Search results
1 – 10 of 709Kesuh Jude Thaddeus, Chi Aloysius Ngong, Ugwuanyi Jacinta Nnecka, Njimukala Moses Nubong, Godwin Imo Ibe, Onyejiaku Chinyere C and Josaphat Uchechukwu Joe Onwumere
The purpose of this paper is to investigate the short and long run causal relationship between stock market development and economic growth in sub-Saharan Africa within the period…
Abstract
Purpose
The purpose of this paper is to investigate the short and long run causal relationship between stock market development and economic growth in sub-Saharan Africa within the period 1990 and 2020.
Design/methodology/approach
Using panel data from 1990–2020 obtained from the World Bank development indicators, the study makes use of the autoregressive distributed lag model and the Granger causality and cointegration to analyze the long and short run causal relationship between stock market development and economic growth in sub-Saharan Africa.
Findings
The findings unveiled that stock market capitalization had a positive and significant effect on economic growth in the long run and a negative insignificant effect in the short run within the period of 1990–2020 while stock market liquidity measured through total value of shares traded and turnover ratio had a negative and significant effect on economic growth in sub-Saharan Africa within the period of 1990–2020. The Granger causality test showed an inconclusive result between stock market development and economic growth; implying that the authors cannot say if it is stock market development that causes economic growth or it is economic growth that causes stock market development within the period of 1990–2020.
Practical implications
The findings suggest that governments of sub-Saharan African countries should encourage stock market development by implementing favorable rules for companies listing on their stock market, promote stock market integration with world markets to diversify risk, increase public awareness on stock markets, increase investors' confidence level and finally, remove stock market impediments like high taxes, legal and regulatory barriers to its development.
Originality/value
This study contributes to the existing literature by offering a whole new perspective on stock market development and economic growth since its conception in sub-Saharan Africa. Again, contrary to other papers, the study show how stock market development can contribute to the growth of sub-Saharan Africans’ economy.
Details
Keywords
Abba Ya'u, Mohammed Abdullahi Umar, Nasiru Yunusa and Dhanuskodi Rengasamy
Most research on tax evasion focused on microeconomic variables revolving around perceptions and decisions of individual taxpayers. However, a new wave of research is now…
Abstract
Purpose
Most research on tax evasion focused on microeconomic variables revolving around perceptions and decisions of individual taxpayers. However, a new wave of research is now investigating the role of macroeconomic variables in inducing tax evasion. This study adds to the limited studies in this new direction of research. Previous studies found that inflation, low gross domestic product (GDP) growth and gross fixed capital formation causes recession, increases unemployment, raise interest rates, hurts both domestic and foreign direct investments. This study examined the relationship between these variables and estimated tax evasion in Sub-Saharan Africa.
Design/methodology/approach
The study adopts a correlation research design with 2,300 data points collected from 23 countries in Sub-Saharan Africa. Specifically, tax to GDP ratio, gross fixed capital formation per GDP and the GDP annual growth report from each country for the period 2011–2020 was retrieved. Generalised least square regression technique was employed to analyse the data due to the presence of heteroskedasticity in the model and random effect was utilized based on the Hausman test. To avoid misspecification and biased result; therefore, all relevant test was conducted including the multicollinearity test.
Findings
The results indicate that GDP annual growth and gross fixed capital formation have a significant negative impact on estimated tax evasion in Sub-Saharan Africa. The findings further indicate a negative but insignificant relationship between inflation and estimated tax evasion in Sub-Saharan Africa. The study concludes that both GDP annual growth rate and gross fixed capital formation negatively influence estimated tax evasion and the policy implications in the African continent were discussed.
Originality/value
The new findings on the effects of GDP annual growth, growth fixed capital formation and inflation on estimated tax evasion provide novel knowledge that is currently lacking in the current literature, specifically Sub-Saharan African continent.
Details
Keywords
Souleymane Diallo and Youmanli Ouoba
The underdevelopment of the financial sector could be one of the barriers to the deployment of renewable energies in developing countries. The purpose of this paper is therefore…
Abstract
Purpose
The underdevelopment of the financial sector could be one of the barriers to the deployment of renewable energies in developing countries. The purpose of this paper is therefore to analyse the effect of financial development in the deployment of renewable energies in sub-Saharan African countries.
Design/methodology/approach
The empirical analysis is based on a production approach and a cross-sectionally augmented autoregressive distributive lag error correction model estimate for 25 sub-Saharan African countries over the period 1990–2018. The augmented mean group (AMG) and common correlated effects mean group (CCEMG) estimators were used for the robustness analysis.
Findings
Two results emerge: financial development contributes positively to renewable energy deployment in sub-Saharan African countries in the short and long run; and fossil fuel dependence impedes significantly renewable energy deployment in the short and long run. The robustness analyses using the AMG and CCEMG methods confirm these results.
Practical implications
These results suggest the need for policies to support and strengthen the development of the financial sector to improve its ability to effectively finance investments in renewable energy technologies.
Originality
The originality of this paper lies in the fact that the analysis is based on a renewable energy production approach. Indeed, the level of renewable energy deployment is measured by the production and not the consumption of renewable energy, unlike other previous work. In addition, this research uses recent econometric estimation techniques that overcome the problems of cross-sectional dependence and slope heterogeneity.
Details
Keywords
George Okello Candiya Bongomin, Elie Chrysostome, Jean-Marie Nkongolo-Bakenda and Pierre Yourougou
The main purpose of this paper is to establish the mediating effect of credit counselling in the relationship between access to microcredit and survival of micro small and…
Abstract
Purpose
The main purpose of this paper is to establish the mediating effect of credit counselling in the relationship between access to microcredit and survival of micro small and medium-sized enterprises (MSMEs) in developing countries in sub-Saharan Africa post COVID-19 pandemic with data collected from rural Uganda.
Design/methodology/approach
Structural equation modelling (SEM) through SmartPLS 4.0 was used to generate the standardized parameters to test whether credit counselling mediates the relationship between access to microcredit and survival of MSMEs in developing countries in sub-Saharan Africa post COVID-19 pandemic with data collected from rural Uganda.
Findings
The SEM bootstrap results revealed that credit counselling enhances access to microcredit by 27% to promote survival of MSMEs in developing countries in sub-Saharan Africa post COVID-19 pandemic with data collected from rural Uganda.
Research limitations
The current study focused only on women MSMEs. Future studies may possibly collect data from all the MSMEs to draw better generalization of the findings within the sector.
Practical implications
The findings can help public finance policy to ensure provision of credit counselling to microentrepreneurs who borrow from different financial institutions to reduce the problem of loan defaults and delinquency rampant in lending. This could be done through conducting routine business education and counselling sessions for microentrepreneurs who often need credit to grow their businesses.
Originality/value
This study is amongst the first few studies to establish the mediating effect of credit counselling in the relationship between access to microcredit and survival of MSMEs in developing countries in sub-Saharan Africa in the aftermath of COVID-19 pandemic with data collected from rural Uganda. There is a dearth in literature and theory on the rehabilitative and preventive role of credit counselling in reducing repayment defaults amongst borrowers within the credit market to spur survival of MSMEs seen as the main enabler of economic growth, especially in developing countries. In fact, credit counselling acts as a safety net by substituting financial literacy and education to solve the rampant problem of overindebtedness amongst borrowers who are debt illiterate within the credit market.
Details
Keywords
Samson Edo and Osaro Oigiangbe
The purpose of this study is to empirically investigate how external debt vulnerability has affected the economy of emerging countries over time, with particular reference to…
Abstract
Purpose
The purpose of this study is to empirically investigate how external debt vulnerability has affected the economy of emerging countries over time, with particular reference to Sub-Saharan African countries. It also deals with the policy issues associated with the economic effects.
Design/methodology/approach
The techniques of dynamic ordinary least squares and fully modified ordinary least squares are used in this investigation, covering the period 1990–2022. A panel of 43 Sub-Saharan African countries is used in the study.
Findings
The estimation results reveal that external debt vulnerability impacted negatively on economic growth, thus validating the concerns raised about the debt problem in Sub-Saharan Africa. Furthermore, the results revealed that domestic credit and openness of economy played a passive role and were therefore unable to cushion the adverse effect of debt vulnerability. Capital stock, however, stands out as the only variable that played a significant positive role in facilitating economic growth. The results are considered to be highly reliable for short-term forecast of economic growth and formulation of relevant policies.
Originality/value
Over the years, economic analysts and stakeholders have expressed concern about the inadequate ratio of foreign reserves to external debt in developing countries. The effect of this external debt vulnerability on the economy of these countries has yet to be given sufficient attention by researchers. In view of this perceived void, this current study is carried out to determine the economic and policy consequences of the problem.
Details
Keywords
John Kwaku Amoh, Abdallah Abdul-Mumuni and Richard Amankwa Fosu
While some countries have used debt to drive economic growth, the asymmetric effect on sub-Saharan African (SSA) countries has received little attention in the empirical…
Abstract
Purpose
While some countries have used debt to drive economic growth, the asymmetric effect on sub-Saharan African (SSA) countries has received little attention in the empirical literature. This paper therefore examines the asymmetric effect of external debts on economic growth.
Design/methodology/approach
The panel nonlinear autoregressive distributed lag (NARDL) approach was employed in the study for 29 sub-Saharan African countries from 1990 to 2021. The cross-sectional dependence test was used to determine the presence of cross-sectional dependence, while the second-generation panel unit root tests was used to examine the unit-root properties.
Findings
The empirical results show that external debt has an asymmetric effect on economic growth in both the short and long run. In the long run, a positive shock in external debts of 1% triggers an upturn in economic growth by 0.216% while a negative shock triggers 0.354% decline in economic growth. This implies that the negative shock of external debts has a much stronger impact on economic growth than the positive shock. In the short run, a positive shock in external debts by 1% triggers a decline in economic growth by 0.641%, while a negative shock of 1% triggers a fall in economic growth of 0.170%.
Originality/value
The paper used the NARDL model to examine the asymmetric impact of external debt on the economic growth of SSA countries, which has not been extensively studied. It is recommended that governments in the selected countries in sub-Saharan Africa should drive economic growth by promoting domestic revenue mobilization since external debts impede economic growth.
Details
Keywords
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.
Details
Keywords
Olumide Olaoye, Segun Thompson Bolarinwa and Muhammad Yaseen
The paper contributes to the literature on investment and poverty in sub-Saharan Africa (SSA). Specifically, the study examined the separate role of private and public investment…
Abstract
Purpose
The paper contributes to the literature on investment and poverty in sub-Saharan Africa (SSA). Specifically, the study examined the separate role of private and public investment in poverty reduction in a panel of 40 sub-Saharan African countries.
Design/methodology/approach
For robustness, the study adopts a variety of estimation techniques. These include the fixed effect (within) regression model, the two-step system generalised method of moments (GMM) and the pooled OLS with Driscoll-Kraay robust standard errors to account for the well-known problems of endogeneity, heterogeneity and cross-sectional dependence inherent in panel data.
Findings
The empirical results show that the reducing impact of public investment on poverty is marginal, while private investment has a significant reducing impact on poverty. The study also found that access to social services, such as water and sanitation, and credit are important determinants of investment in SSA. The research and policy implications are discussed.
Originality/value
The study investigated the separate effect of private and public investments on poverty in SSA, unlike the existing studies that adopted total investment.
Details
Keywords
Aysa Siddika and Abdullah Sarwar
This study aims to investigate the factors contributing to the low adoption rate of mobile money services (MMS) in the Middle East and North Africa (MENA) region compared to other…
Abstract
Purpose
This study aims to investigate the factors contributing to the low adoption rate of mobile money services (MMS) in the Middle East and North Africa (MENA) region compared to other regions. The study focussed on socio-demographic factors and macro-level determinants in several selected MENA and Sub-Saharan African (SSA) regions where MMS have been successful.
Design/methodology/approach
This study analysed 23 countries across MENA and SSA to establish the correlation between socio and macroeconomic factors and MMS adoption using a quantitative approach. The analysis used the generalized least square (GLS) method.
Findings
The study revealed that gender and income are factors that positively influence the adoption of MMS in MENA and SSA regions. Additionally, the study found that the affordability index, which measures macroeconomic indicators, correlates with MMS adoption in both regions but in an inversed way. On the other hand, political stability appears to have a positive correlation with MMS adoption in the MENA region. The correlation between the regulatory index and MMS adoption positively impacts the entire study group, although it is insignificant in the SSA region.
Research limitations/implications
Future studies should assess market competition among MMS providers and the psychological aspect of user adoption behaviour. Additionally, conducting a focus group discussion with stakeholders in the MMS industry can assist in uncovering potential factors contributing to low MMS adoption in the MENA region.
Originality/value
This study contributes to understanding the role of the socio-demographic and macroeconomic determinants in promoting digital transformation through adopting MMS.
Details
Keywords
Guilherme de Araujo Grigoli, Maurilio Ferreira Da Silva Júnior and Diego Pereira Pedra
This study aims to identify the main challenges to achieving humanitarian logistics in the context of United Nations peace missions in sub-Saharan Africa and to present…
Abstract
Purpose
This study aims to identify the main challenges to achieving humanitarian logistics in the context of United Nations peace missions in sub-Saharan Africa and to present suggestions for overcoming the logistical gaps encountered.
Design/methodology/approach
The methodological approach of the work focuses on the comparative case study of the United Nations Mission in South Sudan, the United Nations Multidimensional Integrated Stabilisation Mission in the Central African Republic and The United Nations Organisation Stabilisation Mission in the Democratic Republic of Congo from 2014 to 2021. The approach combined a systematic literature review with the authors’ empirical experience as participant observers in each mission, combining theory and practice.
Findings
As a result, six common challenges were identified for carrying out humanitarian logistics in the three peace missions. Each challenge revealed a logistical gap for which an appropriate solution was suggested based on the best practices found in the case study of each mission.
Research limitations/implications
This paper presents limitations when addressing the logistical analysis based on only three countries under the UN mission as a case study, as well as conceiving that certain flaws in the system, in the observed period, are already in the process of correction with the adoption of the 2016–2021 strategy by the UN Global Logistic Cluster. The authors suggest that further studies can be carried out by expanding the number of cases or using countries where other bodies (AU, NATO or EU) work.
Originality/value
To the best of the authors’ knowledge, this study is the first comparative case study of humanitarian logistics on the three principal missions of the UN conducted by academics and practitioners.
Details