AGDI currently has about 300 publications.
2014 |
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| 711. | Asongu, Simplice A Indian Growth and Development Review, 7 (2), pp. 142 - 180, 2014. Abstract | Links | BibTeX | Tags: Africa, Banking, inflation, Monetary policy, Output effects, VECM @article{Asongu_679, author = {Simplice A Asongu}, url = {http://dx.doi.org/10.1108/IGDR-12-2012-0048}, doi = {10.1108/IGDR-12-2012-0048}, year = {2014}, date = {2014-10-15}, journal = {Indian Growth and Development Review}, volume = {7}, number = {2}, pages = {142 - 180}, abstract = {Purpose – The purpose of this paper is to examine the effects of monetary policy on economic activity using a plethora of hitherto unemployed financial dynamics in inflation-chaotic African countries for the period of 1987-2010.Although in developed economies, changes in monetary policy affect real economic activity in the short-run, but only prices in the long-run, the question of whether these tendencies apply to developing countries remains open to debate. Design/methodology/approach – Vector autoregresion (VARs) within the frameworks of Vector Error Correction Models and simple Granger causality models are used to estimate the long- and short-run effects, respectively. A battery of robustness checks are also used to ensure consistency in the specifications and results. Findings – The tested hypotheses are valid under monetary policy independence and dependence, except few exceptions. H1: Monetary policy variables affect prices in the long-run but not in the short-run. For the first-half (long-run dimension) of the hypothesis, permanent changes in monetary policy variables (depth, efficiency, activity and size) affect permanent variations in prices in the long-term. But in cases of disequilibriums, only financial dynamic fundamentals of depth and size significantly adjust inflation to the cointegration relations. With respect to the second-half (short-run view) of the hypothesis, monetary policy does not overwhelmingly affect prices in the short-term. Hence, but for a thin exception, H1 is valid. H2: Monetary policy variables influence output in the short-term but not in the long-term. With regard to the short-term dimension of the hypothesis, only financial dynamics of depth and size affect real gross domestic product output in the short-run. As concerns the long-run dimension, the neutrality of monetary policy has been confirmed. Hence, the hypothesis is also broadly valid. Practical implications – A wide range of policy implications are discussed. Inter alia: the long-run neutrality of money and business cycles, credit expansions and inflationary tendencies, inflation targeting and monetary policy independence implications. Country-/regional-specific implications, the manner in which the findings reconcile the ongoing debate, measures for fighting surplus liquidity and caveats and future research directions are also discussed. Originality/value – By using a plethora of hitherto unemployed financial dynamics (that broadly reflect monetary policy), we provide significant contributions to the empirics of money. The conclusion of the analysis is a valuable contribution to the scholarly and policy debate on how money matters as an instrument of economic activity in developing countries}, keywords = {Africa, Banking, inflation, Monetary policy, Output effects, VECM}, pubstate = {published}, tppubtype = {article} } Purpose – The purpose of this paper is to examine the effects of monetary policy on economic activity using a plethora of hitherto unemployed financial dynamics in inflation-chaotic African countries for the period of 1987-2010.Although in developed economies, changes in monetary policy affect real economic activity in the short-run, but only prices in the long-run, the question of whether these tendencies apply to developing countries remains open to debate. Design/methodology/approach – Vector autoregresion (VARs) within the frameworks of Vector Error Correction Models and simple Granger causality models are used to estimate the long- and short-run effects, respectively. A battery of robustness checks are also used to ensure consistency in the specifications and results. Findings – The tested hypotheses are valid under monetary policy independence and dependence, except few exceptions. H1: Monetary policy variables affect prices in the long-run but not in the short-run. For the first-half (long-run dimension) of the hypothesis, permanent changes in monetary policy variables (depth, efficiency, activity and size) affect permanent variations in prices in the long-term. But in cases of disequilibriums, only financial dynamic fundamentals of depth and size significantly adjust inflation to the cointegration relations. With respect to the second-half (short-run view) of the hypothesis, monetary policy does not overwhelmingly affect prices in the short-term. Hence, but for a thin exception, H1 is valid. H2: Monetary policy variables influence output in the short-term but not in the long-term. With regard to the short-term dimension of the hypothesis, only financial dynamics of depth and size affect real gross domestic product output in the short-run. As concerns the long-run dimension, the neutrality of monetary policy has been confirmed. Hence, the hypothesis is also broadly valid. Practical implications – A wide range of policy implications are discussed. Inter alia: the long-run neutrality of money and business cycles, credit expansions and inflationary tendencies, inflation targeting and monetary policy independence implications. Country-/regional-specific implications, the manner in which the findings reconcile the ongoing debate, measures for fighting surplus liquidity and caveats and future research directions are also discussed. Originality/value – By using a plethora of hitherto unemployed financial dynamics (that broadly reflect monetary policy), we provide significant contributions to the empirics of money. The conclusion of the analysis is a valuable contribution to the scholarly and policy debate on how money matters as an instrument of economic activity in developing countries |
| 712. | Asongu, Simplice A Institutions and Economies, 6 (3), pp. 92-116, 2014. Abstract | Links | BibTeX | Tags: Banking, Democracy, Development, Finance, Politics @article{Asongu_680, author = {Simplice A Asongu}, url = {http://ijie.um.edu.my/filebank/published_article/7053/(5)%20Journal%20IJIE_Simplice.pdf}, year = {2014}, date = {2014-10-08}, journal = {Institutions and Economies}, volume = {6}, number = {3}, pages = {92-116}, abstract = {This paper focuses on how political regimes affect financial developments in Africa and the role of dominant religion, income levels and colonial legacies in this regard. The findings indicate that authoritarian regimes have a higher propensity to effect policies that favour the development of financial intermediary depth, activity and size. Democracy has important effects on the degree of competition for public offices but is less significant in influencing policies related to promoting financial development when compared with autocracies. Once democracy is initiated, it should be accelerated (to edge out the appeals of authoritarian regimes) to reap the benefits of level and time hypotheses in financial development.}, keywords = {Banking, Democracy, Development, Finance, Politics}, pubstate = {published}, tppubtype = {article} } This paper focuses on how political regimes affect financial developments in Africa and the role of dominant religion, income levels and colonial legacies in this regard. The findings indicate that authoritarian regimes have a higher propensity to effect policies that favour the development of financial intermediary depth, activity and size. Democracy has important effects on the degree of competition for public offices but is less significant in influencing policies related to promoting financial development when compared with autocracies. Once democracy is initiated, it should be accelerated (to edge out the appeals of authoritarian regimes) to reap the benefits of level and time hypotheses in financial development. |
| 713. | Asongu, Simplice A The Review of Black Political Economy, 41 (4), pp. 455-480, 2014. Abstract | Links | BibTeX | Tags: Africa, Development, Foreign aid, Political economy @article{Asongu_681, author = {Simplice A Asongu}, url = {http://link.springer.com/article/10.1007/s12114-014-9203-0}, doi = {10.1007/s12114-014-9203-0}, year = {2014}, date = {2014-10-05}, journal = {The Review of Black Political Economy}, volume = {41}, number = {4}, pages = {455-480}, abstract = {This paper assesses the aid-development nexus in 52 African countries using updated data (1996–2010) and a new indicator of human development (adjusted for inequality). The effects of Total Net Official Development Assistance (NODA), NODA from the Development Assistance Committee (DAC) and NODA from Multilateral donors on economic prosperity (at national and per capita levels) are also examined. The findings broadly indicate that development assistance is detrimental to GDP growth, GDP per capita growth and inequality adjusted human development. The magnitude of negativity (which is consistent across specifications and development dynamics) is highest for NODA from Multilateral donors, followed by NODA from DAC countries. Given concerns on the achievement of the MDGs, the relevance of these results point to the deficiency of foreign aid as a sustainable cure to poverty in Africa. Though the stated intents or purposes of aid are socio-economic, the actual impact from the findings negates this. It is a momentous epoque to solve the second tragedy of foreign aid; it is high time economists and policy makers start rethinking the models and theories on which foreign aid is based. In the meantime, it is up to people who care about the poor to hold aid agencies accountable for piecemeal results. Policy implications and caveats are discussed.}, keywords = {Africa, Development, Foreign aid, Political economy}, pubstate = {published}, tppubtype = {article} } This paper assesses the aid-development nexus in 52 African countries using updated data (1996–2010) and a new indicator of human development (adjusted for inequality). The effects of Total Net Official Development Assistance (NODA), NODA from the Development Assistance Committee (DAC) and NODA from Multilateral donors on economic prosperity (at national and per capita levels) are also examined. The findings broadly indicate that development assistance is detrimental to GDP growth, GDP per capita growth and inequality adjusted human development. The magnitude of negativity (which is consistent across specifications and development dynamics) is highest for NODA from Multilateral donors, followed by NODA from DAC countries. Given concerns on the achievement of the MDGs, the relevance of these results point to the deficiency of foreign aid as a sustainable cure to poverty in Africa. Though the stated intents or purposes of aid are socio-economic, the actual impact from the findings negates this. It is a momentous epoque to solve the second tragedy of foreign aid; it is high time economists and policy makers start rethinking the models and theories on which foreign aid is based. In the meantime, it is up to people who care about the poor to hold aid agencies accountable for piecemeal results. Policy implications and caveats are discussed. |
| 714. | Raheem, Simplice Asongu Kazeem Ajide Ibrahim A B D 2014. Abstract | Links | BibTeX | Tags: Dollarization; Globalization; sub-Saharan Africa; Tobit regression @unpublished{Asongu_682, author = {Simplice Asongu A Kazeem B. Ajide Ibrahim D. Raheem}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Dollarization-and-the-Unbundling-of-Globalization-in-Sub-Saharan-Africa.pdf}, year = {2014}, date = {2014-09-18}, abstract = {This study contributes to the dollarization literature by expanding its determinants to account for different dimensions of globalization, using the widely employed KOF index of globalization. Specifically, globalization is “unbundled” into three different layers namely: economic, social and political dimensions. The study focuses on 25 sub-Saharan African (SSA) countries for the period 2001-2012.Using the Tobit regression approach, the following findings are established. First, from both economic and statistical relevance, the social and political dimensions of globalization constitute the key dollarization amplifiers, while the explanatory power of the economic component is weaker on dollarization. Second, consistent with the theoretical underpinnings, macroeconomic instabilities (such as inflation and exchange rate volatilities) have the positive expected signs. Third, the positive association between the accumulation of international reserves and dollarization is also apparent. Policy implications are discussed.}, keywords = {Dollarization; Globalization; sub-Saharan Africa; Tobit regression}, pubstate = {published}, tppubtype = {unpublished} } This study contributes to the dollarization literature by expanding its determinants to account for different dimensions of globalization, using the widely employed KOF index of globalization. Specifically, globalization is “unbundled” into three different layers namely: economic, social and political dimensions. The study focuses on 25 sub-Saharan African (SSA) countries for the period 2001-2012.Using the Tobit regression approach, the following findings are established. First, from both economic and statistical relevance, the social and political dimensions of globalization constitute the key dollarization amplifiers, while the explanatory power of the economic component is weaker on dollarization. Second, consistent with the theoretical underpinnings, macroeconomic instabilities (such as inflation and exchange rate volatilities) have the positive expected signs. Third, the positive association between the accumulation of international reserves and dollarization is also apparent. Policy implications are discussed. |
| 715. | Asongu, Simplice A International Journal of Social Economics, 41 (10), pp. 906 - 922, 2014. Abstract | Links | BibTeX | Tags: Africa, Corruption, Freedom, Government quality, Quantile regression @article{Asongu_683, author = {Simplice A Asongu}, url = {http://dx.doi.org/10.1108/IJSE-05-2013-0117}, doi = {10.1108/IJSE-05-2013-0117}, year = {2014}, date = {2014-09-16}, journal = {International Journal of Social Economics}, volume = {41}, number = {10}, pages = {906 - 922}, abstract = {Purpose – The purpose of this paper is to assess the determinants of corruption-control (CC) with freedom dynamics (economic, political, press and trade), government quality (GQ) and a plethora of socio-economic factors in 46 African countries using updated data. Design/methodology/approach – A quantile regression approach is employed while controlling for the unobserved heterogeneity. Principal component analysis is also used to reduce the dimensions of highly correlated variables. Findings – With the legal origin fundamental characteristic, the following findings have been established. First, while political freedom increases CC in a bottom quantile of English common-law countries, there is no such evidence in their French civil-law counterparts. Second, GQ consistently improves CC across all quantiles in English common-law countries but fails to exert the same effect in middle quantiles of French civil-law countries. Third, economic freedom ameliorates CC only in common-law countries with low existing CC levels (bottom quantiles). Fourth, The authors find no significant evidence of a positive “press freedom”-CC nexus and having the status of low-income English common-law (French civil law) countries decreases (increases) CC. From a religious domination scenario, the authors also find the following. First, political and trade freedoms only reduce CC in Christian-dominated countries while press freedom has a mitigation effect in both religious cultures (though more consistent across quantiles of Christian-oriented countries). Second, GQ is more pro-CC in Christian than in Muslim-dominated countries. Third, while economic freedom has a scanty negative nexus with CC in Christian-oriented countries, the effect is positive in their Muslim-dominated counterparts. Fourth, having a low-income status in countries with Christian common-law tradition improves CC. Originality/value – The authors complement the literature on the fight against corruption in Africa by employing recently documented additional factors that should be considered in corruption studies.}, keywords = {Africa, Corruption, Freedom, Government quality, Quantile regression}, pubstate = {published}, tppubtype = {article} } Purpose – The purpose of this paper is to assess the determinants of corruption-control (CC) with freedom dynamics (economic, political, press and trade), government quality (GQ) and a plethora of socio-economic factors in 46 African countries using updated data. Design/methodology/approach – A quantile regression approach is employed while controlling for the unobserved heterogeneity. Principal component analysis is also used to reduce the dimensions of highly correlated variables. Findings – With the legal origin fundamental characteristic, the following findings have been established. First, while political freedom increases CC in a bottom quantile of English common-law countries, there is no such evidence in their French civil-law counterparts. Second, GQ consistently improves CC across all quantiles in English common-law countries but fails to exert the same effect in middle quantiles of French civil-law countries. Third, economic freedom ameliorates CC only in common-law countries with low existing CC levels (bottom quantiles). Fourth, The authors find no significant evidence of a positive “press freedom”-CC nexus and having the status of low-income English common-law (French civil law) countries decreases (increases) CC. From a religious domination scenario, the authors also find the following. First, political and trade freedoms only reduce CC in Christian-dominated countries while press freedom has a mitigation effect in both religious cultures (though more consistent across quantiles of Christian-oriented countries). Second, GQ is more pro-CC in Christian than in Muslim-dominated countries. Third, while economic freedom has a scanty negative nexus with CC in Christian-oriented countries, the effect is positive in their Muslim-dominated counterparts. Fourth, having a low-income status in countries with Christian common-law tradition improves CC. Originality/value – The authors complement the literature on the fight against corruption in Africa by employing recently documented additional factors that should be considered in corruption studies. |
| 716. | Asongu, Simplice A South African Journal of Economics, 82 (3), pp. 334–353, 2014. Abstract | Links | BibTeX | Tags: Human development;growth;convergence;panel;Africa @article{Asongu_684, author = {Simplice A Asongu}, url = {http://onlinelibrary.wiley.com/doi/10.1111/saje.12021/abstract?userIsAuthenticated=false&deniedAccessCustomisedMessage=}, doi = {10.1111/saje.12021}, year = {2014}, date = {2014-09-10}, journal = {South African Journal of Economics}, volume = {82}, number = {3}, pages = {334–353}, abstract = {In examining some big questions on African development, I provide evidence that the dynamics of some development indicators could support both endogenous and neoclassical growth theories in the convergence debate. This paper investigates convergence in real per capita gross domestic product and inequality-adjusted human development in 38 African countries, disaggregated into 10 homogenous panels based on regions (Sub-Saharan and North Africa), income levels (low, middle, lower middle and upper middle), legal origins (English common law and French civil law) and religious dominations (Christianity and Islam). The main finding is that the income component of the Human Development Index moves slower than others in the convergence process, and thus requires a more focused policy intervention. As a policy implication, looking beyond income convergence can provide a concrete agenda for development involving all aspects of economic, institutional and social life.}, keywords = {Human development;growth;convergence;panel;Africa}, pubstate = {published}, tppubtype = {article} } In examining some big questions on African development, I provide evidence that the dynamics of some development indicators could support both endogenous and neoclassical growth theories in the convergence debate. This paper investigates convergence in real per capita gross domestic product and inequality-adjusted human development in 38 African countries, disaggregated into 10 homogenous panels based on regions (Sub-Saharan and North Africa), income levels (low, middle, lower middle and upper middle), legal origins (English common law and French civil law) and religious dominations (Christianity and Islam). The main finding is that the income component of the Human Development Index moves slower than others in the convergence process, and thus requires a more focused policy intervention. As a policy implication, looking beyond income convergence can provide a concrete agenda for development involving all aspects of economic, institutional and social life. |
| 717. | Asongu, Simplice A African Journal of Economic and Management Studies, 5 (3), pp. 269 - 299, 2014. Abstract | Links | BibTeX | Tags: Africa, Causality, Financial Development, investment @article{Asongu_685, author = {Simplice A Asongu}, url = {http://dx.doi.org/10.1108/AJEMS-05-2012-0036}, doi = {10.1108/AJEMS-05-2012-0036}, year = {2014}, date = {2014-09-03}, journal = {African Journal of Economic and Management Studies}, volume = {5}, number = {3}, pages = {269 - 299}, abstract = {Purpose – The purpose of this paper is to introduce previously missing financial components (efficiency, activity and size) in the assessment of the finance-investment nexus. Design/methodology/approach – Vector autoregressive models in the perspectives of Vector Error Correction Model and short-run Granger causality are employed. There is usage of optimally specified econometric methods as opposed to purely discretionary model specifications in mainstream literature. Findings – Three main findings are established: first, while finance led investment elasticities are positive, investment elasticities of finance are negative; second, but for Guinea Bissau, Mozambique and Togo, finance does not seem to engender portfolio investment; and finally, contrary to mainstream literature, financial efficiency appears to impact investment more than financial depth. Practical implications – Four policy implications result: first, extreme caution is needed in the use of single equation analysis for economic forecasts; second, financial development leads more to investment flows than the other way round; third, financial allocation efficiency is more relevant as means to attracting investment flows than financial depth; and finally, the somewhat heterogeneous character of the findings also point to shortcomings in blanket policies that are not contingent on country-specific trends in the finance-investment nexus. Originality/value – First, contrary to the mainstream approach we use four measures of financial intermediary development (depth, efficiency, activity and size) as well as four types of investment flows (domestic, foreign, portfolio and total). Second, the chosen investment and financial indicators are derived upon preliminary robust correlation analyses from the broadest macroeconomic data set available on investment and financial intermediary flows.}, keywords = {Africa, Causality, Financial Development, investment}, pubstate = {published}, tppubtype = {article} } Purpose – The purpose of this paper is to introduce previously missing financial components (efficiency, activity and size) in the assessment of the finance-investment nexus. Design/methodology/approach – Vector autoregressive models in the perspectives of Vector Error Correction Model and short-run Granger causality are employed. There is usage of optimally specified econometric methods as opposed to purely discretionary model specifications in mainstream literature. Findings – Three main findings are established: first, while finance led investment elasticities are positive, investment elasticities of finance are negative; second, but for Guinea Bissau, Mozambique and Togo, finance does not seem to engender portfolio investment; and finally, contrary to mainstream literature, financial efficiency appears to impact investment more than financial depth. Practical implications – Four policy implications result: first, extreme caution is needed in the use of single equation analysis for economic forecasts; second, financial development leads more to investment flows than the other way round; third, financial allocation efficiency is more relevant as means to attracting investment flows than financial depth; and finally, the somewhat heterogeneous character of the findings also point to shortcomings in blanket policies that are not contingent on country-specific trends in the finance-investment nexus. Originality/value – First, contrary to the mainstream approach we use four measures of financial intermediary development (depth, efficiency, activity and size) as well as four types of investment flows (domestic, foreign, portfolio and total). Second, the chosen investment and financial indicators are derived upon preliminary robust correlation analyses from the broadest macroeconomic data set available on investment and financial intermediary flows. |
| 718. | NGUENA, Roger TSAFACK NANFOSSO Christian Lambert 2014. Abstract | Links | BibTeX | Tags: CEMAC, economic growth., Financial deepening, panel data econometrics, principal component analysis @workingpaper{NGUENA2014, title = {Macroeconomic Factors and Dynamics of Financial Deepening: An empirical Investigation applied to the CEMAC Sub-region}, author = {Roger TSAFACK NANFOSSO Christian Lambert NGUENA}, editor = {African 2014 Governance and Development Institute WP/14/015}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Macroeconomic.Factors.and.Dynamics.of.Financial.Deepening.pdf}, year = {2014}, date = {2014-09-01}, abstract = {This article empirically estimates a micro-founded model with the aim to investigate the leading macroeconomic determinants and dynamics of financial deepening in the CEMAC sub-region. For this purpose, we adopted an empirical investigation in both static and dynamic panel data econometrics which has led to the following global recommendations: firstly, the CEMAC sub-region authorities should implement expansionary policies of GDP growth rate, population density, savings rate and exchange rate. Secondly, they should review their policy of trade liberalization since it appears to be negatively related to financial deepening. Concerning the dynamic aspect, a convergent dynamic and the feasibility of common monetary policy targeting depth in CEMAC sub-region have been highlighted.}, keywords = {CEMAC, economic growth., Financial deepening, panel data econometrics, principal component analysis}, pubstate = {published}, tppubtype = {workingpaper} } This article empirically estimates a micro-founded model with the aim to investigate the leading macroeconomic determinants and dynamics of financial deepening in the CEMAC sub-region. For this purpose, we adopted an empirical investigation in both static and dynamic panel data econometrics which has led to the following global recommendations: firstly, the CEMAC sub-region authorities should implement expansionary policies of GDP growth rate, population density, savings rate and exchange rate. Secondly, they should review their policy of trade liberalization since it appears to be negatively related to financial deepening. Concerning the dynamic aspect, a convergent dynamic and the feasibility of common monetary policy targeting depth in CEMAC sub-region have been highlighted. |
| 719. | NGUENA, Christian Lambert 2014. Abstract | Links | BibTeX | Tags: Sino-African economic relation; Capital flight; External debt origin; pro poor economic growth; Poverty reduction @workingpaper{NGUENA2014b, title = {External Debt Origin, Capital Flight and Poverty Reduction in the Franc Zone: Does the Economic Consequences of Sino-African Relationship matter?}, author = {Christian Lambert NGUENA}, editor = {African 2014 Governance and Development Institute WP/16/04}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/External.Debt.Origin.Capital.Flight.and.Poverty.Reduction.in.the.Franc.Zone.pdf}, year = {2014}, date = {2014-09-01}, abstract = {Is China-Africa economic relation instrumental for capital flight and poverty reduction in FZ? Does it matter in the improvement of external debt’s impact on GDP per capita and capital flight reduction in particular? This paper extends and assesses the Asongu and Aminkeng (2013) conclusions about Sino-African economic relations in the FZ context.Thus, practically, the intuition is to use a TSLS-IV econometric estimation technique on 14 African countries specific data over the period 1983-2013 to empirically assess if African external debt exclusively from China can be instrumental in the way toward capital flight and poverty reduction in FZ. The construction of a theoretical framework highlighting stylized fact and the review of a recent literature on this issue has been firstly undertaken. The main result allowed the following interpretations: (a) an important part of the traditional external debt contracted with constraint is going back out of the continent as capital flight and; (b) The capital flight contributes to improving the level of poverty in Africa. Overall, we can conclude that the contribution to economic development depends on the origin of loans received and, fostering the economic relations with China could be an excellent alternative for FZ countries. This paper is original since it has tested the Asongu and Aminkeng (2013) assumption in the continent where concerns of low economic development, higher poverty and capital flight are most acute.}, keywords = {Sino-African economic relation; Capital flight; External debt origin; pro poor economic growth; Poverty reduction}, pubstate = {published}, tppubtype = {workingpaper} } Is China-Africa economic relation instrumental for capital flight and poverty reduction in FZ? Does it matter in the improvement of external debt’s impact on GDP per capita and capital flight reduction in particular? This paper extends and assesses the Asongu and Aminkeng (2013) conclusions about Sino-African economic relations in the FZ context.Thus, practically, the intuition is to use a TSLS-IV econometric estimation technique on 14 African countries specific data over the period 1983-2013 to empirically assess if African external debt exclusively from China can be instrumental in the way toward capital flight and poverty reduction in FZ. The construction of a theoretical framework highlighting stylized fact and the review of a recent literature on this issue has been firstly undertaken. The main result allowed the following interpretations: (a) an important part of the traditional external debt contracted with constraint is going back out of the continent as capital flight and; (b) The capital flight contributes to improving the level of poverty in Africa. Overall, we can conclude that the contribution to economic development depends on the origin of loans received and, fostering the economic relations with China could be an excellent alternative for FZ countries. This paper is original since it has tested the Asongu and Aminkeng (2013) assumption in the continent where concerns of low economic development, higher poverty and capital flight are most acute. |
| 720. | Asongu, Simplice A Reinventing foreign aid for inclusive and sustainable development: a survey 2014. Abstract | Links | BibTeX | Tags: Foreign aid; Piketty; Kuznets; Development @workingpaper{Asongu2014bj, title = {Reinventing foreign aid for inclusive and sustainable development: a survey}, author = {Simplice A Asongu}, editor = {African 2014 Governance and Development Institute WP/33/14}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Reinventing-foreign-aid-for-inclusive-and-sustainable-development.-A-survey.pdf}, year = {2014}, date = {2014-09-01}, abstract = {This survey essay reviews over 200 papers in arguing that in order to achieve sustainable and inclusive development, foreign aid should not orient developing countries towards industrialisation in the perspective of Kuznets but in the view of Piketty. Abandoning the former’s view that inequality will fall with progress in industrialisation and placing more emphasis on inequality in foreign aid policy will lead to more sustainable development outcomes. Inter alia: mitigate short-term poverty; address concerns of burgeoning population growth; train recipient governments on inclusive development; fight corruption and mismanagement and; avoid the shortfalls of celebrated Kuznets’ conjectures. We discuss how the essay addresses post-2015 development challenges and provide foreign aid policy instruments with which discussed objectives can be achieved. In summary, the essay provides useful policy measures to avoid past pitfalls. ‘Output may be growing, and yet the mass of the people may be becoming poorer’ (Lewis, 1955). ‘Lewis led all developing countries to water, proverbially speaking, some African countries have so far chosen not to drink’ (Amavilah, 2014). Piketty (2014) has led all developing countries to the stream again and a challenging policy syndrome of our time is how foreign aid can help them to drink.}, keywords = {Foreign aid; Piketty; Kuznets; Development}, pubstate = {published}, tppubtype = {workingpaper} } This survey essay reviews over 200 papers in arguing that in order to achieve sustainable and inclusive development, foreign aid should not orient developing countries towards industrialisation in the perspective of Kuznets but in the view of Piketty. Abandoning the former’s view that inequality will fall with progress in industrialisation and placing more emphasis on inequality in foreign aid policy will lead to more sustainable development outcomes. Inter alia: mitigate short-term poverty; address concerns of burgeoning population growth; train recipient governments on inclusive development; fight corruption and mismanagement and; avoid the shortfalls of celebrated Kuznets’ conjectures. We discuss how the essay addresses post-2015 development challenges and provide foreign aid policy instruments with which discussed objectives can be achieved. In summary, the essay provides useful policy measures to avoid past pitfalls. ‘Output may be growing, and yet the mass of the people may be becoming poorer’ (Lewis, 1955). ‘Lewis led all developing countries to water, proverbially speaking, some African countries have so far chosen not to drink’ (Amavilah, 2014). Piketty (2014) has led all developing countries to the stream again and a challenging policy syndrome of our time is how foreign aid can help them to drink. |
