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1 – 5 of 5Simplice Asongu and Nicholas M. Odhiambo
This study investigates how enhancing information and communication technology (ICT) affects female economic participation in sub-Saharan African nations.
Abstract
Purpose
This study investigates how enhancing information and communication technology (ICT) affects female economic participation in sub-Saharan African nations.
Design/methodology/approach
Three female economic participation indicators are used, namely female labour force participation, female unemployment and female employment rates. The engaged ICT variables are fixed broadband subscriptions, mobile phone penetration and Internet penetration. The Generalized Method of Moments is used for the empirical analysis.
Findings
The following main findings are established: First, there is a (1) negative net effect in the relevance of fixed broadband subscriptions in female labour force participation and female unemployment and (2) positive net effects from the importance of fixed broadband subscriptions on the female employment rate. Secondly, an extended analysis is used to establish thresholds at which the undesirable net negative effect on female labour force participation can be avoided. From the corresponding findings, a fixed broadband subscription rate of 9.187 per 100 people is necessary to completely dampen the established net negative effect. Hence, the established threshold is the critical mass necessary for the enhancement of fixed broadband subscriptions to induce an overall positive net effect on the female labour force participation rate.
Originality/value
This study complements the extant literature by assessing how increasing penetration levels of ICT affect female economic inclusion and by extension, thresholds necessary for the promotion of ICT to increase female economic inclusion.
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Simplice Asongu and Nicholas M. Odhiambo
This study assesses the relevance of foreign aid to the incidence of capital flight and unemployment in 20 countries in sub-Saharan Africa.
Abstract
Purpose
This study assesses the relevance of foreign aid to the incidence of capital flight and unemployment in 20 countries in sub-Saharan Africa.
Design/methodology/approach
The study is for the period 1996–2018, and the empirical evidence is based on interactive quantile regressions in order to assess the nexuses throughout the conditional distribution of the unemployment outcome variable.
Findings
From the findings, capital flight has a positive unconditional incidence on unemployment, while foreign aid dampens the underlying positive unconditional nexus. Moreover, in order for the positive incidence of capital flight to be completely dampened, foreign aid thresholds of 2.230 and 3.964 (% of GDP) are needed at the 10th and 25th quantiles, respectively, of the conditional distribution of unemployment. It follows that the relevance of foreign aid in crowding out the unfavourable incidence of capital flight on unemployment is significantly apparent only in the lowest quantiles or countries with below-median levels of unemployment. The policy implications are discussed.
Originality/value
The study complements the extant literature by assessing the importance of development assistance in how capital flight affects unemployment in sub-Saharan Africa.
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Simplice Asongu and Nicholas M. Odhiambo
This study aims to contribute to the extant literature by assessing how microfinance institutions (MFIs) affect female entrepreneurship, contingent on female unemployment levels.
Abstract
Purpose
This study aims to contribute to the extant literature by assessing how microfinance institutions (MFIs) affect female entrepreneurship, contingent on female unemployment levels.
Design/methodology/approach
The study focuses on 44 countries in sub-Saharan Africa for the period 2004–2018. The empirical evidence is based on interactive quantile regressions, which put emphasis on nations with high, low and intermediate levels of business constraints. The analysis is tailored to provide avoidable female unemployment levels in the implementation of policies designed for MFIs to promote female business ownership.
Findings
The hypotheses that MFIs are favorable for female business owners and some critical rates of female unemployment should be avoided in order for the favorable incidence to be maintained is exclusively valid in the 10th quantiles of the cost of business by females and time to start-up a business by females. Policy implications are discussed.
Originality/value
This study has complemented the extant literature by providing actionable female unemployment critical masses that governments can act upon in tailoring the relevance of MFIs in the doing of business by females.
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Simplice Asongu and Nicholas M. Odhiambo
This study aims to assess the role of financial inclusion (FI) in moderating the incidence of entrepreneurship on energy poverty in Ghana.
Abstract
Purpose
This study aims to assess the role of financial inclusion (FI) in moderating the incidence of entrepreneurship on energy poverty in Ghana.
Design/methodology/approach
The assessment is made by using pooled data and two-stage least squares. The exposition builds from the 7th (GLSS7) and 6th (GLSS6) rounds focusing on the Ghana Living Standards Survey (GSS, 2014, 2019) that is collected by the Ghana Statistical Service (GSS) from 10 principal regions in the country.
Findings
The findings show that entrepreneurship has an unconditional positive incidence on energy poverty while the interactive incidence between entrepreneurship and FI on energy poverty is negative. The corresponding FI policy thresholds that should be exceeded in order for FI to effectively moderate entrepreneurship for negative outcomes in energy poverty are between 0.154 and 0.280 index for the full sample; 0.187 index for the rural subsample; 0.200 and 0.333 index for the male sample. Thresholds are not computed for the rural and female subsamples because at least one estimated coefficient that is needed for the computation of such thresholds is not significant. Policy implications are discussed.
Originality/value
This study has complemented the existing literature by assessing how FI can be used to influence the nexus between entrepreneurship and poverty in Ghana.
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Retselisitsoe I. Thamae and Nicholas M. Odhiambo
This paper aims to investigate the nonlinear effects of bank regulation stringency on bank lending in 23 sub-Saharan African (SSA) countries over the period 1997–2017.
Abstract
Purpose
This paper aims to investigate the nonlinear effects of bank regulation stringency on bank lending in 23 sub-Saharan African (SSA) countries over the period 1997–2017.
Design/methodology/approach
This study employs the dynamic panel threshold regression (PTR) model, which addresses endogeneity and heterogeneity problems within a nonlinear framework. It also uses indices of entry barriers, mixing of banking and commerce restrictions, activity restrictions and capital regulatory requirements from the updated databases of the World Bank's Bank Regulation and Supervision Surveys as measures of bank regulation.
Findings
The linearity test results support the existence of nonlinear effects in the relationship between bank lending and entry barriers or capital regulations in the selected SSA economies. The dynamic PTR estimation results reveal that bank lending responds positively when the stringency of entry barriers is below the threshold of 62.8%. However, once the stringency of entry barriers exceeds that threshold level, bank credit reacts negatively and significantly. By contrast, changes in capital regulation stringency do not affect bank lending, either below or above the obtained threshold value of 76.5%.
Practical implications
These results can help policymakers design bank regulatory measures that will promote the resilience and safety of the banking system but at the same time not bring unintended effects to bank lending.
Originality/value
To the best of the authors’ knowledge, this is the first study to examine the nonlinear effects of bank regulatory measures on bank lending using the dynamic PTR model and SSA context.
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