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Article
Publication date: 21 January 2020

Simplice Asongu and Nicholas Odhiambo

This study aims to provide the thresholds of inequality that should not be exceeded if gender inclusive education is to enhance gender inclusive formal economic…

Abstract

Purpose

This study aims to provide the thresholds of inequality that should not be exceeded if gender inclusive education is to enhance gender inclusive formal economic participation in sub-Saharan Africa.

Design/methodology/approach

The empirical evidence is based on the generalised method of moments and data from 42 countries during the period 2004-2014.

Findings

The following findings are established. First, inclusive tertiary education unconditionally promotes gender economic inclusion, while the interaction between tertiary education and inequality is unfavourable to gender economic inclusion. Second, a Gini coefficient that nullifies the positive incidence of inclusive tertiary education on female labour force participation is 0.562. Second, the Gini coefficient and Palma ratio that crowd-out the negative unconditional effects of inclusive tertiary education on female unemployment are 0.547 and 6.118, respectively. Third, a 0.578 Gini coefficient, a 0.680 Atkinson index and a 6.557 Palma ratio are critical masses that wipe out the positive unconditional effects of inclusive tertiary education on female employment. The findings associated with lower levels of education are not significant.

Practical implications

As the main policy implication, income inequality should not be tolerated above the established thresholds for gender inclusive education to promote gender inclusive formal economic participation. Other implications are discussed in the light of sustainable development goals.

Originality/value

This study complements the existing literature by providing inequality thresholds that should not be exceeded for gender inclusive education to promote the involvement of women in the formal economic sector.

Details

Social Responsibility Journal, vol. 17 no. 1
Type: Research Article
ISSN: 1747-1117

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Article
Publication date: 8 July 2020

Simplice A. Asongu and Nicholas M. Odhiambo

The purpose of this paper is to assess the importance of credit access in modulating governance for gender-inclusive education in 42 countries in Sub-Saharan Africa with…

Abstract

Purpose

The purpose of this paper is to assess the importance of credit access in modulating governance for gender-inclusive education in 42 countries in Sub-Saharan Africa with data spanning the period 2004–2014.

Design/methodology/approach

The generalized method of moments is used as empirical strategy.

Findings

The following findings are established: First, credit access modulates government effectiveness and the rule of law to induce positive net effects on inclusive “primary and secondary education.” Second, credit access also moderates political stability and the rule of law for overall net positive effects on inclusive secondary education. Third, credit access complements government effectiveness to engender an overall positive impact on inclusive tertiary education.

Originality/value

Policy implications are discussed with emphasis on sustainable development goals.

Details

Social Responsibility Journal, vol. 17 no. 8
Type: Research Article
ISSN: 1747-1117

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Article
Publication date: 21 June 2019

Simplice Asongu and Nicholas Odhiambo

The purpose of this paper is to investigate the effect of inequality on female employment in 42 countries in sub-Saharan Africa (SSA) for the period 2004–2014.

Abstract

Purpose

The purpose of this paper is to investigate the effect of inequality on female employment in 42 countries in sub-Saharan Africa (SSA) for the period 2004–2014.

Design/methodology/approach

Three inequality indicators are used, namely, the: Gini coefficient, Atkinson index and Palma ratio. Two indicators of gender inclusion are also employed, namely: female employment and female unemployment rates. The empirical analysis is based on the generalised method of moments.

Findings

The following main findings are established. First, inequality increases female unemployment in regressions based on the Palma ratio. Second, from the robustness checks, inequality reduces female employment within the frameworks of the Gini coefficient and Palma ratio.

Originality/value

Studies on the relevance of income inequality on female economic participation in SSA are sparse.

Details

African Journal of Economic and Management Studies, vol. 11 no. 2
Type: Research Article
ISSN: 2040-0705

Keywords

Open Access
Article
Publication date: 12 April 2021

Nicholas M. Odhiambo

This study examines the causal relationship between exports and economic growth in sub-Saharan African (SSA) countries during the period 1980 to 2017. The study also…

Abstract

Purpose

This study examines the causal relationship between exports and economic growth in sub-Saharan African (SSA) countries during the period 1980 to 2017. The study also examines whether the causality between these two macroeconomic variables depends on the countries' stage of development as proxied by their per capita income.

Design/methodology/approach

The study uses a panel cointegration test and panel Granger-causality model to examine the link between exports and growth. The study also incorporates external debt as an intermittent variable in a bivariate setting between exports and economic growth, thereby creating a dynamic multivariate panel Granger-causality model.

Findings

Although the study found the existence of a long-run relationship between exports and economic growth, the study failed to find any export-led growth response in both low-income and middle-income countries. Instead, the study found evidence of a bidirectional causality and a neutrality response in middle-income and low-income countries, respectively. The study, therefore, concludes that the benefits of an export-led growth hypothesis may have been oversold, and that the strategy may not be desirable to some low-income developing countries.

Practical implications

These findings have important policy implications as they indicate that the causality between exports and economic growth in SSA countries varies with the countries' stage of development. Consistent with the contemporary literature, the study cautions low-income SSA countries against over-relying on an export-led growth strategy to achieve a sustained growth path as no causality between exports and economic growth has been found to exist in those countries. Instead, such countries should consider pursuing new growth strategies by building the domestic demand side of their economies alongside their export promotion strategies in order to expand the real sector of their economies. For middle-income countries, the study recommends that both export promotion strategies and pro-growth policies should be intensified as economic growth and exports have been found to reinforce each other in those countries.

Originality/value

Unlike the previous studies, the current study disaggregated the full sample of SSA countries into two subsets – one comprising of low-income countries and the other consisting of middle-income countries. In addition, the study uses a multivariate Granger-causality model in order to address the emission-of-variable bias. To our knowledge, this may be the first study of its kind in recent years to examine in detail the causal relationship between exports and economic growth in SSA countries using an ECM-based multivariate panel Granger-causality model.

研究目的

本研究旨在探討在1980年至2017年期間撒哈拉以南非洲國家的出口、與其經濟增長之間的因果關係,亦探討這兩個宏觀經濟變量之間的因果關係、會否取決於有關國家所處以人均收入來衡量的發展階段。

研究結果

本研究雖然發現出口與經濟增長存有一個長期性關係,唯未能於低收入國家或中等收入國家、找到任何出口帶動的增長反應。研究反而找到證據,證實中等收入國家為一雙向性因果關係反應,而低收入國家則為一中立性反應。因此,研究的結論是:出口必能帶動經濟增長這假設被過度吹噓,而且,對部份低收入發展中國家而言,實施以出口帶動經濟增長的策略或許是沒有用的。

實際意義

本研究的結果在政策方面有其重要意義。這是因為研究結果顯示、於撒哈拉以南非洲國家、出口與經濟增長之間的因果關係,會因有關國家所處的發展階段而有所變更。與當代文獻一樣,本研究提醒低收入的撒哈拉以南非洲國家,不要過度依賴以出口帶動增長的策略來謀求踏上持續增長之路,這是因為在這些國家,出口與經濟增長之間的因果關係仍未確立。他們反而應考慮推行新增長經濟策略,方法是在實施推動出口的策略的同時,也要建立其經濟的國內需求面,以擴大其經濟實業部門。就中等收入國家而言,本研究建議他們應增強推動出口的策略及強化促進增長的政策,這是因為在這些國家裏,經濟增長及出口已被證實會互為增強。

原創性/價值

有別於過去的研究,本研究把撒哈拉以南非洲國家的整體樣本分解為兩個子集:一個包括低收入國家,另一個則包括中等收入國家。而且、研究使用了多變量面板格蘭傑因果關係模型、以處理遺漏變數偏差的問題。據我們了解,這大概是近年首個同類研究、以基於歐洲共同市場多變量面板格蘭傑因果關係模型、來詳細探討於撒哈拉以南非洲國家、出口與經濟增長之間的因果關係。

Details

European Journal of Management and Business Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2444-8451

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Article
Publication date: 12 November 2020

Simplice Asongu and Nicholas M. Odhiambo

This study aims to focus on assessing how improving openness influences carbon dioxide (CO2) emissions in sub-Saharan Africa (SSA).

Abstract

Purpose

This study aims to focus on assessing how improving openness influences carbon dioxide (CO2) emissions in sub-Saharan Africa (SSA).

Design/methodology/approach

This study focusses on 49 countries in SSA for the period 2000–2018 divided into: 44 countries in SSA for the period 2000–2012; and 49 countries for the period 2006–2018. Openness is measured in terms of trade and foreign direct investment (FDI) inflows. The empirical evidence is based on the generalised method of moments.

Findings

The following main findings are established. First, enhancing trade openness has a net positive impact on CO2 emissions, while increasing FDI has a net negative impact. Second, the relationship between CO2 emissions and trade is a Kuznets shape, while the nexus between CO2 emissions and FDI inflows is a U-shape. Third, a minimum trade openness (imports plus exports) threshold of 100 (% of gross domestic product (GDP)) and 200 (% of GDP) is beneficial in promoting a green economy for the first and second samples, respectively. Fourth, FDI is beneficial for the green economy below critical masses of 28.571 of net FDI inflows (% of GDP) and 33.333 of net FDI inflows (% of GDP) for first and second samples, respectively. It follows from findings that while FDI can be effectively managed to reduce CO2 emissions, this may not be the case with trade openness because the corresponding thresholds for trade openness are closer to the maximum limit.

Originality/value

This study complements the extant literature by providing critical masses of trade and FDI that are relevant in promoting the green economy in SSA.

Details

International Journal of Energy Sector Management, vol. 15 no. 1
Type: Research Article
ISSN: 1750-6220

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Article
Publication date: 15 July 2021

Simplice Asongu and Nicholas M. Odhiambo

The purpose of this study is to assess the nexus between governance and renewable energy consumption in Sub-Saharan Africa (SSA).

Abstract

Purpose

The purpose of this study is to assess the nexus between governance and renewable energy consumption in Sub-Saharan Africa (SSA).

Design/methodology/approach

The focus is on 44 countries in SSA with data from 1996 to 2016. The empirical evidence is based on Tobit regressions.

Findings

It is apparent from the findings that political and institutional governance are negatively related to the consumption of renewable energy in the sampled countries. The unexpected findings are clarified and policy implications are discussed in the light of sustainable development goals.

Originality/value

This study extends the extant literature by assessing how political governance (consisting of political stability and “voice and accountability”) and institutional governance (entailing the rule of law and corruption-control) affect the consumption of renewable energy in SSA.

Details

International Journal of Energy Sector Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-6220

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Article
Publication date: 22 July 2019

Themba G. Chirwa and Nicholas M. Odhiambo

This paper aims to examine the short- and long-run relationship between electricity consumption and economic growth.

Abstract

Purpose

This paper aims to examine the short- and long-run relationship between electricity consumption and economic growth.

Design/methodology/approach

The study uses a panel-based autoregressive distributed lag approach to cointegration to investigate this relationship in 12 advanced, emerging markets and developing economies during the period 1970-2016, selected from three continents, namely, Europe (Luxemborg, Norway, Denmark and Belgium), Asia (Singapore, Japan, Indonesia and India) and Africa (South Africa, Algeria, Egypt and Kenya).

Findings

Based on the homogeneity assumption, the study results reveal that electricity consumption is positively and significantly associated with economic growth in all the study countries in the long run. Conversely, the short-run results reveal that electricity consumption is positively and significantly associated with economic growth in ten countries and negatively associated with economic growth in only two countries.

Research limitations/implications

The study concludes that, on the whole, electricity consumption is an important factor of production in the majority of the study countries. Therefore, policymakers should focus on growth-enhancing energy policies that promote energy efficiency usage, especially in the long run.

Originality/value

The authors hereby confirm that the paper has not been published elsewhere, and this research is entirely their work.

Details

International Journal of Energy Sector Management, vol. 14 no. 1
Type: Research Article
ISSN: 1750-6220

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Article
Publication date: 12 November 2020

Nicholas M. Odhiambo

This paper examines the dynamic causal relationship between education and economic growth in South Africa using annual time-series data from 1986 to 2017. The study…

Abstract

Purpose

This paper examines the dynamic causal relationship between education and economic growth in South Africa using annual time-series data from 1986 to 2017. The study attempts to answer one critical question: Does education, which is one of the priority sectors in South Africa, drive economic growth?

Design/methodology/approach

The study uses the ARDL bounds testing approach and ECM-based Granger causality model to examine this linkage. The study also uses three proxies to measure the level of education. In addition, the study uses two variables: investment and labour, as intermittent variables between the various proxies of education and economic growth, thereby creating a system of multivariate Granger-causality models.

Findings

The study finds that the causal relationship between education and economic growth in South Africa is dependent on the variable used to measure the level of education. In addition, the causality tends to change over time. Overall, the study finds the causal flow from economic growth to education to supersede the causal flow from education to economic growth.

Originality/value

Unlike some previous studies, the current study uses three proxies of education in South Africa and two intermittent variables in a multivariate setting. To our knowledge, this may be the first study of its kind to examine in detail the dynamic causal relationship between education and economic growth in South Africa – using the ARDL bounds testing approach and a multivariate Granger causality model.

Details

International Journal of Social Economics, vol. 48 no. 1
Type: Research Article
ISSN: 0306-8293

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Article
Publication date: 26 February 2020

Simplice Asongu and Nicholas M. Odhiambo

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…

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 and 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 and 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 and 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.

Details

Journal of Economic Studies, vol. 47 no. 4
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 22 July 2019

Sin-Yu Ho and Nicholas M. Odhiambo

The purpose of this paper is to examine the macroeconomic drivers of stock market development in Hong Kong during the period 1992Q4-2016Q3. Specifically, it investigates…

Abstract

Purpose

The purpose of this paper is to examine the macroeconomic drivers of stock market development in Hong Kong during the period 1992Q4-2016Q3. Specifically, it investigates the impact of banking sector development, economic growth, inflation rate, exchange rate, trade openness and stock market liquidity on stock market development.

Design/methodology/approach

This paper uses quarterly time-series data covering the period 1992Q4-2016Q3, which have been obtained from various reliable sources. The study uses the autoregressive distributed lag bounds testing procedure to identify both the long- and short-run macroeconomic drivers of stock market development in Hong Kong.

Findings

We find that banking sector development and economic growth have positive impacts on stock market development, whereas the inflation rate and the exchange rate have negative impacts on stock market development both in the long and short run. In addition, the results show that trade openness has a positive long-run impact but a negative short-run impact on stock market development.

Originality/value

Despite the phenomenal growth of stock market in Hong Kong, there are, to the best of the authors’ knowledge, no relevant studies on the macroeconomic drivers of stock market development in Hong Kong. Therefore, this paper endeavours to enrich the literature by examining the macroeconomic drivers of stock market development in Hong Kong during the period 1992Q4-2016Q3.

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