Differences in trust levels between countries explain the observed discrepancies in entrepreneurial spirit amongst them. We test this hypothesis with a cross-section of 60 countries in 2010. Our findings suggest that about half of the variation in entrepreneurial spirit across countries in the world is driven by trust considerations. This result is robust to regional clustering, outliers and alternative conditioning variables. The findings of the study indicate that while formal incentives to nurture entrepreneurship must be maintained, policy makers should also seek to pay attention to the role of trust cultivated through informal networks.
To the extent that in utero and childhood malnutrition negatively affects later stage mental and physical health, it can possibly constrain later stage human capital acquisition, which is an important driver of economic growth. This paper considers the impact of famine on aggregate adolescent human capital formation in Sub-Saharan Africa. We parameterize a joint adolescent human capital and food nutrition production function to estimate the effects of famine on primary school completion rates of individuals age 15-19. Mixed fixed and random coefficient parameter estimates for 32 Sub-Saharan African countries between 1980-2010 reveal that primary school completion rates of adolescents are proportional to the quantity of food and nutrition produced during childhood and in utero. This suggests that declines in food production and nutrition associated with famine in Sub-Saharan Africa have large negative effects on the acquisition of human capital by adolescents and on long-run material living standards. Our findings also suggest that policy makers in Sub-Saharan Africa should prioritize food security policies that prevent food shortages and famines, which would increase long-run economic growth and material living standards.
This study investigates the impact of different schooling dimensions (primary, secondary and tertiary) on the intensity of intra-state conflicts in 25 African states during the period 1989-2008. It uses fixed-effects and Generalized Methods of Moments (GMM) estimators in an annualized panel data framework. Parameter estimates suggest the following (1) primary schooling broadly mitigates conflicts in Africa. However, in environments with high natural resource rents, it could ignite conflicts; (2) there is evidence, although not overwhelming, that secondary schooling potentially drives conflicts in Africa. There is also evidence that urbanization potentially drives conflicts in Africa. However, although secondary schooling and urbanization potentially drives conflicts, in environments where secondary schooling (urbanization) is high, urbanization (secondary schooling) mitigates conflicts; (3) there is no evidence of a strong direct positive impact of tertiary education on conflicts and conditioning on tertiary schooling, income inequality potentially drives conflicts in African states. However, in contexts where income inequality (tertiary schooling) is high, tertiary schooling (inequality) mitigates conflict. Two important policy implications follow from this study. First, in contexts where income inequality is high (for instance, in South Africa), governments should strive to foster tertiary education in order to reduce conflict. Second, where urbanization rates are high, they should foster both secondary and tertiary education. This study contributes to existing knowledge by clearly demonstrating the utility of distinguishing between different educational dimensions and the contexts wherein they matter for conflict mitigation in Africa.
This paper investigates some of the existing hypotheses regarding the transmission of different colonial legacies to modern day economic growth. The fact that different colonial strategies were pursued by different colonizers in various territories suggests possible ramifications for current development paths. This paper attempts to understand why economic growth performance is different even among African countries, where former British colonies appear to do marginally better. It focuses on two key channels of transmission, namely education and trade. Thirty-six Sub-Saharan African countries during the period 1960-2000 are considered using Hausman-Taylor estimation techniquein an annualized panel data framework. In contrast with the methodology of previous studieswhere only the initial conditions at independence were held to influence the post-colonialgrowth path, this study attempts to distinguish the direct …/
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