impacts. This paper discusses the impacts of extreme heat exposure and health concerns among outdoor workers, and the resultant impacts on their productivity and occupational safety in tropical developing countries with a focus on Sub-Saharan Africa, where there is a dearth of such studies. Aside from the direct effects caused by extreme heat exposure, other indirect health hazards associated with increasing heat among this group includes exposures to hazardous chemicals and other vector-borne diseases. In addition, reduced work capacity in heat-exposed jobs will continue to rise and hinder economic and social development in such countries. There is an urgent need for further studies around the health and economic impacts of climate change in the workplace, especially in tropical developing countries, which may guide the implementation of the measures needed to address the problem.

scholarly journals Access to Credit by Firms in Sub-Saharan Africa: How Relevant is Gender?

2013 ◽  
Vol 103 (3) ◽  
pp. 293-297 ◽  
Author(s):  
Elizabeth Asiedu ◽  
Isaac Kalonda-Kanyama ◽  
Leonce Ndikumana ◽  
Akwasi Nti-Addae
Keyword(s):  
Developing Countries ◽  
Gender Gap ◽  
Sub Saharan Africa ◽  
Financing Constraints ◽  
Developing Regions ◽  
Access To Finance ◽  
Econometric Estimation ◽  
Access To Credit ◽  
Sub Saharan ◽  
Using Data

The literature on the determinants of firms' financing constraints has paid little attention to gender as a determinant of access to finance. Using data for 34,342 firms from 90 developing countries, the paper analyzes the determinants of firms' financing constraints and assesses whether female-owned firms are more financially constrained than male-owned businesses. The results show that female-owned firms in sub-Saharan Africa are more likely to be financially constrained than male-owned firms, but there is no gender gap in other developing regions. The gender gap in sub-Saharan Africa is robust to variations in specifications and econometric estimation procedures.

Natural Disasters and International Migration from Sub-Saharan Africa

2009 ◽  
Vol 6 (2) ◽  
pp. 165-176 ◽  
Author(s):  
Wim Naudé
Keyword(s):  
Natural Disasters ◽  
Direct Evidence ◽  
Global Climate ◽  
Sub Saharan Africa ◽  
Extreme Weather Events ◽  
African Countries ◽  
Subsequent Period ◽  
Weather Events ◽  
Sub Saharan ◽  
Using Data

This paper employs a systems GMM model using data on 43 Sub-Saharan African countries from 1960 to 2005 to find that natural disasters have a significant impact on migration from SSA, raising the net out-migration by around 0.37 persons per 1,000. No direct evidence was found that natural disasters lead to further migration through impacting on GDP growth. It is however established that natural disasters is associated with a slightly increased probability that a country will be in conflict in a subsequent period. The frequency of natural disasters will not influence the duration of the conflict. It is concluded that natural disasters is an important determinant of migration from SSA. The findings in this paper imply that global climate change, through leading to more extreme weather events, will contribute to further migration from the continent.

On African Responsibility for Economic Problems

1997 ◽  
Vol 25 (1) ◽  
pp. 50-53
Author(s):  
Richard E. Mshomba
Keyword(s):  
Developing Countries ◽  
Infant Mortality ◽  
Life Expectancy ◽  
Mortality Rates ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Economic Problems ◽  
High Infant Mortality ◽  
Sub Saharan ◽  
Poor Infrastructure

African countries, like many other developing countries, suffer the problems associated with poverty—malnutrition, poor health services, high infant mortality rates, low life expectancy, high illiteracy rates, poor infrastructure, and inadequate technology. These problems are especially severe in Sub-Saharan Africa.

scholarly journals Financial development and economic growth: literature survey and empirical evidence from sub-Saharan African countries

2011 ◽  
Vol 12 (1) ◽  
pp. 11-27 ◽  
Author(s):  
Songul Kakilli Acaravci ◽  
Ilhan Ozturk ◽  
Ali Acaravci
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Banking Sector ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Real Gdp ◽  
Long Run ◽  
Domestic Credit ◽  
Real Gdp Per Capita ◽  
Sub Saharan

In this paper we review the literature on the finance-growth nexus and investigate the causality between financial development and economic growth in Sub-Saharan Africa for the period 1975-2005. Using panel co-integration and panel GMM estimation for causality, the results of the panel co-integration analysis provide evidence of no long-run relationship between financial development and economic growth. The empirical findings in the paper show a bi-directional causal relationship between the growth of real GDP per capita and the domestic credit provided by the banking sector for the panels of 24 Sub-Saharan African countries. The findings imply that African countries can accelerate their economic growth by improving their financial systems and vice versa.

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