African Journal of Economic Review

Oil Sector and Carbon Emissions in Nigeria: Asymmetry Analysis

Akinlo A. Enisan — Sat, 04 Mar 2023 00:00:00 +0000

The paper investigates the asymmetric effects of the oil sector on carbon emissions per capita in Nigeria through nonlinear autoregressive distributed lag estimations from 1980 to 2020 on yearly data. We consider the oil sector because of the country’s high dependence on it. Our results confirm that changes in the oil sector and carbon emissions are asymmetrically associated in both the short and long run. Moreover, the results show that both positive and negative changes in the oil sector lead to a reduction in carbon emissions, but positive shocks have a more profound effect. The results have important policy implications namely expanding the oil sector with strict enforcement of all environmental regulations will reduce carbon emissions. Moreover, an increase in oil prices in the short run will reduce carbon emissions, Finally, carbon emissions from the non-oil sector need to be regulated.

Impacts of Education and the Adoption of Improved Sesame Seeds on Productivity of Sesame Farms in Burkina Faso

Wendata A. Kafando — Sat, 04 Mar 2023 00:00:00 +0000

This paper examines the impacts of education and the adoption of improved sesame seeds on productivity of sesame farms in Burkina Faso, using data from a sample of 4,726 sesame farmers. The estimated results from endogenous switching regression and propensity score matching show that education, especially formal primary education and agricultural training, increases productivity through the adoption of sesame technology. The estimated results further show that adoption of improved sesame seeds leads to significant gains in productivity. The study concludes with implications for policies to promote adoption of improved sesame seeds among non-adopters through education, such as formal primary education, agricultural training programs, and productive assets.

Impact of COVID-19 Pandemic on ICT growth in South Korea

Hammed Yinka Sabuur, Okunoye A. Ismaila — Sat, 04 Mar 2023 00:00:00 +0000

We estimate the impact of COVID-19 pandemic using indices derived from in-text measurement on the growth of ICT in South Korea spanning the period between January 2020 and October, 2021. With our OLS and GMM methodologies, we are able to come to term with the following findings. (1) COVID-19 pandemic generally poses negative impact on the growth of ICT in South Korea during the period, (2) the impact is found to be serious with rising reported cases index than with rising death cases index; and lastly (3) the panic generated by the pandemic is limiting the growth of ICT in the region. With our alternative choice of methodology, it could be inferred that the variables under consideration performed better, suggesting the possibility of endogenous problems among the variables and the error terms. We therefore suggest creating an avenue for using ICT in any time like this to serve as a mechanism to combat the diseases rather allowing it to take control in affecting the economy.

Income Inequality and Road Transport Accidents in Nigeria

Ahmed T. Yakubu, Folorunsho M. Ajide, Idris A. Abdulrahman — Sat, 04 Mar 2023 00:00:00 +0000

In this paper, we examine the impact of income inequality proxied by Gini coefficient on road accident in Nigeria. Data for period of 1986-2019 are obtained from various sources including World Development Indicators (WDI), International Country Risk Guide (ICRG), Federal Road Safety Corps (FRSC), and World income inequality database (WIID). The study employs autoregressive distributed lag (ARDL) model estimating technique to analyse the data. The results suggest that income inequality has a positive impact on road crashes in the long run and short-run analyses. The paper adds value to the empirics by analyzing the impact of income disparities on road accidents in a developing nation within an ARDL framework. It suggests that uneven distribution of income may have positive relationship with the level vehicle collision. Importantly, higher level of income inequality may create uneven distribution of vehicle ownership, leading to heterogeneous road users. Due to higher level of income disparities, some road users may prefer motorcycles and bicycles while others could be classified as vulnerable group of pedestrians who compete with vehicle road users. Consequently, this contributes to the higher rate of road accident per vehicle on land transport system in Nigeria

Determinants of tax Revenue Performance in the East African Countries

Amos J. Ibrahim, Isaya J. Jairo — Tue, 07 Mar 2023 00:00:00 +0000

This study explores the determinants of tax revenue performance in the East African Community (EAC) partner states of Burundi, Kenya, Rwanda, Tanzania, and Uganda. Using a panel dataset that spans over 10 years (2009-2018), the study specifically investigates whether administration efficiency impacts revenue performance. The study measures administration efficiency by using three indicators; a ratio of taxpayers to staff, a ratio of revenue generated to staff, and the cost of collection as a share of total collection. The estimated results from the random effect model show that administrative efficiency exerts a positive and significant effect on revenue performance. The pooled mean group (PMG) results show that in the short run, the administration efficiency indicators have a positive impact. However, in the long run the estimated results show that these variables have a negative impact on revenue collection. The study also shows that per capita income has a positive impact when interacted with the quality of institutional variable. This implies that in a short run revenue administration should consider increasing the number of staff to serve taxpayers and strengthen the quality of institutions by ensuring fairness in tax collection.

Clean production and Employment Outcomes: An Eco-efficiency Firm Level Analysis in Kenya

Erick Maiko Akama, Razack Lokina, Beatrice Kalinda Mkenda — Wed, 15 Mar 2023 00:00:00 +0000

This study explores the correlation between environmental performance and employment outcomes in the manufacturing industry in Kenya. Specifically, the study seeks to achieve three primary goals: first, to examine the impact of eco-efficiency on various types of employment outcomes; second, to examine the effect of adopting an Environmental Management System (EMS) on employment outcomes; and lastly, to compare the impact of using either a commitment-based approach (proactive firms) or a compliance-based approach (reactive firms) on different types of employment outcomes. The study uses a 2-year panel data of Kenya's manufacturing firms from the Regional Programme Enterprise Development (RPED). Analysis is done using a pooled panel regression model that utilizes eco-efficiency scores as explanatory variables and employment outcomes as the dependent variable. The study findings indicate that by improving eco-efficiency in resource allocation, there is a potential gain in employment outcomes – though this gain varies depending on the type of employment outcome being considered. Moreover, proactive firms were found to perform better than reactive firms in employment outcomes, implying that adopting a commitment-based approach towards environmental management is more beneficial for manufacturing firms in terms of bolstering their employment outcomes.

Determinants of Bank Credit Supply to the Private Sector in Tanzania

Michael O.A. Ndanshau, Amanda M. Semu — Sun, 26 Mar 2023 00:00:00 +0000

What determines bank credit supply to the private sector is an issue of policy and research interest in Tanzania and other countries. On the background of the financial sector reforms implemented in the country since the early 1990s, this study sought to establish empirically the most determinants of private bank credit in Tanzania over the period 1991:Q1 - 2019:Q4. ARDL bounds cointegration test method was used to establish both short and long run impact multipliers of the determinants of bank credit. The results revealed real bank credit was a superior regressand to alternative regressands; and, real short term lending rate was superior to the real overnight bank lending rate. Moreover, the study found bank deposits was unimportant determinant of bank credit; and, growth and inflation respectively had positive and negative effect on bank credit supply. The results also suggested real bank credit growth was cointegrated with its determinants over the long run.