@unpublished{Asongu,2019,
title = {Industrial Growth in Sub-Saharan Africa: Evidence from Machine Learning with Insights from Nightlight Satellite Images},
author = {Christian S. Otchia, Simplice A. Asongu },
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Industrial-growth-in-Sub-Saharan-Africa-evidence-from-machine-learning.pdf},
year = {2019},
date = {2019-08-14},
abstract = {This study uses nightlight time data and machine learning techniques to predict industrial development in Africa. The results provide the first evidence on how machine learning techniques and nightlight data can be used to predict economic development in places where subnational data are missing or not precise. Taken together, the research confirms four groups of important determinants of industrial growth: natural resources, agriculture growth, institutions, and manufacturing imports. Our findings indicate that Africa should follow a more multisector approach for development, putting natural resources and agriculture productivity growth at the forefront.},
keywords = {Industrial growth; Machine learning; Africa},
pubstate = {published},
tppubtype = {unpublished}
}
This study uses nightlight time data and machine learning techniques to predict industrial development in Africa. The results provide the first evidence on how machine learning techniques and nightlight data can be used to predict economic development in places where subnational data are missing or not precise. Taken together, the research confirms four groups of important determinants of industrial growth: natural resources, agriculture growth, institutions, and manufacturing imports. Our findings indicate that Africa should follow a more multisector approach for development, putting natural resources and agriculture productivity growth at the forefront.
@unpublished{Asongu,2019,
title = {Thresholds of External Flows for Inclusive Human Development in Sub-Saharan Africa},
author = {Simplice A. Asongu, Joseph I. Uduji, Elda N. Okolo-Obasi },
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Thresholds-of-External-Flows-for-Inclusive-Human-Development-in-Sub-Saharan-Africa.pdf},
year = {2019},
date = {2019-08-12},
abstract = {This research investigates the incidence of enhancing external flows on inclusive human development in a panel of 48 countries in sub-Saharan Africa. It complements the literature by examining the relevance of enhancing three types of external flows, namely: development assistance, foreign investment and remittances. Ordinary Least Squares, Tobit, Fixed effects, Generalised Method of Moments and Quantile regressions are used as empirical strategies. The following main results are apparent: (i) between 60 and 150 (% of GDP) is the threshold of foreign aid; (ii) 33.333 (% of GDP) is the foreign investment threshold and (iii) 25 (% of GDP) is the critical mass of remittances. At the established critical masses or thresholds, external flows start having positive effects on inclusive human development. Countries characterized by inclusive development levels that are low need more investment in foreign aid for inclusive human development compared to their counterparts characterized by inclusive human development levels that are high.},
keywords = {External flows; Africa; Inclusive development},
pubstate = {published},
tppubtype = {unpublished}
}
This research investigates the incidence of enhancing external flows on inclusive human development in a panel of 48 countries in sub-Saharan Africa. It complements the literature by examining the relevance of enhancing three types of external flows, namely: development assistance, foreign investment and remittances. Ordinary Least Squares, Tobit, Fixed effects, Generalised Method of Moments and Quantile regressions are used as empirical strategies. The following main results are apparent: (i) between 60 and 150 (% of GDP) is the threshold of foreign aid; (ii) 33.333 (% of GDP) is the foreign investment threshold and (iii) 25 (% of GDP) is the critical mass of remittances. At the established critical masses or thresholds, external flows start having positive effects on inclusive human development. Countries characterized by inclusive development levels that are low need more investment in foreign aid for inclusive human development compared to their counterparts characterized by inclusive human development levels that are high.
@unpublished{Asongu,2019,
title = {Financial Access, Governance and Insurance Sector Development in Sub-Saharan Africa},
author = {Simplice A. Asongu, Nicholas M. Odhiambo},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Financial-Access-Governance-and-Insurance-Sector-Development-in-SSA.pdf},
year = {2019},
date = {2019-08-04},
abstract = {Purpose –This study investigates the role of financial access in moderating the effect of governance on insurance consumption in 42 Sub-Saharan African countries using data for the period 2004-2014.
Design/methodology/approach – Two life insurance indicators are used, notably: life insurance and non-life insurance. Six governance measurements are also used, namely: political stability, “voice & accountability”, government effectiveness, regulation quality, corruption-control and the rule of law. The empirical evidence is based on the Generalised Method of Moments (GMM) and Least Squares Dummy Variable Corrected (LSDVC) estimators.
Findings –Estimations from the LSDVC are not significant while the following main findings are established from the GMM. First, financial access promotes life insurance through channels of political stability, “voice & accountability”, government effectiveness, the rule of law and corruption-control. Second, financial access also stimulates non-life insurance via governance mechanisms of political stability, “voice & accountability”, government effectiveness, regulation quality, the rule of law and corruption-control.
Originality/value – This research complements the sparse literature on insurance promotion in Africa by engaging the hitherto unexplored role of financial access through governance channels.},
keywords = {Insurance; Finance; Governance; Sub-Saharan Africa},
pubstate = {published},
tppubtype = {unpublished}
}
Purpose –This study investigates the role of financial access in moderating the effect of governance on insurance consumption in 42 Sub-Saharan African countries using data for the period 2004-2014.
Design/methodology/approach – Two life insurance indicators are used, notably: life insurance and non-life insurance. Six governance measurements are also used, namely: political stability, “voice & accountability”, government effectiveness, regulation quality, corruption-control and the rule of law. The empirical evidence is based on the Generalised Method of Moments (GMM) and Least Squares Dummy Variable Corrected (LSDVC) estimators.
Findings –Estimations from the LSDVC are not significant while the following main findings are established from the GMM. First, financial access promotes life insurance through channels of political stability, “voice & accountability”, government effectiveness, the rule of law and corruption-control. Second, financial access also stimulates non-life insurance via governance mechanisms of political stability, “voice & accountability”, government effectiveness, regulation quality, the rule of law and corruption-control.
Originality/value – This research complements the sparse literature on insurance promotion in Africa by engaging the hitherto unexplored role of financial access through governance channels.
@unpublished{Asongu,2019,
title = {Information Technology, Governance and Insurance in Sub-Saharan Africa},
author = {Simplice A. Asongu, Joseph Nnanna, Paul N. Acha-Anyi },
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Information-Technology-Governance-and-Insurance-in-Sub-Saharan-Africa.pdf},
year = {2019},
date = {2019-08-02},
abstract = {Purpose –This study investigates the role of ICT in modulating the effect of governance on insurance penetration in 42 sub-Saharan African countries using data for the period 2004-2014.
Design/methodology/approach –Two insurance indicators are used in the analysis, namely: life insurance and non-life insurance. The three ICT modulating dynamics employed include: mobile phone penetration, internet penetration and fixed broadband subscriptions. Six governance channels are also considered, namely: political stability, “voice & accountability”, regulation quality, government effectiveness, the rule of law and corruption-control. The empirical evidence is based on generalized method of moments.
Findings –The following main findings are established. First, mobile phone penetration does not significantly modulate governance channels to positively affect life insurance while it effectively complements “voice & accountability” to induce a positive net effect on non-life insurance. Second, internet penetration complements: (i) governance dynamics of political stability, government effectiveness and rule of law to induce positive net effects on life insurance: and (ii) corruption-control for an overall positive effect on non-life insurance. Third, the relevance of fixed broadband subscriptions in promoting life insurance is apparent via governance channels of regulation quality, government effectiveness and the rule of law while fixed broadband subscriptions do not induce significant overall net effects on non-life insurance though the conditional effects are overwhelmingly significant.
Orginality/value – To the best our knowledge, studies on the relevance of ICT in promoting insurance consumption through governance channels are sparse, especially for a region such as sub-Saharan Africa where insurance penetration is low compared to other regions of the world.},
keywords = {Africa; ICT; Governance; Insurance},
pubstate = {published},
tppubtype = {unpublished}
}
Purpose –This study investigates the role of ICT in modulating the effect of governance on insurance penetration in 42 sub-Saharan African countries using data for the period 2004-2014.
Design/methodology/approach –Two insurance indicators are used in the analysis, namely: life insurance and non-life insurance. The three ICT modulating dynamics employed include: mobile phone penetration, internet penetration and fixed broadband subscriptions. Six governance channels are also considered, namely: political stability, “voice & accountability”, regulation quality, government effectiveness, the rule of law and corruption-control. The empirical evidence is based on generalized method of moments.
Findings –The following main findings are established. First, mobile phone penetration does not significantly modulate governance channels to positively affect life insurance while it effectively complements “voice & accountability” to induce a positive net effect on non-life insurance. Second, internet penetration complements: (i) governance dynamics of political stability, government effectiveness and rule of law to induce positive net effects on life insurance: and (ii) corruption-control for an overall positive effect on non-life insurance. Third, the relevance of fixed broadband subscriptions in promoting life insurance is apparent via governance channels of regulation quality, government effectiveness and the rule of law while fixed broadband subscriptions do not induce significant overall net effects on non-life insurance though the conditional effects are overwhelmingly significant.
Orginality/value – To the best our knowledge, studies on the relevance of ICT in promoting insurance consumption through governance channels are sparse, especially for a region such as sub-Saharan Africa where insurance penetration is low compared to other regions of the world.
@unpublished{Asongu,2019,
title = {Sustaining cultural tourism through higher female participation in Nigeria: 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/Sustaining-cultural-tourism-via-higher-female-participation-in-Nigeria.PDF},
year = {2019},
date = {2019-07-30},
abstract = {This paper adds to the gender discourse in sustainable African tourism development from the corporate social responsibility (CSR) perspective. Specifically, we examine the impact of CSR on the development of rural women in cultural tourism. A total of 600 rural women were sampled across the Niger Delta. Results from the use of a logit model indicate a significant relationship between CSR and cultural tourism development in oil host communities in Nigeria. This implies that CSR of a multinational oil company (MOC) is a critical factor for sustaining cultural tourism. The findings suggest increased female participation in General Memorandum of Understanding (GMoU) interventions of MOC and the need to pay close attention to which extent the participation of rural women in the GMoU projects may be limited by cultural and traditional obstacles.},
keywords = {CSR, Gender inequality, tourism},
pubstate = {published},
tppubtype = {unpublished}
}
This paper adds to the gender discourse in sustainable African tourism development from the corporate social responsibility (CSR) perspective. Specifically, we examine the impact of CSR on the development of rural women in cultural tourism. A total of 600 rural women were sampled across the Niger Delta. Results from the use of a logit model indicate a significant relationship between CSR and cultural tourism development in oil host communities in Nigeria. This implies that CSR of a multinational oil company (MOC) is a critical factor for sustaining cultural tourism. The findings suggest increased female participation in General Memorandum of Understanding (GMoU) interventions of MOC and the need to pay close attention to which extent the participation of rural women in the GMoU projects may be limited by cultural and traditional obstacles.
@unpublished{Asongu,2019,
title = {Electronic wallet technology and the enabling environment of smallholder farmers in Nigeria},
author = {Joseph I. Uduji, Elda N. Okolo-Obasi, Simplice A. Asongu },
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Electronic-wallet-technology-and-the-enabling-environment-of-smallholder-farmers.pdf},
year = {2019},
date = {2019-07-26},
abstract = {Purpose – The purpose of this paper is to critically examine the impact of growth enhancement support scheme (GESS) on the enabling environment of smallholder farmers in sub-Saharan Africa. Its special focus is to investigate the GESS impact on access to rural farm credit and transport cost of smallholder farmers in the agricultural transformation agenda (ATA) in Nigeria.
Design/methodology/approach – This paper adopts a survey research technique, aimed at gathering information from a representative sample of the population, as it is essentially cross-sectional that describes and interprets what exist at present. A total of one thousand, two hundred farmers were sampled across the six geopolitical zones of Nigeria.
Findings – Results from the use of a double-hurdle model indicate that the GESS has a significant impact on farmers’ access to credit, but does not significantly affect rural farm transport cost, which subsequently influence the price of food in the country. Practical implication – This implies that if the federal government of Nigeria is to work towards an ideal agricultural transformation agenda, transport networks should be closely aligned with the GESS priorities to provide connectivity to rural areas that provide most of the country’s agricultural output.
Originality/value – This research adds to the literature on agricultural and rural development debate in developing countries. It concludes that embracing rural finance and transportation infrastructure should form the foundation of the ATA in Nigeria, which in turn would provide the enabling environment for more widespread rural economy in sub-Saharan Africa.},
keywords = {agriculture, Electronic wallet, GESS, Nigeria},
pubstate = {published},
tppubtype = {unpublished}
}
Purpose – The purpose of this paper is to critically examine the impact of growth enhancement support scheme (GESS) on the enabling environment of smallholder farmers in sub-Saharan Africa. Its special focus is to investigate the GESS impact on access to rural farm credit and transport cost of smallholder farmers in the agricultural transformation agenda (ATA) in Nigeria.
Design/methodology/approach – This paper adopts a survey research technique, aimed at gathering information from a representative sample of the population, as it is essentially cross-sectional that describes and interprets what exist at present. A total of one thousand, two hundred farmers were sampled across the six geopolitical zones of Nigeria.
Findings – Results from the use of a double-hurdle model indicate that the GESS has a significant impact on farmers’ access to credit, but does not significantly affect rural farm transport cost, which subsequently influence the price of food in the country. Practical implication – This implies that if the federal government of Nigeria is to work towards an ideal agricultural transformation agenda, transport networks should be closely aligned with the GESS priorities to provide connectivity to rural areas that provide most of the country’s agricultural output.
Originality/value – This research adds to the literature on agricultural and rural development debate in developing countries. It concludes that embracing rural finance and transportation infrastructure should form the foundation of the ATA in Nigeria, which in turn would provide the enabling environment for more widespread rural economy in sub-Saharan Africa.
@article{Asongu,2019,
title = {Foreign Aid, Instability, and Governance in Africa},
author = {Simplice A. Asongu, Joseph Nnanna},
url = {https://onlinelibrary.wiley.com/doi/full/10.1111/polp.12320},
doi = {10.1111/polp.12320},
year = {2019},
date = {2019-07-26},
journal = {Politics & Policy },
abstract = {This article contributes to the attendant literature by bundling governance dynamics and focusing on foreign aid instability instead of foreign aid. We assess the role of foreign aid instability on governance dynamics in 53 African countries for the period 1996‐2010. An autoregressive endogeneity‐robust generalized method of moments is employed. Instabilities are measured in terms of variance of the errors and standard deviations. Three main aid indicators are used, namely: total aid, aid from multilateral donors, and bilateral aid. Principal component analysis is used to bundle governance indicators, namely: political governance (voice and accountability and political stability/no violence), economic governance (regulation quality and government effectiveness), institutional governance (rule of law and corruption control), and general governance (political, economic, and institutional governance). Our findings show that foreign aid instability increases governance standards, especially political and general governance. Policy implications are discussed.},
keywords = {Foreign aid, governance, instability},
pubstate = {published},
tppubtype = {article}
}
This article contributes to the attendant literature by bundling governance dynamics and focusing on foreign aid instability instead of foreign aid. We assess the role of foreign aid instability on governance dynamics in 53 African countries for the period 1996‐2010. An autoregressive endogeneity‐robust generalized method of moments is employed. Instabilities are measured in terms of variance of the errors and standard deviations. Three main aid indicators are used, namely: total aid, aid from multilateral donors, and bilateral aid. Principal component analysis is used to bundle governance indicators, namely: political governance (voice and accountability and political stability/no violence), economic governance (regulation quality and government effectiveness), institutional governance (rule of law and corruption control), and general governance (political, economic, and institutional governance). Our findings show that foreign aid instability increases governance standards, especially political and general governance. Policy implications are discussed.
@article{Asongu,2019,
title = {The role of inclusive development and military expenditure in modulating the effect of terrorism on governance},
author = {Asongu, S., Nwachukwu, J., le Roux, S},
url = {https://www.emerald.com/insight/content/doi/10.1108/JES-11-2017-0343/full/html},
doi = {10.1108/JES-11-2017-0343},
year = {2019},
date = {2019-07-23},
journal = {Journal of Economic Studies},
volume = {46},
number = {3},
pages = {681-709 },
abstract = {Purpose
The purpose of this paper is to investigate the role of inclusive human development and military expenditure in modulating the effect of terrorism on governance.
Design/methodology/approach
It is based on 53 African countries for the period 1998–2012 and interactive generalised method of moments is employed. Six governance indicators from the World Bank and two terrorism variables are used, namely, domestic and transnational terrorism dynamics.
Findings
The following main findings are established. There is a negative net effect on governance (regulation quality and corruption-control) when inclusive human development is used to reduce terrorism. There is a positive net impact on governance (voice and accountability and rule of law) when military expenditure is used to reduce domestic terrorism.
Originality/value
The authors have complemented the sparse literature on the use of policy variables to mitigate the effect of policy syndromes on macroeconomic outcomes.},
keywords = {Terrorism; Governance; Africa},
pubstate = {published},
tppubtype = {article}
}
Purpose
The purpose of this paper is to investigate the role of inclusive human development and military expenditure in modulating the effect of terrorism on governance.
Design/methodology/approach
It is based on 53 African countries for the period 1998–2012 and interactive generalised method of moments is employed. Six governance indicators from the World Bank and two terrorism variables are used, namely, domestic and transnational terrorism dynamics.
Findings
The following main findings are established. There is a negative net effect on governance (regulation quality and corruption-control) when inclusive human development is used to reduce terrorism. There is a positive net impact on governance (voice and accountability and rule of law) when military expenditure is used to reduce domestic terrorism.
Originality/value
The authors have complemented the sparse literature on the use of policy variables to mitigate the effect of policy syndromes on macroeconomic outcomes.
@unpublished{Asongu,2019,
title = {Does Agricultural Value Added Induce Environmental Degradation? Empirical Evidence from an Agrarian Country},
author = {Mary O. Agboola, Festus V. Bekun},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Does-Agricultural-Value-Added-Induce-Environmental-Degradation.pdf},
year = {2019},
date = {2019-07-23},
abstract = {This study empirically investigates the agriculture-induced environmental Kuznets curve (EKC) hypothesis in an agrarian framework. Annual time series data from 1981–2014 was employed using Augmented Dickey–Fuller and the Phillips–Perron (PP) unit root test complemented by the Zivot and Andrews unit root test that accounts for a single structural break to ascertain stationarity properties of variables under consideration. For the cointegration analysis, an autoregressive distributive lag methodology and the recent novel Bayer and Hanck combined cointegration technique is employed. For the direction of causality, the Granger causality test is used as estimation technique. Empirical findings lend support for the long-run equilibrium relationship among the variables under consideration. This study also validates the inverted U-shaped pattern of EKC for the case of Nigeria, affirming that Nigeria remains at the scale-effect stage of its growth trajectory. Further empirical results show that foreign direct investment attraction helps mitigate carbon emissions in Nigeria. Based on these results, several policy prescriptions on the Nigerian energy mix and agricultural operations in response to quality of the environment were suggested for policymakers, stakeholders, and environmental economists that formulate and design environmental regulations and strategies to realise the Goal 7 of sustainable development goals (SDGs).},
keywords = {Agriculture ecosystem, Energy, Nigeria},
pubstate = {published},
tppubtype = {unpublished}
}
This study empirically investigates the agriculture-induced environmental Kuznets curve (EKC) hypothesis in an agrarian framework. Annual time series data from 1981–2014 was employed using Augmented Dickey–Fuller and the Phillips–Perron (PP) unit root test complemented by the Zivot and Andrews unit root test that accounts for a single structural break to ascertain stationarity properties of variables under consideration. For the cointegration analysis, an autoregressive distributive lag methodology and the recent novel Bayer and Hanck combined cointegration technique is employed. For the direction of causality, the Granger causality test is used as estimation technique. Empirical findings lend support for the long-run equilibrium relationship among the variables under consideration. This study also validates the inverted U-shaped pattern of EKC for the case of Nigeria, affirming that Nigeria remains at the scale-effect stage of its growth trajectory. Further empirical results show that foreign direct investment attraction helps mitigate carbon emissions in Nigeria. Based on these results, several policy prescriptions on the Nigerian energy mix and agricultural operations in response to quality of the environment were suggested for policymakers, stakeholders, and environmental economists that formulate and design environmental regulations and strategies to realise the Goal 7 of sustainable development goals (SDGs).
@unpublished{Asongu,2019,
title = {Linkages and spillover effects of South African foreign direct investment in Botswana and Kenya},
author = {Felix A. Nandonde, Richard Adu-Gyamfi, Tinaye S. Mmusi, Herbert Wamalwa, Simplice A. Asongu, Johannes P. Opperman & Jeremiah R. Makindara},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Linkages-and-Spillover-Effects-of-South-African-FDI.pdf},
year = {2019},
date = {2019-07-22},
abstract = {In recent decades, the impact of South African foreign direct investment in Africa has been captured by research and policy. This paper investigates linkages and spillover effects of South African foreign direct investment in Botswana and Kenya. The study uses primary data to investigate qualitative implications. The findings reveal that South African firms operate in sectors including retail, food-processing, and information and communication technology. Linkages forged in these sectors include supply, employee, joint venture, service, and institutional nexuses. Supply and service linkages create observable spillovers which point to the fact that younger local firms tend to benefit from South African firms in terms of technology transfer and training opportunities. Host country policymakers are therefore encouraged to provide favourable incentives for foreign direct investment to promote entrepreneurship. Other policy implications are also discussed.},
keywords = {FDI, linkages, spillover effects},
pubstate = {published},
tppubtype = {unpublished}
}
In recent decades, the impact of South African foreign direct investment in Africa has been captured by research and policy. This paper investigates linkages and spillover effects of South African foreign direct investment in Botswana and Kenya. The study uses primary data to investigate qualitative implications. The findings reveal that South African firms operate in sectors including retail, food-processing, and information and communication technology. Linkages forged in these sectors include supply, employee, joint venture, service, and institutional nexuses. Supply and service linkages create observable spillovers which point to the fact that younger local firms tend to benefit from South African firms in terms of technology transfer and training opportunities. Host country policymakers are therefore encouraged to provide favourable incentives for foreign direct investment to promote entrepreneurship. Other policy implications are also discussed.
