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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: 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. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1359-0790

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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

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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

Content available
Article
Publication date: 4 January 2021

Wim Naudé and Martin Cameron

This paper aims to provide a country case study of South Africa’s response during the first six months following its first COVID-19 case. The focus is on the government’s…

Abstract

Purpose

This paper aims to provide a country case study of South Africa’s response during the first six months following its first COVID-19 case. The focus is on the government’s (mis-)management of its non-pharmaceutical interventions (NPIs) (or “lockdown”) to stem the pandemic and the organized business sector’s resistance against the lockdown.

Design/methodology/approach

This paper makes use of a literature review and provides descriptive statistics and quantitative analysis of COVID-19 and the lockdown stringency in South Africa, based on data from Google Mobility Trends, Oxford University’s Stringency Index, Johns Hopkins University’s COVID-19 tracker and Our World in Data.

Findings

This paper finds that both the government and the business sector’s responses to the COVID-19 pandemic have been problematic. These key actors have been failing to “pull together,” leaving South Africa’s citizens in-between corrupt and incompetent officials on the one hand, and lockdown skeptics on the other. This paper argues that to break through this impasse, the country should change direction by agreeing on a smart or “Goldilocks” lockdown, based on data, testing, decentralization, demographics and appropriate economic support measures, including export support. Such a Goldilocks lockdown is argued, based on available evidence from the emerging scientific literature, to be able to save lives, improve trust in government, limit economic damages and moreover improve the country’s long-term recovery prospects.

Research limitations/implications

The pandemic is an unprecedented crisis and moreover was still unfolding at the time of writing. This has two implications. First, precise data on the economic impact and certain epidemiological parameters was not (yet) available. Second, the causes of the mismanagement by the government are not clear yet, within such a short time frame. More research and better data may be able in future to allow conclusions to be drawn whether the problems that were besetting the country’s management of COVID-19 are unique or perhaps part of a more general problem across developing countries.

Practical implications

The paper provides clear practical implications for both government and organized business. The South African Government should not altogether end its lockdown measures, but follow a smart and flexible lockdown. The organized business sector should abandon its calls for ending the lockdown while the country is still among the most affected countries in the world, and no vaccine is available.

Social implications

There should be better collaboration between government, business and civil society to manage a smart lockdown. Government should re-establish lost trust because of the mismanagement of the lockdown during the first six months of the pandemic.

Originality/value

The outline of the smart lockdown that is proposed for the country combines NPIs with the promotion of exports, as a policy intervention to help aggregate demand to recover. The paper provides advice on how to resolve an impasse created by mismanagement of COVID-19, which could be valuable for decision-making during a crisis, particularly in developing countries.

Details

Transforming Government: People, Process and Policy, vol. 15 no. 2
Type: Research Article
ISSN: 1750-6166

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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

Keywords

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Article
Publication date: 1 December 2020

Christian Otchia and Simplice Asongu

This study uses machine machine learning techniques to assess industrial development in Africa.

Abstract

Purpose

This study uses machine machine learning techniques to assess industrial development in Africa.

Design/methodology/approach

This study uses nightlight time data and machine learning techniques to assess industrial development in Africa.

Findings

This study provides evidence on how machine learning techniques and nightlight data can be used to assess economic development in places where subnational data are missing or not precise. Taken together, the research confirms four groups of important determinants of industrial growth: natural resources, agriculture growth, institutions and manufacturing imports. Our findings indicate that Africa should follow a more multisector approach for development, putting natural resources and agriculture productivity growth at the forefront.

Originality/value

Studies on the use of machine learning (with insights from nightlight satellite images) to assess industrial development in Africa are sparse.

Details

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

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Article
Publication date: 29 October 2020

Opeoluwa Adeniyi Adeosun, Philip Akanni Olomola, Adebayo Adedokun and Olumide Steven Ayodele

The increasing debate on the viability of broad-based productive employment in stimulating the participatory tendencies of growth makes it instructive to inquire how the…

Abstract

Purpose

The increasing debate on the viability of broad-based productive employment in stimulating the participatory tendencies of growth makes it instructive to inquire how the African “Big Five” have fared in their quests to ensure growth inclusiveness through public investment-led fiscal policy.

Design/methodology/approach

Time varying structures and nonlinearities in the government investment series are captured through the non-linear autoregressive distributed lag, asymmetric impulse responses and variance decomposition estimation techniques.

Findings

Study findings show that positive investment shocks stimulate growth inclusiveness by enabling access to opportunities through job creation and productive employment for the populace; this result is evident for Morocco and Algeria. However, there is a non-negligible evidence that shocks due to decline in the government investment manifest in insufficient capital stocks and limited investment opportunities, impede access to opportunities by the populace, hinder labour employability and make growth less inclusive. Furthermore, all short-run findings corroborate long-run results regarding the reaction of inclusive growth to positive investment shocks with the exclusion of South Africa; which, unlike its long-run finding, shows that shocks due to increases in investment can foster growth inclusiveness. Also, in respect to short-run negative investment shocks, Nigeria is the only country that does not align its long-run findings.

Practical implications

That public investment shocks make or mar inclusive growth effectiveness shows the need for appropriate fiscal policy consolidation and automatic stabilization guidelines to ensure buffers against shocks and to enhance government investment generation efficiency for a sustainable inclusive growth process that is more participatory in Africa.

Originality/value

This study is the first to accommodate possibilities of shocks in the inclusivity of growth analysis for the five biggest African economies which jointly account for over half of the recorded growth in the continent. As such, there is quantitative evidence that government investment is a potent determinant of growth inclusiveness and it is susceptible to structural changes and time variation of shocks.

Details

International Journal of Social Economics, vol. 47 no. 12
Type: Research Article
ISSN: 0306-8293

Keywords

Content available
Article
Publication date: 6 April 2020

Babajide Fowowe

Farmers are the largest group of financially excluded persons in Nigeria, thereby highlighting the supply shortfall in finance to agriculture in Nigeria. Availability of…

Abstract

Purpose

Farmers are the largest group of financially excluded persons in Nigeria, thereby highlighting the supply shortfall in finance to agriculture in Nigeria. Availability of finance would go a long way in improving output and productivity in agriculture, and consequently help in reducing poverty. This study conducts an empirical investigation of the effects of financial inclusion on agricultural productivity in Nigeria.

Design/methodology/approach

This study makes use of the Living Standards Measurement Study–Integrated Surveys on Agriculture (LSMS-ISA). This is a new data set on agricultural households which contains information on agricultural activities and various household activities, including banking, savings and insurance behaviour. Considering the data are such that there are observations for households over three time periods, the study exploits the time series and cross-section dimension of the data by using panel data estimation.

Findings

The empirical results of the study show that financial inclusion, irrespective of how it is measured, has exerted positive and statistically significant effects on agricultural productivity in Nigeria.

Originality/value

While considerable research has been conducted to examine how finance affects broad macroeconomic aggregates, little is known about the effects of finance at the household and individual level. It is important to explicitly account for financial inclusion when examining the effects of finance on individuals and households. This study improves on existing research and offers new insights into the effects of financial inclusion on the economic activities of agricultural households in Nigeria.

Details

Journal of Economics and Development, vol. 22 no. 1
Type: Research Article
ISSN: 1859-0020

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Article
Publication date: 1 May 2020

Simplice Asongu and Joseph Nnanna

This study aims to assess the role of income levels (low and middle) in modulating governance (political and economic) to influence inclusive human development.

Abstract

Purpose

This study aims to assess the role of income levels (low and middle) in modulating governance (political and economic) to influence inclusive human development.

Design/methodology/approach

The empirical evidence is based on interactive quantile regressions and 49 countries in sub-Saharan Africa for the period 2000-2002.

Findings

The following main findings are established. Firstly, low income modulates governance (economic and political) to positively affect inclusive human development exclusively in countries with above-median levels of inclusive human development. It follows that countries with averagely higher levels of inclusive human development are more likely to benefit from the relevance of income levels in influencing governance for inclusive development. Secondly, the importance of middle income in modulating political governance to positively affect inclusive human development is apparent exclusively in the median while the relevance of middle income in moderating economic governance to positively influence inclusive human development is significantly apparent in the 10th and 75th quantiles. Thirdly, regardless of panels, income levels modulate economic governance to affect inclusive human development at a higher magnitude, compared to political governance. Policy implications are discussed in light of the post-2015 agenda of sustainable development goals and contemporary development paradigms.

Originality/value

This study complements the extant sparse literature on inclusive human development in Africa.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 14 no. 2
Type: Research Article
ISSN: 1750-6204

Keywords

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