Economic Growth In Africa Research Articles

The Impact of Agricultural Productivity on Economic Growth in Africa

This study investigates the relationship between agricultural productivity and economic growth in five African countries: Tanzania, Ghana, Kenya, Morocco, and South Africa. Secondary data from reputable sources are analyzed using statistical tests and regression models. The findings indicate that agriculture significantly contributes to Africa's economic growth. South Africa exhibits the highest agricultural productivity, followed by Morocco, Kenya, Ghana, and Tanzania. However, despite their agricultural strengths, South Africa and Morocco have relatively lower contributions to economic growth due to other factors like low employment rates. Ghana and Kenya show comparable performance, while Tanzania lags behind despite experiencing economic growth and having a high employment rate. It is emphasized that economic growth is influenced by various factors beyond agriculture, and countries with high agricultural productivity should diversify their economies and address other determinants of growth. Policy measures to strengthen the agricultural sector and promote diversification are crucial for sustainable economic development in Africa.

Does financing agriculture sustain economic growth in Africa? Implications for Africa Union’s Comprehensive Africa Agriculture Development Programme (CAADP)

Does financing agriculture sustain economic growth in Africa? Implications for Africa Union’s Comprehensive Africa Agriculture Development Programme (CAADP)

Natural disaster and economic growth in Africa: the role of insurance

Natural disaster and economic growth in Africa: the role of insurance

Tractable Quinolone Hydrazides Exhibiting Sub-Micromolar and Broad Spectrum Antitrypanosomal Activities.

Nagana and Human African Trypanosomiasis (HAT), caused by (sub)species of Trypanosoma, are diseases that impede human and animal health, and economic growth in Africa. The few drugs available have drawbacks including suboptimal efficacy, adverse effects, drug resistance, and difficult routes of administration. New drugs are needed. A series of 20 novel quinolone compounds with affordable synthetic routes was made and evaluated in vitro against Trypanosoma brucei and HEK293 cells. Of the 20 compounds, 12 had sub-micromolar potencies against the parasite (EC50 values=0.051-0.57 μM), and most were non-toxic to HEK293 cells (CC50 values>5 μM). Two of the most potent compounds presented sub-micromolar activities against other trypanosome (sub)species (T. cruzi and T. b. rhodesiense). Although aqueous solubility is poor, both compounds possess good logD values (2-3), and either robust or poor microsomal stability profiles. These varying attributes will be addressed in future reports.

Public Debt and Economic Growth in Africa in the Pre-Covid Era: The Role of Control of Corruption

There is evidence of recent rising public debts and low economic growth in Africa which is being attributed to the COVID-19 pandemic and the geopolitical tensions from the Russia-Ukraine war. With the evidence of also recent high corruption amidst low investments in Africa, it is thought-provoking to find empirically how public debt impact on economic growth per capita among African countries even before the COVID-19 pandemic and the geopolitical tensions from the Russia-Ukraine war with the mediation of control of corruption. The study used secondary data from the World Development Indicators, World Economic Outlook, and Worldwide Governance Indicators. The annual data spans from 1996 to 2019 for 45 countries. The study deployed a dynamic panel data estimation technique and controlled for other variables. The findings show a negative impact of gross debt percentage of GDP on economic growth but a positive interactive effect of excessive accumulation of gross public debt and the control of corruption on economic growth per capita among countries in Africa before the outbreak of the COVID-19 pandemic. In this COVID era of high public debt, governments can reduce their indebtedness by financing appropriate infrastructure while controlling corruption to increase the economic growth in their countries.

Business Cycles in Africa: Unravelling the Dynamics of Sub-saharan Africa's Economic Growth

This research delves into the intricate dynamics of Africa's economic landscape against the backdrop of the global economic surge, surpassing rates unseen since the oil price shocks of the 1970s. The study shows a continuous period of robust global growth since 2004, characterized by low inflation and even distribution among nations, defying expectations given the increasing contribution of unstable emerging markets. The study sheds light on Africa's evolving economic scenario, marked by a growing awareness of sectoral fragmentation, oil price variation, and infrastructure development. Examining macroeconomic fundamentals in 2022, we note improvements in fiscal deficits but an increase in current account deficits, exchange rate fluctuations, and elevated inflation, driven by global factors. Moreover, the study unveils the enduring fragility of Africa's economic and social situation, affected by armed conflicts, unfavorable weather conditions, and declining trade. Despite abundant natural resources, the region contends with persistent poverty, positioning it as one of the most impoverished globally. The plots highlighted the historical economic gaps, emphasizing the formidable hurdles that have impeded Sub-Saharan Africa's growth, particularly in comparison to East Asia & Pacific and Latin America & Caribbean. The disparities underscore the need for strategic interventions, including diversifying export bases, strengthening fiscal management, and promoting inclusive growth. The study concludes with a call for coordinated efforts to address the complex challenges, fostering sustained and inclusive economic growth across the continent.

Do internet and mobile usage affect the democracy-economic growth nexus in Africa?

Recently, many studies have examined the ICT-economic growth relationship and the democracy-economic growth linkage with conflicting results. However, the study on the moderating effect of internet and mobile usage on the democracy-economic growth relationship is very scanty. This study, therefore, contributes to the economic development literature by examining the impact of internet and mobile usage on the democracy-economic growth relationship in 26 African economies over the period 2000–2020. The panel corrected standard errors (PCSE) estimation technique has been applied. The results show that improving the democratic system in Africa can foster economic growth. Moreover, the result reveals that increasing internet and mobile usage can improves economic growth in Africa. Furthermore, the results reveal that the interaction between internet and mobile usage and democracy can boost economic growth in Africa. Policy implications regarding the moderating effect of internet and mobile usage on the democracy-economic growth nexus are discussed.

Trade, institutional quality and economic growth in Africa: does China and United States trade matter?

We investigate the relationship between China and the United States’ trade with sub-Saharan Africa (SSA) and the region's economic growth (EG). The research analyzes trade dynamics, distinguishing between the effects of exports and imports, while highlighting the significant role of institutional quality (IQ) in shaping EG within the context of China–US trade with Africa. Despite increasing trade with China and the US, SSA’s growth has lagged, prompting exploration into the specific trade forms contributing to EG and the role of IQ. Using data from 30 SSA countries from 2002-2020, we employed AMG and IV-2SLS estimations for our analysis. The study reveals that IQ complements Chinese and US trade to promote EG. Importantly, Chinese and US imports from Africa consistently boost growth, with the impact of exports diminishing. Chinese trade proves influential in countries with strong institutions but lacks impact in those with weaker institutions at higher levels of IQ. In contrast, US trade benefits growth in both strong and weak institutional contexts. These findings are instrumental for policymakers, offering insights into the specific trade activities that drive growth in SSA. Additionally, we emphasize the pivotal role of robust institutions in ensuring the positive impact of trade on growth.

Can International Business and Entrepreneurship be the Catalysts for Economic Growth in Africa?

Innovative entrepreneurs are important actors in regional economies of Africa. There are enormous entrepreneurial opportunities in the global markets. The World Bank’s Global Economic Prospects for 2023 indicates that the global growth has eased, but remains robust, and is projected to reach 3.1 percent in 2018. Overall, growth in global trade of goods and services combined is expected to moderate to 4.3 percent in 2018, down from a six-year high of 4.8 percent in 2017. This projection has been revised upwards due to stronger-than-expected intra-regional trade growth in Asia and Africa as well as import-demand from major advanced economies. Global trade in goods and services is projected to rise to $27 trillion in 2030 from $10.3 trillion in 2015. Trade as a share of the global economy will increase from 1/4 to 1/3. Roughly half of the increase is likely to come from developing countries that will supply over 65 % of manufactured imports to rich countries, compared with 40% today. Some developing countries are expected to have growth rate over 6%, much higher than developed countries. When trade expands, technologies will rapidly diffuse to developing countries. The dominance of globalization is transferring to China, India and Brazil. The challenge of entrepreneurship is immense in Africa. The entrepreneur’s needs differentiation of exporting and the continent has to create its own regional clusters so as to enhance the competitiveness of its enterprises. Africa may have all the possible comparative advantages in certain industries but what is required is entrepreneurial actions. International business and entrepreneurship appear to be the catalysts for much of the expected economic growth in Africa.

The Effect of Economic Growth on the Utilisation of Childhood Immunisation: New Evidence From 50 African Countries.

Africa bears the greatest brunt of under-five mortality in the world. Among the major approaches used in tackling under-five deaths is childhood immunisation. While income is regarded as a major determinant of demand for child health inputs including immunisation, the existing studies are microlevel analyses, which do not provide a bigger picture of how an enhancement in economic growth (aggregate income) contributes to the utilisation of childhood immunisation in an economy as a whole. Since Africa has experienced economic growth in the recent decades, this study aims to fill this gap in the literature by examining the contribution of economic growth to the utilisation of childhood immunisation in selected African countries. The study uses a panel design involving data on 50 African countries over the period, 2002 to 2019. Utilisation of DPT (diphtheria, pertussis (or whooping cough) and tetanus) and measles immunisation are used as proxies for childhood immunisation while the system Generalised Method of Moments (GMM) regression is used as the estimation technique. We find economic growth to have a positive significant effect on the utilisation of childhood immunisation. Thus, it is imperative to intensify the enablers of economic growth in Africa in order to increase the utilisation of childhood immunisation.

Testing the Validation of Environmental Kuznets Curve Hypothesis for sustainable Green Economic Growth in Africa

Testing the Validation of Environmental Kuznets Curve Hypothesis for sustainable Green Economic Growth in Africa

Africa’s expatriation: current context and future research agenda

PurposeThis paper presents insights on expatriates in Africa and sets out a research agenda for Africa’s expatriation. The objective of the paper is to provide background and context on expatriation in Africa and to stimulate and guide further research in this important area.Design/methodology/approachThe reviewed papers were drawn from journals and other sources that reported on expatriation to/from African countries. It also incorporates an array of literature on contextual African issues, exploring conceptually how these relate to expatriation.FindingsThe review confirmed that there is little research on the topic, particularly with respect to outward expatriation and the studies that exist are one of a kind and stand alone. There has been no attempt to build systematic theory or develop a wholistic picture. This means that the field is wide open for more research. The data provide a picture of the current expatriate situation, including numbers, demographics, host/home locations, success rates and so on, and are provide a basis for further research developing and testing hypotheses regarding individual, organizational and country/national characteristics and how these influence and relate to expatriate experiences and outcomes. Researchers can also draw on the existing expatriation literature from around the world for replication studies to identify uniquely African issues as well as similarities with other locations. As Selmer (2016) noted, replication research is widely used in the sciences and is at the core of the scientific method and thus should be considered for expatriation research.Research limitations/implicationsLimited previous research means there is a need for further research.Practical implicationsExpatriation is a critical aspect of companies operating internationally and companies are increasingly interested in doing business in African countries. Africa's economic growth and development are strong and foreign direct investment (FDI) into Africa is growing with consequent increases in the number of expatriates going to Africa. Understanding expatriation in the African context is thus very important to a variety of companies.Originality/valueManagement literature focusing on Africa is limited and this is true regarding expatriation. This means there is a need for researchers and practitioners to understand expatriation issues in this context, particularly considering economic growth on the continent, increasing interest in doing business there, along with increasing FDI and use of expatriates, as well as the expansion of African companies. This paper provides a research agenda as a guide on which researchers, including those in Africa, can build.

Kırılganlığın Ekonomik Büyüme Üzerindeki Etkisinin İncelenmesi: Sahra Altı Afrika'dan Yeni Görüşler

This research examines fragility impact on Sub-Saharan Africa's economic growth from 2006 to 2019. The variables of interest for this study include economic decline, economic inequality, human flight, brain drain, external intervention, and economic growth. The research objectives are to empirically investigate the connection between fragility indices and economic growth and determine the impact of fragility indices on economic growth. The existence of cointegration was ascertained in our variable using the Westerlund cointegration test. A fully modified ordinary least squares estimation technique was adopted for the first objective, and the findings showed that only external intervention indices positively impacted economic growth. In achieving our second objective, we adopted mean group, augmented mean group, and common correlated effect mean group estimation technique and found that the coefficients of economic decline, economic inequality, and human flight and brain drain had negative impacts on economic growth. In contrast, the external intervention had a positive impact. The research study recommends that fragile countries' governments develop corrective measures to remove these indicators to ensure progressive growth. Also, state administrations must ensure that suitable policies are implemented to encourage research and development. This will limit the problem of human flight and brain drain, which are significant problems in fragile countries.

Enhancing Project Management for SMEs: A Hybrid Approach

Objective: South Africa's economic growth and development are closely intertwined with government-prioritized infrastructure development projects. However, SMEs in this sector often grapple with insufficient project management processes, impeding their efficacy and economic contributions. The issue stems from the inadequate implementation of project management methodologies by SMEs, which adversely affects project outcomes and consequently their economic impact. Research Design & Methods: A literature review was conducted to assess the implementation of project management methodologies by SMEs in South African infrastructure development projects. The objective is to highlight areas for improvement, rectify the deficiency in project management practices among SMEs, and bolster their effectiveness and economic contributions. Findings: Preliminary findings accentuate the critical role of project management as a discipline for SMEs involved in infrastructure projects. Its absence or inadequate implementation hampers the growth and sustainability of organizations aiming to make substantial economic contributions and create employment. A hybrid project management model tailored for SMEs in infrastructure development emerges as a mechanism for effectively managing infrastructure projects. Implications and Recommendations: The conceptualization of a hybrid project management model for infrastructure development projects holds the potential to enhance project value by facilitating adaptability. By incorporating agile project management components, this model also stands to improve client engagement, consequently elevating the prospects of success in infrastructure development projects. Contribution & Value Added: This study contributes to the understanding of how SMEs can improve their effectiveness and economic contributions in South Africa's infrastructure development sector. The proposed hybrid project management model offers valuable insights for practitioners and policymakers in South Africa, ultimately fostering economic development and sustainable growth in the country.

Impacts of Taxation on Economic Growth in Africa in 2008-2018 - Panel Data Analysis

The debate over the effectiveness of taxes as a tool for promoting economic growth still needs to be solved, with several studies indicating mixed effects of taxes on economic growth. The purpose of this research is to assess the impact of taxation on economic growth in Africa. The study spans eleven years, from 2008 to 2018, and includes multiple variables for 21 African countries. GDP is a dependent variable used as a proxy for economic growth. Numerous GDP-determining predictors were utilized as independent variables; these variables were categorized into three groups: The supply side consists of human capital (population and literacy rate) and economic activities (trade and services). Demand side variables include consumption, government expenditures, net exports, and gross capital formation. Lastly, taxation variables consist of tax revenue, corporate tax rate, number of tax payments, personal income tax, and taxes on income, profits, and capital gains. The study conducted preliminary tests, including descriptive statistics, correlation matrix, and pooled least square estimations for panel data. Based on the results, all macroeconomic determinants have statistically significant effects on GDP except trade. Tax revenue and corporate tax rate positively affect GDP, while personal income tax rate and tax on income, profit, and capital gain negatively affect GDP. In general, taxation has a favorable effect on the economy of African countries because emerging countries use taxation as an internal key to generate revenue and improve economic growth.

Financial Development and Integration, Exchange Rate Regimes, and Economic Growth: New Evidence from African Economies

This paper examines empirically the extent to which financial development, financial integration and exchange rate regime (ERR) altogether influence positively economic growth in Africa. To achieve this, we build two baseline panel data samples of African countries and new expanded datasets spanning 1980-2015 using a small sample adjusted Generalized Method of Moments (GMM) estimator. To check the robustness of our results, we build two other panel samples by adding on the two previous panel data samples, data from emerging and developed countries and repeat the analysis. The results from the estimations suggest that financial development and financial integration influence positively and significantly economic growth, whereas exchange rate regime has no significant effect on economic performance, controlling for the usual growth- regression variables like trade openness, human capital, investment, governance and the lagged value of per capita GDP.

Is digitalization a booster for economic growth in Africa? Short run and long run evidence from Tanzania

The least developed countries (LDCs) must experience faster economic growth rates if they are to catch up to the industrialized nations. A key factor in advancing economic growth and development in the digital age are information and communication technologies (ICT). We use time series data from 1994 to 2021 and use an autoregressive distributed lag (ARDL) technique to estimate the effects of ICT on GDP growth for Tanzania, the world's most populous country located entirely south of the equator. We establish a causal relationship between ICT infrastructure/access and GDP growth in Tanzania, accounting for both short-run and long-run dynamics. In particular, mobile telephone subscription growth exhibits a significant impact on economic growth in both the short and the long run in Tanzania. This suggests that, at early stages of digitalization, adoption of mobile telecommunications gives a boost to economic growth, as early adapters tend to be very effective users. However, diminishing marginal returns appear to result, as other production factors may not fully absorb technological advancements.

Microinsurance and Economic Growth in Africa

The reach and scope of microinsurance have expanded considerably over the last couple of decades. The literature on microinsurance focuses predominantly on its microeconomic impact. In contrast, I examine the contemporaneous and intertemporal effect of microinsurance on economic development using rich census data of microinsurance coverage in African economies. Estimates suggest that microinsurance affects economic growth both on impact and over time, with the magnitude of the intertemporal effect exceeding that of the contemporaneous effect. Evidence also suggests nonlinearities in the microinsurance–growth nexus. The marginal effect of microinsurance is a negative function of the starting level of development. For low-income countries, microinsurance has a robust positive effect on economic growth, both in terms of impact and over time. However, microinsurance may fail to leave a lasting trace on the aggregate economy in “richer” developing countries.

Technological Capability, Inclusive Growth and Structural Transformation in Africa

ABSTRACT Some studies have shown that economic growth in Africa has not been sustainable, transformative, nor inclusive. This is very perplexing, considering that resource-poor East Asian countries have not only achieved high growth rates but have done so while alleviating poverty and becoming major players in the global economy. Despite the recognition that technology was instrumental in the success story of East Asian countries, there have been few empirical studies that focus on how technology drives economic growth in Africa. Based on a sample of forty-one African countries (2005–2020), this article uses the Generalized Method of Moments (GMM) estimation technique to investigate the extent to which technological capability plays an important role on economic growth of African countries. The results from the empirical analysis suggest, inter alia, that technology, investment in physical capital, macroeconomic and political stability are important determinants of growth in Africa. The article suggests that African countries should intentionally strengthen their technological capabilities, to leverage new opportunities in emerging frontier industries, foster inclusive growth, and be adequately prepared for the fourth industrial revolution.

Reassessing the Empirical Relationship between Health Expenditure, Governance and Economic Growth in Africa: Analysis of Nigerian Data

Reassessing the Empirical Relationship between Health Expenditure, Governance and Economic Growth in Africa: Analysis of Nigerian Data