@article{Asongu,2020,
title = {Financial Access, Governance and the Persistence of Inequality in Africa: Mechanisms and Policy instruments},
author = {Vanessa S. Tchamyou},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Financial-Access-Governance-and-the-Persistence-of-Inequality-in-Africa.pdf},
year = {2020},
date = {2020-05-23},
abstract = {The aim of this paper is to investigate policy instruments by which the persistence of inequality is affected through financial development channels in 48 African countries for the period 1996 – 2014. Financial dynamic channels of depth (money supply and liquid liabilities), efficiency (at banking and financial system levels), activity (from banking and financial system perspectives) and stability are used. Political (“voice and accountability” and political stability), economic (government effectiveness and regulation quality) and institutional (rule of law and corruption-control) governance policy instruments are also involved. The empirical evidence is based on the Generalised Method of Moments (GMM). The results show that financial depth and financial stability are the best channels of reducing inequality. Moreover, the relevance of these financial channels is significantly apparent when policy instruments are exclusively governance variables. The comparative relevance of governance dynamics in the persistence of inequality is discussed. The study responds to two recent policy and scholarly challenges, notably: the persistence of inequality in Africa and the relevance of governance in addressing income inequality by means of financial access.},
keywords = {Finance; Governance; Inequality},
pubstate = {published},
tppubtype = {article}
}
The aim of this paper is to investigate policy instruments by which the persistence of inequality is affected through financial development channels in 48 African countries for the period 1996 – 2014. Financial dynamic channels of depth (money supply and liquid liabilities), efficiency (at banking and financial system levels), activity (from banking and financial system perspectives) and stability are used. Political (“voice and accountability” and political stability), economic (government effectiveness and regulation quality) and institutional (rule of law and corruption-control) governance policy instruments are also involved. The empirical evidence is based on the Generalised Method of Moments (GMM). The results show that financial depth and financial stability are the best channels of reducing inequality. Moreover, the relevance of these financial channels is significantly apparent when policy instruments are exclusively governance variables. The comparative relevance of governance dynamics in the persistence of inequality is discussed. The study responds to two recent policy and scholarly challenges, notably: the persistence of inequality in Africa and the relevance of governance in addressing income inequality by means of financial access.
@unpublished{Asongu,2020,
title = {A comparative study of export processing zones in the wake of sustainable development goals: Cases of Botswana, Kenya, Tanzania and Zimbabwe},
author = {Richard Adu-Gyamfi, Simplice A. Asongu, Tinaye S. Mmusi, Herbert Wamalwa, Madei Mangori},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/A-comparative-study-of-export-processing-zones-in-the-wake-of-SDGs.pdf},
year = {2020},
date = {2020-05-21},
abstract = {The objective of this research is to assess the extent to which export processing zones in Botswana, Kenya, Tanzania, and Zimbabwe integrate the Sustainable Development Goals in their implementation and operations. We focused on four Sustainable Development Goals—gender equality, decent work, industry, and climate action. We interviewed four zone authorities, one in each country. A total of 12 firms in the agro-processing, textiles and garments, construction, and real estate sectors were also interviewed. All four zone authorities demonstrate a measure of environmental inclusiveness in their zone programmes. We found that firms in Kenya and Zimbabwe have a higher number of male than female employees, while zones in Tanzania employ more women. We propose that to promote sustainable development in these zones, policy action should concentrate on attracting firms that (are willing and able to) align with the particular Sustainable Development Goal that zone programmes are intended to achieve.},
keywords = {export, sustainable development},
pubstate = {published},
tppubtype = {unpublished}
}
The objective of this research is to assess the extent to which export processing zones in Botswana, Kenya, Tanzania, and Zimbabwe integrate the Sustainable Development Goals in their implementation and operations. We focused on four Sustainable Development Goals—gender equality, decent work, industry, and climate action. We interviewed four zone authorities, one in each country. A total of 12 firms in the agro-processing, textiles and garments, construction, and real estate sectors were also interviewed. All four zone authorities demonstrate a measure of environmental inclusiveness in their zone programmes. We found that firms in Kenya and Zimbabwe have a higher number of male than female employees, while zones in Tanzania employ more women. We propose that to promote sustainable development in these zones, policy action should concentrate on attracting firms that (are willing and able to) align with the particular Sustainable Development Goal that zone programmes are intended to achieve.
@unpublished{Asongu,2020,
title = {Sustainable Peace building and Development in Nigeria’s Post-Amnesty Programme: the Role of Corporate Social Responsibility in Oil Host Communities},
author = {Joseph I. Uduji, Elda N. Okolo-Obasi, Simplice A. Asongu},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Sustainable-Peace-building-and-Development-in-Nigeria.pdf},
year = {2020},
date = {2020-05-21},
abstract = {The activities and violence of militants in the Niger Delta which saw the capacity for production of oil in Nigeria fall to an all-time low resulted in the federal government of Nigeria (FGN) announcing the Presidential Amnesty Programme in return for peace in the region. We examine how multinational oil companies’ (MOCs’) corporate social responsibility (CSR) impact on entrepreneurship development and job creation to absorb the youths. 1200 youths were sampled across the nine states of Niger Delta. Results from the use of estimated logit model reveal that GMoU interventions are prevalent in communities with greater ownership, creating room for better projects, sustainability and improved trust; yet the interventions failed to make significant impact on entrepreneurship development and job creation. Clearly, facilitating how youths get involved in skill acquisition and empowerment programmes would help them become entrepreneurs, improving their self-assurance that they can prosper outside militancy activities and violence.},
keywords = {CSR, multinational oil companies},
pubstate = {published},
tppubtype = {unpublished}
}
The activities and violence of militants in the Niger Delta which saw the capacity for production of oil in Nigeria fall to an all-time low resulted in the federal government of Nigeria (FGN) announcing the Presidential Amnesty Programme in return for peace in the region. We examine how multinational oil companies’ (MOCs’) corporate social responsibility (CSR) impact on entrepreneurship development and job creation to absorb the youths. 1200 youths were sampled across the nine states of Niger Delta. Results from the use of estimated logit model reveal that GMoU interventions are prevalent in communities with greater ownership, creating room for better projects, sustainability and improved trust; yet the interventions failed to make significant impact on entrepreneurship development and job creation. Clearly, facilitating how youths get involved in skill acquisition and empowerment programmes would help them become entrepreneurs, improving their self-assurance that they can prosper outside militancy activities and violence.
@unpublished{Asongu,2020,
title = {Governance and the Capital Flight Trap in Africa},
author = {Simplice A. Asongu, Joseph Nnanna},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Governance-and-the-Capital-Flight-Trap-in-Africa.pdf},
year = {2020},
date = {2020-05-16},
abstract = {The study examines the use of governance tools to fight capital flight by reducing the capital flight trap. Two overarching policy syndromes are addressed in the study. It first assesses whether governance is an effective deterrent to the capital flight trap in Africa, before examining what thresholds of government quality are required to fight the capital flight trap in the continent. The following findings are established. Evidence of a capital flight trap is apparent because past values of capital flight have a positive effect on future values of capital flight. The net effects from interactions of the capital flight trap with political stability, regulation quality, economic governance and corruption-control on capital flight are positive. The critical masses at which “voice & accountability” and regulation quality can complement the capital flight trap to reduce capital flight are respectively, 0.120 and 0.680, which correspond to the best performing countries. Policy implications are discussed.},
keywords = {governance; capital flight; Africa},
pubstate = {published},
tppubtype = {unpublished}
}
The study examines the use of governance tools to fight capital flight by reducing the capital flight trap. Two overarching policy syndromes are addressed in the study. It first assesses whether governance is an effective deterrent to the capital flight trap in Africa, before examining what thresholds of government quality are required to fight the capital flight trap in the continent. The following findings are established. Evidence of a capital flight trap is apparent because past values of capital flight have a positive effect on future values of capital flight. The net effects from interactions of the capital flight trap with political stability, regulation quality, economic governance and corruption-control on capital flight are positive. The critical masses at which “voice & accountability” and regulation quality can complement the capital flight trap to reduce capital flight are respectively, 0.120 and 0.680, which correspond to the best performing countries. Policy implications are discussed.
@article{Asongu,2020,
title = {Market power and cost efficiency in the African banking industry},
author = {Asongu, S. A., Nting, R., Nnanna, J., },
url = {https://www.emerald.com/insight/content/doi/10.1108/JES-04-2019-0166/full/html},
doi = {10.1108/JES-04-2019-0166},
year = {2020},
date = {2020-05-15},
journal = {Journal of Economic Studies},
abstract = {Purpose
In this study, we test the so-called “Quiet Life Hypothesis” (QLH), which postulates that banks with market power are less efficient.
Design/methodology/approach
We employ instrumental variable Ordinary Least Squares, Fixed Effects, Tobit and Logistic regressions. The empirical evidence is based on a panel of 162 banks consisting of 42 African countries for the period 2001–2011. There is a two-step analytical procedure. First, we estimate Lerner indices and cost efficiency scores. Then, we regress cost efficiency scores on Lerner indices contingent on bank characteristics, market features and the unobserved heterogeneity.
Findings
The empirical evidence does not support the QLH because market power is positively associated with cost efficiency.
Originality/value
Owing to data availability constraints, this is one of the few studies to test the QLH in African banking.},
keywords = {Competition, Finance, Savings banks},
pubstate = {published},
tppubtype = {article}
}
Purpose
In this study, we test the so-called “Quiet Life Hypothesis” (QLH), which postulates that banks with market power are less efficient.
Design/methodology/approach
We employ instrumental variable Ordinary Least Squares, Fixed Effects, Tobit and Logistic regressions. The empirical evidence is based on a panel of 162 banks consisting of 42 African countries for the period 2001–2011. There is a two-step analytical procedure. First, we estimate Lerner indices and cost efficiency scores. Then, we regress cost efficiency scores on Lerner indices contingent on bank characteristics, market features and the unobserved heterogeneity.
Findings
The empirical evidence does not support the QLH because market power is positively associated with cost efficiency.
Originality/value
Owing to data availability constraints, this is one of the few studies to test the QLH in African banking.
@article{Asongu,2020,
title = {Enhancing ICT for productivity in sub-Saharan Africa: Thresholds for complementary policies},
author = {Asongu , S. A., Acha-Anyi, P. N., },
url = {https://www.tandfonline.com/doi/full/10.1080/20421338.2020.1732596},
doi = {10.1080/20421338.2020.1732596},
year = {2020},
date = {2020-05-14},
journal = {African Journal of Science, Technology, Innovation and Development},
abstract = {The purpose of this research is to investigate the relevance of enhancing information and communication technology (ICT) on dynamics of total factor productivity (TFP) in 25 sub-Saharan African countries using data covering the period 1980–2014. The empirical evidence is based on the Generalised Method of Moments. The following main findings are established. First, while enhancing ICT overwhelmingly has net positive effects on productivity, the corresponding marginal effects are negative. Second, an extended analysis is performed to establish thresholds for complementary policies. These thresholds are: 100% mobile phone penetration for TFP; between 101.214% and 101.419% mobile phone penetration for welfare TFP and 15% internet penetration for welfare real TFP. It follows that approximately 100% mobile penetration and 15% internet penetration are thresholds at which ICT should be complemented with other macroeconomic policies for favorable outcomes on productivity dynamics. Other policy implications are discussed.},
keywords = {information technology, Productivity},
pubstate = {published},
tppubtype = {article}
}
The purpose of this research is to investigate the relevance of enhancing information and communication technology (ICT) on dynamics of total factor productivity (TFP) in 25 sub-Saharan African countries using data covering the period 1980–2014. The empirical evidence is based on the Generalised Method of Moments. The following main findings are established. First, while enhancing ICT overwhelmingly has net positive effects on productivity, the corresponding marginal effects are negative. Second, an extended analysis is performed to establish thresholds for complementary policies. These thresholds are: 100% mobile phone penetration for TFP; between 101.214% and 101.419% mobile phone penetration for welfare TFP and 15% internet penetration for welfare real TFP. It follows that approximately 100% mobile penetration and 15% internet penetration are thresholds at which ICT should be complemented with other macroeconomic policies for favorable outcomes on productivity dynamics. Other policy implications are discussed.
@article{Asongu,2020,
title = {REER Imbalances and Macroeconomic Adjustments: Evidence from the CEMAC Zone},
author = {Asongu, S. A., Nnanna, J., },
url = {https://doi.org/10.1177/0015732520919838 },
doi = {10.1177/0015732520919838 },
year = {2020},
date = {2020-05-14},
journal = {Foreign Trade Review},
abstract = {The European Monetary Union (EMU) crisis holds special lessons for existing monetary unions. We assess the behaviour of real effective exchange rates (REERs) of members of the Central African Economic and Monetary Community zone with respect to their long-term equilibrium paths. A reduced form of the fundamental equilibrium exchange rate model is estimated for associated misalignments. Our findings suggest that for majority of countries, macroeconomic fundamentals have the expected associations with the exchange rate fluctuations. The analysis also reveals that only the REER adjustments of Cameroon and Gabon are significant in restoring the long-term equilibrium in the event of a shock. The Cameroonian economic fundamentals of terms of trade, government expenditure and openness have different long-term relations with the REER in comparison to those of other member states. There is no need for an adjustment in the level of the peg based on the present quantitative analysis of REER paths.},
keywords = {Exchange rate; Macroeconomic impact},
pubstate = {published},
tppubtype = {article}
}
The European Monetary Union (EMU) crisis holds special lessons for existing monetary unions. We assess the behaviour of real effective exchange rates (REERs) of members of the Central African Economic and Monetary Community zone with respect to their long-term equilibrium paths. A reduced form of the fundamental equilibrium exchange rate model is estimated for associated misalignments. Our findings suggest that for majority of countries, macroeconomic fundamentals have the expected associations with the exchange rate fluctuations. The analysis also reveals that only the REER adjustments of Cameroon and Gabon are significant in restoring the long-term equilibrium in the event of a shock. The Cameroonian economic fundamentals of terms of trade, government expenditure and openness have different long-term relations with the REER in comparison to those of other member states. There is no need for an adjustment in the level of the peg based on the present quantitative analysis of REER paths.
@article{Asongu,2020,
title = {Inclusive Education for Inclusive Economic Participation: the Financial Access Channel},
author = {Asongu, S.A., Nnanna, J., Acha-Anyi, P.N. },
url = {https://www.emerald.com/insight/content/doi/10.1108/GM-08-2019-0146/full/html },
doi = {10.1108/GM-08-2019-0146 },
year = {2020},
date = {2020-05-13},
journal = {Gender in Management: An International Journal},
abstract = {Purpose
The purpose of this study is to assess how inclusive education affects inclusive economic participation through the financial access channel.
Design/methodology/approach
The focus is on 42 sub-Saharan African countries with data for the period 2004-2014. The empirical evidence is based on the generalised method of moments.
Findings
The following findings are established. First, inclusive secondary education moderates financial access to exert a positive net effect on female labour force participation. Second, inclusive “primary and secondary school education” and inclusive tertiary education modulate financial access for a negative net effect on female unemployment. Third, inclusive secondary education and inclusive tertiary education both moderate financial access for an overall positive net effect on female employment. To provide more gender macroeconomic management policy options, inclusive education thresholds for complementary policies are provided and discussed.
Originality/value
Policy implications are discussed in the light of challenges of economic development in the sub-region and sustainable development goals.
Purpose
The purpose of this study is to assess how inclusive education affects inclusive economic participation through the financial access channel.
Design/methodology/approach
The focus is on 42 sub-Saharan African countries with data for the period 2004-2014. The empirical evidence is based on the generalised method of moments.
Findings
The following findings are established. First, inclusive secondary education moderates financial access to exert a positive net effect on female labour force participation. Second, inclusive “primary and secondary school education” and inclusive tertiary education modulate financial access for a negative net effect on female unemployment. Third, inclusive secondary education and inclusive tertiary education both moderate financial access for an overall positive net effect on female employment. To provide more gender macroeconomic management policy options, inclusive education thresholds for complementary policies are provided and discussed.
Originality/value
Policy implications are discussed in the light of challenges of economic development in the sub-region and sustainable development goals.
@unpublished{Asongu,2020,
title = {ICT Adoption, Competition and Innovation of Informal Firms in West Africa: Comparative Study of Ghana and Nigeria},
author = {Alhassan A. Karakara, Evans S. Osabuohien},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/ICT-adoption-competition-in-Innovation-in-Ghana-and-Nigeria.pdf},
year = {2020},
date = {2020-05-09},
abstract = {Purpose – This study investigates how ICT adoption enhances the innovativeness of informal firms in West Africa, using the cases of Ghana and Nigeria.
Design/methods/approach – The study used the World Bank Enterprise Survey data 2014 for Ghana and Nigeria with binary logistic regression analysis to achieve this. Four different innovations are modelled. They include: first, whether a firm has innovated based on producing a new product or significantly improved product; second, whether a firm has innovated in its methods of production or services; third, whether a firm has innovated in terms of its organisational structure; and fourth, whether a firm has introduced a new and improved marketing method.
Findings – The results show that the use of email, cellphone and website has a positive impact on the four types of innovations modelled. However, these effects varied markedly between Ghana and Nigeria. Firms’ spending on R&D, firm giving its employees the chance to develop their ideas and when firm competes with others; all positively impact on the four types of innovations. Thus, the study recommends that policies should be geared towards making firm have more access to ICTs to enable them to be more innovative to serve clients and the economy.
Originality/value – This study differs by concentrating on how the adoption of ICTs could help firms to introduce innovations into their companies in two West African countries, namely: Ghana and Nigeria. Thus, it complements literature on informal firms’ innovation efforts in West Africa.},
keywords = {Firms, ICT adoption, Innovation},
pubstate = {published},
tppubtype = {unpublished}
}
Purpose – This study investigates how ICT adoption enhances the innovativeness of informal firms in West Africa, using the cases of Ghana and Nigeria.
Design/methods/approach – The study used the World Bank Enterprise Survey data 2014 for Ghana and Nigeria with binary logistic regression analysis to achieve this. Four different innovations are modelled. They include: first, whether a firm has innovated based on producing a new product or significantly improved product; second, whether a firm has innovated in its methods of production or services; third, whether a firm has innovated in terms of its organisational structure; and fourth, whether a firm has introduced a new and improved marketing method.
Findings – The results show that the use of email, cellphone and website has a positive impact on the four types of innovations modelled. However, these effects varied markedly between Ghana and Nigeria. Firms’ spending on R&D, firm giving its employees the chance to develop their ideas and when firm competes with others; all positively impact on the four types of innovations. Thus, the study recommends that policies should be geared towards making firm have more access to ICTs to enable them to be more innovative to serve clients and the economy.
Originality/value – This study differs by concentrating on how the adoption of ICTs could help firms to introduce innovations into their companies in two West African countries, namely: Ghana and Nigeria. Thus, it complements literature on informal firms’ innovation efforts in West Africa.
@article{Asongu,2020,
title = {Inclusive human development in sub-Saharan Africa},
author = {Simplice Asongu, Joseph Nnanna },
url = {https://www.emerald.com/insight/content/doi/10.1108/JEC-11-2019-0115/full/html},
doi = {10.1108/JEC-11-2019-0115},
year = {2020},
date = {2020-05-02},
journal = {Journal of Enterprising Communities: People and Places in the Global Economy},
abstract = {Purpose
This study aims to assess the role of income levels (low and middle) in modulating governance (political and economic) to influence inclusive human development.
Design/methodology/approach
The empirical evidence is based on interactive quantile regressions and 49 countries in sub-Saharan Africa for the period 2000-2002.
Findings
The following main findings are established. Firstly, low income modulates governance (economic and political) to positively affect inclusive human development exclusively in countries with above-median levels of inclusive human development. It follows that countries with averagely higher levels of inclusive human development are more likely to benefit from the relevance of income levels in influencing governance for inclusive development. Secondly, the importance of middle income in modulating political governance to positively affect inclusive human development is apparent exclusively in the median while the relevance of middle income in moderating economic governance to positively influence inclusive human development is significantly apparent in the 10th and 75th quantiles. Thirdly, regardless of panels, income levels modulate economic governance to affect inclusive human development at a higher magnitude, compared to political governance. Policy implications are discussed in light of the post-2015 agenda of sustainable development goals and contemporary development paradigms.
Originality/value
This study complements the extant sparse literature on inclusive human development in Africa.
Purpose
This study aims to assess the role of income levels (low and middle) in modulating governance (political and economic) to influence inclusive human development.
Design/methodology/approach
The empirical evidence is based on interactive quantile regressions and 49 countries in sub-Saharan Africa for the period 2000-2002.
Findings
The following main findings are established. Firstly, low income modulates governance (economic and political) to positively affect inclusive human development exclusively in countries with above-median levels of inclusive human development. It follows that countries with averagely higher levels of inclusive human development are more likely to benefit from the relevance of income levels in influencing governance for inclusive development. Secondly, the importance of middle income in modulating political governance to positively affect inclusive human development is apparent exclusively in the median while the relevance of middle income in moderating economic governance to positively influence inclusive human development is significantly apparent in the 10th and 75th quantiles. Thirdly, regardless of panels, income levels modulate economic governance to affect inclusive human development at a higher magnitude, compared to political governance. Policy implications are discussed in light of the post-2015 agenda of sustainable development goals and contemporary development paradigms.
Originality/value
This study complements the extant sparse literature on inclusive human development in Africa.
