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1. Policy Briefs Concise summaries that present research findings and policy recommendations on key economic issues to inform policymakers and stakeholders.2. Research Papers In-depth studies and scholarly articles that explore various aspects of economic theories and empirical research, contributing to academic discourse and understanding.3. Working Papers Preliminary reports on ongoing research that are circulated to encourage discussion and suggestions for revision before final publication.4. Theses and Dissertations: CPP Thesis: Rigorous academic research focused on pertinent policy issues, typically by candidates of the Collaborative PhD Program. CMAP Thesis: Scholarly works by Master's candidates involved in the Collaborative Master's in Economics Program, showcasing original research in the Economics sector. CMAAE Thesis: Advanced research endeavors by Master's students under the Collaborative Master's in Agricultural and Applied Economics, contributing to knowledge in agricultural economics and related fields CMAAE Thesis5. Other Publications A diverse range of documents including, but not limited to, conference papers, book chapters, and research updates that do not fall under the conventional categories.
Recent Submissions
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Reallocations of Special Drawing Rights and Financing of the Economic Recovery in Senegal
(African Economic Research Consortium, 2024-05-08) Sylla, Fanta Ndioba; Diagne, Abdoulaye
The Senegalese economy has recently been hit by a combination of multiple shocks, after a period of sustained growth of 6% on average for six years (2014-2019). In 2020, the COVID-19 pandemic led to the slowdown or even cessation of activities in several sectors, leading to a decline of more than three points in real GDP growth. Economic growth fell from 5.3% in 2019 to 1.5% in 2020 (Direction de la Prévision et des Etudes Economiques [DPEE], 2020, 2021). Geopolitical tensions in Ukraine have hard hit the Senegalese economy in 2022. This combination of external shocks has amplified the effects of climatic shocks which have worsened over the last decade. After a major shock affecting the economy, it is imperative for the Senegalese authorities to undertake reforms in the policies in force, in order to put the economy back on a sustained growth trajectory. These new policies require substantial funding, while the resource needs for dealing with the COVID-19 crisis in the short term have already caused high strain on public finances. After many efforts to bring down the budget deficit to 3.9% in 2019, this deficit rose again to 6.4% in 2020 (DPEE, 2020, 2021). This public deficit is mainly financed by borrowing, which resulted in a rapid increase in debt, rising from 52.5% in 2019 to 67.4% of GDP in 2020. These high levels of debt and public deficit are likely to reduce the chances of mobilizing resources to finance the economic recovery, even in a context of suspension of the West African Economic and Monetary Union (WAEMU) convergence pact. Senegal thus finds itself in the situation of having to find innovative and flexible instruments of financing that would not worsen the public deficit and debt.
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Sudanese External Debt: Sustainability Analysis and Prospects for Solutions
(African Economic Research Consortium, 2024-05-06) Hag, Mohammed Gebrail
This study aims to analyse Sudan’s debt sustainability and suggests practical solutions for its external debt crisis. To this end, the study applies descriptive statistics methods to secondary data. The empirical results of a debt sustainability analysis point out that Sudan remains in debt distress as all its external debt burden ratios remain well above their respective indicative thresholds. Consequently, this study introduces three scenarios for solving the Sudanese debt crisis. The first is full or partial debt relief through the Heavily Indebted Poor Countries (HIPC) Initiative. The second scenario is repaying all external debt through the establishment of a so-called “oil revenue fund” to serve Sudanese external debt in collaboration with South Sudan. The study also suggests debt division between Sudan and South Sudan as a last resort. The study shows that Sudan faces an external debt burden ranging from US$7.96 billion (financial capacity weighted) to US$31.6 billion (geographical method weighted). By comparison, South Sudan’s debt burden ranges between US$8.2 billion (geographical method weighted) and US$31.84 billion (financial capacity weighted). Additionally, the study suggests that each country bears an additional US$4.2 billion as their share of the interest accumulation of the debt stock upon the separation of South Sudan, which amounted to US$39.8 billion. Several policy implications emerge from the study that could help policy makers in the two countries, and key creditors, be more strategic in addressing the issue in a way that accommodates common interests.
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The Distributional Impacts of Public Expenditure in Ethiopia: A Gender-Lens Analysis
(African Economic Research Consortium, 2024-05-06) Tesfaye, Wondimagegn
This study investigates the gendered distributional impacts of public expenditure policy using survey and administrative data from Ethiopia. It specifically assesses the progressivity and pro-poorness and poverty, and inequality impact of cash and in-kind transfers, through a gender-lens analysis. The study employs an expenditure incidence analysis approach based on the Commitment to Equity (CEQ) methodology to determine whether government expenditures redistribute resources to the poor. The findings of the study provide evidence that government social spending has significant welfare impacts, although some of the social services are poorly targeted. Among the public spending instruments studied, primary education spending and productive safety net programme (PSNP) transfers tend to be the most progressive, and tertiary education spending appears to be the least progressive. The benefits associated with public health spending are also less progressive. The results have important policy implications for public spending policy reforms, poverty reduction and income redistribution.
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Leveraging Special Drawing Rights (SDRs) for Sustaining Economic Recovery in Kenya
(African Economic Research Consortium, 2024-05-06) Omanyo, Daniel; Chemnyongoi, Hellen; Ngugi, Rose
Like most countries in sub-Saharan Africa, Kenya has faced and coped with multiple shocks amid reduced fiscal headroom and increasing public debt vulnerabilities. Other than the COVID-19 global health crisis and the resulting economic effects, Kenya faced the Desert Locust Invasion in 2020, prolonged droughts in 2021 and 2022, and the accompanying high cost of living exacerbated by the spillover effects of the Russian Ukraine war. These developments came when the economy had inadequate domestic resources to sustain the post-COVID-19 recovery momentum, and the mounting debt levels constrained the ability to raise new funding. Recent data indicate that Kenya is rated as a medium performer in terms of Debt Carrying Capacity (DCC) with a high risk of debt distress (National Treasury and Economic Planning, 2023a). The high risk of debt was primarily because of the economic effects of the COVID-19 pandemic contributing to a slowdown of economic growth. It is worsened by high inflation and supply chain disruptions due to the multiple and recurrent shocks the economy faces. During the COVID-19 pandemic, the International Monetary Fund (IMF) supported member countries substantially. This support took multiple forms, including the Rapid Credit Facility (RCF) and the Rapid Financing Instrument (RFI), which provide emergency loans to low-income and middle-income countries facing urgent balance of payments needs. In response to the pandemic, the IMF increased the access limits for RCF and RFI loans to 100% of a member’s quota and simplified the application process. Many countries used these facilities to finance their urgent health and social spending needs and address the pandemic’s economic impact. The IMF also reviewed the conditionalities on various facilities, such as the Extended Credit Facility (ECF) and the Stand-By Arrangement (SBA), to provide more flexibility and support to member countries during the pandemic. These efforts allowed countries to use funds under the ECF and SBA to finance their COVID-19-related health and social spending needs (IMF, 2023; ECA & ECLAC, 2022).
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Réallocations des Droits de Tirage Spéciaux et Financement de la Relance Économique au Sénégal
(African Economic Research Consortium, 2024-05-06) Sylla, Fanta Ndioba; Diagne, Abdoulaye
L’économie sénégalaise a été récemment touchée par les chocs combinés de la Covid-19, des tensions géopolitiques en Ukraine, sans oublier les chocs liés au changement climatique qui s’amplifient d’année en année. Les ressources nécessaires pour faire face à ces chocs ont conduit à une aggravation rapide de la dette publique et du déficit budgétaire, ce qui limite les possibilités pour le Sénégal de mobiliser des ressources pour financer ses politiques de développement. Le pays se trouve donc dans une situation où il doit trouver des mécanismes de financement innovants et flexibles, susceptibles de ne pas aggraver la dette publique et le déficit budgétaire. Une option possible est de sécuriser l’accès aux réallocations de droits de tirage spéciaux (DTS) par le FMI à travers son instrument de fiducie pour la résilience et la durabilité (RST). Cependant, ces fonds sont soumis à une série de conditionnalités qui les rendent difficiles d’accès. Une meilleure connaissance des possibilités d’accès du Sénégal à ces ressources du RST est impérative pour préparer un dossier de demande de financement solide à soumettre au FMI ; ce dossier devra démontrer la capacité du Sénégal à faire face aux effets négatifs des chocs que l’économie nationale a subis ces dernières années ainsi que la capacité à remettre cette économie sur une trajectoire de croissance forte.
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Tirer Parti des Droits de Tirage Spéciaux (DTS) Pour Soutenir la Reprise Économique au Kenya
(African Economic Research Consortium, 2024-05-06)
Le Kenya, comme la plupart des pays d’Afrique subsaharienne, a dû faire face à de multiples chocs dans un contexte de marge de manœuvre budgétaire réduite et de vulnérabilité croissante de la dette publique. Outre la crise sanitaire mondiale COVID-19 et ses effets économiques, le Kenya a dû faire face à l’invasion du criquet pèlerin en 2020, à des sécheresses prolongées en 2021 et 2022, ainsi qu’à la hausse du coût de la vie exacerbée par les retombées de la guerre russo-ukrainienne. Ces événements se sont produits alors que l’économie ne disposait pas de ressources intérieures suffisantes pour soutenir la dynamique de reprise post-COVID-19, et que les niveaux d’endettement croissants limitaient la capacité à mobiliser de nouveaux financements. À la suite d’une série de chocs récurrents, le Fonds monétaire international (FMI) a apporté une aide substantielle aux pays membres. Ce soutien a pris de multiples formes, notamment celle du mécanisme de crédit rapide (RCF), de l’instrument de financement rapide (RFI) et du fonds fiduciaire pour la résilience et la viabilité (RST), qui a accordé des prêts d’urgence aux pays à faible revenu et à revenu intermédiaire confrontés à des besoins urgents en matière de balance des paiements. Plus fondamentalement, le FMI a approuvé le versement de 650 milliards de dollars en droits de tirage spéciaux (DTS) en août 2021 pour aider les pays membres à compléter leurs réserves de change et à financer leurs besoins en matière de balance des paiements pendant la pandémie. Toutefois, les données du FMI montrent qu’environ deux tiers (420 milliards de dollars) de l’allocation sont allés aux économies développées. En outre, les statistiques montrent que les économies en développement sont plus dépendantes des DTS que les économies développées, les positions nettes en DTS montrant une différence significative dans les taux d’utilisation entre les deux. La CEPAL et la CEA (2022) ont noté que les économies en développement ont un taux d’utilisation des DTS de 42,9 %, tandis que les économies développées ont un taux d’utilisation de 5,9 %. En outre, les faibles droits de vote dans les pays en développement limitent leur participation au processus de prise de décision où le pouvoir de vote compte. Par conséquent, les pays à faible revenu qui ont besoin de plus de ressources et d’allocations de DTS pour faire face à leurs problèmes de liquidité sont désavantagés.
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Reformes Pour le Financement des Droits de Tirage Spéciaux (Dts) dans le Cadre de la Récupération Économique du Ghana
(African Economic Research Consortium, 2024-05-06) Quartey, Peter; Atta-Ankomah, Richmond; Afful-Mensah, Gloria
En 2022, l’économie ghanéenne a enregistré les pires performances des trois dernières décennies, comme en témoignent les niveaux sans précédent des déséquilibres macroéconomiques. Bien qu’il y ait eu des signes de dérapage fiscal vers la fin de 2019, les faiblesses structurelles du domaine fiscal du pays ont été exposées et affaiblies par la triple crise - la pandémie de covid-19, la guerre Russie Ukraine et les chocs climatiques croissants. En outre, les niveaux insoutenables de la dette publique, en particulier l’augmentation de la dette extérieure, ont conduit à une augmentation constante du montant des recettes publiques consacrées au paiement des dettes. Le fait de consacrer une part croissante des recettes de l’économie au paiement de la dette a entraîné une diminution de la part des investissements publics dans les infrastructures et les services sociaux (voir les figures 1 et 2). Cette situation semble avoir incité le gouvernement à emprunter davantage. En mai 2023, le FMI a classé le pays dans la catégorie des pays en situation de surendettement.
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Tirer Parti des Allocations Accrues de DTS Pour Financer une Reprise Économique Résiliente en Éthiopie
(African Economic Research Consortium, 2024-05-06) Ali, Abdurohman; Ageba, Gebrehiwot; Issa, Ali
L’économie éthiopienne a été frappée par un ensemble de chocs internes et externes au cours des dernières années. L’effet combiné de la pandémie de Covid-19, de la guerre entre la Russie et l’Ukraine, des conflits internes et de la sécheresse a placé le pays sur une trajectoire de croissance plus faible. Les investissements en capital ont chuté. Le déficit budgétaire et le déficit de la balance des paiements se sont creusés et la position de la dette extérieure présente un risque élevé de détresse. Le pays a mis en place des mesures d’austérité pour respecter ses obligations en matière de dette internationale. Le paiement des dettes pèse sur d’importants secteurs sociaux et économiques. L’effet d’éviction du paiement de la dette sur d’autres secteurs en est la preuve. Le budget de l’Éthiopie pour le paiement de la dette publique en 2022/23 dépasse le budget combiné de la santé, de l’éducation, de l’eau et de l’énergie, du développement agricole, du commerce et de l’industrie. Le budget consacré au paiement de la dette publique en 2022/23 est trois fois supérieur à celui de l’année précédente. En conséquence, le pays recule par rapport aux importants progrès économiques et sociaux des deux dernières décennies. Les taux de pauvreté augmentent. En outre, les résultats de l’Éthiopie en matière de réalisation des ODD ont été médiocres et le pays s’est classé 144e sur 166 pays. Compte tenu de la multitude de chocs externes et internes qu’elle a subis, l’Éthiopie bénéficierait d’une nouvelle allocation de droits de tirage spéciaux (DTS) ou d’un réacheminement des DTS excédentaires. Toutefois, compte tenu de l’ampleur de la crise de liquidité actuelle et des besoins de financement pour son redressement à long terme, une nouvelle allocation basée sur la quote-part actuelle du FMI ne représenterait qu’une petite fraction des besoins du pays.
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Reforms for Special Drawing Rights (SDRs) Financing in Ghana's Economic Recovery
(African Economic Research Consortium, 2024-04-30) Quartey, Peter; Atta-Ankomah, Richmond; Afful-Mensah, Gloria A
On 2 August 2021, the International Monetary Fund announced the largest (in its history) allocation of Special Drawing Rights(SDRs) worth US$650 billion (€550 billion),which was approved with effect from 23 August 2021. A large proportion of the total allocation went to developed economies because they hold much higher quotas, although the levels of SDR utilisation by these countries have been historically very low, compared to developing countries like Ghana. The important question is: in what ways could Ghana benefit from SDRs beyond its allocation? How can the unused SDRs allocations be rechannelled to support developing countries' public finances and help their recovery from recurrent global multiple shocks? To help address these questions, this case study on Ghana sought to: (1) Comprehensively explore the state of Ghana's public sector finance and how it has been affected by the triple crisis (COVID-19 pandemic, rising external debts, and Russia-Ukraine war); (2) Explore the evolution of Ghana's external balance position and its vulnerabilities in the context of local constraints and external shocks; and (3) Explore the opportunities for using SDR facilities to support public financial management, improve external balance position, and as a vehicle to promote stable economic growth and development in Ghana. The study points to several structural constraints, both local and external, to prudent fiscal management, and underscores the need for reforming SDR regime to provide an alternative and sustainable financing framework for Ghana and similar developing countries. Several recommendations are also provided to address the challenges of public financial management, including low domestic revenue mobilisation and inefficiencies in public spending.
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Leveraging Enhanced SDR Allocations to Finance Resilient Economic Recovery in Ethiopia
(African Economic Research Consortium, 2024-04-30) Hussien, Abdurahman A. Hussien; Ageba, Gebrehiwot; Abdi, Ali I.
Special Drawing Rights (SDRs) allocation is a mechanism used by the International Monetary Fund (IMF) to provide its member countries with additional reserve assets. SDRs are a type of international currency that can be used to supplement a country's official reserves or for international transactions. Countries could immediately use a new allocation of SDRs for debt relief, to import life-saving necessities, and to support key public services. In many cases, SDRs provide important financial support without being converted to hard currency. They help reduce capital flight balance of payments deficit and fiscal crises. These additional reserves can also lower countries' borrowing costs1 (Centre for Economic Policy Research [CEPR], 2022). Historically, there has been one special allocation and four general allocations, the latest of which was in 2021, when the IMF allocated SDR 456 billion (US$650 billion) to help deal with the economic impact of the global COVID-19 pandemic. Global economic conditions have continued to deteriorate since the COVID-19 pandemic, putting pressure on the short-term liquidity and long-term financing needs of countries in Africa, including Ethiopia. In addition to the external shocks commonly facing other countries, Ethiopia has been enduring the consequences of conflict and drought, which have exacerbated the already precarious economic conditions of the country. The conflict in northern Ethiopia and other parts of the country caused skyrocketing defence spending, crowding out expenditures in social and economic sectors. It led to disruption in agricultural production, trade flows, foreign direct investment (FDI), and external borrowing. Also, failing rainfall in six consecutive agricultural seasons led to severe drought in the southern part of the country, leading to loss of livelihood for a quarter of the country's population.
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Do Natural Resource Endowments Affect Export Diversification in Africa? A Cross-Country Analysis
(African Economic Research Consortium, 2024-04-30) Niass, Dieynaba
This paper aims to analyse the effect of natural resources on the supply portfolio of African exports. Based on COMTRADE data on export products from 2000–2015, a methodological approach is applied using two standard measurement trade diversification indicators: active line counting and the standardised Herfindahl Hirschman index. These indicators are then linked to the status of resource-rich countries (and other controls) in a fixed-effects panel data model. The results of this paper suggest that the presence of oil resources (non-renewable resources) hurts diversification, essentially through the channel of degradation of institutions. Similarly, agricultural products (renewable resources) negatively affect African export diversification (count and index) through the exchange rate channel. This shows the need for Africa to strengthen the quality of institutions by fighting against corruption through transparency in the exploitation and export of natural resources, and through proper management. In addition, African countries must ensure the stability of monetary policies so that a depreciation of the exchange rate can be to their advantage.
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Maternal Education, Domestic Violence and Childhood Malaria in the Democratic Republic of the Congo
(African Economic Research Consortium, 2024-04-29) Baroki, Robert Luanda; Mariam, Anastasie Bulumba
This study investigates the effect of maternal human capital and domestic violence perception on child malaria in the Democratic Republic of the Congo (DRC), one of the countries with the highest malaria prevalence in the world. Second only to Nigeria, the DRC recorded the highest number of malaria victims in the world in 2022, representing 12% of global malaria deaths. Malaria is the main cause of child mortality and morbidity in the DRC, with nearly 30% of children below the age of five testing positive, as reported in the latest UNICEF survey. These statistics contrast with the widespread use of insecticide-treated bed nets and excellent knowledge of the modes of malaria transmission in the country. Therefore, this study explores other potential determining factors for malaria, particularly maternal education and attitude toward domestic violence, a measure of empowerment, in order to inform policy measures to combat the disease. The study also analyses anaemia as a malaria-related outcome, in an effort to comprehensively assess the effect of the proposed control factors on the malaria burden, as recommended by the World Health Organization. Using a logistic model based on Rosenzweig and Schultz’s framework and the 2013–2014 DRC Demographic and Health Survey, it is found that maternal education significantly and positively affect child malaria while female empowerment has positive and significant effects on anaemia. Cluster’s altitude, father’s education and mother’s age are other significant predictors of child malaria and anaemia.
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Gendered Analysis of Households’ Uptake of Agricultural Technology, Production and Food Consumption in Rural Nigeria
(African Economic Research Consortium , 2024-04-29) Atata, Scholastica Ngozi; Voufo, Belmondo Tanankem; Efobi, Uchenna; Orkoh, Emmanuel
The literature suggests marked gender inequality in the use of agricultural technology despite the availability of evidence that women could be as productive as men when given equal access to agricultural resources. This underscores an urgent need to consider improving women’s access to agricultural technology to ensure the sustainable provision of food for all people, and particularly those in developing countries. This study addresses two specific objectives. It: (a) examines gender differences in households’ use of farm-level technology (herbicides, pesticides and inorganic fertilizer); and (b) assesses the impact of the uptake of agricultural technology on farm production and food consumption, paying particular attention to the gender of the household head. The results of a three-stage least squares (3SLS) regression reveal that households’ uptake of agricultural technology has a significant positive effect on their dietary diversity and food consumption expenditure per capita due to increased farm production. While these results are consistent regardless of the gender of the household head, the extent of effects for female-headed households is almost double that for male-headed households. Therefore, an essential policy implication of our result is that the government could use input subsidies to address some of the gender gaps with regard to agricultural technology access and use. Such efforts should address any entrenched inequalities in women’s access to agricultural production resources and consider other socioeconomic factors such as education and landholding, which contribute to gender inequality in agricultural technology uptake.
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Technical Efficiency in the Services Sector of selected Sub-Saharan African Countries
(African Economic Research Consortium, 2024-04-29) Macharia, Kenneth Kigundu
While the service sector is increasingly playing a bigger role in the structural transformation of developing countries, the sector’s level of technical efficiency remains understudied. This study analyses the level of technical efficiency in the service sector of selected sub-Saharan African countries and identifies covariates of this technical efficiency. Data are from the 2013 World Bank Enterprise survey for six countries, namely Kenya, Uganda, Tanzania, Ghana, Zambia and the Democratic Republic of the Congo. The estimation is performed by a two-stage bootstrap data envelopment analysis approach at the country and sub-sector levels. The sub-sectors of interest are retail, wholesale, hotel and restaurant, transport, motor vehicle services and IT. The findings show substantial opportunity to enhance technical efficiency in the selected sub-Saharan Africa service firms. The nature of the opportunity varies across countries and sub-sectors. Firm size, export, firm age, research and development, training, female firm ownership and top manager’s experience have an influence on technical efficiency but this influence varies across countries. In general, the findings imply that there is a need to provide an enabling environment that allows the growth of service firms given that large service firms are more technically efficient compared to small firms.
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Gendered Analysis of Households’ Uptake of Agricultural Technology, Production, and Food Consumption in Rural Nigeria
(African Economic Research Consortium, 2024-04-12) Ngozi, Atata Scholastica; Belmondo, Tanankem Voufo; Uchenna, Efobi; Emmanuel, Orkoh
The literature suggests marked gender inequality in the use of agricultural technology despite the availability of evidence that women could be as productive as men when given equal access to agricultural resources. This underscores an urgent need to consider improving women’s access to agricultural technology to ensure sustainable provision of food for all people and particularly those in developing countries. This study addresses two specific objectives: (a) it examines gender differences in households’ use of farm-level technology (herbicide, pesticide, and inorganic fertilizer) and (b) it assesses the impact of the uptake of agricultural technology on farm production and food consumption with particular attention to the gender of the household head. The results of the Three Stage Least Squares (3SLS) regression reveal that households’ uptake of agricultural technology has a significant positive effect on their dietary diversity and food consumption expenditure per capita due to increased farm production. While these results are consistent regardless of the gender of the household head, the extent of effects for female-headed households are almost twice those for male-headed households. Therefore, an essential policy implication of our result is that the government could use input subsidies to address some of the gender gaps with regard to agricultural technology access and use. Such efforts address any entrenched inequalities in women’s access to agricultural production resources and consider other socioeconomic factors such as education and landholding which contribute to gender inequality in agricultural technology uptake.
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Tea Prices and Household Consumption Patterns in Tanzania
(African Economic Research Consortium, 2024-04-12) Nchake, Mamello A.; Mtenga, Threza L.
Tea production is a significant contributor to Tanzania's output and income. The country is a price taker in regional and international tea markets, and this makes it vulnerable to price shocks, which can have a detrimental impact on smallholder farmers, especially those who heavily rely on tea production for their income. This vulnerability is particularly critical for net producers who lack alternative income sources, especially in rural areas. The study uses a panel dataset from the Tanzania National Panel Survey (TNPS), collected over the periods 2008- 2009, 2010-2011 and 2012-2013. The study's main findings indicate that tea price shocks have a strong negative effect on consumption patterns of smallholder farming households in Tanzania. The results also highlight that the impact of price shocks is not uniform across all households. It varies based on factors such as the gender of the household head and the location (rural or urban). The study underscores the importance of government intervention to support households affected by price shocks. Safety net programmes and welfare management initiatives can be vital in assisting these households to cope with economic uncertainties. Moreover, policies that encourage savings and the accumulation of productive assets can serve as a cushion against future shocks. Recognizing the variations in the effects of price volatility among different households, the study suggests the need for policies and strategies that are specifically designed to address the uncertainties in the tea market. This implies a nuanced approach to policies that address the diverse needs and vulnerabilities of tea-producing households.
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Investigating the Gender Wage Gap in the Nigerian Labour Market: A Distributional Approach
(African Economic Research Consortium, 2024-04-12) Nwosu, Emmanuel O.; Orji, Anthony
This study investigates the gender wage gap in Nigeria by extending the focus of the existing literature in two ways. First, we apply an extension of the Oaxaca-Blinder decomposition that relies on recentred influence function (RIF) regressions to analyze the gender wage gap at all points along the wage distribution. Second, we investigate changes in the gender wage gap between 2003/2004 and 2018/2019. The results unambiguously show that there is a significant gender wage gap in favour of men in Nigeria. This gap is statistically significant at all points of the wage distribution. Over time, we find that most of the wage difference is significantly accounted for by the wage structure effect, while the composition effect accounted for the wage gap at the lower end of the wage distribution during 2018/19. We also found a general decline in the gender wage gap along the entire wage distribution. In 2018/19, the gap is bigger at the bottom than at the top of the wage distribution, which is evidence in favour of a sticky floor in the Nigerian labour market. In terms of the contributions of individual covariates, we found that urban residence, unionization, education, public sector employment, and wage employment in agriculture has a significant reducing effect on the wage gap in favour of women. To address the gender wage gap in Nigeria, policy should focus more on ways to improve human capital among women and ensuring women are not segregated in top positions at the workplace.
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Horizontal Equity in the Use of Maternal Health Services in Cameroon
(African Economic Research Consortium, 2024-04-11) Josiane, Saleu Feumeni
An equitable healthcare system should be the health policy goal of all countries. The objective of this study is to measure horizontal equity in the use of maternal health services in Cameroon from 2004 to 2018. Specifically, it aims to determine the level of inequity in assistance during delivery and in the intake of tetanus vaccine from 2004 to 2018. It identifies sources of inequity in assistance during delivery and at the intake of tetanus vaccine. To accomplish this, we used the indirect standardization of health care method and the 2004, 2011, and 2018 Demographic and Health Surveys. The results show that there are significant inequities in wealth, education, region of residence, and in access to the nearest health facilities. Furthermore, sociodemographic and economic inequities are associated with health care utilization inequities. A health policy implementation monitoring team is therefore essential if the observed inequities in the use of maternal health services in Cameroon are to be significantly reduced.
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Financial Inclusion and Resilience to COVID-19 Economic Shocks in Nigeria
(African Economic Research Consortium, 2024-04-11) Adeniran, Adedeji P.; Muthinja, Moses M.
We examine the role of financial inclusion, ownership of bank accounts, and previous use of formal financial saving facilities as a resilience factor in the effect of COVID-19 on households' welfare in Nigeria. Using a novel data set that tracks food security among families in Nigeria before and during COVID-19, we find a negative effect of COVID-19 on welfare. The impact is more severe among male-headed households, those living in the southern region of Nigeria, and lower educated households. We also test how financial inclusion mitigates this effect through a triple difference analysis in which the households that are financially included and in non-agricultural sector are considered as the treatment group. Financial inclusion did not support resilience to shock among non-agricultural homes. Given the magnitude and multisectoral dimension of the COVID-19 shock, financial inclusion was not enough to mitigate the effect. This, therefore, points to a role for stronger government support in a large shock like COVID-19.
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Aid Fragmentation and Development Outcomes in Sub-Saharan African Countries
(African Economic Research Consortium, 2024-04-11) Dedehouanou, Sessinou Erick Abel
This study examined the fragmentation of official development assistance (ODA) in Sub-Saharan African countries and the role played by development outcomes. Initially, it analyzed the fragmentation of aid over the period 2000 to 2019 using the Theil index. On the donor side, it appears that fragmentation of aid from bilateral Development Assistance Committee (DAC) donors and bilateral non-DAC donors has decreased significantly in recent years. In addition, the aid provided by bilateral DAC donors has been less fragmented than that given by non-DAC bilateral donors. Several traditional donors and so-called emerging donors have contributed to the fragmentation of aid in Sub-Saharan African countries. As for aid recipients, the countries of Southern Africa or those belonging to the group of so-called fragile States have suffered less from aid fragmentation than their counterparts in Central, East, and West Africa and those belonging to the group of non-fragile States. We used an instrumental variables method and a panel quantile regression with non-additive fixed effect to assess the effect of the development factors on aid fragmentation. The results obtained validated that the fragmentation of aid can be reduced by better coordination of aid at the sectoral level and above all by internal development factors (structural transformation policies and equity in the use of resources). Indeed, no solution to the fragmentation of aid is possible without the implementation of structural policies to achieve a level of development capable of coordinating the action of donors and equity in the use of resources allowing the satisfaction of the needs of various social groups.