African Economic Development
Paper Session
Sunday, Jan. 5, 2025 1:00 PM - 3:00 PM (PST)
- Chair: Samuel Amponsah, Board Member, African Finance and Economics Association, Tokyo International University
Climate Disclosures, Climate Risk, and Stock Market Performance
Abstract
We examine the benefits of climate disclosures among Johannesburg stock exchange listed companies. We demonstrate that disclosing climate related risks increase firm credibility and thus attracting more investors, thus an increase in stock valuation or price. We also demonstrate that although disclosing climate related risks is important, investors may much attention to the quantitative risk. Thus, investors more from climate riskier stocks to less climate riskier stocks. Using a nested logistic regression model we grouped stocks into nests. An investor first decides either invest in the stock market or not, secondly either to investor in the local stock market or foreign stock market, then which sector and finally the company to invest in. We showed that investors are currently moving from agricultural and manufacturing sectors to the services and technology sectors. The study recommends that firms should invest in installing eco-friendly machinery that aligns with changing market expectations in order to reduce their carbon emissions. The study, therefore, highlights the need for companies to proactively assess and manage climate risks, incorporate climate considerations into their strategic decision-making, and enhance their resilience to climate-related challenges.The Impact of Corruption on Foreign Direct Investment Inflow in Ghana
Abstract
This research investigates the relationship between corruption and foreign direct investment (FDI) inflow in Ghana, using data spanning from 1995 to 2021. We employed the autoregressive distributed lag (ARDL) Bounds model. A Bounds Cointegration test was performed, but no cointegration was found. The results show that corruption has a negative impact on FDI inflow in Ghana. The findings suggest that as corruption increases, FDI inflow declines, supporting the "grabbing hand" hypothesis of corruption. However, the lags of corruption have an insignificant impact on foreign direct investment inflow. We argue that corruption disrupts the smooth functioning of public institutions, leading to inefficiencies and higher costs of doing business, which deters investors. The study recommends implementing measures to mitigate corruption and enhance institutional effectiveness to attract foreign direct investment. Future researchers should investigate the impacts of corruption on sectoral FDI, differentiate between horizontal and vertical FDI, and determine how each is affected by corruption.The Role of Social Security in South Africa's Just Transition
Abstract
To enable the Just Transition in South Africa to be just it must account for structural legacy challenges currently facing the country’s economic growth. The paper will look at setting of a protection floor through a Universal Basic Income which will protect and ensure vulnerable South Africans do not fall any deeper into poverty and minimize the current inequality gap. The paper will also make proposals on how to finance a Universal Basic Income in South Africa using climate finance. To date South Africa has a 42.4% unemployment rate using the expanded definition. South Africa is the most unequal society in the world with the highest GINI coefficient of 0.63. South Africa has 62.1% of young people between the ages of 15 -24 unemployed and 40.7% aged between 25 and 34 out of employment. Black women bear the brunt of unemployment with 48.7 % Black African females currently unemployed.Assessing the Impacts of Privatization on Water Services in Kenya in the Context of Human Resource Capital: Lessons from Global Perspectives
Abstract
The water sector in Kenya has undergone significant reforms over the years, aimed at enhancing efficiency, sustainability, and equitable access to clean water. The amendment of the Water Act in 2023 signals a new phase in these reforms, with a notable shift towards privatization of water services. While previous reforms introduced in the early 2000s and amended in 2016 were lauded for fostering sector growth and sustainability, the potential implications of privatization raise concerns, especially considering the challenges experienced in other developing countries.This research aims to critically examine the proposed legal changes regarding water privatization in Kenya and assess their potential impacts on the water sector in the perspective of human resource capital and productivity. Drawing upon existing literature and case studies from other developing countries, both quantitative and qualitative data will be utilized to analyze the following key aspects:
1. Efficiency and Service Delivery: Evaluate the efficiency of privatized water services in comparison to publicly managed systems, considering factors such as access, affordability, reliability, and quality of services that are offered by human resource capital.
2. Equity and Social Impacts: Investigate the socio-economic implications of water privatization, including its effects on marginalized communities, affordability for low-income households, and the potential exacerbation of inequalities in access to water resources.
3. Environmental Sustainability: Assess the environmental implications of privatization, including the impact on water resource management, conservation efforts, and the potential for private sector engagement in sustainable practices.
4. Governance and Regulation: Examine the regulatory frameworks governing privatized water services, including established human resource policies, accountability mechanisms, transparency in decision-making, and safeguards to protect consumer rights and public interests.
By synthesizing empirical evidence and theoretical insights from existing literature, this research seeks to provide valuable insights into the opportunities and challenges associated with privatization of water services in Kenya. The findings aim to inform policy-makers, stakeholders, and practitioners about the
Understanding Children’s Economic Activities: Evidence from Financial Diaries of Cocoa Farmers in Ghana and Cote d’Ivoire
Abstract
In the face of ongoing discussion on child labour, children from cocoa producing communities in West Africa are most often at the centre. This paper examines children’s economic activities using data from financial diaries of cocoa farmers from Ghana and Cote d’Ivoire. Our period of study is between July 2020 and January 2022. Results from our study shows that schooling holds the largest proportion of children’s economic activities, followed by non-farm activities and farming activities taking the third position. Our results show a clear seasonal trend in children’s work with majority of them engaging in mostly schooling between January and June, and having less schooling in July, August, September, November and December. In terms of hours of work, we found the highest monthly average hours of work to be 15 hours, and it occurs between December and March. The study suggest that children’s work hours increase during the peak agricultural periods in the two countries, suggesting that families are economically dependent on children’s work to sustain household. Hence, there is a clear need for policies and interventions that address the economic pressures leading to high child labour. Providing financial support or alternative income sources during the peak seasons could reduce the burden on children.Discussant(s)
Eric Ayamga
,
Texas Tech University
Alfred Berkoh
,
Ashesi University
Nomahlubi Jakuja
,
Ohio University
Omolola Amoussou
,
African Development Bank
JEL Classifications
- O1 - Economic Development