scholarly journals The Convergence of Macroeconomic Variables within the East Africa Community

2021 ◽  
pp. 13-28
Author(s):  
Michael Oloo ◽  
Mary Mbithi ◽  
Martine Oleche
Keyword(s):  
Developed Countries ◽  
Fixed Effect Model ◽  
East African ◽  
African Countries ◽  
Macroeconomic Policies ◽  
Macroeconomic Variables ◽  
Catching Up ◽  
Effect Model ◽  
Sigma Convergence ◽  
Beta Convergence

This study seeks to establish whether the East African Countries are realizing convergence in their macroeconomic policies as efforts are geared towards the establishment of an economic union and subsequently a monetary union in a bid to foster economic growth in the region. Five EACs were included in the analysis using panel data for the period 2008-2018. The methodology employed in the analysis involved; sigma convergence, beta convergence using fixed-effect model, and finally stochastic convergence was tested. The findings show that there is no evidence of macroeconomic convergence and the less developed countries are neither catching up with the relatively developed countries. The macroeconomic variables are also not showing a tendency to be moving the same direction as time goes by. Therefore, for the EACs to realize a common union, either economic or monetary, they need to formulate policies that will ensure that the member states adhere to the desired macroeconomic policies that would lead the region to convergence.

scholarly journals THE IMPACTS OF POLITICAL REGIME AND GOVERNANCE ON GROWTH OF EAST AFRICAN ECONOMIES

2019 ◽  
pp. 231-239
Author(s):  
Issa Moh'd Hemed
Keyword(s):  
Economic Growth ◽  
East Africa ◽  
Fixed Effect Model ◽  
Political Regime ◽  
East African ◽  
African Countries ◽  
Effect Model ◽  
Democratic System ◽  
The Government ◽  
The Relationship

This paper examine which type of political regime is an appropriate to improve the economic growth in East Africa by investigate the relationship among governance, political regime and economic performance. The Fixed Effect Model (FEM) is estimated using panel data cover the period from 1996 to 2017. The findings of this study show that all indicators of governance have positive and significant impact on economic growth in East Africa. This result also reveals that under the democratic system, the effectiveness of government has strong effect on economic growth more than anocracy and autocracy. The coefficient of autocratic regime is negative and statistical significant which indicates that the efforts undertaken by the government in this region cannot be helpful to enhance economic growth if the country is extremely relies on autocracy as this system weaken the proper allocation of the country's resources. This study suggest that in order to have stable economic growth, the government should maintains peace and order, obeys the rule of law and observe the human rights so as to minimize the authoritarian system, revive the democratic regime, and improve the effectiveness of government towards remarkable economic growth and development in East Africa. KEYWORDS: Political regime, governance, economic growth, East African countries.

scholarly journals The Analysis of Absolute Convergency of Human Development Inter Provinces in Indonesia

2018 ◽  
Vol 5 (4) ◽  
pp. 362-367
Author(s):  
Ana Syukriyah
Keyword(s):  
Quantitative Analysis ◽  
Human Development ◽  
Human Development Index ◽  
Absolute Convergence ◽  
Least Square Method ◽  
Fixed Effect Model ◽  
Least Square ◽  
Effect Model ◽  
Sigma Convergence ◽  
Beta Convergence

The purpose of this study was to identify the sigma and absolute beta convergence of the Human Development Index (HDI) inter provinces in Indonesia, and identify the speed of absolute beta convergence. This study used a quantitative analysis with tool used is regression panel data with fixed effect model Generalize Least Square method (GLS). The results shows that there happen sigma convergence of HDI and absolute beta convergence of HDI inter provinces in Indonesia. The speed of absolute convergence is equal to 0.807 percent annually.

The Impact of the Credit Channel on Macroeconomic Variables and Bank Characteristics in the Brazilian Economy from 2009 to 2018

2021 ◽  
Vol 40 (1) ◽  
Author(s):  
Mohammad Farajnezhad
Keyword(s):  
Monetary Policy ◽  
Fixed Effect Model ◽  
Credit Channel ◽  
Macroeconomic Variables ◽  
Brics Countries ◽  
Effect Model ◽  
Level Data ◽  
Monetary Policy Transmission Mechanism ◽  
The Interest Rate ◽  
The Impact

This article uses commercial bank-level data to examine a credit channel of the monetary policy transmission mechanism in the Brazilian economy from BRICS countries.  Static panel data with a fixed-effect model are used for data analysis. Using a sample of 212 commercial banks from 2009 to 2018. According to the findings of this study, there is a significant and positive relationship between macroeconomic variables that affect the interest rate and GDP with the loan amount, but not with the inflation rate. Also, it is reasonable to conclude that banks in Brazil react to monetary policy in a variety of ways.

Revisiting African States Participation in the WTO Dispute Settlement through Intra-Africa RTA Dispute Settlement

2013 ◽  
Vol 6 (2) ◽  
Author(s):  
Malebakeng Forere
Keyword(s):  
Developing Countries ◽  
Dispute Settlement ◽  
Developed Countries ◽  
Dispute Settlement Mechanism ◽  
East African ◽  
African Countries ◽  
Trade Disputes ◽  
East African Community ◽  
Wto Dispute Settlement ◽  
Southern Africa Development Community

AbstractWhereas developed countries were the main players in the GATT dispute settlement mechanism, the era of the WTO saw a sharp increase in the developing countries’ participation in trade disputes. Thus, developing countries are active complainants and defendants in the WTO dispute settlement processes. Nevertheless, African states are still marginalised, and this situation has attracted attention of many scholars. As a result, scholars in the field have come up with many reasons to explain why African states do not appear as either complainants or respondents. The reasons for Africa’s non-participation have been argued to include cost of WTO litigation relative to the gains, low trade volumes, legal knowledge and non-integration of African countries in the WTO system. This article seeks to contribute to the existing literature on Africa’s non-participation in the WTO dispute settlement. The goal in this article is to confirm or dispel assumptions that African states have interests that they need to safeguard through dispute settlement but are inhibited from doing so because of the reasons mentioned above. Unlike other studies, the determination on Africa’s non-participation in the WTO dispute settlement will be approached from African states’ participation in intra-Africa RTA dispute settlement mechanisms. While there are six intra-Africa RTAs notified to the WTO, this work focuses on only two – East African Community and Southern Africa Development Community.

scholarly journals Determinant of FDI Inflows in OIC Countries

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Tania Megasari ◽  
Samsubar Saleh
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rates ◽  
Direct Investment ◽  
Trade Openness ◽  
Political Stability ◽  
Fixed Effect Model ◽  
Fdi Inflows ◽  
Macroeconomic Variables ◽  
Effect Model

This study aims to analyze the determinants of foreign direct investment (FDI) in the Organization of Islamic Cooperation (OIC) country members for the period 2005 to 2018 The determinant variables of FDI are corruption, political stability and macroeconomic variables such as inflation, exchange rates, economic growth, and trade openness. Analysis used in the study  is the fixed effect model (FEM) of the OIC data panel.The results showed that economic growth and trade openness had a significant influence on foreign direct investment (FDI), while the effects of corruption, political stability, inflation and the exchange rate have no significant effect on foreign direct investment (FDI).

Exploring the Channels and Impact of Debt on Economic Growth

2018 ◽  
Vol 19 (2) ◽  
pp. 171-191
Author(s):  
Kashif Munir ◽  
Nisma Riffat Mehmood
Keyword(s):  
Economic Growth ◽  
South Asian ◽  
Good Governance ◽  
Public Investment ◽  
Fixed Effect Model ◽  
Asian Countries ◽  
Conditional Convergence ◽  
Macroeconomic Policies ◽  
Effect Model ◽  
Private And Public

The objective of this study is to analyse the effect of debt on economic growth as well as the channels, that is, investment, total factor productivity (TFP), interest rate and saving channel through which debt affects economic growth in South Asian countries. The study uses growth model based on conditional convergence and augments to include debt. Panel data of four South Asian countries from 1990 to 2013 at annual frequency are utilized and fixed effect model is used for estimation. The results of the study showed that inverted U-shaped relationship exists between debt and economic growth in South Asian countries. However, the most important and significant channel through which debt affects economic growth is private and public investment as well as TFP. Reducing debt accumulation alone will not rectify the problem unless the supplementary macroeconomic policies are made sound; therefore, there is a dire need to improve macroeconomic policies, good governance and elimination of structural distortions. JEL: C23, H6, O47

scholarly journals An Analysis of Public-Private Partnerships in East Africa

2020 ◽  
Vol 11 (5) ◽  
pp. 152
Author(s):  
Lukamba Muhiya Tshombe ◽  
Thekiso Molokwane ◽  
Alex Nduhura ◽  
Innocent Nuwagaba
Keyword(s):  
Developed Countries ◽  
Public Private Partnerships ◽  
Infrastructure Development ◽  
East African ◽  
African Region ◽  
African Countries ◽  
Scientific Discussion ◽  
East African Region ◽  
Sub Saharan ◽  
The Impact

The impact of the implementation of public-private partnerships (PPPs) in the Sub-Saharan African region on infrastructure and services is becoming increasingly perceptible. A considerable number of African countries have embraced PPPs as a mechanism to finance large projects due to a constrained fiscus. At present, many financial institutions, such as the World Bank, the International Monetary Fund and the African Development Bank, which finance some of the projects, have established a department or unit that mainly focuses on infrastructure development in developing countries. The private sector in Africa is equally seen as a significant partner in the development of infrastructure. African governments need to tap into private capital to invest in infrastructure projects. This scientific discussion provides an analysis of PPPs in the East African region. This article selected a number of countries to illustrate PPP projects in the sub-region. The analysis of this study illustrates that the East African region represents unique and valuable public-private partnership lessons in different countries. This study also traces the origins of PPPs to more than a century ago where developed countries completed some of their projects using the same arrangement. This paper further demonstrates that the application of PPPs is always characterised by three factors, namely a country, a sector and a project. Experts in the field often refer to these elements as layers, which usually precede any successful PPP.

scholarly journals Magnitudes of Anemia and Its Determinant Factors Among Lactating Mothers in East African Countries: Using the Generalized Mixed-Effect Model

2021 ◽  
Vol 8 ◽  
Author(s):  
Biruk Shalmeno Tusa ◽  
Adisu Birhanu Weldesenbet ◽  
Nebiyu Bahiru ◽  
Daniel Berhanie Enyew
Keyword(s):  
Family Planning ◽  
Antenatal Care ◽  
Wealth Index ◽  
Mixed Effect Model ◽  
East African ◽  
African Countries ◽  
Mixed Effect ◽  
Determinant Factors ◽  
Effect Model ◽  
Lactating Mothers

Background: The number of studies on the magnitude of anemia and its determinant factors among lactating mothers is limited in East African countries regardless of its multivariate consequences. Even though few studies were conducted on the magnitude of anemia and its determinants, most of them focused on the country level and different parts of countries. Therefore, the current study is aimed to determine the magnitude of anemia and determinant factors among lactating mothers in East African countries.Methods: From nine East African countries, a total weighted sample of 25,425 lactating mothers was included in the study. Determinate factors of anemia were identified using generalized linear mixed models (GLMM). Variables with a p < 0.05 in the final GLMM model were stated to confirm significant association with anemia.Result: The magnitude of anemia in East African countries was found to be 36.5% [95% confidence interval (CI): 35.55%, 36.75%]. Besides, as for the generalized linear mixed-effect model, age, educational status, working status, country of residence, wealth index, antenatal care service, place of delivery, history of using family planning in a health facility, current pregnancy, and visited by fieldworker in the last 12 months were factors that have a significant association with anemia in lactating mothers.Conclusion: In East Africa, more than one-third of lactating mothers have anemia. The odds of anemia were significantly low among young mothers (15–34), who had primary education, were working, country of residence, and higher wealth index (middle and high). In addition, the likelihood of anemia was also low among lactating mothers who had antenatal care, used family planning, delivered at a health facility, were pregnant during the survey, and visited by fieldworkers. Therefore, promoting maternal care services (family planning, Antenatal Care (ANC), and delivery at health facilities) and a field visit by health extension workers are strongly recommended.

scholarly journals Inequality and Economic Growth: An Analysis of 8-Panels

2017 ◽  
Vol 3 (2) ◽  
pp. 173
Author(s):  
Khadijah A. Idowu ◽  
Yusuf Bababtunde Adeneye
Keyword(s):  
Economic Growth ◽  
Panel Data Analysis ◽  
Random Effect ◽  
Random Effect Model ◽  
Specific Effect ◽  
Developed Countries ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Effect Model ◽  
The World

<p><em>Purpose: This paper investigates the effects of inequality on economic growth in the world using continental approach.</em><em></em></p><p><em>Design/methodology:<strong> </strong>Gini Coefficient and Gross Domestic Products (GDP) per capita were used to measure inequality and economic growth respectively. The study conducted a panel data analysis of the relationship between inequality and economic growth. The data span from 1991-2015. Five countries were selected each from seven continents and were also pooled together to constitute a single panel for 35 countries, thus establishing 8 panels. The Hausman test was conducted to determine whether a random or fixed effect model best fit pooled countries analysis or not.</em><em></em></p><p><em>Findings: Findings revealed that for the developing countries, high income inequality retards economic growth while for the developed countries such as Europe countries; the situation seems to be different. European countries as revealed in the findings showed that developed countries have benefited from inequality which has significantly and positively affected their economic growth. The results for Panel II (Asia countries) and Panel III (Europe countries) are in line with the study of Forbes (2000) and Li and Zou (1998) that documented that inequality boosts economic growth. Importantly, we found that inequality positively affects economic growth for Panels/Continents with fixed effect model while inequality negatively affects economic growth for Panels/Continents with random effect model.</em></p><p><em>Research Limitation: The study did not control for each continent differences. For African countries, weak institutional settings and environment is a key factor contributing to high inequality.</em><em></em></p><p><em>Originality: The paper was able to know the specific effect of inequality on economic growth in each continent in the World. This documents continents that have benefited from inequality and those that inequality has greatly affected their economies negatively.</em><em></em></p>

Wie hat sich die intragenerationale Umverteilung in der staatlichen Säule des Rentensystems verändert? / Has Intragenerational Redistribution Become Less Important in Pension Systems’ Public Pillar?

2011 ◽  
Vol 231 (2) ◽  
Author(s):  
Tim Krieger ◽  
Stefan Traub
Keyword(s):  
Pension System ◽  
Defined Contribution ◽  
The Public ◽  
Pension Systems ◽  
Catching Up ◽  
Sigma Convergence ◽  
Notional Defined Contribution ◽  
International Convergence ◽  
High Degree ◽  
Beta Convergence

SummaryWe empirically investigate whether the significance of intragenerational redistribution in the public pillar of pension systems in 20 OECD countries has changed systematically since the 1980s and whether international convergence of the degree of intragenerational redistribution can be observed. Intragenerational redistribution is measured by the Bismarckian factor which provides information about the relative importance of the earnings-benefit link in the pension formula (as compared to a flat-benefit Beveridgean pension system). Based on micro data from the Luxembourg Income Study, we find both, a trend towards (more Bismarckian) pension systems which obey the principle of participation equivalence and an international convergence of pension systems. The reduced variation of pension systems (sigma convergence) is driven by countries with a high degree of intragenerational redistribution catching up with more traditional Bismarckian countries (beta convergence). Both, fundamental pension reforms as Sweden’s and Italy’s move to „notional defined contribution‘‘ systems, and parametric reforms ranging from the removal of group-specific benefits to alternative calculations of contribution history, such as changing from „best years‘‘ to the entire worklife, underlie this development.

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