Hidden Inequalities and Preparedness Interventions from Gender, Labor and Environmental Perspectives
Paper Session
Sunday, Jan. 7, 2024 8:00 AM - 10:00 AM (CST)
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Chairs:
Juliet Elu, Morehouse College - Fafanyo Asiseh, North Carolina A&T State University
Interrogating the Inflation-Corruption Nexus for Developing Countries: The Case of Ghana - Stephen Armah
Abstract
This paper examined the corruption-inflation nexus for Ghana using the Bounds Test for cointegration and the Non-Linear Autoregressive Distributed Lag (NARDL) Model. Results confirm cointegration in the presence of asymmetry depending on the time horizon. The analysis revealed that although there is an asymmetry in the magnitude response of inflation to corruption in the long run, the same cannot be confirmed for the short run. In the long run, when lagged inflation increases by a unit, corruption increases by 0.028. When the lag of inflation decreases by a unit, corruption falls by 0.021. The Wald test confirms the difference is significant. In comparison, the exchange rate has no asymmetric relationship with corruption in the long run. Further, asymmetry cannot be confirmed in the short run for both inflation and the exchange rate. Even though the NARDL does accommodate simultaneity bias, VAR was estimated and compared to the (N) ARDL results because of the possible simultaneity bias. VAR results confirmed the existence of a positive relationship between inflation and corruption. Granger causality also runs from inflation to corruption. The result is consistent with empirical findings confirming a positive relationship between corruption and inflation, with causality running from inflation to corruption. Since inflation undermines purchasing power, distorts economic planning, and encourages corruption in Ghana, the government must redouble efforts to tackle inflation to reduce corruption.Pathways to Sustenance: Exploring the Effect of Input Subsidies on Food Security in Zambia through Causal Mediation Analysis
Abstract
Food security is a pressing issue for smallholder farmers in Zambia. The government has implemented input subsidies to improve agricultural productivity and food security, but there is insufficient empirical evidence on their impact on food security outcomes. This research aims to fill this gap by examining the link between input subsidies and dietary diversity, as well as the mechanisms through which subsidies affect food security outcomes. We use instrumental variable-based mediation analysis and a nationally representative sample of 7,733 smallholder farmers from Zambia. Preliminary results reveal positive effects of input subsidies on household dietary diversity, with crop seed quantity and basal/top dressing amounts of fertilizer as input packages being significant pathways. These results offer recommendations for improving the distribution and effectiveness of input subsidies. By identifying factors that mediate the impact of input subsidies on food security outcomes, this study can help policymakers design more impactful policies and interventions to combat food insecurity among smallholder farmers in Zambia and other similar contexts.Analysis of Staple Food Price Volatility in Sub-Saharan Africa: Evidence from the GARCH Model
Abstract
Fluctuations in food prices significantly impact food accessibility. This study utilizes monthly retail food price data from January 2013 to August 2023 to investigate the factors contributing to the volatility of maize prices, the predominant staple crop in sub-Saharan Africa (SSA). The Generalized Autoregressive Conditional Heteroskedasticity (GARCH) effects reveal persistent volatility in maize prices. Over the long term, crude oil prices, GDP per capita, global market maize prices, lending rates, exchange rates, and fertilizer prices are positively associated with an increase in domestic maize prices. In the short term, crude oil prices, exchange rates, fertilizer prices, and GDP per capita exhibit a significant positive correlation with domestic maize prices. An increase in domestic maize supply is found to reduce the likelihood of rising maize prices in both the short and long term. Unlike the long-term effects, lending rates and the world price of maize have no impact on the domestic price of maize in the short term.Gender, Small Businesses and Financial Accessibility: A Case Study of Sub Saharan African Countries
Abstract
Are firms with females as top managers less likely to get access to finance compared to firms with males as top managers? What factors contribute to access to finance by these firms? Did COVID-19 change access to finance across genders? Our study uses the COVID-19 WBES and the World indicators to analyze how gender affects firms' access to financial services. Our study focused on Somalia, Zambia, and Zimbabwe. Preliminary results from our study showed that there were differences across gender in access to finance. Female-headed firms had a lower chance of accessing financial services compared to their male counterparts. We also find that the age of the firm, size, and firm location all influenced access. Comparing pre and post-COVID -19 eras we find that more women-led businesses are engaged in applying for financial support for their businesses. The results of this study imply that women-led businesses should be provided with the resources needed to ensure the success of their firms.The Economics of Extreme Weather Events: Rethinking Disaster Preparedness
Abstract
In contemplating the future course of economic growth in Africa and developing economies, one persistent concern is weather-related disasters. This paper quantifies the economic implications of weather shocks in Africa and developing economies and argues different effective mitigation and adaptation strategies. We estimate the costs of weather shocks using a comprehensive macroeconomic panel dataset across 54 African economies and present an empirical analysis of the determinants of these adverse costs and possible mitigation strategies. This analysis reveals several interesting patterns. African and developing economies with a higher human capital levels and government effectiveness are better able to withstand the weather shocks and prevent further spillovers into their macroeconomies.Discussant(s)
Stephen Armah
,
Ashesi University
Amira El-Shal
,
Cairo University
Roger Vorsah
,
North Carolina A&T State University
John N. Ng’ombe
,
North Carolina A&T State University
Fafanyo Asiseh
,
North Carolina A&T State University
Joseph Olorunfemi Akande
,
Walter Sisulu University
JEL Classifications
- I3 - Welfare, Well-Being, and Poverty