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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 Thesis
  • 5. 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

Africa’s Chronic Liquidity Challenges and the Role of SDR Allocations
(African Economic Research Consortium, 2024-05-14) Shimeles, Abebe; Gallagher, Kevin
The triple and overlapping global shocks faced by African countries have caused severe liquidity challenges in recent years. Many countries are currently experiencing low real GDP growth, higher inflation, exchange rate instability, balance of payments crisis, and a high risk of debt distress. The most critical is the increasing disruption that climate change risks pose to the macroeconomy, including worsening conditions of conflict and instability. In this regard, Africa is at a significant historic moment to resolve its development finance challenges to ensure a transition to a low-carbon economy while achieving the targets set in the Sustainable Development Goals. This paper outlines potential areas of reform in both the domestic and global arenas. It argues that the existing debt resolution mechanisms are obsolete, requiring novel and bold approaches, such as revising the role of Special Drawing Rights in relieving liquidity challenges in developing countries, mainly in Africa. In addition, the paper also notes that African governments need to seize opportunities created by the shocks to implement long-overdue structural and governance reforms to realize the continent’s enormous development potential.
Educate Teachers Educate Children
(African Economic Research Consortium, 2024-05-14) Sitati, Melap; Murebu, Rosemary
Teachers play a critical role in the education system. As a result, teacher costs rake up 58 percent of public expenditure on education in Kenya. Despite this investment, leaner performance in numeracy and literacy remains below average with wide variability registered across counties. Low learner performance hinders a country's economic growth and limits opportunities for higher education or employment, leading to a cycle of poverty and inequality.
Order Flow-Based Microstructure Analysis of the Spot Exchange Rate in Zambia
(African Economic Research Consortium, 2024-05-13) Phiri, Sydney Chauwa; Chisha, Keegan; Chipili, Jonathan M.
Traditional macroeconomic fundamentals have challenges in explaining nominal exchange rate movements at short horizons partly due to their inability to capture expectations. Using data from the Bank of Zambia, and an order flow-based microstructure model within a vector autoregressive (VAR) framework, this study establishes that order flows in the foreign exchange market in Zambia contain useful information in explaining daily exchange rate movements for the period 2016‒2020. Daily order flows of four out of 18 different customer types are found to contain information content with the interbank, manufacturing, households, as well as wholesale and retail being the most important. Cross-market order flows contain less information to explain daily movements in the kwacha/US dollar exchange rate. The policy lesson from the empirical results points to the central bank paying attention to the demand requirements by the four identified segments of the foreign exchange market that can potentially drive up the exchange rate and generate inflationary pressures.
Analysing the Relationship between Innovation and Productivity: A Case Study of Senegalese Manufacturing Industries
(African Economic Research Consortium, 2024-05-13) Kane, Aboubacry
The objective of this study was to profile innovative companies and to examine the link between innovation and productivity in manufacturing firms in Senegal. It took into account the interaction between various forms of innovation. Using a descriptive analysis of variance (ANOVA) approach and multivariate regression, the study found that although Senegal had a satisfactory level of technology adoption, an innovation deficit remained in the industrial sector, notably in research and development (R&D) activities. The study established that larger enterprises and firms that export their products are the most innovative. However, no significant relationship was found between the gender of the manager of the firm and the adoption of various forms of innovation. Furthermore, our results demonstrate that the choice to adopt innovation in an organization is positively related to improved labour productivity. In regard to the other types of innovation, no association was found. Our results suggest the need to develop strategies that integrate innovation in industrial policy in order to facilitate its adoption. They also suggest the need to undertake regular surveys of innovation in firms so as to better understand market trends, identify their strengths and weaknesses and facilitate decision making in terms of innovation.
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.
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.
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.
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).
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.