Fixed Effects Research Articles

EXPRESS: Impact of Inventory Levels and Product Variety on Consumers' Perceptions of Brands

Past research in operations management and marketing on inventory levels and product variety has predominantly focused on their effects on brand performance indicators, such as sales and market share, while overlooking the influence on consumers’ perceptions of brands. Brand perceptions, encompassing reputation, quality, credibility, and emotional associations, go beyond typical revenue metrics and offer foresight into a brand’s future performance. Hence, understanding the effects of inventory and product variety on brand perceptions is crucial, and that constitutes the main contribution of this paper. Through a consumer-facing automobile search platform, we collect data on new cars’ inventories of more than 20,000 dealerships in the United States from August 2020 to March 2021. We measure brand perceptions using 273,991 responses by in-market consumers collected by YouGov. To address endogeneity concerns, we model the effects of inventory and variety on perceived brand strength using three different empirical approaches: 1) high-dimensional fixed effects, 2) instrumental variables, and 3) causal forest. Across all analyses, we find that inventory has a positive effect on perceived brand strength but the main effect of product variety is not significant. Our second contribution is related to the fact that past research on inventory and variety does not, for the most part, investigate systematic heterogeneity due to brand- or consumer-specific factors that impact the effectiveness of inventory or variety; to help fill this gap in the literature, we investigate the role of two important and theoretically motivated moderators: consumer income and luxury status of the brand. We find that consumers’ income levels and brands’ luxury status negatively (positively) moderate the effects of product inventory (variety) on perceived brand strength. Our results have managerial implications for effective assortment planning under scarcity, determining the right range of product offerings for luxury versus non-luxury brands, optimizing the customer’s online browsing experience, and targeting advertisements based on brand and consumer characteristics.

Green Investor Holdings and Corporate Green Technological Innovation

This study builds upon existing research on institutional investors and corporate green innovation by distinguishing green investors, who prioritize environmental contribution, from general institutional investors. Drawing on the stakeholder theory and the Porter hypothesis, we hypothesize that the shareholdings of green investors can effectively stimulate corporate enthusiasm for green innovation, with state ownership exerting a positive moderating influence. Utilizing panel data from China’s A-share listed manufacturing firms spanning from 2010 to 2019, we employ a fixed effect regression model to test these hypotheses. Our empirical findings confirm our expectations, demonstrating that green investors’ shareholdings indeed foster corporate green innovation. Moreover, we observe that this positive relationship is amplified within state-owned enterprises, indicating the presence of a robust and stable environmental regulatory framework across the market. Additionally, our results support the Porter hypothesis, suggesting that adherence to environmental regulations can coexist with firm performance rather than being mutually exclusive. This study contributes to the literature on green investors and corporate green innovation, providing valuable insights for the development of China’s green financial system and sustainable development strategies.

Impact of Trade Liberalisation and MSME Classification on Productivity of Indian Manufacturing Firms

This article examines the effects of tariff and non-tariff reductions on firm-level productivity of large as well as Micro, Small and Medium Enterprises (MSMEs) in India’s manufacturing sector for the 1999–2009 period. We calculate input and final goods tariffs, effective rates of protection and non-tariff barriers (NTBs) for broad product groups using information from India’s Exim Policy of 1997–2003 and 2004–2009 to examine this impact. We use a balanced as well as unbalanced firm-level panel data set, while accounting for firm, industry, state and time-specific factors. By using fixed effect models and Heckman’s two-step estimation procedure, we find that trade liberalisation is associated with improved firm-level productivity for large firms but not in the case of MSMEs. We posit that this might be due to the relative disadvantages that Indian MSMEs face which prevent them from benefiting from trade liberalisation. We also find that productivity gains arising from the sourcing of imported inputs have been greater than those arising from increased product competition and that NTB liberalisation has had a greater impact compared to tariff liberalisation on firm-level productivity. Changes in MSME legislation and the classification of firms are also found to have a bearing on firm performance. Our study contributes to the literature by confirming the need to focus specifically on constraints faced by MSMEs if they are to benefit from trade liberalisation. It highlights the importance of liberalising trade in intermediates as well as the role of MSME classification in enabling productivity gains. JEL Codes: L6, D24, L1, F13

Analisis Bonus Demografi Terhadap Pertumbuhan Ekonomi di Pulau Jawa

This research aims to analyse and determine the effect of the demographic bonus on Economic Growth on the Island of Java. This research uses quantitative methods and a panel data regression analysis model, with the best model being fixed effects (FE). Simultaneously, the human development index, population, and open unemployment rate influence the gross regional domestic product in 6 provinces on the island of Java. Partially, the dependency ratio variable positively and insignificantly affects the gross regional domestic product. The human development index positively and significantly affects gross regional domestic product. The population and open unemployment rate negatively and significantly affect the gross regional domestic product. Stakeholders and related agencies are needed to increase the gross regional domestic product on the island of Java, especially in each region, by paying attention to factors that influence economic growth.

Drivers of Inclusive Development: An Empirical Investigation

AbstractConcerns about socially uneven progress and inequality have regained public attention (including that of many populist politicians). The purpose of this paper is to identify the economic policies as well as economic factors that facilitate inclusive development. This paper is a first attempt to empirically estimate the drivers of inclusive development. For our empirical assessments, we apply the Multidimensional Inclusiveness Index suggested by Dörffel and Schuhmann (2022) in a panel OLS regression setup with fixed effects (FE) and GMM estimations for up to 178 countries and a time frame ranging from 1980 to 2018. In FE regressions, we find robust associations with inflation as well as financial sector development in the short and long-run, trade/GDP in the long-run. The GMM results point only to inflation and trade as significant drivers in the long-run and investment in the short run. These results suggest that accessible and well-functioning financial markets paired with low rates of inflation and high trade openness take on a more critical role than government spending. Our results suggest that rudiments of the Washington consensus could still guide the promotion of inclusive development.

Financial Development and Subnational Export Performance: Evidence from the Indian States

The present study investigates the relationship between export performance and the level of financial development for 30 Indian states and union territories (UTs) from 2011–12 to 2020–21. The study first ranks the states and UTs on the parameters of financial development and physical infrastructure using the robust principal component analysis method. By applying the instrumental variable fixed effects panel data technique, the study observes that the level of financial development has a significant positive impact on the export performance of the states. The study also finds a positive effect of the availability of physical infrastructure, quality of governance and fiscal position on states’ export performance but does not observe a significant role of political stability in this context. The results suggest that export growth in the economically laggard and Himalayan states can come through policy interventions to improve financial development. In contrast, landlocked states need better physical infrastructure to facilitate easier production and transportation of export goods. The study lends new perspectives to the nascent literature on inter-regional disparities in India’s export performance and is expected to provide insights into improving the sub-national export performance of other developing countries as well. JEL Codes: F14, F36, F4

Separating the Effects of Transitions into and Out of Social Isolation and Loneliness on Cognitive Function in Later Life.

This study investigates the effects of social isolation and loneliness on cognitive function, distinguishing between the effects of transitioning into and out of these states. This study analyzed data from 6,663 adults aged 65 or older collected over the course of 7 waves (12 years) of the Korean Longitudinal Study of Ageing from 2006 to 2018. A novel asymmetric fixed effects model was utilized to separately estimate the effects of transitions into and out of social isolation or loneliness. The association of transitions into social isolation due to a lack of informal social contact or loneliness with cognitive function (b = -1.387, p < 0.001 and b = -0.601, p < 0.001, respectively) was stronger than the association of transitions out of these states (b = 0.345, p < 0.05. and b = 0.353, p < 0.001, respectively). The magnitude of the negative and positive coefficients was statistically different (F statistic = 45.29, p < 0.001 and F statistic = 5.12, p < 0.05, respectively). In contrast, no such asymmetric effects were observed for social isolation due to a lack of formal activity (F statistic = 0.06, p = 0.800). The detrimental effects of transitioning into social isolation due to a lack of informal social contact (but not formal activity) or loneliness on cognitive function outweighs the beneficial effects of transitioning out of these states. Preventing the onset of social disconnection should be prioritized as an intervention to improve the cognitive function of older adults.

Associations Between Midlife Anticholinergic Medication Use and Subsequent Cognitive Decline: A British Birth Cohort Study.

Anticholinergic medication use is associated with cognitive decline and incident dementia. Our study, a prospective birthcohortanalysis, aimed to determine if repeated exposure to anticholinergic medicationswas associated with greater decline, and whether decline was reversed with medication reduction. From the Medical Research Council (MRC) National Survey of Health and Development, a British birth cohort with all participants born in a single week of March 1946, we quantified anticholinergic exposure between ages 53 and 69 years using the Anticholinergic Cognitive Burden Scale (ACBS). We used multinomial regression to estimate associations with global cognition, quantified bythe Addenbrooke's Cognitive Examination, 3rd Edition (ACE-III). Longitudinal associations between ACBS and cognitive test results (Verbal memory quantifiedby theWord Learning Test [WLT], and processing speed quantified by theTimed Letter Search Task [TLST]) at three time points (age 53, 60-64 and 69) were assessed using mixed and fixed effects linear regression models. Analyses were adjusted for sex, childhood cognition, education, chronic disease count and severity, and mental health symptoms. Anticholinergic exposure was associated cross-sectionally with lower ACE-III scores at age 69, with the greatest effects in those with high exposure at ages 60-64 (mean difference - 2.34, 95% confidence interval [CI] - 3.51 to - 1.17). Longitudinally, both mild-moderate and high ACBS scores were linked to lower WLT scores, again with high exposure showing larger effects (mean difference with contemporaneous exposure - 0.90, 95% CI - 1.63 to - 0.17; mean difference with lagged exposure - 1.53, 95% CI - 2.43 to - 0.64). Associations remained in fixed effects models (mean difference with contemporaneous exposure -1.78, 95% CI -2.85 to - 0.71; mean difference with lagged exposure - 2.23, 95% CI - 3.33 to - 1.13). Associations with TLST were noted only in isolated contemporaneous exposure (mean difference - 13.14, 95% CI - 19.04 to - 7.23; p<0.01). Anticholinergic exposure throughout mid and later life was associated with lower cognitive function. Reduced processing speed was associated only with contemporaneous anticholinergic medication use, and not historical use. Associations with lower verbal recall were evident with both historical and contemporaneous use of anticholinergic medication, and associations with historical use persisted in individuals even when their anticholinergic medication use decreased over the course of the study.

Surgical management of headache and facial pain/pressure in chronic rhinosinusitis: A systematic review and meta-analysis.

Headache and facial pain are common symptoms of chronic rhinosinusitis (CRS). However, given the numerous etiologies that can cause these symptoms, the impact of sinus surgery is not well characterized. A systematic review was performed by searching the literature from inception through June 6, 2023. English-language articles reporting outcomes for facial pain/pressure or headache following endoscopic sinus surgery were selected for inclusion. Meta-analyses were performed using random and fixed effect models on continuous measures (mean), mean difference (Δ), and proportions (%). A total of 26 articles reporting on 2839 patients were selected for inclusion. The mean patient age was 44.0±3.9 (range 16.0-84.0), with an average symptom duration of 5.3±2.8 years. Among these patients, 56.5% (95% confidence interval [CI]: 52.3-60.6) were male and 77.0% (95% CI: 56.6-92.3) had nasal polyposis (NP). Patients with and without NP reported substantial reductions in both 22-item sino-nasal outcome test facial pain/pressure (with NP: -1.4 [95% CI: -1.6 to -1.2; relative reduction 59.1%]; without NP: -1.5 [95% CI: -1.9 to -1.1; relative reduction 60.9%]) and visual analogue scale (VAS) headache (with NP: -2.5 [95% CI: -2.8 to -2.1; relative reduction 67.2%]; without NP: -2.8 [95% CI: -4.7 to -1.0; relative reduction 42.7%]). Symptom reductions were greater in the without NP versus with NP group; VAS facial pain/pressure: Δ0.4 (95% CI: 0.2-0.6; p=0.0006) and VAS headache: Δ0.4 (95% CI: 0.1-0.7; p=0.02). Our findings suggest that CRS patients, regardless of polyp status, benefit from significant reductions in facial pain/pressure and headache following surgical therapy.

ESG Performance and Corporate Default Risk: Do Countries’ Shareholder Protection Levels Affect This Relationship?

This paper explores the nexus between environmental, social, and governance (ESG) performance and corporate default risk. Employing a panel dataset from 1,094 non-financial companies in 21 nations in Europe, corresponding to 9,522 firm-year observations, and using fixed effects estimations, we empirically demonstrate that corporations with higher ESG scores tend to have lower firm default risk. Among the three categories of the ESG score, both the social and the environmental categories participate in this significant association. Moreover, our study presents novel evidence that within ESGs’ ten subcategories, resource use, product responsibility, emissions, human rights, workforce, and CSR strategy significantly reduce firm default risk. Furthermore, country-level shareholder protection moderates the linkage between default risk and ESG performance, such that the negative impact of ESG on default risk is lower for corporations located in nations with higher shareholder protection. Hence, if the countries’ shareholder protection levels are high, stronger ESG would decrease firm default risk by a lesser amount than countries with lower shareholder protection levels. Our findings are robust to alternate variable measurements and alternate methodologies, capturing endogeneity issues.

Does Digital Inclusive Finance Help County Level Governance in the Five Provinces of Northwest China, from the Perspective of Economic Resilience?

The sustainable development of a country requires stable funds to reshape and restore its economy, something which cannot be separated from the support of financial services. Digital financial inclusion, with its inclusive and extensive features, has provided a new impetus for economic development and governance. Based on the panel data of 193 counties in 5 provinces of northwest China from 2014 to 2021, this paper uses a bi-directional fixed effect model, an intermediary effect model and a threshold effect model in order to test digital inclusive finance and county-level economic resilience, and to explore the internal correlation details. The results show that digital inclusive finance will significantly enhance the economic resilience of the five northwestern provinces by improving capital allocation efficiency, enhancing entrepreneurship and employment vitality, and reducing pollution emissions. In addition, there is a double threshold effect between capital allocation efficiency and employment vitality, in which the threshold effect of capital allocation efficiency presents a progressively increasing state, and in which the threshold effect of entrepreneurship and employment vitality presents a state of fluctuating increase. Therefore, China needs to further improve the digital inclusive financial environment in its northwest; continue and deepen the significant functions of digital inclusive finance in resource allocation efficiency, entrepreneurship and employment vitality, and environmental protection; and provide guidance for solving regional imbalances and promoting national sustainable development.

Does unstable off-farm employment cause stagnant farmland rent-out in rural China?

PurposeThis paper aims to examine the impacts of unstable off-farm employment on the probability and stability of farmland rent-out and explore its mechanisms.Design/methodology/approachThe paper adopts Ordinary Least Squares (OLS), Probit, Tobit, Order probit models with two-way fixed effects to conduct empirical analysis based on the balanced panel data collected in 2016 and 2023 with a national representativeness sample of 1,206 rural households in 100 villages across 5 provinces in China.FindingsThe empirical results showed that unstable off-farm employment had negative effects on the probability of farmland rent-out, but it had no effects on the stability of farmland rent-out. The mechanism analysis showed that unstable off-farm employment affected the probability of farmland rent-out by decreasing the probability of purchasing houses in city and endowment insurance with high pension. Heterogeneity analysis indicated that the negative effect of unstable off-farm employment was much larger for the households with higher share of labor engaging in off-farm employment outside home county, elder members in the households and those located in the villages of mountain areas.Originality/valueThis paper is the first to define the unstable off-farm employment from the perspective of incontiguous off-farm employment for several years, which could capture the normality rather than particular case in a certain year of off-farm employment among rural labors. Using these new measurements of unstable off-farmland, this paper examined the impacts and mechanisms of share of unstable off-farm employment on the probability and stability of farmland rent-out.

The Impact of Climate Change on Work: Lessons for Developing Countries

Abstract We identify five areas where climate change may impact work and draw lessons for developing countries by reviewing the evidence. Firstly, demand for labor is unevenly affected, with agriculture, heat-exposed manufacturing, and the brown energy sector experiencing downturns, while other sectors may see a rise, resulting in an uncertain overall impact. Secondly, climate change impacts labor supply through absenteeism, shirking, and altering work-time patterns, depending on the activity and sector. Thirdly, productivity may decline, especially in heat-exposed industries, primarily due to health reasons. Fourthly, heightened earnings variability likely increases vulnerability among the self-employed. Fifthly, climate change can influence labor allocation and catalyze sectoral reallocation. Higher temperatures are also linked to increased migration. But caution is needed in interpreting these findings, as studies across these topics predominantly use fixed effect estimation and concentrate on short-term impacts, neglecting adaptation. Emerging research on adaptation indicates that workplace cooling is unappealing for firms with narrow profit margins, while coping strategies of farms and households have unclear optimality due to adoption barriers. Government responses remain understudied, with six potential areas identified: green jobs, green skills, labor-oriented adaptation, flexible work regulation, labor market integration, and social protection. We conclude by outlining future research directions.

Asymmetric Exchange Rate Effects on Trade Flows in India

This paper examines the role of exchange rate changes on India’s trade. The drivers of exports and imports (income, exchange rate including sectoral differences, and exchange rate variability) are estimated for the short and long run including a structural break. Using annual data from 1994 to 2022, the results of dynamic fixed effects estimation show that both exports and imports are income-elastic in the short and long run, but income elasticity is far stronger for exports. Moreover, exports are responsive to the real effective exchange rate in the short run but not in the long run, and the reverse is true for imports. Furthermore, exchange rates have asymmetric effects for high-volume and primary sectors for exports and imports. The combined impacts show the ineffectiveness of using currency depreciation to address trade imbalances.

Network meta-analysis for an ordinal outcome when outcome categorization varies across trials

BackgroundBinary outcomes are likely the most common in randomized controlled trials, but ordinal outcomes can also be of interest. For example, rather than simply collecting data on diseased versus healthy study subjects, investigators may collect information on the severity of disease, with no disease, mild, moderate, and severe disease as possible levels of the outcome. While some investigators may be interested in all levels of the ordinal variable, others may combine levels that are not of particular interest. Therefore, when research synthesizers subsequently conduct a network meta-analysis on a network of trials for which an ordinal outcome was measured, they may encounter a network in which outcome categorization varies across trials.MethodsThe standard method for network meta-analysis for an ordinal outcome based on a multinomial generalized linear model is not designed to accommodate the multiple outcome categorizations that might occur across trials. In this paper, we propose a network meta-analysis model for an ordinal outcome that allows for multiple categorizations. The proposed model incorporates the partial information provided by trials that combine levels through modification of the multinomial likelihoods of the affected arms, allowing for all available data to be considered in estimation of the comparative effect parameters. A Bayesian fixed effect model is used throughout, where the ordinality of the outcome is accounted for through the use of the adjacent-categories logit link.ResultsWe illustrate the method by analyzing a real network of trials on the use of antibiotics aimed at preventing liver abscesses in beef cattle and explore properties of the estimates of the comparative effect parameters through simulation. We find that even with the categorization of the levels varying across trials, the magnitudes of the biases are relatively small and that under a large sample size, the root mean square errors become small as well.ConclusionsOur proposed method to conduct a network meta-analysis for an ordinal outcome when the categorization of the outcome varies across trials, which utilizes the adjacent-categories logit link, performs well in estimation. Because the method considers all available data in a single estimation, it will be particularly useful to research synthesizers when the network of interest has only a limited number of trials for each categorization of the outcome.

The Effect of Energy Consumption Towards Economic Growth: The Case of 11 Asian Countries

This research aims to determine and analyze the effect of Coal Consumption per capita (Kwh), Oil Consumption per capita (Kwh), Gas Consumption per capita (Kwh), and Renewable energy consumption per capita (Kwh) towards GDP per capita (current US$). This research uses GDP Per Capita (current USD) data sourced from world banks with a period from 1994 to 2021 and Data for Coal Consumption per capita (Kwh), Oil Consumption per capita (Kwh), Gas Consumption per capita (Kwh), and Renewable energy consumption per capita (Kwh) from Our Wold within a period from 1994 to 2021. The data used is data from 11 Asian countries, which is Mainland China, The Republic of Korea, Japan, India, Bangladesh, Pakistan, Thailand, Indonesia, Malaysia, Philippines, and Viet Nam. The analysis method used is Panel Data Econometrics, with Ordinary Least Square and Fixed Effect Model. The result from this research shows that Oil Consumption per capita (Kwh), Coal consumption per capita (Kwh), Gas Consumption per capita (Kwh), and Renewable energy consumption per capita (Kwh) have a positive significant effect towards GDP per capita (current USD).

How the wellbeing function varies with age: the importance of income, health and social relations over the lifecycle

AbstractPrevious literature has identified income, health status and social relationships as the most important predictors of subjective wellbeing (SWB). In addition, the literature has identified a non‐linear relationship between age and SWB, with a dip in SWB in midlife. Explanations of the non‐linear age–SWB relationship include the notion of unmet aspirations and the idea that people's emotional response to the drivers of SWB changes with age. Against this background, we use representative longitudinal data for Germany (1992–2019) with about 570,000 observations for more than 88,000 individuals aged 16–105 years to investigate if and how the association between SWB and its main predictors changes over the lifecycle. Using fixed effects estimation to control for cohort effects and unobserved personal characteristics, we find that the marginal effects of income and social relationships vary with age in a wave‐like fashion, while the positive marginal effect of good health status increases monotonically and progressively with age. Our results are similar for alternative measures of SWB (life satisfaction and living in misery), and for men and women separately. The age‐related changes in the importance of income and social relationships for SWB found in this paper help to explain the relationship between age and SWB found in previous literature.

Efficacy and safety of venetoclax-based combination therapy for previously untreated acute myeloid leukemia: a meta-analysis

ABSTRACT Purpose: To explore the efficacy and safety of venetoclax-based combination therapy for older patients with newly diagnosed acute myeloid leukemia (AML). Methods: We performed a systematic review and meta-analysis of clinical trials comparing venetoclax plus hypomethylating agents (HMAs) or low-dose cytarabine (LDAC) with mono-HMAs or LDAC. The random or fixed effects model was applied to the studies based on heterogeneity. Dichotomous data were summarized using the risk ratio (RR) and 95% confidence interval (CI). Continuous variable data were reported as weighted mean differences (WMDs). Results: Nine studies, including a total of 1232 patients, were included in this meta-analysis. Thec complete remission (CR)/complete remission with incomplete hematological recovery (CRi) rate of the venetoclax (Ven) + azacytidine (Aza) group was significantly greater than that of the Aza monotherapy group (RR: 2.42; 95% CI: 1.85–3.15; P < 0.001). Similarly, the CR/CRi rate of the Ven + LDAC group was also significantly greater than that of the LDAC monotherapy group (RR: 2.57; 95% CI: 1.58–4.17; P = 0.00). The same results were observed for OS among these groups. However, the incidence of febrile neutropenia was greater in the Ven + Aza group than in the Ven + Decitabine (Dec) or monotherapy Aza group (RR: 0.69; 95% CI: 0.53–0.90; P = 0.006 and RR: 2.19; 95% CI: 1.58–3.03; P < 0.001, respectively). In addition, the Ven + LDAC group had significantly greater rates of constipation, diarrhea, nausea, and vomiting than the LDAC monotherapy group, with RRs and CIs of 0.61 (95% CI 0.44–0.83, P = 0.002), 1.81 (95% CI 1.22–2.67, P = 0.003), 1.39 (95% CI 1.06–1.82, P = 0.016), and 1.80 (95% CI 1.19–2.72, P = 0.005), respectively. Conclusion: Venetoclax combined with azacitidine, decitabine, or LDAC significantly improved the CR/CRi and OS of patients with previously untreated AML. However, venetoclax plus azacitidine or LDAC was more likely to lead to increased febrile neutropenia and gastrointestinal toxicity.

Climate adaptation investments: Short-term shocks and long-term effects of temperature variation on air conditioning adoption

Air conditioning (AC) has gradually become the main way for households to adapt to climate change. Using a climate econometric model with two-way fixed effects, we systematically examine the short-term shocks and long-term effects of temperature variation on AC ownership in urban and rural households in the Yangtze River Delta region of China. When considering short-term shocks of temperature variation, our results indicate that cooling demand is the main driver of growth in AC ownership while heating demand and intra-seasonal temperature variance are not. In terms of the long-term effect, we find mean summer temperature has a positive lagged effect, with the cumulative effect being larger for rural households. The analysis of heterogeneity shows that while the greater elasticity of air conditioning ownership to temperature variation for rural residents indicates a faster diffusion of air conditioning during 2001–2020, the larger income elasticity (greater than 1) suggests that air conditioning is still a luxury item for them. Our findings not only provide empirical evidence for studying the pattern of climate adaptation investments in response to temperature variation, but also offer policy guidelines for households to better adapt to climate change.

The effects of selected neglected tropical diseases on economic performance at the macrolevel in Africa

BackgroundNeglected tropical diseases (NTDs) such as leprosy, lymphatic filariasis (LF), schistosomiasis and onchocerciasis are endemic in several African countries. These diseases can lead to severe pain and permanent disability, which can negatively affect the economic productivity of the affected person(s), and hence resulting into low economic performance at the macrolevel. Nonetheless, empirical evidence of the effects of these NTDs on economic performance at the macrolevel is sparse. This study therefore investigates the effects of the above-mentioned NTDs on economic performance at the macrolevel in Africa.MethodsThe study employs a panel design with data comprising 24 to 45 African countries depending on the NTD in question, over the period, 2002 to 2019. Gross domestic product (GDP) is used as the proxy for economic performance (Dependent variable) and the prevalence of the above-mentioned NTDs are used as the main independent variables. The random effects (RE), fixed effects (FE) and the instrumental variable fixed effects (IVFE) panel data regressions are used as estimation techniques.ResultsWe find that, an increase in the prevalence of the selected NTDs is associated with a fall in economic performance in the selected African countries, irrespective of the estimation technique used. Specifically, using the IVFE regression estimates, we find that a percentage increase in the prevalence of leprosy, LF, schistosomiasis and onchocerciasis is associated with a reduction in economic performance by 0.43%, 0.24%, 0.28% and 0.36% respectively, at either 1% or 5% level of significance.ConclusionThe findings highlight the need to increase attention and bolster integrated efforts or measures towards tackling these diseases in order to curb their deleterious effects on economic performance. Such measures can include effective mass drug administration (MDA), enhancing access to basic drinking water and sanitation among others.