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evidence from seven west African countries

evidence from seven west African countries

GDP per capita PPP is my dependent variable. I used GDP per capita PPP to identify the real impact of energy on the real purchasing power of people. And I used constant 2011 to facilitate a comparison over time of the purchasing power by using fixed prices of 2011. We use annual electricity use per capita measured as kg of oil equivalent as my variable of interest. We decide to use electricity instead of TPES because electricity has more productive uses than other forms of energy. As control variables we used labor force participation rate (% of total population aged 15+, modeled ILO estimate), gross fixed capital formation current 2010 $US. We included labor and capital inasmuch as they are used by many other researchers in energy economics and have always been part of the classical production function. We also added trade as % of GDP, FDI (foreign direct investment net inflow % of GDP). I chose Trade and FDI because they are also important in the global economy of a country, especially FDI in the case of sub-Sahara African countries. All the above listed variables are from World Bank. We also used as control variable human capital from the Penn World table and public sector corruption to represent the state of institutions. This last variable is from Variety of Democracies.
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Military expenditure and economic growth : evidence from a heterogeneous panel of African countries

Military expenditure and economic growth : evidence from a heterogeneous panel of African countries

This study investigates the causal relationship between military expenditure and economic growth by using a balanced panel of 35 African countries spanning 1990 to 2015. It uses the more recently developed bivariate heterogeneous panel causality, GMM and SGMM estimation techniques. The country-by-country causal- ity results reveal:(i) no causal relationship between military expenditure and growth in seven countries; (ii) unidirectional causality from military expenditure to growth in two countries; (iii) unidirectional relationship from growth to military expenditure in fourteen countries; and (iv) bidirectional relationship in twelve countries. These findings imply: (i) that the seven African coun- tries with no causality can pursue defence policy objectives inde- pendently from growth policy objectives; (ii) in the fourteen countries, the fact that growth causes military expenditure and not vice versa implies that, defence decisions are not made in a way as to relatively promote growth; (iii) two African countries effectively use military expenditure for growth aims, hence mili- tary expenditure causes growth; and (iv) the bidirectional causality in the 12 countries implies that both growth and defence policy objectives can be pursued together. The GMMs results show that military expenditure has a significant negative impact on growth in Africa.
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Is the Informal Sector Constrained from the Demand Side? Evidence for Six West African Capitals

Is the Informal Sector Constrained from the Demand Side? Evidence for Six West African Capitals

Our OLS estimates at the sectoral level displayed in Table 7 are in line with the findings of prior studies for East Africa (Massel and Heyer 1969, Ostby and Gulilat 1969, Humphrey and Oxley 1976, Okunade 1985, Teklu 1996) and for other developing coumtries such as India and China (e.g. Tiwari and Goel 2002, Chern and Wang 1994). In particular, we find Food and Non-alcoholic Beverages as well as Alcoholic Beverages and Tobacco to be inferior goods as suggested by Engel’s law. An increase of one percent in disposable income would on average lead to an increase of expenditure on food and non-alcoholic beverages of 0.77% in the six countries. 8 Clothing and Shoes, Furniture, Health and Education, Transport and Communication as well as Leisure and Culture turn out to be luxury goods in all countries under consideration. The low demand elasticities for hotels and restaurants may appear somewhat surprising, but the previous literature is inconclusive as to whether recreation constitutes an inferior or superior good.
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Drivers of rice production: evidence from five Sub-Saharan African countries

Drivers of rice production: evidence from five Sub-Saharan African countries

ply resulting in increasing imports [7–9]. The share of imports in African rice consumption has grown by 2 % per year over the past 50 years and reached 43 % in 2009 [10]. Indeed, almost one-third of the rice traded on the world market in 2011, or 11.8 million tons, was imported by Afri- can countries, compared to 0.5 million tons in 1961. Coun- tries with international ports and populous cities, such as many West African countries, tend to be particularly large importers [10]. A recent estimate suggests that rice imports cost Africa more than US $4.3 billion annually [11]. The serious economic and social strains caused by the depend- ence on rice imports have urged national leaders, supported by international development partners, to address produc- tion deficits by strengthening the domestic rice sector [6, 12]. Expected positive effects, apart from improvement in balance of payments, include enhanced food security and reduced poverty among both producers and consumers. 3
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The Energy Consumption-Growth Nexus in Seven Sub-Saharan African Countries

The Energy Consumption-Growth Nexus in Seven Sub-Saharan African Countries

Production and many consumption activities involve energy as an essential factor input in modern economies. It appears to be the key source of economic growth, industrializa- tion and urbanization. Conversely, these latter variables may induce use of more energy, particularly commercial energy. Over the past few years, the relationship between energy consumption and economic growth has been extensively investigated. However, there seems to be no consensus about the relationship and the direction of causality between energy usage and economic development. Moreover, four hypotheses have been formulated to explain the direction of causality between energy consumption and real gross domestic product: growth, conservation, feedback, and neutrality hypotheses (Apergis and Payne 2009a, 2009b). The growth hypothesis implies that energy consumption contributes directly to economic growth within the production process as a direct input. Unidirectional Granger-causality from en- ergy consumption to real GDP is consistent with the growth hypothesis; energy conservation policies could possibly reduce real GDP. The conservation hypothesis asserts that energy conservation policies designed to reduce energy consumption and waste may not have an adverse impact on real GDP. Granger-causality running from real GDP to energy consump- tion con…rms the conservation hypothesis. The feedback hypothesis suggests that energy consumption and real GDP are interrelated and may serve as complements to each other. Hence, the existence of bidirectional Granger-causality between energy consumption and real GDP would substantiate the feedback hypothesis. Finally, the neutrality hypothesis consid- ers energy consumption a relatively minor component of overall output and thus may have little or no impact on real GDP. In such cases, energy conservation policies may not adversely impact real GDP. The absence of Granger-causality between energy consumption and real GDP is evidence in favor of the neutrality hypothesis. As pointed out by recent studies, for instance Ferguson et al. (2000), Toman and Jemelkova (2003), Arbex and Perobelli (2010), the absence of any clear consensus on the relationship between energy consumption and growth can be attributed to the heterogeneity in climate conditions, varying energy con- sumption patterns, the structure and stages of economic development within a country, the alternative econometric methodologies employed, the presence of omitted variable bias along with varying time horizons of the studies conducted.
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Willingness to pay for rural health insurance: Evidence from three African countries

Willingness to pay for rural health insurance: Evidence from three African countries

Gabu region is in the north west of the country and has an estimated population of 129,159. With the exception of the inhabitants of the regional capital, Gabu, the population consists of traditional rural farmers living in many small, isolated villages (tabancas) and hamlets. In 1989 the average number of inhabitants in a village was estimated to be 185. Many of the villages could only be reached using dirt tracks and/or foot paths. The major ethnic groups in the study villages were Fula and Mandinga. Ninety nine percent of the households surveyed were Moslems. The average residential compound in the rural area had several units occupied by co-wives and their children. Government health facilities in Gabu consisted of USBs (125), health centres (Centros de Saude) (15) and sectoral hospitals (5). Private health facilities were not available. The USBs provided preventive services (screening for tuberculosis and leprosy, immunizations, and growth monitoring); antenatal care and deliveries; and basic curative care, including oral rehydration and treatment of uncomplicated malaria. Sixty percent of villages in the region have USBs and in most cases they are open for a few hours each morning. Emergency care was obtainable at any time by calling at the home of a health worker or birth attendant. Referrals from the USBs were made either to a Centro de Saude or a sectoral hospital (these facilities have qualified, paid staff and provide more comprehensive curative care, preventive outreach services and supervision of the USBs).
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Capacity Utilization and Unemployment in Selected West African Countries

Capacity Utilization and Unemployment in Selected West African Countries

We started with a maximal lag length of five for all countries. The optimal empirical lag length can be found in Table 2 of Appendix. In cases where the results of the information criteria were contradictory, we decided on the longer lag length provided by the Akaike information criterion to avoid misspecifica- tion, particularly serial correlation Stock [12] as reported in Table 1. The UVAR was tested for misspecification and we found that for all countries, except for Senegal, where we were not able to capture violations of normality in all equa- tions, the test results were satisfactory. The violation of the normality assump- tion may affect the cointegration tests. There is evidence, that the trace test is in this case the preferred statistic. As we will see below, both tests suggest two cointegrating vectors for Senegal.
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Economic Growth and Income Inequality: Empirical Evidence from North African Countries

Economic Growth and Income Inequality: Empirical Evidence from North African Countries

Smith (2001), examined empirically two hypotheses – subsistence consumption and credit market imperfections – of specific channels of inequality to affect private saving rates, he found that there is econometric evidence that especially at low per capita income levels, income inequality may be associated with higher aggregate saving. Garbis (2005) examines the empirical relationship between inequality and growth, and analyzes the impacts of growth, inequality, and government spending on poverty reduction. A panel dataset for 82 countries for the period 1965–2003 has been assembled with the data averaged over periods of three to seven years, depending on the availability of inequality and poverty data. The empirical results challenge the belief that income inequality has a negative effect on growth and confirm the validity of the Kuznets curve. Credit market imperfections in low and medium-income countries are identified as the likely reason for the positive link between inequality and growth over the short to medium term. In the long term, inequality may have an adverse impact on growth.
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On The Trade Off Between Welfare and Peace: Evidence from West African Countries Using a Quantile Regression

On The Trade Off Between Welfare and Peace: Evidence from West African Countries Using a Quantile Regression

The distinction between economic growth and economic development has led researchers to rethink the role of aid in the economy. Gomanee al. (2005) have examined the same efficiency of government spending of aid, by focusing on welfare. Applying a quantile regression on developing countries, Gomanee al. (2005) have found that aid is effective in boosting welfare (aid better-off human development index and reduces infant mortality), through its impact on government spending. For the countries below the median of the distribution of human development index or above that of infant mortality, the impact appears stronger. This finding opposes Boone’s (1996) results, who did not find any significant capacity of aid in reducing infant mortality. For Morrissey et al. (2005), the spurious result in the previous study comes from the fact that aid should not be analyzed as a direct indicator likely to affect welfare, rather, as an intermediate factor. In other words, aid affects government spending, first, which in turn influences social spending. Social spending becomes then the factor that affects directly welfare.
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Macroeconomic convergence in the West African monetary zone: Evidence from rank tests

Macroeconomic convergence in the West African monetary zone: Evidence from rank tests

It is against these backgrounds that this study was carried out. This study therefore aims at investigating whether two macroeconomic indicators; inflation (which is proxied by the consumer price index (CPI)) and nominal exchange rates of these countries against the US dollar are converging. If these macroeconomic indicators are converging, then we can be assured that the pledge of implementation date by the year 2020 as given by the governments of these six countries is feasible if these governments will give in the needed attention going forward.
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From the fuel versus food controversy to the institutional vacuum in biofuel policies: evidence from West African countries

From the fuel versus food controversy to the institutional vacuum in biofuel policies: evidence from West African countries

Agency (ABC) and the Brazilian Development Bank (BNDES) for many studies and assessments of the feasi- bility of biofuel sectors in numerous UEMOA countries (see above). Cooperation also can take the form of tech- nology transfers such as Taiwan’s funding of Jatropha seed crushing and processing equipment for three promoters 21 in Burkina Faso in 2012 (through the Inter- national Cooperation and Development Fund). Another means of action was to facilitate the installation of mul- tinationals in these countries through public cooperation agencies which negotiate with national authorities. This was the case in Benin, where the Chinese state enter- prise Complant (China National Complete Plant Import & Export Corporation) acquired the sugar company Savé and supported the installation of the multinational com- pany, Zheng Da Investments Limited, which hopes to obtain land to produce cassava-based bioethanol. Cooperation agencies also can become involved by dir- ectly providing loans to finance the industrial investment plans of private actors. This was the case, for example, of the French Development Agency (AFD), which awarded a loan to an industrial actor in Mali (Jatropha Mali initiative) in 2011. The German (GIZ, formerly GTZ) and Dutch (SNV) cooperation agencies also con- tributed to developing the sector by funding local efforts to produce oil for socio-economic activities and decen- tralized rural electrification (DRE) units. We should note that the German cooperation agency was the first to fund renewable energy and biofuel (PPO) development projects in Mali and Burkina Faso in the 1980s [8].
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Land Area Measurement bias: Evidence from West African countries

Land Area Measurement bias: Evidence from West African countries

In Nigeria, like Mali, there is a huge difference between plot size distributions from the two methods. In the overall sample, the average plot size reported by farmers (1.29 ha) is three times the one measured using GPS (0.47 ha). It seems that farmers, in Nigeria, overestimate largely their plot sizes. Results are the same at the regional level where the average self-reported plot size is always greater than GPS- measured plot size. In addition, Farmers’ estimation is more volatile (4.81 ha as standard deviation) than GPS measurement (0.78 ha as standard deviation). Concerning the observed gap between both measures, Table 14 depicts its distribution at the national level and across zones in Nigeria.
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Financial Development and Income Inequality: Evidence from African Countries in the Franc Zone

Financial Development and Income Inequality: Evidence from African Countries in the Franc Zone

DOI: 10.4236/me.2019.101009 134 Modern Economy income inequalities in African countries of the Franc zone during the period from 2000 to 2014. Recent theoretical studies have showed through different methodological approaches that financial development plays a primordial role in the reduction of income inequalities either by credit to the private sector or by an increase in the monetary mass. This article however investigates from a dif- ferent dimension of financial development that integrates geographical aspects of the development of the financial system namely, the density of the banking network or the rate of penetration of bank branches in the economic territory. Using the method of generalised moments in system our results suggest that the effects of financial development on income inequality are statistically significant and of real important economic contributions. The geographical increase in the number of bank tellers increases the average efficiency per teller and improves access of economic agents to financial services at a lower cost and leads to the development of new activities that create income for poor households. Equally, financial development increases the rate of monetisation of the economy and enables a better supply of bank credit to households and entrepreneurs. This of- fers better possibilities of raising income to economic agents with low income and reduces the income gap between the rich and the poor.
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Does Foreign Aid Promote Trade? Evidence from Some Selected African Countries

Does Foreign Aid Promote Trade? Evidence from Some Selected African Countries

first expression on the right hand side ( ≤ 0 ) represents foreign aid potentially lowering the cost of labor. They potentially lower cost of capital from aid is represented as ≤ 0 . The potential reduction in transport costs is shown as ≤ 0 . The possible rise in rent seeking costs is the last term on the right hand side which is ≥ 0 . Therefore, the overall impact of foreign aid is combining three potential cost reduction factors (w, v, and t) with one potential cost increase (r). Whether or not the overall sign of is greater or less than zero will depend to a large extent on the quality of a country’s institutions and on how the foreign aid is directed. If aid is directed towards more productive uses that lower firm' labor, capital and/or transport costs then this will help turn the prediction towards lower marginal costs. If marginal costs of production fall for firms as a result of foreign aid then output in the sector will increase. In other words, if < 0 then > 0 . We do not use the gravity trade model because aid is typically between the rich and least developed nations however we use a partial log equation to depict the effect that aid can have on trade in developing countries. Therefore our model asserts that exports will depend on a set of exogenous variables , and aid. Our set of exogenous
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Are Investment and Saving Cointegrated Evidence From Middle East and North African Countries

Are Investment and Saving Cointegrated Evidence From Middle East and North African Countries

In the late of the nineties, the MENA region has started to benefit from the positive consequences of the SAPs and reforms. In fact, several MENA countries have seen their role in the global economy as investors and trade partners improved and they become a major player in the global capital markets with their powerful sovereign funds and exchange reserves. This performance has lead to massive job creation and a global dynamism of the labor market. The MENA region's geographic position and its abundant natural resources have given it enormous strategic importance. As a result, the region as a whole became a center for investment and doing business as well as a hub of foreign direct investment (FDI). According to United Nations Conference on Trade and Development ( UNICTAD, 2010), the FDI flows into all MENA countries have increased from an annual average of US $ 3.6 billion during the 1980s and US $ 3.7 billion during the 1990s to US $ 79.5 billion in 2007 and US $ 94.9 billion in 2008. Investment in the region increased considerably and the overall economic growth of the region became based to some extent on the level of investment activities. The optimism about the MENA economy has been on an ascent in recent years. This has led to a resurgence of interest in the dynamic linkages among saving and investment as key determinants for economic growth in the region.
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Inflation persistence and asymmetries: evidence for African countries

Inflation persistence and asymmetries: evidence for African countries

In this paper we aim at testing the inflation persistence hypothesis as well as modelling (using logistic smooth transition autoregressive, LSTAR, models) the long run behaviour of infla[r]

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Foreign Direct Investment and Economic Development: Evidence from Selected African Countries

Foreign Direct Investment and Economic Development: Evidence from Selected African Countries

However, it was found that the average stance in dependent assertions rises with earnings, it is negative for least developed economies and positive for developed economies. The overall stance in uncertain investments also rises alongside networth. Country 1’s debt and foreign risky asset positions is negative and quite large therefore, several countries that are financially advanced amasses a tangible negative NFA, selects a more uncertain portfolio, and encounters a decline in the risk-free rate comparative to the state of economic independence as a national policy. This result was reported, in the study of Mendoza, Quadrini and Ri’os-Rull (2009). The aim of the study was to ascertain the cause of persistent global imbalance, resulting from financial integration. The quantitative dynamic general equilibrium model was adopted, with calibration methods, symmetric transition probability matrix, correlation, sensitivity analysis; and panel data was used. However, the adopted method of analysis is not clearly seen, or outlined in the work. Also, a better method of analysis can be used to obtain a more accurate result. There also is a limitation in the two country equilibrium model, regarding business cycles and financial integration. A wider range model needs to be adopted in the face of a globalised world economy.
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The Growth Effects of Openness to Trade and the Role of Institutions: New Evidence from African Countries

The Growth Effects of Openness to Trade and the Role of Institutions: New Evidence from African Countries

African countries have implemented a series of economic reforms, including trade liberalization, with the aim of boosting economic growth. The theoretical motivation for these reforms is that trade liberalization is expected to increase trade, which in turn raises the rate of economic growth. However, the empirical evidence from the large and growing literature on trade and growth remains mixed (Edwards 1998; Rodriguez and Rodrik 2001; Baliamoune 2002; Yanikaya 2003). Some studies suggest that trade liberalization is not associated with growth while others conclude that trade openness may even retard growth. For example, while Sachs and Warner (1997) argue that trade openness increases the speed of convergence, the evidence from the study by Baliamoune (2002) suggests that increased openness to trade has led to income divergence rather than convergence in African countries. In fact, Rodrik (2001) argues that, regarding trade openness and growth, “the only systematic relationship is that countries dismantle trade restrictions as they get richer.”
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Health care seeking for Childhood Diarrhea in Developing Countries: Evidence from Seven Sites in Africa and Asia

Health care seeking for Childhood Diarrhea in Developing Countries: Evidence from Seven Sites in Africa and Asia

Study population. A baseline comprehensive HUAS was conducted at each site in 2007 before initiating the case-control study followed by a series of abbreviated surveys (designated HUAS-lite) that accompanied each DSS round during the second and third years of the case-control study from January 2009 to March 2011. For each survey, a sample of children, stratified by age (0 –11, 12–23, and 24–59 months), was ran- domly selected from the most updated DSS database at each site, with the exception of Kenya, where all children 0– 59 months of age belonging to the DSS were included in each HUAS-lite round. If the caretaker was not available, three attempts were made on different days to complete the inter- view. Children ages > 59 months as well as those children who could not be identified or were no longer living in the DSS area were considered ineligible to participate. If the inter- viewer found that a child fell outside of his/her expected age stratum but nonetheless remained £ 59 months of age, the survey was completed, and the child was assigned to the cor- rect age stratum. The final age determination was calculated at analysis using interview date and birth date. Birth date was determined by examination of the child’s birth certifi- cate or vaccination card. If these documents were not avail- able, then the caretaker was queried using a calendar of important community events that was designed for each site. Interview. The HUAS clinical protocol, consent forms, case report forms, and other supporting documents were approved before initiation of the study by The Institutional Review Board (IRB) of the University of Maryland, Baltimore, MD, and the committees overseeing each site and their collaborating partners from other institutions. The HUAS-lite was performed as part of the DSS at each site and did not undergo separate ethical review.
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Evidence of Henipavirus Infection in West African Fruit Bats

Evidence of Henipavirus Infection in West African Fruit Bats

other. Bats were captured either using 6–18 m mist nets or, for roosting E. helvum, using nets on poles. Up to 1% of body weight of blood was taken from the propatagial vein prior to release. A total of 206 bats of six species were caught, sampled and tested (Table 1). Two species, Epomophorus gambianus (n = 89) and E. helvum (n = 59), were tested in sufficient numbers for reasonable inferences to be made about seroprevalence rates: 59 being the sample size required to have 95% confidence of finding at least one seropositive in a large population given a 5% seroprevalence, assuming random sampling [16]. Ninety five per cent confidence intervals for seroprevalences were calculated using a standard approach [16]. All but three E. helvum samples were derived from the colony in central Accra, whereas E. gambianus was sampled across all habitats. We assumed the sampled E. gambianus and E. helvum were from single metapopulations.
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