@article{Asongu_620,
author = {Simplice A Asongu},
url = {http://dx.doi.org/10.1108/AJEMS-12-2012-0083},
doi = {10.1108/AJEMS-12-2012-0083},
year = {2015},
date = {2015-09-01},
journal = {African Journal of Economic and Management Studies},
volume = {6},
number = {3},
pages = {225-250},
abstract = {Purpose
– The generation is witnessing the greatest demographic transition and Africa is at the heart of it. There is mounting concern over corresponding rising unemployment and depleting per capita income. The purpose of this paper is to examine the issues from a long-run perspective by assessing the relationships between population growth and a plethora of investment dynamics: public, private, foreign and domestic investments.

Design/methodology/approach
– Vector autoregressive models in the perspectives of vector error correction and short-run Granger causality are used.

Findings
– In the long-run population growth will: first, decrease foreign and public investments in Ivory Coast; second, increase public and private investments in Swaziland; three, deplete public investment but augment domestic investment in Zambia; fourth diminish private investment and improve domestic investment in the Congo Republic and Sudan, respectively.

Practical implications
– Mainstream positive linkage of population growth to investment growth in the long-term should be treated with extreme caution. Policy orientation should not be blanket, but contingent on country-specific trends and tailored differently across countries. The findings stress the need for the creation of a conducive investment climate (and ease of doing business) for private and foreign investments. Family planning and birth control policies could also be considered in countries with little future investment avenues.

Originality/value
– The objective of this study is to provide policy makers with some insights on how future investment opportunities could help manage rising population growth and corresponding unemployment.},
keywords = {Africa, Causality, Human Capital, investment, Productivity},
pubstate = {published},
tppubtype = {article}
}

@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}
}