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Economic Trade and Development

Paper Session

Saturday, Jan. 5, 2019 8:00 AM - 10:00 AM

Atlanta Marriott Marquis, M303
Hosted By: National Economic Association
  • Chair: Gregory N. Price, Morehouse College

Openness and Income Disparity in Sub-Saharan Africa: A Cross-Country Analysis

Romie Tribble Jr.
,
Spelman College

Abstract

The conventional wisdom among some in the economics profession contends that economics development in Sub-Saharan Africa requires an increase in openness in order to increase per capita income. This conventional view accepts that a shift from a relatively closed to a relatively open economy will increase the level of income inequality. The focus on Sub-Saharan Africa is relevant since one seeks to ascertain whether the focus on export promotion and on an openness policy perspective can provide a viable engine for economic growth and development from a macroeconomic perspective. This paper’s uniqueness is the use of measures of income disparity as a methodological and empirical proxy for conventional measures of income inequality such as the gini coefficient. In particular, paper utilizes the differential between income per worker and income per capita as its income disparity to measure for income inequality. Logic suggests that a fundamental shift from a closed to an open economy causes the differential in income per worker and income per capita to increase; hence, income inequality will increase. However, as a county’s level of openness matures, the differential between income per worker and income per capita narrows thereby causing a decline in income inequality. Using time series data from Penn World Table, study will test its quadratic and cubic theoretical specification of the openness-income disparity model for 13 landlocked and 24 coastal countries of Sub-Saharan Africa.

Can Parent's Alcohol Consumption Create Negative Education Externalities for Children? Evidence from India

Ruth Uwaifo Oyelere
,
Morehouse College and IZA

Abstract

Several factors affect the human capital accumulation of a child and many of such factors have been investigated extensively in the past literature. In this paper we focus on drinking alcohol, a parent related factor that has received considerable less attention but could potentially create a negative externality on children's education attainment and enrollment through its effect on family budget and child's mental, social and emotional health. Using data from India's 2005 DHS survey which allows us to identify parents who drink, we attempt to estimate the average impact of having a drinking parent (father or parent) on education enrollment and attainment. We derive causal impact exploring an instrumental variable approach. Our results suggest a significant negative effect of a father's alcohol consumption on a child's educational attainment. We do not find any effect on enrollment using our IV approach.

Economic Integration In West Africa: A Reconsideration of the Evidence

Akpan H. Ekpo
,
West African Institute for Financial and Economic Management

Abstract

The paper argues that the delay of economic integration in the West African sub-region is not only due to economic factors within the economies of member countries but also there are socio-political factors delaying the eventual establishment of a monetary union. Furthermore, the dichotomy between the Franco-phone and Anglo-phone countries remain a major challenge to economic integration. Matters such as financial and infrastructural integration are examined in the paper. Based on panel regression results, the paper shows that the lack of fiscal co-ordination, the vulnerability of the economies to external shocks as well as the lack of political will, among others would delay the establishment of a monetary union in the sub-region. The paper suggests based on the analysis various unorthodox approaches to economic integration of the region.

Structural Transformation and Primary Commodity Dependence in the ‘Rising’ ECOWAS Economies

Douglason G. Omotor
,
West African Institute for Financial and Economic Management
Uduakobong Inam
,
University of Uyo

Abstract

Africa’s natural resource wealth is vast and in recent times, their discoveries have attracted huge investments by multinational and national organizations particularly in the extractive industry and emergent agricultural value chain sub-sector. The large investments have, however, not translated into better living conditions of the citizenry; and even worse-off are fragile local communities most directly affected by natural resource exploitation. The debate in contemporary literature among academics and policy analysts is whether the large natural resources endowment is a “paradox of plenty”. The paper argues albeit empirically, that natural resources endowment particularly in primary commodity exporting economies of West Africa is a drag in their industrial structural transformation induced by lack of good governance and the tragedy of political economy.

How Do United States Multinationals Impact Growth in West African Countries?

Miesha Williams
,
Morehouse College

Abstract

Although evidence of United States (US) multinational corporations is prevalent in West African countries bilateral international flow data is difficult to find. In general, foreign investment at the partner-country level is difficult to study for many emerging economies and this is especially true for African countries. Nonetheless, this study examines the investment position of the United States based on data from the United States to see its impact on growth in selected West African countries over time as compared to bilateral trade. This data, to some degree, allows for bilateral investment flow relationships between West African countries and the US as opposed to West African countries and the rest of the world in aggregate. From this, policy makers can determine the best the direction of West African countries in terms of continuing to accept foreign investment and, perhaps, foreign aid. Also, the data limitations provide a basis for a detailed method of FDI accounting and collection of data at the country level or by a neutral source such as United Nations.
Discussant(s)
Juliet Elu
,
Morehouse College
David Poyer
,
Morehouse College
Linda Loubert
,
Morgan State University
Jan Christopher
,
Delaware State University
Angelino Viceisza
,
Spelman College
JEL Classifications
  • F1 - Trade
  • F5 - International Relations, National Security, and International Political Economy