Foreign aid and governance in Africa

Jellal²

2015

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The paper provides theoretical and empirical justifications for the instrumentality of foreign aid in stimulating private investment and fixed capital formation through fiscal policy mechanisms. We propose an endogenous growth theory based on an extension of Barro (1990) by postulating that the positive effect of aid mitigates the burden of the taxation system on the private sector of recipient countries. The empirical validity is based on data from 53 African countries for the period 1996-2010. While the findings on the tax effort channel are overwhelmingly consistent with theory across specifications and fundamental characteristics, those of the 'government expenditure' channel are a little heterogeneous but broadly in line with the theoretical postulations. Justification for the slight heterogeneity and policy implications are discussed.JEL Classification: B20; F35; F50; O10; O55

Section: Asongu (2013a)supporting

confidence: 79%

“…The adopted IV procedure is in accordance with recent foreign aid (Asongu & Nwachukwu, 2015) and development (Tchamyou, 2015) literature. The purpose of adopting an IV approach is to have some bite on endogeneity.…”

Section: Methodsmentioning

confidence: 99%

Foreign Aid Fiscal Policy: Theory and Evidence

Jellal²

2015

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“…This is consistent with the standard IV procedure in which, a rejection of the null hypothesis of the Sargan Overidentifying Restrictions (OIR) test is an indication that the instruments influence the technology export variables beyond the suggested predetermined variable channels (see Beck et al, 2003;Asongu & Nwachukwu, 2016d). The following findings can be established on the linkages between governance, mobile phone penetration and technology exports.…”

Section: Methodssupporting

confidence: 63%

The Role of Mobile Phones in Governance-Driven Technology Exports in Sub-Saharan Africa

2017

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“…This is broadly consistent with the standard IV procedure in which, a rejection of the null hypothesis of the Sargan Overidentifying Restrictions (OIR) test is an indication that the instruments affect the entrepreneurship variables beyond the suspected endogenous variable mechanisms (see Beck et al, 2003;Asongu & Nwachukwu, 2016c).…”

Section: Methodssupporting

confidence: 48%

Mobile Phone Innovation and Entrepreneurship in Sub-Saharan Africa

Biekpe

2017

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This study assesses how knowledge diffusion modulates the effect of the mobile phone on Second, the mobile phone interacts with education (the internet) to have a positive (negative) net effect on the time needed to construct a warehouse whereas, the corresponding interaction with the internet yields a net negative effect on the time to enforce a contract. Third, there is a positive net effect from the interaction of mobile phones with education on the time to start a business. Given the construction of the education variable, the positive net effects from education are consistent with corresponding negative net effects from the other knowledge diffusion variables. The main policy implication is that mobile phone innovation (by means of internet penetration, scientific output and quality education) decreases constraints of entrepreneurship. Suggestions on how to boost these knowledge diffusion channels are discussed. Other practical and theoretical implications are also covered. To the best our knowledge, this is the first inquiry to assess the relevance of mobile phone innovation in entrepreneurship in Sub-Saharan Africa.