ABSTRACT This study examines productivity growth and convergence dynamics among 24 firms listed on the Ghana Stock Exchange (GSE) from 2012 to 2022, exploring how managerial efficiency, corporate financing decisions and technological adoption shape these patterns. Using a sample period marked by significant structural and regulatory reforms in Ghana's capital market, the analysis integrates the generalized method of moments (GMM) with the Malmquist Productivity Index (MPI) to provide robust evidence on the drivers of productivity change and the extent of convergence across firms. The findings reveal a substantial annual convergence rate of approximately 41.6%, indicating meaningful reductions in productivity gaps among listed firms. Complementary sigma‐convergence analysis shows a gradual narrowing of productivity dispersion over time, albeit with intermittent periods of widening linked to market‐level shocks. The results further uncover three distinct productivity clusters, with one cluster exhibiting divergence, highlighting structural and firm‐specific constraints that inhibit catch‐up processes. Decomposition analysis indicates that learning effects, driven by managerial efficiency and operational improvements, constitute the primary source of productivity growth. However, persistent inflationary pressures and limited technological diffusion continue to hinder firm‐level convergence, underscoring the market‐specific challenges facing Ghana's emerging capital environment. This study contributes to the literature by elucidating how firm‐specific strategies and macroeconomic conditions shape convergence in an emerging African stock market. It offers insights for policymakers and business leaders to enhance productivity, foster inclusion and strengthen the resilience of Ghana's stock market.

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ABSTRACT Can industrial policy reverse deindustrialization in Africa? This paper utilizes the synthetic control method (SCM) to investigate this question, focusing on the impact of industrial policies on industrialization in Morocco. The findings reveal a substantial positive impact of industrial policy on aerospace and automotive export value during the post‐intervention period (2009–2021). These industrial developments are further substantiated by their statistical significance as confirmed through placebo tests and pseudo p ‐values. However, the role of industrial policy in Moroccan agro‐industry, electronics, and textile sectors as well as Morocco's overall industrial sector is less evident. These results contribute to the understanding of industrialization in Africa and hold implications for other African nations considering industrial policy interventions.

ABSTRACT Does financial development respond differently to migrant remittances in Small Island Developing States (SIDS) compared to other developing countries? This paper examines the impact of migrant remittances on financial development using a panel model that includes both SIDS and other developing countries. Although SIDS face distinct economic and environmental challenges compared to other developing countries, I find that migrant remittances do not lead to a significantly different response in financial development between SIDS and other developing countries. Therefore, remittance policies applied in other developing countries may also be relevant to SIDS. I also show that a country's development status influences how financial development responds to migrant remittances.

ABSTRACT This paper examines employment transitions in the South African labour market. Using the Post‐Apartheid Labour Market Series, it analyses flows between the formal sector, informal sector and unemployment, paying specific attention to how these flows differ during recessions. It explicitly considers heterogeneity within the informal sector by separately accounting for wage employment and self‐employment, as well as upper‐tier and lower‐tier informal sector segments. Transition probabilities are estimated using dynamic discrete choice models, and the extent to which transitions affect changes in real wages is estimated using a linear model. The results provide evidence of heterogeneity within the informal sector and segmentation between wage employment and self‐employment. They also show a lag in the employment impacts following a recession. Finally, the paper provides suggestive evidence that the upper‐tier segment of the informal sector acts as a buffer during recessionary periods by absorbing labour that would otherwise be unemployed or relegated to precarious lower‐tier informal employment.

ABSTRACT This paper examines whether a central bank should stabilize CPI or core inflation (CPI excluding agriculture prices) following an adverse weather shock. We analyse this question in a two‐sector small open economy calibrated to reflect key characteristics of the Rwandan economy. We first empirically demonstrate that an adverse weather shock in Rwanda leads to higher agriculture prices and reduced agriculture output, consistent with the mechanisms embedded in the macroeconomic model. We then show that a central bank can minimize its losses—measured by a loss function based on CPI inflation—by stabilizing core inflation rather than headline CPI inflation in response to an adverse weather shock. Additionally, we show that CPI inflation is relatively insensitive to changes in labour mobility between the agriculture and nonagriculture sectors, changes in the elasticity of substitution between agriculture and nonagriculture goods, and changes in land maintenance costs.

ABSTRACT Several significant urban transportation projects implemented in South Africa over the last decade have had disappointing results at odds with ex‐ante and ex‐post economic appraisals of their feasibility. The economic and financial implications are significant and enduring and, in the case of the bus rapid transit (BRT) systems, have resulted in criticism of their value for money proposition. A key input into the economic appraisal of transport schemes is the value of travel time (VTT), which is based on micro‐economic theory of time allocation and derived from users' willingness to pay for travel time savings. This paper contends that the correct valuation of VTT benefits has been under‐researched in South Africa. We review historical values of non‐work–related travel time and compare these with values derived from two types of discrete choice models estimated from a consolidated stated preference dataset from Tshwane, Johannesburg and Ekurhuleni in Gauteng Province, South Africa. An elasticity analysis highlights that the key BRT demand sensitivities are the number of transfers, fare levels and travel time. A mean value of non‐work–related travel time of R13.89/h (currently US$0.80/h) confirms that public transport commuters in South Africa have lower VTTs than previously assumed. These findings are contrary to the characteristics of the BRT systems that have been implemented, which emphasise faster travel times and higher fare levels. The analysis also highlights the significant heterogeneity in VTT across the population because of a combination of taste, mode and income effects. These findings have important implications for public transport system designs and operations, which should emphasise reliable services, minimising transfers and lower fares.

ABSTRACT To increase financial inclusion in Africa, many governments are promoting mobile money usage. But at the same time, despite efforts, relatively high costs characterize traditional mobile phone communication (calls, text messages, internet access, social media, etc.). Also, non‐price barriers like restricted access to internet or low national coverage rate of mobile communication signal may have led many people to have difficult access to traditional mobile phone communication. In this paper, we investigate the role of indirect (traditional phone communication network) and direct (mobile money network) network effects on mobile money adoption in Burkina Faso. We use FinScope data and a recursive multivariate probit model to find that, in Burkina Faso, mobile money services benefit more from the indirect network effects than the direct network effects. In other words, it is inconsistent to impose large taxes and fees on phone communication or to limit access to internet, messaging apps and social media, while promoting mobile money adoption.