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Article
Publication date: 9 August 2022

Jean C. Kouam and Simplice Asongu

The study assesses the non-linear nexus between fixed broadband and economic growth. The study focuses on data from 33 African countries for the period 2010 to 2020.

Abstract

Purpose

The study assesses the non-linear nexus between fixed broadband and economic growth. The study focuses on data from 33 African countries for the period 2010 to 2020.

Design/methodology/approach

The empirical evidence is based on unit root tests, panel smooth transition regression and the generalized method of moments.

Findings

The following findings are established in this study. (1) The proportion of the population with access to electricity above and below which the relationship between fixed broadband and economic growth changes in sign is about 60%. (2) Below this threshold, each 1% increase in fixed broadband subscriptions induces a decline in economic growth of about 2.58%. Above the threshold, economic growth would increase by 2.43% when fixed broadband subscriptions increase by 1%. Sensitivity analyses and generalized method of moments (GMM) estimation show that these results are robust.

Practical implications

Due to the coronavirus disease (COVID-19) pandemic, which requires countries to take adequate measures to curb the spread of the pandemic, especially by means of virtual economic activities, any national policy aiming at improving the access of populations to high levels of fixed broadband services should be preceded by the implementation of an electrification program for at least 60% of the total population. Otherwise, providing a good quality internet connection for the benefit of the population would not produce the expected effects on economic growth and would, therefore, be counterproductive.

Originality/value

This study complements the extant literature by providing thresholds at which fixed broadband affects economic growth.

Details

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

Keywords

Book part
Publication date: 15 September 2022

Peterson K. Ozili

Purpose: Nigeria is the first African country to issue a central bank digital currency (CBDC) or fiat digital currency. The eNaira CBDC was issued as a money equivalent to…

Abstract

Purpose: Nigeria is the first African country to issue a central bank digital currency (CBDC) or fiat digital currency. The eNaira CBDC was issued as a money equivalent to be used along with paper Naira. This chapter identifies the features, opportunities and risks of the CBDC in Nigeria, also known as the eNaira.

Method: This chapter uses the discourse analysis method to assess the opportunities and risks of CBDC.

Findings: The opportunities which CBDC present to Nigeria include improved monetary policy transmission, convenience, efficient payments and increased financial inclusion. Some identified risks include digital illiteracy, increased propensity for cyber-attacks, data theft and the changing role of banks in a full-fledged CBDC economy.

Originality: This chapter contributes to the literature by evaluating the pros and cons of fiat digital currency such as a CBDC.

Details

The New Digital Era: Digitalisation, Emerging Risks and Opportunities
Type: Book
ISBN: 978-1-80382-980-7

Keywords

Article
Publication date: 26 August 2022

Samson Edo, Oluwatoyin Matthew and Ifeoluwa Ogunrinola

The purpose of this study is to determine the impact of disaggregate official development aid (ODA) on economic growth, and ascertain whether bilateral and multilateral…

Abstract

Purpose

The purpose of this study is to determine the impact of disaggregate official development aid (ODA) on economic growth, and ascertain whether bilateral and multilateral aid played complementary role with private sector, government sector and external sector in driving growth of sub-Saharan African economies.

Design/methodology/approach

The role of bilateral and multilateral aid in economic growth of sub-Saharan Africa (SSA) is investigated in this study. The vector error correction model (VECM) and generalized method of moments (GMM) techniques are employed in estimating the short-run and long-run impacts, over the period 1980–2020.

Findings

The estimation results reveal that the effect of bilateral aid is positive, and more significant than multilateral aid. Their effect on economic growth is, however, less significant than the effects of domestic private investment and government spending. Nonetheless, aid complemented private and government sectors in facilitating growth. External trade is the only exogenous variable in estimation that is insignificant. The results further reveal that economic growth is unable to significantly respond to its own lag. Generally, the estimation results conform to theoretical expectations.

Practical implications

One major implication of the findings is that SSA countries have benefited substantially from development aid. It is, therefore, important for these countries to develop stronger institutions that would attract more inflows of development aid.

Originality/value

The study was motivated by the fact that less attention has been given to the role of disaggregate ODA in economic growth of African countries. Previous research works have tended to focus more on aggregate ODA. Furthermore, adequate research has yet to be done on how ODA complements the private sector, government sector and external sector in facilitating growth of African countries. These issues are investigated in the study.

Details

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

Keywords

Article
Publication date: 11 July 2022

Samson Edo and Obianuju Nnadozie

The purpose of this paper is to determine how macroeconomic performance work with institutional quality influences divestment of foreign direct investment (FDI) in…

Abstract

Purpose

The purpose of this paper is to determine how macroeconomic performance work with institutional quality influences divestment of foreign direct investment (FDI) in Sub-Saharan Africa, in the short and long run.

Design/methodology/approach

This paper investigates divestment of FDI in Sub-Saharan Africa, within the period 1980–2020. The investigation is undertaken by first comparing the trend with what is obtained in other economic regions of the world. The factors behind the divestment are subsequently investigated, using the vector error-correction model.

Findings

In the comparative analysis, Sub-Saharan Africa and other regions are observed to have witnessed sustained divestment in recent years. The estimation results of the model reveal that macroeconomic performance and institutional quality are the predominant drivers behind the divestment.

Research limitations/implications

The findings, however, do not conform to the neoclassical theory that lays emphasis on investment return as the fundamental factor influencing investment. Long-run structural stability is also established; hence, the results may be considered suitable for predicting future divestment in the region.

Practical implications

In view of the empirical findings, macroeconomic performance and institutional quality need to be improved to ameliorate FDI divestment in Sub-Saharan Africa.

Originality/value

There is paucity of research works on divestment of FDI in Sub-Saharan Africa. Again, there is paucity of works on how macroeconomic and institutional conditions work together to influence divestment. This study provides some evidence to bridge the perceived gaps.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-4408

Keywords

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. 16 no. 2
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 13 May 2021

Azzouz Zouaoui, Mounira Ben Arab and Ahmad Mohammed Alamri

This paper aims to investigate the economic, political or sociocultural determinants of corruption in Tunisia.

Abstract

Purpose

This paper aims to investigate the economic, political or sociocultural determinants of corruption in Tunisia.

Design/methodology/approach

To better understand the main determinants of corruption in Tunisia. This study uses The Bayesian Model Averaging (BMA) model, which allows us to include a large number of explanatory variables and for a shorter period.

Findings

The results show that economic freedom is the most important variable of corruption in Tunisia. In second place comes the subsidies granted by the government, which is one of the best shelters of corruption in Tunisia through their use for purposes different from those already allocated to them. Third, this paper finds the high unemployment rate, which, in turn, is getting worse even nowadays. The other three factors considered as causal but of lesser importance are public expenditures, the human development index (HDI) and education. Education, the HDI and the unemployment rate are all socio-economic factors that promote corruption.

Originality/value

The realization of this study will lead to triple net contributions. The first is to introduce explicitly and simultaneously political, social and economic determinants of corruption in developing countries. Second, unlike previous studies based on the simple and generalized regression model, the present research uses another novel and highly developed estimation method. More precisely, this study uses the BMA model, on the set of annual data for a period of 1998–2018. The third contribution of this research resides in the choice of the sample.

Details

Journal of Financial Crime, vol. 29 no. 1
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 27 August 2019

Kelvin Henry Kyissima, Gong Zhang Xue, Thales Pacific Yapatake Kossele and Ahmed Ramadhan Abeid

The purpose of this paper is to analyze the corporate capital structure stability of listed firms in China during the period 1990–2013.

1996

Abstract

Purpose

The purpose of this paper is to analyze the corporate capital structure stability of listed firms in China during the period 1990–2013.

Design/methodology/approach

The study uses panel data from a sample of 716 firms that have been listed in China for at least 15 years. A fixed-effects panel data regression model with time effects is used in the estimation.

Findings

The findings show that size, profitability and investment opportunities have a significant influence on capital structure, whereas the tangibility of assets is not found to be significant. Few industries show significance in explaining differences and variation in leverage ratios.

Social implications

It is recommended by this study that corporate managers of listed firms in China should consider leverage ratios variation while choosing the capital structure.

Originality/value

This study can be helpful in assisting companies to make financing decisions and setting up strategies relevant in their growth and profitability. The study will also have a significant assistance to bring to light corporate issues to policy makers, especially in the areas of both equity and debt financing, particularly the bond market. To the society, this study will show the nature of Chinese-listed companies, and it can assist individual investors in making decisions regarding companies in which they hold investments and in making meaningful comparisons with other companies. The paper also aims at contributing to the existing literature on the empirical study on capital structure.

Details

China Finance Review International, vol. 10 no. 2
Type: Research Article
ISSN: 2044-1398

Keywords

Article
Publication date: 7 March 2016

Simplice A. Asongu and Vanessa S. Tchamyou

– This paper aims to assess how entrepreneurship affects knowledge economy (KE) in Africa.

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Abstract

Purpose

This paper aims to assess how entrepreneurship affects knowledge economy (KE) in Africa.

Design/methodology/approach

Entrepreneurship is measured by indicators of starting, doing and ending business. The four dimensions of the World Bank’s index of KE are used. Instrumental variable panel-fixed effects are applied on a sample of 53 African countries for the period of 1996-2010.

Findings

The following are some of the findings. First, creating an enabling environment for starting business can substantially boost most dimensions of KE. Second, doing business through mechanisms of trade globalization has positive effects from sectors that are not information and communication technology (ICT) and high-tech oriented. Third, the time required to end business has negative effects on KE.

Practical implications

The findings confirm the narrative that the technology in African countries at the moment may be more imitative and adaptive for reverse engineering in ICTs and high-tech products. Given the massive consumption of ICT and high-tech commodities in Africa, the continent has to start thinking of how to participate in the global value chain of producing what it consumes.

Originality/value

This paper has a twofold motivation. First, given the ambitions of African countries of moving towards knowledge-based economies, the line of inquiry is timely. Second, investigating the nexus may have substantial poverty mitigation and sustainable development implications. These entail, inter alia, the development of technology with value-added services; enhancement of existing agricultural practices; promotion of conditions that are essential for competitiveness; and adjustment to globalization challenges.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 8 no. 1
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 16 December 2020

Simplice Asongu and Rexon Nting

The study has investigated the comparative importance of financial access in promoting gender inclusion in African countries.

Abstract

Purpose

The study has investigated the comparative importance of financial access in promoting gender inclusion in African countries.

Design/methodology/approach

Gender inclusion is proxied by the female labour participation rate while financial channels include: financial system deposits and private domestic credit. The empirical evidence is based on non-contemporary fixed effects regressions.

Findings

In order to provide more implications on comparative relevance, the dataset is categorised into income levels (middle income versus (vs.) low income); legal origins (French civil law vs. English common law); religious domination (Islam vs. Christianity); openness to sea (coastal vs. landlocked); resource-wealth (oil-poor vs. oil-rich) and political stability (stable vs. unstable). Six main hypotheses are tested, notably, that middle income, English common law, Christianity, coastal, oil-rich and stable countries enjoy better levels of “financial access”-induced gender inclusion compared to respectively, low income, French civil law, Islam, landlocked, oil-poor and unstable countries. All six tested hypotheses are validated.

Originality/value

This is the first study on the comparative importance of financial access in gender economic participation.

Details

African Journal of Economic and Management Studies, vol. 12 no. 2
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 8 October 2020

Chukwuebuka Bernard Azolibe, Chidinma Emelda Nwadibe and Chidimma Maria-Gorretti Okeke

Africa's population is the second largest and fastest growing in the world after Asia, and this puts African governments under great stress in terms of increased public…

Abstract

Purpose

Africa's population is the second largest and fastest growing in the world after Asia, and this puts African governments under great stress in terms of increased public expenditure and is faced with a low revenue generation. Hence, the need for this study. The purpose of this paper is to examine the socio-economic determinants of public expenditure in Africa by assessing the influence of population age structure using a sample of the top ten most populous countries in Africa covering period of 1989 to 2018.

Design/methodology/approach

The study employed panel fully modified ordinary least square (OLS) in estimating the relevant relationship between the variables in the model. The dynamic ordinary least square (DOLS) model was also used to check the robustness of the fully modified ordinary least square (FMOLS) results.

Findings

The findings revealed that the major population age structure that influences the growth of public expenditure in Africa are population ages (0–14) and population ages (15–64), but the former poses a stronger significant influence than the latter while population ages (65 and above) has a negative and insignificant influence. Also, in terms of other socio-economic factors, self-employment has a reducing and significant influence on public expenditure. GDP per capita has a negative and insignificant influence while foreign aid and unemployment rate has an increasing influence. Finally, inflation rate and control of corruption (CC) has a negative relationship with public expenditure.

Social implications

The study argues that an increase in the young and working population will put enormous pressure on the government in the provision of more jobs and other public infrastructures such as health care and education. In the context of African economy with a low revenue generation, public expenditure will be low and the desperately poor masses will be denied of these public infrastructures.

Originality/value

Several studies (Jibir and Aluthge, 2019; Tayeh and Mustafa, 2011; Okafor and Eiya, 2011; Obeng and Sakyi, 2017; Ofori-Abebrese, 2012) have investigated the determinants of public expenditure using total population as a variable. However, this study is unique as it focused on the influence of population age structure on public expenditure in Africa. Also, the study incorporated other socio-economic determinants of public expenditure such as self-employment, standard of living, inflation rate, unemployment rate, foreign aid and corruption in its analytical model. To the best of our knowledge, some of these variables have not been employed in previous studies.

Details

International Journal of Social Economics, vol. 47 no. 11
Type: Research Article
ISSN: 0306-8293

Keywords

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