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Gender and Employment in Africa

Paper Session

Saturday, Jan. 5, 2019 10:15 AM - 12:15 PM

Atlanta Marriott Marquis, M102
Hosted By: African Finance and Economics Association
  • Chair: Christian Nsiah, Baldwin Wallace University

Service Exports, Sustained Economic Growth, and Youth Employment in Africa

Kwabena Gyimah-Brempong
,
National Science Foundation
William Baah-Boateng
,
University of Ghana
John B. Oryema
,
Makerere University

Abstract

In this paper, we try to answer two questions on the role of the service sector in the development of African economies. Specifically, we investigate whether service exports can be a viable mechanism to accelerate economic growth in African countries. Second, we investigate whether service exports can be a vehicle for creating employment for the youth and females in African countries as high youth unemployment rates have been a concern to policy makers on the continent. We take advantage of a new data set on service trade in the world released by the IMF and youth employment data to conduct the investigation. We conduct the investigation at the 2 digit SIC code level. We conduct the research at both aggregate and in some cases at the sectoral level as well as study regional differences in the effect service exports on growth and youth employment in African countries. Our preliminary results suggest that increasing service exports, especially in tourism and “high tech” subsectors can substantially contribute to economic growth and increase youth employment in African countries. This is an interesting result with important policy implications since the investments needed to increase these exports are likely to be modest compared to investment requirements for manufacturing exports. These investments are also likely to complementary to the investments in other sectors of African economies.

What are the Determinant of International Tourism in Tanzania?

Evelyn Wamboye
,
Pennsylvania State University
Peter John Nyaronga
,
Ministry of Natural Resources and Tourism-Tanzania

Abstract

International tourism has since been recognized as a conduit for poverty alleviation and infrastructure development. Despite the sector’s importance in Africa in terms of its contribution to economic growth, foreign exchange earnings, and employment, very few studies have attempted to uncover its potential. In the case of Tanzania, where the sector’s importance rank high in the country’s development strategy, only two studies exist, and none on the factors that influence international tourism demand. Therefore, this study makes an important contribution to tourism economics literature in Africa by investigating the relevant determinants of international tourism demand using panel data for Tanzania’s top fifteen tourists’ source countries during the 2000-2016 period. Results, based on various panel data estimation techniques, indicate that income of tourists and infrastructure development in Tanzania, are the two main determinants of international tourism demand for Tanzania. These findings hold across model and sample specifications. From a policy perspective, the government of Tanzania and stakeholders should work towards making Tanzania tourism products more competitive by developing/improving infrastructure in the country. Moreover, there should be a policy that encourages developing tourism packages that fit the demands of tourists from relatively high income countries, and also make conscious efforts to market these products in the target countries. Lowering the cost of living and improving the exchange rate are also some of the areas that the government could work on to help grow the tourism industry

Gender Inequality and Marketisation Hypothesis in sub-Saharan Africa

Manoel Bittencourt
,
University of Witswatersrand
Matthew Clance
,
University of Pretoria
Tendai Zawaira
,
University of Pretoria

Abstract

The marketisation hypothesis states that the growth of the service sector reduces gender inequality. This is because women have a comparative advantage in service jobs and consequently benefit more than men as the sector grows. In recent years, the African service sector has grown considerably, however, gender inequality in the continent is still relatively high. Using a new dataset on gender inequality and panel data analysis, we study the relationship between service sector shares and gender inequality in 31 sub-Saharan African countries during the 1990-2014 period. Consistent with predictions of the hypothesis, service sector shares significantly reduce gender inequality and the results are robust after the inclusion of a wide range of controls. However, we find that this relationship is nonlinear, requiring that the size of the service sector reaches a threshold before we observe improvements in gender inequality

Female Tertiary Education Enrolment in Africa: Analysis of Key Drivers

John C. Anyanwu
,
African Development Bank

Abstract

Goal 4 of the Sustainable Development Goals seeks, among others, to ensure that by 2030, equal access for all women and men to affordable and quality technical, vocational and tertiary education, including university is achieved. However, in Sub-Saharan Africa (SSA), girls still face huge barriers to entering tertiary school. For example in 2016, SSA had the lowest female tertiary enrolment ratio of just 7% against 96.5% in North America; 77.6% in Europe, 55% in Latin America and the Caribbean, 47.3% in East Asia and the Pacific, and even 35.2% in North Africa. In this paper, we analyze the key drivers of female tertiary education enrolment in Africa as a guide to policy by stakeholders. Using cross-sectional time series data from 1990 to 2016, our empirical results (employing OLS and IV-SLS methods) show a novel finding that female tertiary education enrolment can be accounted for by economic development to the third degree polynomial, with positive leading coefficient. Increased democracy, ODA, economic globalization, mobile phone penetration, Christian dominance in a country, female labor force participation, and access to electricity in urban areas increase female tertiary education enrolment. However, higher prevalence of HIV among females aged 15-49 years, female share of the population, civil war incidence, and social globalization tend to lower it. There is also a U-shaped relationship between female fertility and female tertiary education enrolment in Africa. The paper also extends the analysis to males and we find very interesting similarities and differences. The policy implications are discussed

The Causal Effect of Household Extension on Labour Force Participation of Women: Evidence from Child Fostering in Ghana

Kwame Agyire-Tettey
,
University of Ghana
Richard Ayisi
,
University of Ghana
Theresa Mannah-Blankson
,
Messiah College

Abstract

Promoting female labour force participation is essential for poverty reduction, gender equality and social cohesion. However, the traditional roles of women within the household in many developing countries continue to impede their full integration into economic activities. The structure and composition of households that women are resident in have implications for their economic outcomes. This study, therefore examines the causal effect of household extension through the practice of child fostering on female labour force participation in Ghana. The paper adopts an endogenous treatment model to account for the non-random decision of households to foster-in a child and market participation of resident women in such households. The study’s findings are indicative that child fostering arrangements in Ghana, perhaps are motivated by human capital considerations. We find a significant negative effect of the presence of a fostered child in the household on the labour force participation decision of resident women. The findings support the restraining effects of extended households due to increased demand for home produced goods. The findings also suggest that receiving households may suffer some welfare losses through foregone female wages. Based on the findings, we recommend the provision of basic household technologies that relieve women from the excessive time demands of home production in the short-term and the continuous promotion of fertility control programmes as long-run strategies

Partnership, Innovation, Commitments and Gains of the Poor in Inclusive Business in Ghana: Multiple Case Studies

Samuel Amponsah
,
Tokyo International University
Yoshitaka Okada
,
Tokyo International University
Sumire Stanislawski
,
Tokyo International University

Abstract

The IB projects studied in Ghana involve partnerships and collaborations between two NGOs, nine private firms, two commercial banks, three government agencies and two cooperative societies as well as the poor. Partners use contracts, trust-based relations and decision-making meetings as means of sharing responsibility and safeguarding each other’s stakes and resources. The poor consider trust-based relations as the most effective means of engaging them in IB projects. To gain the trust of the poor, two firms started their operation by pre-financing their suppliers, but after sustaining their businesses over time, they stopped. While some of the poor saw this as an unfortunate situation, they continued to deal with the companies because the companies provided them with market access which they were lacking. Another company uses an innovative approach to solve the social issue of child labour. This innovative approach is the payment of extra premiums to farmers for their cocoa beans and the implementation of child labour monitoring system. The poor willingly accepted new innovations, challenges and opportunities as a means of increasing their income and, accessing products and services that are not easily available in their communities. Some of the poor consider their engagement in IB projects as a way of contributing to their society.
Discussant(s)
Ruth Uwaifo Oyelere
,
Morehouse College
Carolyn Chisadza
,
University of Pretoria
Fafanyo Asiseh
,
North Carolina Agricultural and Technical State University
John Nana Francois
,
West Texas A&M University
Matthew Clance
,
University of Pretoria
JEL Classifications
  • F1 - Trade
  • J1 - Demographic Economics