O55

Economywide Country Studies: Africa

The Legacy of Historical Conflict Evidence from Africa

This paper exploits variation between and within countries to examine the legacy of recorded conflicts in Africa in the pre-colonial period between 1400 and 1700. There are three main findings. First, we show that historical conflict is correlated with a greater prevalence of post-colonial con.ict. Second, historical conflict is correlated with lower levels of trust, a stronger sense of ethnic identity and a weaker sense of national identity across countries. Third, historical conflict is negatively correlated with subsequent patterns of development within countries.

The Exchange Rate, Dutch Disease and Manufacturing in South Africa: What do the Data Say?

The Dutch disease argument suggests that in commodity exporting countries "overvaluation" of the currency due to increases in commodity prices harms manufacturing even though the economy as a whole benefits, led by the booming natural resources sector. The relationship between the real exchange rate and manufacturing is studied here with regard to South Africa as a minerals-rich export-led economy. Since manufacturing is co-determined within a system of inter-related variables, a Johansen VAR/VEC cointegration approach was used to estimate these relationships.

Remittances and the Dutch disease in Sub-Saharan Africa. A Dynamic Panel Approach

This paper investigates the effect of remittance inflows on the real exchange rate in Sub-Saharan Africa (SSA) using annual data from 1980 to 2008 for 34 SSA countries, generalised method of moments by Arellano and Bover (1995) and feasible generalised least squares by Parks (1967) and Kmenta (1971, 1986). We find that when cross-sectional dependence and individual effects are controlled for, remittances to SSA as a whole appreciate the underlying real exchange rate of recipient countries.

Determinants of Foreign Direct Investment of South African Telecommunications Firms into Sub-Saharan Africa

The study investigates the main factors considered by South African telecommunications firms when making a decision to undertake Foreign Direct Investment (FDI) into Sub-Saharan Africa (SSA). This encompasses the reasons for investing, the methods of entry into the identified market and the factors influencing their decision. The methodology employs a survey questionnaire which was sent to telecommunication firms representing more than 70% of the revenue generated by this sector in SSA.

An Economic Analysis of Sports Performance in Africa

The purpose of this study is to develop insight into the socio-economic determinants of African sports performance. Previous studies have argued that a country’s success in sports is directly related to the economic resources that are available for those sports. However, factors that are used to determine the levels of success for developed countries are not necessarily the same, or bear the same weight, as for developing countries.

Infrastructure and Growth in South Africa: Direct and Indirect Productivity Impacts of 19 Infrastructure Measures

Empirical explorations of the growth and productivity impacts of infrastructure have been characterized by ambiguous (countervailing signs) results with little robustness. A number of explanations of the contradictory findings have been proposed. These range from the crowd – out of private by public sector investment, non-linearities generating the possibility of infrastructure overprovision, simultaneity between infrastructure provision and growth, and the possibility of multiple (hence indirect) channels of influence between infrastructure and productivity improvements.

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