African Journal of Economic Review <p>The <em>African Journal of Economic Review</em> (AJER) is a refereed, biannual Journal that publishes high quality and scholarly articles on economic issues relevant to Africa. &nbsp;The AJER is an applied journal with keen interest in the following areas: Public sector economics, monetary economics, international trade and finance, agricultural economics, industrial economics, development economics, labour economics, health economics, environmental economics and economic reforms.&nbsp;</p> <p>Other websites associated with this journal:&nbsp;<a title="" href="" target="_blank" rel="noopener"></a></p> <p>This journal has recently been accepted to be indexed&nbsp;in REPEC <a title="" href="" target="_blank" rel="noopener"></a></p> en-US The copyright belongs to: African Journal of Economic Review, Centre for Economics and Community Economic Development, The Open University of Tanzania, P.O.Box 23409, Dar es salaam, Tanzania (Dr. Khatibu Kazungu) (Professor Michael O.A. Ndanshau (Associate Editor)) Wed, 14 Apr 2021 14:51:38 +0000 OJS 60 Monetary Policy Shocks and Income Inequality in Nigeria: Do Effects of Anticipated and Unanticipated Shocks Differ? <p>Given the spate of income inequality in developed and developing countries, monetary policy shocks have been identified as a determinant of rising income inequality in developing countries. Studies have examined the effects of types of monetary policy shocks on income inequality, however, the effects of nature (anticipated and unanticipated) of monetary policy shocks have not been investigated. Therefore, the study investigates whether anticipated and unanticipated monetary policy shocks differ in their impacts on income inequality in Nigeria, using the Dynamic Stochastic General Equilibrium approach. The results show that both anticipated and unanticipated shocks have the same effects on income inequality in Nigeria. It can be deduced that both shocks reduced income inequality in the country. The study, therefore, concludes that monetary policy authority should keep all stakeholders in the economy abreast of their decision to reduce the income inequality gap in the country.</p> APANISILE Olumuyiwa Tolulope Copyright (c) Wed, 14 Apr 2021 00:00:00 +0000 Education Sector Foreign Aid and Economic Growth in Africa <p>This paper explores whether education sector foreign aid influences economic growth in Africa based on a panel of 32 countries over the period 2005 – 2017. The major novelty of the study is that on the supply side the major dependent variable, education aid flows, are disaggregated by education level. On the demand side, the recipient economies are accorded their income groups to account for capacities that complement the effects of human capital development on economic growth as well as the benevolent complementary or destabilizing effects of different political systems of government. The key findings are that: (i) education aid in aggregate form and primary education aid both enhance economic growth in low income countries; (ii) in middle income countries higher education aid is more important for economic growth than primary and secondary education foreign aid; (iii) democracies have a stronger tendency to allocate more education sector foreign aid to primary education, while in autocracies the orientation is towards higher education. The findings imply that low-income autocracies that allocate more education sector foreign aid to higher education than to primary education do so at the expense of economic growth. The same applies to middle-income democracies whose allocation orientation is more towards primary education compared to higher education.</p> Lamulo Nsanja, Ben M. Kaluwa, Winford H. Masanjala Copyright (c) Wed, 14 Apr 2021 00:00:00 +0000 GIS Based Environmental Cost−Benefit Analysis of Built Environment at Dar es Salaam Coastline Metropolitan <p>The hypothesis of global human population growth underpins fast urbanization of global landscape in various regions. Such trends promote built environment expansion, as such the desire for more and comfortable infrastructural place and space value for work, recreation and residence. Putting in place transport and social services connectivity between places and spaces altogether account for the loss of ecological resources. Inspite of this, little information is available on net ecological value benefits of built environment, in particular, on the rapidly urbanizing metropolitan of Dar es Salaam coastline. The study applied geographical information system techniques on Landsat satellite imageries for landuse landcover changes extraction; and globally recognized ecological indexes for valuation of ecosystem services. Furthermore, the use of annual population growth rate and real estate expansion rate underlined annual modulation on input variables hence input data for the subsequent years through the study period. Nonetheless, despite rising human population, expanding built environment and declining vegetation cover experienced along the coastline of Dar es Salaam metropolitan, the study findings displayed general declining trend of net ecological value benefits of built environment with an overall positive net ecological value benefits . This suggests that the metropolitan of Dar es Salaam coastline is still resilient to built–up environment development initiatives.</p> Mkama Thomas Manyama, Aloyce Shaban Hepelwa, Cuthbert Leonard Nahonyo Copyright (c) Wed, 14 Apr 2021 00:00:00 +0000 Determinants of Tax Revenue in Liberia: An Empirical Investigation <p>The need for the Liberian government to mobilize sufficient revenue for development is becoming increasingly important amid slow growth, increasing demand for infrastructure and citizens’ needs. This paper determines the factors that are likely to drive tax revenue performance. We gathered monthly time series data and employed the Johansen cointegration approach and VECM estimation technique. The empirical results reveal that, in the long run, tax revenue responds positively to real property, income and profit, property income, goods and service tax, administrative fees, import duties, excise tax, grant, loan, inflation and GDP Growth. Conversely, tax revenue responds negatively to social development contribution from agriculture and mining, real exchange rate and population growth.&nbsp; Given these findings, we recommend, among others, that Liberia over-reliance on direct tax (i.e., PIT and CIT) revenue be mitigated. In particular, we recommend the adoption of a VAT regime in the place of the current GST regime</p> Roosevelt S. Prowd, Genesis B. Kollie Copyright (c) Wed, 14 Apr 2021 00:00:00 +0000 Maternal Mortality and the Role of Quality Education <p>Today, the issue of high maternal mortality is a topical problem in developing countries, in particular, Nigeria. The African Population and Health Research Centre put the incidence of maternal mortality in Nigeria at approximately 40,000 annually, accounting for roughly 20 per cent of the global maternal mortality. With the present situation of a high maternal mortality rate amidst different initiative or programme interventions in Nigeria, how vital is the role of quality education? The leading objective of this research is to pursue to a logical conclusion the policy feasibility of improved quality education towards maternal mortality reduction in Nigeria. Adopting the Autoregressive Distributed Lag method of estimation, the study, among others, suggested enormous evidence of a percentage increment in quality education leading to a maternal mortality rate reduction of up to 0.31 per cent in the short run and 1.45 per cent in the long run per annum.</p> Aderopo Raphael Adediyan, Lydia Bosede Aghomo-omon Copyright (c) Wed, 14 Apr 2021 00:00:00 +0000 Secondary Education and its Effects on Child Health: Empirical Evidence from Sub-Saharan Africa <p>Sub-Saharan Africa (SSA) experience higher under-five mortality compared to other regions. This study examines the effect of lagged parent’s secondary education on child health outcome in sub-Saharan Africa countries. It applies the System GMM (Generalized Method of Moments) estimator for 17 years period from 2000 to 2016 using a panel data of 33 selected countries. The findings show strong evidence that lagged parent’s secondary education; income (GDP per capita) and measles immunization have significant effects on improvements of child health in sub-Saharan Africa. Increasing an access to secondary education in the region has achieved better child health status over the period 2000-2016. Lagged parent’s education skills acquired in leaving secondary school are the most important channels that affect child health. The findings suggest expanding and strengthening secondary education in sub-Saharan Africa to meet a Sustainable Development Goal target (SDG) in reducing under-five mortality by the year 2030.</p> Mwoya Byaro, Daniel Mpeta Copyright (c) Wed, 14 Apr 2021 00:00:00 +0000 Public Health Expenditure and Economic Growth in Nigeria: Testing of Wagner's Hypothesis <p>The idea supporting the relationship between public expenditure and economic growth is that an increase in public spending is an inevitable consequence of economic growth. This propelled Wagner to hypothesize a connection between economic growth and public expenditure. However, arguments on the impact of public health expenditure on economic growth remain inconclusive. This study re-examined the connection between public health expenditure and economic growth in Nigeria within the context of Wagner’s theory of ever-increasing State activities. The study found evidence of a long-run relationship between public health expenditure and economic growth. The granger-causality test results, indicate neither uni-directional nor bi-directional relationship between public health expenditure and GDP. But health expenditure as a share of total government expenditure and population has a uni-directional causal relationship with real GDP. Thus, public expenditure pushes public health expenditure. It was concluded that though there is no causal relationship between public health expenditure and GDP, public health expenditure and GDP still have evidence of a long-run connection. Therefore, health insurance should be expanded to cover more people to mobilize more resources for the health sector. These may engender the required impact of health care expenditure on economic growth in Nigeria</p> Saheed O. Olayiwola, Tunde Abubakar Bakare-Aremu, S. O. Abiodun Copyright (c) Wed, 14 Apr 2021 00:00:00 +0000 Specialised Bank’s Credit Provision in Nigeria: Implication on Poverty Reduction <p>The menace of poverty in developing countries is overwhelming and different policies and programmes have been strategized towards curbing the menace. Among these, is the introduction of the specialised bank’s credit provision with the main objective of serving the grassroots people who might probably be vulnerable to falling below the poverty threshold. Thereby, this study set to investigate the implication of specialised bank’s credit provision in Nigeria on poverty reduction. Time-series data on the specialised bank were extracted from the Central Bank of Nigeria Statistical Bulletin and regressed on poverty incidence using Autoregressive Distributed Lagged Model (ARDL) as preliminary tests suggest. Per Capita Income and Other (uncategorised loans) reduce poverty by 0.16 and 0.000086 per cent respectively at a 5 per cent significance level. &nbsp;In the short-run, per capita income, manufacturing and food processing, transport and commerce, and microcredit lending to other sectors that are unclassified reduce poverty by approximately 0.30, 0.0008, 0.0002 and 0.0006 per cent respectively and all are statistically significant at 1 per cent except for transport and commerce, which is significant at 10 per cent. Any deviation in the models would be corrected approximately in 1 year 6 month and 3 years and 3 months both Model 1 and 6 respectively. The credit provisions by the specialized banks in Nigeria is not very effective in poverty reduction. Microcredit lending might not be reaching intended borrowers as many of the lending components do not reduce poverty. Check and balance is necessary, especially, in an instance of commercial credit guarantee by the government or donor.</p> Gidigbi Matthew Oladapo Copyright (c) Wed, 14 Apr 2021 00:00:00 +0000 Socio-Economic Determinants of Street Children Category and Their Occupational Choice: Evidence from the Regional State of Oromia, Ethiopia <p>Street children in Ethiopia face complex and interwoven socio-economic problems and thereby became the most vulnerable groups of the population. In the backdrop of association between category of children and their occupational choice, this study attempts to identify the socio-economic factors determining the likelihood of children becoming a member of street children’s group and their occupational choice. Sample respondents of 200 street children were collected using multi-stage sampling. The analysis used the Chi-Square test to study the association between category of children and their occupational choice. Empirical evidence on category-wise variation in street children characteristics suggests that some socio-economic factors (educational level, activities with friends, current friends, and distance of house from their service points) and means of livelihood are significantly associated with category of the street children.&nbsp;&nbsp;&nbsp; Finally, the qualitative response model was used and its results show family size, gender and punishment as the common identified socio-economic factors, which determine the category of street children and their occupational choice.</p> Habtamu Wandimu Alem, Arindam Laha Copyright (c) Wed, 14 Apr 2021 00:00:00 +0000 Would Customs Trade Facilitation Programs stimulate COMESA intra-export flows? <p>Measures to actively facilitate trade are increasingly seen as essential to assist COMESA region in expanding its intra-exports. COMESA intra-export trade is deplorably low. This study estimated the impact of Authorized Economic Operators (AEOs), the Automated System for Customs Data (ASYCUDA) and the Single Window systems (SWs) on COMESA intra-export flows. The study used a gravity model on cross-sectional data for 16 COMESA Member States and a Poisson Pseudo Maximum Likelihood (PPML) estimator and found that operational AEOs and ASYCUDA systems increase bilateral COMESA export flows by 1.74% and 1.06% respectively. Back-to-back functional single windows increase bilateral exports by 5.7%, of which 4.7% corresponds to exporting countries and 0.93% to importing countries’ program operationalization. Policies aimed at expediting the operationalization of AEOs, the ASYCUDA systems and single windows by COMESA Member States is hereby recommended for the region to stimulate bilateral intra-export flows.</p> Douglas Chikabwi, Rudo Chikiwa Copyright (c) Wed, 14 Apr 2021 00:00:00 +0000