The AGDI has published substantially in fulfillment of its mission statement of contributing to knowledge towards African development:
IDEAS
http://ideas.repec.org/d/agdiycm.html
ECONSTOR
https://www.econstor.eu/dspace/escollectionhome/10419/123513
Publications List
2016 |
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| 11. | A, Nwachukwu Asongu J C S 2016. Abstract | Links | BibTeX | Tags: Capital flight, Development, Foreign aid, Inequality, Piketty @workingpaper{Asongu_522, author = {Nwachukwu J C Asongu S. A}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Rational-Asymmetric-Development-Piketty-and-Poverty-in-Africa.pdf}, year = {2016}, date = {2016-10-12}, abstract = {An April 2015 World Bank report on the Millennium Development Goal poverty target has revealed that extreme poverty has been decreasing in all regions of the world with the exception of Africa. This study extends the implications of Thomas Piketty’s celebrated literature from developed countries to the nexus between developed nations and African countries by building on responses from Rogoff (2014) and Stiglitz (2014), post Washington Consensus paradigms and underpinnings from Solow-Swan and Boyce-Fofack-Ndikumana. The central argument presented is that the inequality problem is at the heart of rational asymmetric development between rich and poor countries. Piketty has shown that inequality increases when the return on capital is higher than the growth rate, because the poor cannot catch-up with the rich. We argue that when the return on political economy (or capitalism-fuelled illicit capital flight) is higher than the growth rate in African countries, inequality in development increases and Africa may not catch-up with the developed world. As an ideal solution, Piketty has proposed progressive income taxation based on automatic exchange of bank information. The ideal analogy proposed in tackling the spirit of African poverty is a comprehensive commitment to fighting illicit capital flight based on this. Hence, contrary to theoretical underpinnings of exogenous growth models, catch-up may not be so apparent. Implications for the corresponding upward bias in endogenous development and catch-up literature are discussed.}, keywords = {Capital flight, Development, Foreign aid, Inequality, Piketty}, pubstate = {published}, tppubtype = {workingpaper} } An April 2015 World Bank report on the Millennium Development Goal poverty target has revealed that extreme poverty has been decreasing in all regions of the world with the exception of Africa. This study extends the implications of Thomas Piketty’s celebrated literature from developed countries to the nexus between developed nations and African countries by building on responses from Rogoff (2014) and Stiglitz (2014), post Washington Consensus paradigms and underpinnings from Solow-Swan and Boyce-Fofack-Ndikumana. The central argument presented is that the inequality problem is at the heart of rational asymmetric development between rich and poor countries. Piketty has shown that inequality increases when the return on capital is higher than the growth rate, because the poor cannot catch-up with the rich. We argue that when the return on political economy (or capitalism-fuelled illicit capital flight) is higher than the growth rate in African countries, inequality in development increases and Africa may not catch-up with the developed world. As an ideal solution, Piketty has proposed progressive income taxation based on automatic exchange of bank information. The ideal analogy proposed in tackling the spirit of African poverty is a comprehensive commitment to fighting illicit capital flight based on this. Hence, contrary to theoretical underpinnings of exogenous growth models, catch-up may not be so apparent. Implications for the corresponding upward bias in endogenous development and catch-up literature are discussed. |
| 12. | Asongu, Jacinta Nwachukwu Simplice C A Mineral Economics, 2016. Abstract | Links | BibTeX | Tags: Development, Exports, Foreign aid, Natural resources, terrorism @article{Asongu_524, author = {Jacinta Nwachukwu C Simplice A. Asongu}, url = {http://link.springer.com/article/10.1007/s13563-016-0088-1}, doi = {10.1007/s13563-016-0088-1}, year = {2016}, date = {2016-10-05}, journal = {Mineral Economics}, abstract = {We employ interactive quantile regressions to assess conditional linkages between foreign aid, iron ore exports and terrorism from a panel of 78 developing countries for the period of 1984–2008. The following main findings are established. First, it is primarily in the countries with the highest level of iron ore exports that terrorism affects exports. Second, bilateral aid has an impact on iron ore exports, while the evidence for such a relationship between multilateral aid and iron ore exports is limited. Third, there is limited support for the main hypothesis motivating this line of inquiry, notably that foreign aid can be used to mitigate a potentially negative effect of terrorism on resource exports. The results suggest that bilateral aid is more relevant at mitigating the negative effects of domestic and total terrorism on iron ore exports.}, keywords = {Development, Exports, Foreign aid, Natural resources, terrorism}, pubstate = {published}, tppubtype = {article} } We employ interactive quantile regressions to assess conditional linkages between foreign aid, iron ore exports and terrorism from a panel of 78 developing countries for the period of 1984–2008. The following main findings are established. First, it is primarily in the countries with the highest level of iron ore exports that terrorism affects exports. Second, bilateral aid has an impact on iron ore exports, while the evidence for such a relationship between multilateral aid and iron ore exports is limited. Third, there is limited support for the main hypothesis motivating this line of inquiry, notably that foreign aid can be used to mitigate a potentially negative effect of terrorism on resource exports. The results suggest that bilateral aid is more relevant at mitigating the negative effects of domestic and total terrorism on iron ore exports. |
| 13. | Asongu, Jacinta Nwachukwu Simplice C A International Review of Applied Economics, 30 (1), pp. 69-88, 2016. Abstract | Links | BibTeX | Tags: Africa, Development, Foreign aid, Political economy @article{Asongu_587, author = {Jacinta Nwachukwu C Simplice A. Asongu}, url = {http://www.tandfonline.com/doi/abs/10.1080/02692171.2015.1074164}, doi = {10.1080/02692171.2015.1074164}, year = {2016}, date = {2016-03-02}, journal = {International Review of Applied Economics}, volume = {30}, number = {1}, pages = {69-88}, abstract = {This paper investigates the effect of foreign aid on governance in order to extend the debate on foreign aid and to verify common positions from Moyo’s ‘Dead Aid’, Collier’s ‘Bottom Billion’ and Eubank’s ‘Somaliland’. The empirical evidence is based on updated data from 52 African countries for the period 1996–2010. An endogeneity robust instrumental variable Two-Stage-Least Squares empirical strategy is employed. The findings reveal that development assistance deteriorates economic (regulation quality and government effectiveness) and institutional (corruption-control and rule of law) governance, but has an insignificant effect on political (political stability, voice and accountability) governance. While, these findings are broadly in accordance with Moyo and Collier on weak governance, they neither confirm the Eubank position on political governance nor the Asongu stance on the aid-corruption nexus in a debate with Okada and Samreth. The use of foreign aid as an instrument to influence the election and replacement of political leaders in Africa may have insignificant results. It is time to solve the second tragedy of foreign aid and that economists and policy makers start rethinking the models and theories on which foreign aid is used to influence economic, institutional and political governance in recipient countries.}, keywords = {Africa, Development, Foreign aid, Political economy}, pubstate = {published}, tppubtype = {article} } This paper investigates the effect of foreign aid on governance in order to extend the debate on foreign aid and to verify common positions from Moyo’s ‘Dead Aid’, Collier’s ‘Bottom Billion’ and Eubank’s ‘Somaliland’. The empirical evidence is based on updated data from 52 African countries for the period 1996–2010. An endogeneity robust instrumental variable Two-Stage-Least Squares empirical strategy is employed. The findings reveal that development assistance deteriorates economic (regulation quality and government effectiveness) and institutional (corruption-control and rule of law) governance, but has an insignificant effect on political (political stability, voice and accountability) governance. While, these findings are broadly in accordance with Moyo and Collier on weak governance, they neither confirm the Eubank position on political governance nor the Asongu stance on the aid-corruption nexus in a debate with Okada and Samreth. The use of foreign aid as an instrument to influence the election and replacement of political leaders in Africa may have insignificant results. It is time to solve the second tragedy of foreign aid and that economists and policy makers start rethinking the models and theories on which foreign aid is used to influence economic, institutional and political governance in recipient countries. |
2015 |
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| 14. | Asongu, Simplice A International Journal of Social Economics, 42 (6), pp. 543-565, 2015. Abstract | Links | BibTeX | Tags: Africa, Development, Foreign aid, Political economy @article{Asongu_643, author = {Simplice A Asongu}, url = {http://www.emeraldinsight.com/doi/abs/10.1108/IJSE-12-2013-0286?journalCode=ijse}, doi = {10.1108/IJSE-12-2013-0286}, year = {2015}, date = {2015-06-01}, journal = {International Journal of Social Economics}, volume = {42}, number = {6}, pages = {543-565}, abstract = {Purpose – The purpose of this paper is to integrate two main strands of the aid-development nexus in assessing whether institutional thresholds matter in the effectiveness of foreign-aid on institutional development in 53 African countries over the period 1996-2010. Design/methodology/approach – The panel quantile regression technique enables us to investigate if the relationship between institutional dynamics and development assistance differs throughout the distributions of institutional dynamics. Eight government quality indicators are employed: rule of law, regulation quality, government effectiveness, corruption, voice and accountability, control of corruption, political stability and democracy. Findings – Three hypotheses are tested and the following findings are established: first, institutional benefits of foreign-aid are contingent on existing institutional levels in Africa; second, but for a thin exception (democracy), foreign-aid is more negatively correlated with countries of higher institutional quality than with those of lower quality; third, the institutional benefits of foreign-aid are not questionable until greater domestic institutional development has taken place. The reverse is true instead. government quality benefits of development assistance are questionable in African countries irrespective of prevailing institutional quality levels. Originality/value – This paper contributes to existing literature on the effectiveness of foreign-aid by focussing on the distribution of the dependent variables (institutional dynamics). It is likely that best and worst countries in terms of institutions respond differently to development assistance.}, keywords = {Africa, Development, Foreign aid, Political economy}, pubstate = {published}, tppubtype = {article} } Purpose – The purpose of this paper is to integrate two main strands of the aid-development nexus in assessing whether institutional thresholds matter in the effectiveness of foreign-aid on institutional development in 53 African countries over the period 1996-2010. Design/methodology/approach – The panel quantile regression technique enables us to investigate if the relationship between institutional dynamics and development assistance differs throughout the distributions of institutional dynamics. Eight government quality indicators are employed: rule of law, regulation quality, government effectiveness, corruption, voice and accountability, control of corruption, political stability and democracy. Findings – Three hypotheses are tested and the following findings are established: first, institutional benefits of foreign-aid are contingent on existing institutional levels in Africa; second, but for a thin exception (democracy), foreign-aid is more negatively correlated with countries of higher institutional quality than with those of lower quality; third, the institutional benefits of foreign-aid are not questionable until greater domestic institutional development has taken place. The reverse is true instead. government quality benefits of development assistance are questionable in African countries irrespective of prevailing institutional quality levels. Originality/value – This paper contributes to existing literature on the effectiveness of foreign-aid by focussing on the distribution of the dependent variables (institutional dynamics). It is likely that best and worst countries in terms of institutions respond differently to development assistance. |
| 15. | Asongu, Simplice A Rational Asymmetric Development, Piketty and the Spirit of Poverty in Africa 2015. Abstract | Links | BibTeX | Tags: Capital flight, Development, Foreign aid, Inequality, Piketty @workingpaper{Asongu2015b_35, title = {Rational Asymmetric Development, Piketty and the Spirit of Poverty in Africa}, author = {Simplice A Asongu}, editor = {African 2015 Governance and Development Institute WP/15/006}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Rational-Asymmetric-Development-Piketty-and-the-Spirit-of-Poverty-in-Africa.pdf}, year = {2015}, date = {2015-03-01}, abstract = {The study extends the implications of Piketty’s celebrated literature from developed countries to the nexus between developed nations and African countries by building on responses from Rogoff (2014) & Stiglitz (2014), post Washington Consensus paradigms and underpinnings from Solow-Swan & Boyce-Fofack-Ndikumana. The central argument presented is that the inequality problem is at the heart of rational asymmetric development between rich and poor countries. Piketty has shown that inequality increases when the return of capital is higher than the growth rate, because the poor cannot catch-up with the rich. We argue that, when the return of political economy (or capitalism-fuelled illicit capital flight) is higher than the growth rate in African countries, inequality in development increases and African may not catch-up with the developed world. As an ideal solution, Piketty has proposed progressive income taxation based on automatic exchange of bank information. The ideal analogy proposed in tackling the spirit of African poverty is a holistic commitment to fighting illicit capital flight based on automatic exchange of bank information. Hence, contrary to theoretical underpinnings of exogenous growth models, catch-up may not be so apparent. Implications for the corresponding upward bias in endogenous development and catch-up literature are discussed.}, keywords = {Capital flight, Development, Foreign aid, Inequality, Piketty}, pubstate = {published}, tppubtype = {workingpaper} } The study extends the implications of Piketty’s celebrated literature from developed countries to the nexus between developed nations and African countries by building on responses from Rogoff (2014) & Stiglitz (2014), post Washington Consensus paradigms and underpinnings from Solow-Swan & Boyce-Fofack-Ndikumana. The central argument presented is that the inequality problem is at the heart of rational asymmetric development between rich and poor countries. Piketty has shown that inequality increases when the return of capital is higher than the growth rate, because the poor cannot catch-up with the rich. We argue that, when the return of political economy (or capitalism-fuelled illicit capital flight) is higher than the growth rate in African countries, inequality in development increases and African may not catch-up with the developed world. As an ideal solution, Piketty has proposed progressive income taxation based on automatic exchange of bank information. The ideal analogy proposed in tackling the spirit of African poverty is a holistic commitment to fighting illicit capital flight based on automatic exchange of bank information. Hence, contrary to theoretical underpinnings of exogenous growth models, catch-up may not be so apparent. Implications for the corresponding upward bias in endogenous development and catch-up literature are discussed. |
2014 |
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| 16. | Asongu, Simplice A International Journal of Social Economics, 41 (11), pp. 1131 - 1155, 2014. Abstract | Links | BibTeX | Tags: Africa, Development, Foreign aid, Political economy @article{Asongu_677, author = {Simplice A Asongu}, url = {http://dx.doi.org/10.1108/IJSE-01-2013-0014}, doi = {10.1108/IJSE-01-2013-0014}, year = {2014}, date = {2014-11-04}, journal = {International Journal of Social Economics}, volume = {41}, number = {11}, pages = {1131 - 1155}, abstract = {Purpose – The purpose of this paper is to examine whether initial levels in GDP growth, GDP per capita growth and inequality adjusted human development matter in the impact of aid on development. In substance its object is to assess if threshold development conditions are necessary for the effectiveness of foreign aid in Africa. Design/methodology/approach – The panel quantile regression technique enables us to investigate if the relationship between development dynamics and development assistance differs throughout the distributions of development dynamics. Findings – Three main findings are established. First, with slight exceptions, the effectiveness of aid in economic prosperity (at the macro level) increases in positive magnitude across the distribution. This implies high-growth countries are more likely to benefit from development assistance (in terms of general economic growth) than their low-growth counterparts. Second, the positive nexus between aid and per capita economic growth displays nonlinear patterns across distributions and specifications, with the correlations broadly higher in top quantiles than in bottom quantiles after controlling for the unobserved heterogeneity. Third, the aid-human development nexus is negative and almost similar in magnitude across distributions and specifications. Practical implications – As a policy implication, there is need to improve management of aid funds destined for health and education projects in the sampled countries. Moreover, given the magnitude of the nexuses, while blanket aid initiatives could be applied for policies targeting the human development index (due to the absence of significant differences in the magnitude of estimated coefficients), such are unlikely to succeed for aid targeting economic prosperity at macro and micro levels. From the weight of the findings, given a policy of balancing the impact of aid, it could be inferred that low-growth countries would need more aid than their high-growth counterparts because of the less positive effects in the former countries. Originality/value – This paper contributes to existing literature on the effectiveness of foreign aid by focussing on the distribution of the dependent variables (development dynamics). It is likely that high- and low-growth countries respond differently to development assistance.}, keywords = {Africa, Development, Foreign aid, Political economy}, pubstate = {published}, tppubtype = {article} } Purpose – The purpose of this paper is to examine whether initial levels in GDP growth, GDP per capita growth and inequality adjusted human development matter in the impact of aid on development. In substance its object is to assess if threshold development conditions are necessary for the effectiveness of foreign aid in Africa. Design/methodology/approach – The panel quantile regression technique enables us to investigate if the relationship between development dynamics and development assistance differs throughout the distributions of development dynamics. Findings – Three main findings are established. First, with slight exceptions, the effectiveness of aid in economic prosperity (at the macro level) increases in positive magnitude across the distribution. This implies high-growth countries are more likely to benefit from development assistance (in terms of general economic growth) than their low-growth counterparts. Second, the positive nexus between aid and per capita economic growth displays nonlinear patterns across distributions and specifications, with the correlations broadly higher in top quantiles than in bottom quantiles after controlling for the unobserved heterogeneity. Third, the aid-human development nexus is negative and almost similar in magnitude across distributions and specifications. Practical implications – As a policy implication, there is need to improve management of aid funds destined for health and education projects in the sampled countries. Moreover, given the magnitude of the nexuses, while blanket aid initiatives could be applied for policies targeting the human development index (due to the absence of significant differences in the magnitude of estimated coefficients), such are unlikely to succeed for aid targeting economic prosperity at macro and micro levels. From the weight of the findings, given a policy of balancing the impact of aid, it could be inferred that low-growth countries would need more aid than their high-growth counterparts because of the less positive effects in the former countries. Originality/value – This paper contributes to existing literature on the effectiveness of foreign aid by focussing on the distribution of the dependent variables (development dynamics). It is likely that high- and low-growth countries respond differently to development assistance. |
| 17. | 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. |
2012 |
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| 18. | Asongu, Simplice A Economics Bulletin, 32 (3), pp. 2174-2180, 2012. Abstract | Links | BibTeX | Tags: Africa, Corruption, Foreign aid @article{Asongu_801, author = {Simplice A Asongu}, url = {http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I3-P210.pdf}, year = {2012}, date = {2012-08-01}, journal = {Economics Bulletin}, volume = {32}, number = {3}, pages = {2174-2180}, abstract = {The Okada & Samreth (2012, EL) finding that aid deters corruption could have an important influence on policy and academic debates. This paper partially negates their criticism of the mainstream approach to the aid-development nexus. Using updated data (1996-2010) from 52 African countries, we provide robust evidence of a positive aid-corruption nexus. Development assistance fuels (mitigates) corruption (the control of corruption) in the African continent. As a policy implication, the Okada & Samreth (2012, EL) finding for developing countries may not be relevant for Africa.}, keywords = {Africa, Corruption, Foreign aid}, pubstate = {published}, tppubtype = {article} } The Okada & Samreth (2012, EL) finding that aid deters corruption could have an important influence on policy and academic debates. This paper partially negates their criticism of the mainstream approach to the aid-development nexus. Using updated data (1996-2010) from 52 African countries, we provide robust evidence of a positive aid-corruption nexus. Development assistance fuels (mitigates) corruption (the control of corruption) in the African continent. As a policy implication, the Okada & Samreth (2012, EL) finding for developing countries may not be relevant for Africa. |