Working Papers

Understanding the Total Factor Productivity Shortfall in Sub-Saharan Africa

Understanding the Total Factor Productivity Shortfall in Sub-Saharan Africa Understanding the Total Factor Productivity Shortfall in Sub-Saharan Africa ----------------------------------------------------------------------------------- Some argue that Sub-Saharan Africa (SSA) is unique and the fundamental policies and institutions that govern income or productivity variation across countries do not explain the total factor productivity (TFP) shortfall within SSA. This study puts this hypothesis in question and attempts to explain the TFP shortfall in SSA using institutional quality, restrictiveness of trade policy,…

Small and Medium Enterprise Access to Finance in Ethiopia

Small and Medium Enterprise Access to Finance in Ethiopia. Synthesis of Demand and Supply This paper reports an in-depth study into demand and supply issues relating to Small and Medium Enterprises (SMEs) access to finance in Ethiopia. The demand side analysis is done using primary data collected from 519 business firms drawn from the major towns in Ethiopia. Similarly, information for the supply side analysis was collected from 8 banks and 3 Micro Finance Institutions.…

Do Tax Structures Optimize Private Fixed Investment in Sub-Saharan Africa?

The paper discovers a tax structure that optimizes Private Fixed Investments (PFI) in Sub-Saharan Africa (SSA). It applies Data Envelopment Analysis technique to drive a country-by-country and a year-on-year PFI efficiency scores (for each of the sampled 25 SSA countries, for 2001–12). The scores helped disintegrate observed PFI figures into tax-induced and non-tax-induced sub-components. Using the efficiency scores, potential PFI at existing tax structure are derived for each country-year pair. Gaps between actual and…

Exploring Economic Growth Potential through Infrastructure collaboration: the case of Kenya and Sudan

African countries have been actively seeking both bilateral collaboration and continental unity since the 1950s. Such efforts focused on trade in finished goods but less on infrastructure collaboration. The objective of this study is to (a) examine the impact of hydropower consumption on economic growth in Kenya and Sudan, as a case study; and (b) indirectly infer its potential to strengthen economic cooperation among African countries if and when such mutual benefits pave the way…

Effect of regional trade agreements on strategic agricultural trade in Africa and its implications to food security: Evidence From Gravity Model Estimation

The problems of African agricultural development have been at the forefront of the debate on Africa’s development since the Lagos Plan of Action in 1963. During the 2004 AU meeting in Sirte, Libya and subsequently in the 2006 AU/NEPAD Summit on Food Security in Africa, concrete steps have been taken to work towards Common African Market on 12 selected strategic agricultural products. Eight regional trade agreements which are to form the building blocks of the…