KSP Journals
Not a member yet
1100 research outputs found
Sort by
Opening of alcoholic drink establishments during the Coronavirus period in Cameroon: scope and economic consequences
Full text linkAbstract. The objective of this article is to evaluate the impacts of alcoholic products on the Cameroonian economy following the government decision on opening alcoholic drink establishments during the period of the highest expansion of coronavirus pandemic. This objective is achieved through a dynamic CGE analysis. The main data come from a social accounting matrix for 2016 calibrated on the Cameroonian economy. As findings, a 50% increase of total alcoholic consumption in 2020 increases the demand of that sector whether the final demand or the intermediate input. The government income may increase in 2020, 2021 and 2024 but may decrease in 2021 and 2022. It may impact positively the GDP in the medium term. Finally, the well-being may be positively impacted by the year 2024.Keywords. Alcoholic drink, Government policy, Public revenue, Well-being, CGE.JEL. C51, C68, E02, F31, F41
Unconventional monetary theories in modern Middle Eastern economic schools amended october 2019
Full text linkAbstract. In this study, we classify the unconventional monetary views found in the modern Middle East economic literature into five main categories. These five categories include 1) Full reserve-like approach to the banking system, 2) Commodity/Asset-backed monetary systems or Currency board-like frameworks, 3) Interest-free approach to the banking system, 4) Bank-free approach to the banking industry, and finally 5) Public money or monetary guidance approach to the monetary system. Additionally, we identify a collection of ideas as hybrids or combinations, some of which are in their developmental stage and are receiving significant attention and support. Our review of these approaches summarizes their theoretical foundations, historical and current advocates, and relevant policy recommendations.Keywords. Monetary economics, Unconventional theories, Middle Eastern schools.JEL. F21, F68, O53, K23
Over financial regulation and stability: Does it matters for bank efficiency in Nigeria?
Full text linkAbstract. Banks play a key and critical role in society, mediating resources and assets around the economy between surpluses and household spending on deficits. Therefore, they have a great responsibility for sustainability and prosperity. This study is motivated by the need to investigate whether competition, regulation and stability are important for the efficiency of the Nigerian banking system. Data sourced from the World Development Indicators between 1996 and 2017 was used. The results show a negative and statistically significant relationship exists between financial regulation and efficiency of the banking sector. However, further results show a positive and statistically significant relationship exists between financial regulation and stability in the system. Thus, the study concludes by emphasizing the importance of stability and bank performance matters in Nigeria.Keywords. Bank efficiency, Financial regulation, Stability.JEL. D81, D91, E71, G01, G41, H11, I18, Z18
Agri-food implications of Fukushima nuclear disaster: 10 years later
Full text linkAbstract. On March 11, 2011, the strongest ever recorded in Japan earthquake occurred which triggered a powerful tsunami and caused a nuclear accident in Fukushima nuclear plant. The latter was a “manmade” disaster having immense impacts on people’s life, health, and property, infrastructure, supply chains, economy, policies, natural and institutional environment, etc. This paper presents work in progress and assesses preparedness for and agri-food impacts of the Fukushima nuclear disaster, identifies challenges in post-disaster recovery, and withdraws lessons for improving disaster risk management. Japan was not well prepared for such a huge disaster while the agri-food sector and consumption have been among the worst-hit areas. The triple disaster was a rare but high-impact event, therefore, it is necessary to “prepare for the unexpected”. Risk assessment is to include diverse hazards and multiple effects of a likely disaster, it is to be discussed with all stakeholders, and measures taken to educate and train all for complex disasters. It is necessary to modernize property rights, regulations, safety standards, and norms, enhance the capability of responsible public authorities and improve coordination between diverse actors. It is important to set up mechanisms for effective public resource allocation and reduction of agents’ costs. Different elements of the agri-food chain have dissimilar capabilities requiring differential public support. There is a strong “regional” interdependency of agrarian, food, and rural assets (and damages), and it is important to properly locate risk and take prevention and recovery measures. Disaster response demonstrated the important role of small-scale farms and food organizations, and the high efficiency of private, market, and collective governance. Before, during, and after a disaster, all available information from all sources is to be immediately publicized in understandable form through all possible means. Disaster provides an opportunity to discuss, introduce and implement fundamental changes in agricultural, economic, regional, energy, disaster management, etc. policies. It is important to learn from past experiences, prepare for multiple disasters, and make sure that “lessons learned” are not forgotten.Keywords. Agri-food, Fukushima nuclear disaster.JEL. Q10, O31, O33, Q01, Q16, Q18
Impact of Covid-19 on the South African economy: A CGE, Holt-Winter and SARIMA model’s analysis
Full text linkAbstract. The spread of the coronavirus disease (COVID-19) emanating from China touched South Africa like other countries across the world. This study analyses the impact of the COVID-19 pandemic on South African economy and total revenue. For this purpose, we have made use of a single country’s Computable General Equilibrium (CGE) model, Holt-Winter (HW) and SARIMA models by formulating one scenario based on the likely duration of the pandemic. In the scenario, we assume that the pandemic will last six months. The results indicate significant impacts on the macroeconomic variables, employment and sectoral level and on households’ well-being. First, at the macroeconomic level, the COVID-19 crisis resulted in a significant drop in the economic growth rate across all the macroeconomic variables. The Gross Domestic Product (GDP), exports and private consumption dropped by 7.10%, 13.19% and 7.10%, respectively. This represents a loss of real Gross Domestic Product of R338 billion. In contrast, the time series’ models project the state revenue to be around R1 104.5 trillion for Holt Winter model and R1 210 for SARIMA model, on average R1 157 trillion for the two models is expected. Furthermore, the models anticipate the loss in revenue at a region of R213.0 billion to a maximum of R318.2 billion from SARIMA and HW models, respectively for the same period. Moreover, the unemployment was expected to grow because of a sharp drop in sectoral productions. In addition, our findings reveal a contraction of sectoral exports. Finally, the rise of consumer prices and unemployment did greatly dampen the purchasing power of households.Keywords. Coronavirus, Covid-19, CGE model, Holt Winter model, South Africa.JEL. C68, C53
Bank credit and transmission mechanisms of monetary policy in Uganda
Full text linkAbstract. This paper examines the effect of monetary policy on bank credit in Uganda during the January 2008 to December 2017 period. By using macro level monthly data, it tests for the existence of monetary policy transmission channels, in particular the presence of bank credit channel in the economy of Uganda. This is done by showing that bank credit growth in Uganda is affected by monetary policy shocks. Before conducting data analysis, tight bank credit models were built with the view of making the analysis mimic the actual behavior of bank credit and the monetary policy transmission mechanism. Data used in the empirical analysis are from Bank of Uganda. Empirical analysis is conducted by using the generalized least squares (GLS) technique. The advantage with the GLS method is that it is generally more efficient because it eliminates both serial correlation and variance values that are not constant. The empirical results establish presence of the bank credit channel of the monetary policy transmission mechanism in Uganda. Secondly, the empirical tests conducted establish that the relationship between reserves and loans typically operates in the reverse way to that described in some economics textbooks. Similarly, the relationship between bank deposits and bank deposits is found in principle to operate only during the current month in the reverse way to that described in some economics textbooks. Thirdly, empirical tests conducted indicate that 1 percent increase in money supply (M2) is responsible for causing 2.2 percent monthly increase in bank deposits in Uganda during the sample period, ceteris paribus.Keywords. Financialization, Political economy, Financial regulation.JEL. C01, C10, G18, P16, P34
Imperative of corporate governance on industry's profitability: An empirical study of privatized cement industry in Nigeria
Full text linkAbstract. The study investigates the imperative of corporate governance on profitability of privatized cement industry in Nigeria. The variables studied were Rate of Returns as dependent variables and fourteen Corporate Governance proxies as independent variables. Data was collected from secondary sources, and the statistical tools employed in the Methodology were descriptive statistics and Pooled OLS regressions. The study aimed at bridging literature gap on studies that relate corporate governance and privatization policy in Nigeria. The results suggest that, no remarkable improvement of profitability post privatization due to challenges of exogenous factors such as macroeconomic environment instability and weak private sector. The industry witnessed changes in corporate governance such as adopting effective cost management and proactive business strategies, exposure to competition, withdrawal of Government subsidy and special grant post privatisation. Board Size and Workforce have positive and significant impact on Cement industry’s profitability, while, State Ownership, Institutional Ownership, Minority ownership, Percentage of Executive Directors and Privatization with time have negative and significant impact on company’s profitability. Conversely, Foreign Investors, Percentage of Non-Executive Directors and Percentage of Management Staff have positive and insignificant impact on the Cement industry’s profitability. Thus, it will be pertinent to conclude that the result has accepted Alternative Hypothesis that corporate governance has significant impact on the Cement industry’s performance (AROA), despite the challenges of microeconomic environment instability. The study recommends that, Government needs to stabilize macroeconomic environment and strengthen private sector. The Cement Industry needs to ensure right procedure of the selection of Non-Executive Directors, create incentive for foreign investor participation, ensure Payment of dividend, less government interference and accountability. Mechanisms such as efficient and independent audit committee, competent executive directors and professional management team need to be put in place to address the negative and insignificant impact of management staff on the industry.Keywords. Corporate governance, Profitability, Privatization, Cement industry.JEL. C01, C50, E10, E60, F02, F30, F41
Identifying the effect of parenthood on labor force participation: A gender comparison
Full text linkAbstract. Identifying the factors that influence labor force participation could elucidate how individuals arrive at their labor supply decisions, whose understanding is, in turn, of crucial importance in analyzing how the supply side of the labor market functions. This paper investigates the effect of parenthood status on Labor Force Participation (LFP) decisions using an individual-level fixed-effects identification strategy. The differences across individuals and over time in having or not having children as well as being or not being in the labor force provide the variation needed to assess the association between individuals’ LFP behavior and parenthood. Parenthood could have different impacts on mothers than it would on fathers. In order to look at the causal effect of maternity and paternity on LFP separately, the data is disaggregated by gender. To this end, the effect of a change in the parenthood status can be measured using individual-level fixed-effects to account for time-invariant characteristics of individuals becoming a parent. The primary data source used is the National Longitudinal Surveys (NLS). Considering the nature of LFP variable, this paper employs Binary Response Models (BRMs) to estimate LFP equations using individual-level micro data. The findings of the study show that parenthood has a negative overall effect on LFP. However, paternity has a significant positive effect on the likelihood of being in the labor force, whilst maternity has a significant negative impact of LFP. In addition, the results imply that the effect of parenthood on LFP has been fading away over time, regardless of the gender of parents. These two pieces of evidence precisely map onto the theoretical predictions made by the related mainstream economic theories (the traditional neoclassical theory of labor supply as well as Becker’s household production model). These results are robust across different models specified and various estimation methods employed. These findings can contribute to the existing knowledge about the effect of parenthood on LFP decisions made in the US at an individual and behavioral level, and also aid in the shaping of economic policies and interventions to enhance the status of labor force participation in the economy. In the end, some potential threats to the identification of this causal effect, such as endogeneity of fertility, and some possible strategies to deal with those threats are discussed.Keywords. Labor force participation, Parenthood, Individual-level fixed-effects identification strategy, Difference-in-differences, Binary response Models, Gender Comparison.JEL. J10, J12, J13, J16, J21, J22
The growth and development analytical controversies in economic science: A reassessment for the post-Covid-19 era
Full text linkAbstract. A repositioning of the theoretical instruments of development and growth in the context of economics and political economy that we have at our disposal to date seems necessary, especially after the structural transformation caused by the COVID-19 socio-economic and pandemic crisis. Specifically, the overcoming of the COVID-19 era of crisis seems to depend on how we will manage to re-perceive the theory of economic development and apply its proposals in new economic policies, in global terms. In this context, this article examines whether the conceptual and “therapeutic” foundations of development economics have today the necessary potential to cope with structural changes caused by the ongoing global socio-economic crisis. We assess the current debate in the literature of “economic development versus economic growth” and conclude that a new, comprehensive and evolutionary, orientation to understanding economic development seems necessary to respond to new global challenges for the post-COVID-19 era. We propose a multidisciplinary and evolutionary conceptual direction that suggests the multi-angle understanding of diverse historical configurations. We argue that all socio-economic mutations accelerated by the current pandemic crisis have systemic and evolutionary content and effects and cannot be reliably perceived as mere coincidences of “quantities” and growth “performances.” In this way, we can only disagree with any static and linear approach to the current crisis that directly or indirectly leads to reproducing the rigid enclosure of the analysis in partial specializations of economics. On the contrary, we counter-propose a theoretical response of evolutionary type to assess the contemporary theory of economic development and the political economy in the post-COVID-19 era as an interdisciplinary crossroads for all socio-economic sciences.Keywords. International political economy, Economic science, Economic development, Economic growth, Economic development versus economic growth, Social science, Socio-economic crisis, Post-COVID-19 era, Evolutionary economics.JEL. O10, O40, B52
