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Factors Impacting Emerging African Nations

Paper Session

Sunday, Jan. 5, 2020 1:00 PM - 3:00 PM (PDT)

Marriott Marquis, Mission Hills
Hosted By: National Economic Association
  • Chair: Juliet Elu, Morehouse College

A Dynamic Path to Infrastructural Development in Africa: The Role of Economic Integration

Oladele Omosegbon
,
Indiana Wesleyan University and Indiana University-Purdue University Indianapolis

Abstract

At all times and for all places, infrastructural development is seen as critical to economic growth and development. Lack of adequate and functional infrastructural base has been the bane of Africa moving forward to become an industrial society. Still, the continent continues to search for paths to sustained growth and development. In fact, and as evidence, it is all but certain now that, through the African Union and the Regional Economic Communities, RECs, Africa is moving, inexorably, towards economic integration. The recently launched African Continental Free Trade Agreement, AfCFTA, is well and alive. This is a major plank in the drive to achieving economic integration. We follow the plan of the African Union and the RECs to institute a common currency. We propose a dynamic model of economic adjustment. Infrastructure development is then seen as one essential conduit for the realization of the benefits of economic union. Implications of the dynamic shocks from the AfCFTA are then examined for infrastructural development under a monetary and economic union. Results show that infrastructural development is endogenous to a continental economic union in Africa.

JEL: F15; E17; C300

The Effects of Recent Violent Conflict Exposure on Labor Supply of Agricultural Households in Nigeria

John Chiwuzulum Odozi
,
University of Ibadan
Ruth Uwaifo Oyelere
,
Agnes Scott College and IZA

Abstract

Past research has provided evidence of the labor market impacts of both covariate and idiosyncratic shocks in several developing countries. In Nigeria recent literature has focused on the effects of weather and volatility in commodity prices on select economic and labor market outcomes for agricultural households but the effect of conflict related shocks on labor market outcomes is largely unexplored. In this paper we attempt to bridge this gap in the existing literature. Certain parts of Nigeria have experienced bouts of violent conflict over the last decade leading to significant loss of life. We explore the potential effects of such violent conflict on labor supply of agricultural households in Nigeria. Using household survey panel data for Nigeria in combination with conflict data, we analyze the effect of violent conflict exposure on the extensive and intensive margins of individual and household labor supply. Our results suggest that exposure to conflict increased labor supply at the extensive margin for women while at the intensive margin, conflict exposure reduced weekly and monthly labor supply for both men and women with a greater impact on women.

Development Funding in Africa: The Case of West Africa

Juliet Elu
,
Morehouse College
Miesha J. Williams
,
Morehouse College

Abstract

According to African Development Bank, the top 5 sources of development funding in West Africa are granted by African Development Fund, African Development Bank, Fragile States Facility, Nigerian Trust Fund and Global Agriculture and Food Security Program. Using procurement data from African Development Bank from 2008-2018, the following study will analyze the annual reward volumes of these sources of funding to see which types of funding are the most common and who tend to receive funding more frequently a growth framework will be modeled to determine the regional impact each type of investment has on regional development. This will potentially inform policy makers on the optimum development strategy that will promote growth and sustainable development in the region.

Financing Electricity and Transportation Infrastructure in Selected Sub-Saharan African Countries

J. O. Saka
,
Lagos State University-Nigeria
Douglason G. Omotor
,
West African Institute For Financial and Economic Management

Abstract

Emerging economies, notably those of sub-Saharan Africa (SSA), are characterized by megatrends of increasing population, growth and urbanization. This necessitates the urgent need for infrastructure planning and development as well as alternative sources of financing. Gaining concrete access to community infrastructures such as electricity, telecommunication, transportation, education and health care facilities absolutely affect people’s welfare and their potential contributions in facilitating growth and development (Srinivasu & Rao, 2013). While investing in infrastructure remains key to national development, the quality, quantity and accessibility are comparatively low in low-income developing countries. It is therefore not surprising why infrastructure development is a major pillar in the 2030 Agenda for Sustainable Development even though interests in this area is not new (see Rosenstein-Rodan, 1943; Gurara, 2017). While it has been estimated back in 2008, that over $250 billion investment would be needed till 2023 (translating to about $16.67 billion annually) to ramp up transport infrastructure alone in Africa, the annual investment appears a daunting challenge and this calls for examining alternative sources of financing infrastructure. The major objective of the research is to empirically determine the extent electricity and transportation provision can be efficiently financed.

Economic Development and Challenges in Sub- Saharan Africa

Emmanuel Obi
,
Morehouse College

Abstract

Development is critical and essential to the sustenance growth of any nation. A country is classified as developed when it can provide quantifiable life for her citizens. Sub-Saharan African countries mostly have been battling with the problems of development despite an abundance of natural resources in their possessions and huge population size which should translate as an unlimited labor supply. This paper addresses issues of development in the region as well as strategies for achieving sustainable development. In sub-Saharan Africa there is great concern that extreme poverty is increasing, albeit in most parts of the region economic growth has been recorded over the past years. There is debate about whether the focus should be on people or rather to resurrect struggling locales with various speculative endeavors. It is without a doubt that development requires a higher gross national income (GNI), but the basic issue is how to sustain development while generating growth in GNI. The social constraining factor identified in the paper is population growth, rent seeking as proxied by corruption index, and economic factors such as electricity supply and roads. Based on this diagnosis the paper outlines a number of policy priorities for the region, and a crucial role for the government to provide the required support. Also, this requires substantial investments by governments in electricity supply, roads and collaboration with private sectors to reduce youth unemployment and income inequality.

Governance, Growth and Development in Sub-Sahara Africa: A Revisit of the Evidence

Akpan H. Ekpo
,
University of Uyo-Nigeria and Foundation for Economic Research and Training (FERT)

Abstract

Sub-Sahara African (SSA) countries remain underdeveloped despite enormous human, material and natural resources. In the last two decades, the growth rates in most of the countries have fluctuated between 4-6 per cent annually. In some of the countries the celebrated growth rates have been far less than the growth in population. In recent times, unemployment especially among the youths have been quite high averaging about 40 per cent. Other macroeconomic fundamentals such as the lending rates, inflation, debt/GDP etc. have been moving in the wrong direction. The provision of social services such as health delivery, education, running water and housing remain a challenge. The continent is characterized by huge infrastructural deficit, both hard and soft. Some scholars have argued that Africa is rising pointing to impressive growth rates in some countries but forgetting that growth is not development. Other scholars have attributed the unsatisfactory economic performance to governance challenge. In other words, the leadership and followership style of most SSA countries have not favored sustained growth and economic development for several reasons, namely poor quality of government intervention in the economy, bad leadership, lack of transparency and accountability as well as corruption, among others. This paper, using paneDel data regression approach examines the relationship between governance, growth and development in selected SSA countries. The quality of leadership, voice and accountability, democratic norms and corruption are investigated vis-a-vis growth and development nexus. It is expected that the discussion in the paper would elicit policy recommendations which would enhance the quality of governance in SSA.
Discussant(s)
John Ned
,
Loyola University Maryland
Cruz Bueno
,
State University of New York-New Paltz
Jamein Cunningham
,
University of Memphis
Linda Loubert
,
Morgan State University
Jan Christopher
,
Delaware State University
JEL Classifications
  • O1 - Economic Development
  • O2 - Development Planning and Policy