AfricaGrowth Agenda - latest Issue
Source: AfricaGrowth Agenda 2017, pp 3 –3 (2017)More Less
In the first paper, Asongu surveys recent empirical studies on inclusive development published between 2016 and 2017 on inequality adjusted human development index (IHDI). The review establishes relationships between IHDI and foreign aid, globalisation, information and communication technology, business dynamics and knowledge economy, software piracy, finance, health worker migration and the feasibility of common cross-country policies aimed at improving the IHDI.
Author Simplice A. AsonguSource: AfricaGrowth Agenda 2017, pp 4 –7 (2017)More Less
The survey puts some structure on recent empirical studies from the African Governance and Development institute (AGDI) on inclusive development published between 2016 and 2017 for the most part. The emphasis is exclusively on the inequality adjusted human development index (IHDI) because of the sparse scholarly literature on the indicator which was first published in 2010. The review provides relationships between the IHDI and inter alia: foreign aid, globalisation, information and communication technology, business dynamics and knowledge economy, software piracy, finance, health worker migration and the feasibility of common cross-country policies aimed at improving the IHDI. The survey is of policy relevance because inclusive human development is fundamental to Africa’s growth agenda in the post-2015 sustainable development era.
Non-bank financial institutions and the attainment of sustainable development goals : could this be the trump card for Africa?Source: AfricaGrowth Agenda 2017, pp 8 –13 (2017)More Less
In this article, the authors use the Johansen cointegration and vector error correction models within a country-specifi c setting to assess the potential of non-bank financial institutions (NBFIs) to contribute to the attainment the Sustainable Development Goals (SGDs). Th is is done by empirically testing the existence of a long-run equilibrium relationship between economic growth and the development and NBFIs, and the causality thereof. The empirical assessment uses time-series data from Africa’s three largest economies, namely Egypt, Nigeria and South Africa over the period 1971-2013. The results show that the long-run relationship between NBFI development and economic growth is relatively stronger in Egypt and South Africa, than in Nigeria. The nature of the relationship between NBFI development and economic growth in Egypt is positive and signifi cant, and predominantly bi-directional. Th is suggests that a virtuous relationship between NBFIs and economic growth exists in Egypt. For South Africa, though relatively weak compared to Egypt, the relationship is positive and signifi cant, suggesting the potential existence of virtuous relationship between the development of NBFIs and economic growth. For Nigeria, results are weak and mixed. Ultimately, the study concludes that in countries with more developed fi nancial systems, the role of NBFIs and their importance to economic growth are more pronounced, implying that there is hope for relying on NBFIs to achieve sustainable development goals.
Source: AfricaGrowth Agenda 2017, pp 14 –17 (2017)More Less
This study investigates the extent to which urban diversity and/or dispersion affect business sentiment and confidence. A multi-year multiregion-based business confidence survey of KwaZulu-Natal was annually conducted by the authors. The average responses to the questions designed to measure business sentiment and confidence at a particular urban centre are very similar over the period, irrespective of the urban centre. Some minor differences do, however exist, suggesting that spatial diversity and/or dispersion do matter marginally at urban level, and urban differences should also be considered by businesses and manufacturing when planning for the future.
Source: AfricaGrowth Agenda 2017, pp 18 –22 (2017)More Less
Using nationally representative data from nine African countries, we document sectoral employment trends and consider the evolving role of agriculture in Africa’s economic transformation process. We highlight three key findings: a general decline in farming’s share of employment over the past decade; a strong relationship between lagged farm productivity growth and the speed at which the share of the labor force in farming declines; and the moderate potential for agro-processing or other stages of the food system to absorb youth into gainful employment in the coming years. While agro-processing is growing rapidly in percentage terms, its share of overall employment is quite low and hence will not generate nearly as many new jobs as farming. For these reasons, strategies that effectively raise the returns to labor in farming will be critical to fostering successful economic transformation.