Human Development Report 2006

This study examines if enhancing ICT reduces inequality in 48 countries in Africa for the period 2004-2014. Three inequality indictors are used, namely, the: Gini coefficient, Atkinson index and Palma ratio. The adopted ICT indicators include: mobile phone penetration, internet penetration and fixed broadband subscriptions. The empirical evidence is based on the Generalised Method of Moments. Enhancing internet penetration and fixed broadband subscriptions have a net effect on reducing the Gini coefficient and the Atkinson index, whereas increasing mobile phone penetration and internet penetration reduces the Palma ratio. Policy implications are discussed in the light of challenges to Sustainable Development Goals.

How Enhancing Information and Communication Technology has affected Inequality in Africa for Sustainable Development: An Empirical Investigation

The long-run and short-run impacts of remittances on financial development in developing countries

Discovering the relationship between natural resources, energy consumption, gross capital formation with economic growth: Can lower financial openness change the curse into blessing

This paper investigates the link between foreign direct investment (FDI), democracy and economic growth on a panel of eight Southern African countries for 1980–2014 using the system generalized method-of-moment (GMM) estimator. We find that FDI has a direct positive effect on economic growth and that strong democratic institutions are a significant driver of economic growth in the sample countries. The impact of FDI on economic growth is dependent on the level of democracy in the host countries. This implies that countries with strong democratic institutions are better able to absorb the positive spillovers from FDI. In policy terms, Southern African countries should sustain the institutional reform policy agenda already in place in order to benefit more from the significant inflows of FDI.

Foreign Direct Investment, Democracy and Economic Growth in Southern Africa

Out of inequality and poverty: Evidence for the effectiveness of remittances in Sub-Saharan Africa

ICT, governance and inequality in Africa

The conventional wisdom is that growth is a precondition for poverty reduction. Paying particular attention to the level of growth, poverty and institutions in sub-Saharan Africa (SSA), this paper investigates the effect of GDP per capita growth and sectoral growth on poverty and explores whether the growth-poverty link can be strengthened by institutions. Using the panel dataset of 41 SSA countries over the period 1981–2010 and dynamic two-step system generalized method of moment (GMM) estimator; it is found that GDP per capita growth is an important instrument for poverty reduction. Also, the growth of agriculture and the service sectors have direct poverty-reducing effects. The paper further reveals that good and accountable government, bureaucratic quality and sound policies and regulations are important ingredients in sustaining the growth-poverty link in SSA.

Growth and Institutions: A Potential Medicine for the Poor in Sub‐Saharan Africa

The conventional wisdom is that rapid economic growth is driven by investment. Paying particular attention to the state of gross fixed capital formation (gfcf), poverty and institutions in sub-Saharan Africa, this paper investigates the effect of gfcf on poverty and explores whether the gfcf and poverty relationship can be strengthened by institutions. Using the panel data-set of 41 sub-Saharan African countries over the period 1981–2010 and dynamic two-step system generalised method of moment estimator, it is found that gfcf reduces poverty and institutions reinforce the gfcf and poverty link.

Gross Capital Formation, Institutions and Poverty in Sub-Saharan Africa

This paper uses a nationally representative household pseudo-panel dataset for Ghana, a rain-fed agriculture economy, to investigate whether there is a positive relationship between rainfall-driven agricultural income and household per capita expenditure. By using the Two Stage Least Squares Instrumental Variable (2SLS-IV) estimator, it is found that a fall in rainfall-driven agricultural income leads to a decrease in per capita expenditure. The results show that the gender and the locality of the household head matter in the response of per capita expenditures to rainfall-driven agricultural income. Female-headed and rural households are more vulnerable to rainfall-driven agricultural income changes. The expenditure disaggregation indicates that female-headed households significantly reduce per capita non-food expenditure in times of rainfall-induced agricultural income decrease whilst the response of male-headed households focuses more on reducing per capita food and remittance expenditures.

Eric Akobeng

Papers

Out of inequality and poverty: Evidence for the effectiveness of remittances in Sub-Saharan Africa

ICT, governance and inequality in Africa

Growth and Institutions: A Potential Medicine for the Poor in Sub‐Saharan Africa

Gross Capital Formation, Institutions and Poverty in Sub-Saharan Africa

The Invisible Hand of Rain in Spending: Effect of Rainfall-Driven Agricultural Income on Per Capita Expenditure in Ghana