This paper considers whether trade between China and sub‐Saharan Africa results in productivity‐enhancing technology transfers to sub‐Saharan African manufacturing firms. As trade flows between countries potentially results in interactions that lead to technological improvements in the production of goods and services, we parameterize the level of total factor productivity for African manufacturing firms as a function of foreign direct investment flow, and for the country in which it operates, trade openness with China, and its interaction with foreign direct investment. With micro‐level data on manufacturing firms in five sub‐Saharan African countries, we estimate the parameters of firm‐level production functions between 1992 and 2004. Our parameter estimates reveal that across the firms and countries in our sample, there is no relationship between productivity‐enhancing foreign direct investment and trade with China. In addition, increasing trade openness with China has no effect on the growth rate of total factor productivity. To the extent that total factor productivity and its growth is a crucial determinant of economic growth and living standards in the long run, our results suggest that increasing trade openness with China is not a long‐run source of higher living standards for sub‐Saharan Africa.
This paper estimates quantile earnings functions with data from the 2004 Tanzanian Household Worker Survey to determine if ethnicity and gender--being female--matters per se and across the distribution of earnings. We find that in the Tanzanian manufacturing sector gender intersects with ethnicity to condition earnings and the return to schooling across the distribution of earnings. This suggests that in Sub-Saharan Africa--at least in Tanzania--labor market policies aimed at eradicating gender earnings inequality may not be effective if not accompanied by policies that also aim to eradicate ethnic inequality.
Purpose – The purpose of this paper is to consider whether regional currency integration in sub-Saharan Africa ameliorates global macroeconomic shocks by considering the impact of the 2008-2009 global financial crisis on economic growth. This suggests that Central Africa Franc Zone (CFAZ) eurocurrency union membership amplifies the effects of global business cycles in sub-Saharan Africa. Design/methodology/approach – The authors estimate the parameters of a quantity theory model of economic growth within a Generalized Estimating Equation (GEE) Framework. Findings – Parameter estimates from GEE specifications reveal that the contraction in credit during the financial crisis of 2008-2009 had larger adverse growth effects on sub-Saharan African countries who were members of the CFAZ eurocurrency union. The authors also find that sub-Saharan African countries who were members of the CFAZ eurocurrency union were more likely to experience a contraction in credit. Originality/value – As far as the authors can discern, no existing empirical growth models use a GEE framework to estimate parameters of interest. The GEE parameter estimates are distribution-free, robust with respect to unknown forms of heteroskedasticity, and control for a wide variety of error structures that can induce bias in panel data parameter estimates.
Labor supply decisions for a particular vocation require that an individual have a preference for utilizing time in the vocation, and the distribution of preferences directly maps into its labor supply distribution. This paper considers if gender conditions preferences for science labor supply decisions in sub-Saharan Africa. We utilize data from the 6th Wave of the World Values Survey to estimate the effect of gender on preference-complementing attitudes toward science. Ordinal Logit parameter estimates from a specification of rank-ordered attitudes towards science suggest that relative to males, female preferences conditioning the decision to supply science labor supply are either more favorable or no different. Our parameter estimates suggest that any observed underrepresentation of females in Science, Technology, Engineering and Mathematics (STEM) in sub-Saharan Africa cannot be explained by female preferences for science, but instead by discriminatory barriers that prevent female participation in the science professions. As for policy implications, our results suggest that STEM gender equality policies could enable achievement of Aspiration 6 of African Union Agenda 2063 and Goal 3 of the Millennium Development Goalsgender equality in access to jobs and opportunities in STEM.
This paper considers if increases in temperature and decreases in rain associated with climate change are a potential driver of Islamist terrorism across states in Nigeria. With state-level Islamist terrorism event, temperature, rainfall and sociodemographic data for Nigeria, we estimate latent variable and count data specifications of the relationship between the number of Islamist terrorism events and climactic variation in temperature and rainfall motivated by how the psychological costs of conflict can be decreased by increases in outdoor ambient temperature and decreases in rainfall. Our parameter estimates reveal that increases in temperature and decreases in rainfall increase the likelihood of Islamist terrorism in Nigeria. This suggests that global warming and reduced rainfall induced by climate change are potential drivers of terrorism in Sub-Saharan Africa, and policy interventions designed to abate anthropogenic climate change can reduce violent conflict that is harmful for economic growth and development.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.