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African Economic Development

Paper Session

Saturday, Jan. 6, 2024 8:00 AM - 10:00 AM (CST)

Grand Hyatt, Republic C
Hosted By: National Economic Association & African Finance and Economics Association
  • Chair: Gbadebo Odularu, Howard University

Access to Credit and Firm Performance from Gender Perspective: Evidence from Sub-Saharan Africa

Ahmad Ahmad
,
Loughborough University
Portia Akglo
,
Loughborough University
Justine Wood
,
Loughborough University
Morakinyo Adetutu
,
Loughborough University

Abstract

This paper examines how the gender gap in credit access for firms affects firm productivity in Sub-Saharan Africa. The study covers 24 Sub-Saharan African countries with a sample period of 2005 – 2020 and uses multilevel modelling technique. The results reveal a gender disparity in credit availability for enterprises with female top managers. It also finds that firms with female managers perform significantly less efficiently than those under male leadership in terms of both total factor productivity and labour productivity, with the channel via credit access. It establishes that further analysis was conducted using propensity score matching technique (PSM) which has confirmed these results.

How Senegal's Farmers are Fighting Back Against Climate Shocks: Exploring Resilience Strategies for Family Farms in Rural Areas?

Nelson Sergeo
,
University of Yaoundé II
André Dumas
,
University of Yaoundé II

Abstract

Family farming is an important source of income for rural populations in Senegal. But, because of the effects of climate shocks coupled with the vagaries of climate change, farmers are often unable to increase their production, let alone their income. Faced with these shocks and hazards, farmers feel compelled to adopt adaptation, resistance and prevention strategies for potential future shocks. The objective of this research proposal is to analyze the resilience strategies of family farms in rural areas in response to climate shocks, and to assess the effect of these resilience strategies on the productivity of farms and the income of farmers. To do this, we focus on three specific objectives. First, we identify the most common resilience strategies to climate shocks among family farms in rural areas based on a descriptive analysis. Then, we identify the main factors that limit or promote the adoption of resilience strategies by farms using a multinomial Probit model. Finally, we assess the impact of resilience strategies on the productivity of family farms and on the income of rural farmers. The value of this research is to provide decision makers with a solid basis for formulating policies aimed at redesigning agricultural programs and investment decisions.

Investigating the Effect of Climate Change on Agricultural Productivity in Ghana

Eric Ayamga
,
Texas Tech University
Millicent Nimakoh
,
Kwame Nkrumah University of Science and Technology

Abstract

Recent incidence of flooding, droughts, erratic changes in rainfall patterns, rising temperatures, and low humidity levels as a result of climate change have a potential impact on agricultural performance. The study investigates the impact of climate change on agricultural performance in Ghana using time series that from 1970 to 2017. Using data from the Ghana Statistical Service and World Bank Indicators and applying the Autoregressive Distributed Lag model (ARDL), the study found a significant negative impact of climate change (proxied by carbon emissions, precipitation, and changes in temperature) on overall agricultural performance and cereal production in Ghana. The study concludes that climate change affects Ghana’s agricultural performance negatively, hence governments, stakeholders and farmers should take pragmatic steps in addressing the issue of climate change in the country.

The People's Voice and Access to Sanitation

Kwabena Gyimah-Brempong
,
University of South Florida
John Francois
,
World Bank
Johnson Kakeu
,
University of Prince Edward Island
Cristelle Kouame
,
World Bank

Abstract

This paper uses data from 73 developing countries aver a twenty-year period and a new instrument-free estimator, the kinky least squares (KLS) estimator to investigate the causal of voice and accountability, which broadly captures transparent electoral processes, free media, and freedom of expression, on access to and use of sanitation. Developing and estimating a simple supply and demand model, we fond that voice and accountability has a statistically and economically significant impact on access to and use of sanitation services in developing countries. The effects are similar for national, real, and urban areas with the effects much stronger for rural areas. We also find that increased voice and accountability decreases the urban-rural urban gap in access to sanitation. The results are robust to specification and estimation methods. Our results highlight the importance of institutions in providing public services in particular and in the development process generally. The results are consistent with the results of previous research on the relationship between voice and accountability on the one hand and sanitation access on the other.

Trade and Women’s Wage Employment: Does Infrastructure Matter?

Mina Baliamoune-Lutz
,
University of North Florida

Abstract

We use country-level data from 85 developing and emerging economies for the period 1990-2019 and explore the role of infrastructure (electricity and ICT) in moderating the impacts of trade openness on women’s wage employment. Fixed-effects and instrumental variable fixed-effects estimates suggest that both trade openness and access to electricity have non-linear (U-shape) effects on women’s wage employment. Trade openness and access to electricity also have region-specific impacts which are negative in the case of the Middle East and North Africa and positive in other regions. However, access to electricity does not seem to affect the relationship between trade openness and women’s wage employment. On the other hand, we find that mobile phone and internet use have a positive impact on women’s wage employment through their interplay with trade. We discuss the policy implications of these findings.

Discussant(s)
Fafanyo Asiseh
,
North Carolina A&T State University
Eric Ayamga
,
Texas Tech University
Mina Baliamoune-Lutz
,
University of North Florida
Patrick Mason
,
University of Massachusetts-Amherst
Kwabena Gyimah-Brempong
,
National Science Foundation
JEL Classifications
  • O1 - Economic Development