Studies on Economic Development and Growth in Selected African Countries

391 Pages·2017·6.11 MB·English

Frontiers in African Business Research
Almas Heshmati Editor
Studies on Economic
Development and
Growth in Selected
African Countries
Frontiers in African Business Research
Series editor
Almas Heshmati, Jönköping International Business School,
Jönköping, Sweden
This book series publishes monographs and edited volumes devoted to studies on
entrepreneurship, innovation, as well as business development and management-
related issues in Africa. Volumes cover in-depth analyses of individual countries,
regions,cases,andcomparativestudies.Theyincludebothaspecificandageneral
focusonthelatestadvancesofthevariousaspectsofentrepreneurship,innovation,
business development, management and the policies that set the business environ-
ment.Itprovidesaplatformforresearchersgloballytocarryoutrigorousanalyses,
to promote, share, and discuss issues, findings and perspectives in various areas
of business development, management, finance, human resources, technology, and
the implementation of policies and strategies of the African continent. Frontiers in
African Business Research allows for a deeper appreciation of the various issues
around African business development with high quality and peer reviewed contri-
butions. Volumes published in the series are important reading for academicians,
consultants, business professionals, entrepreneurs, managers, as well as policy
makers,interestedintheprivatesectordevelopment oftheAfricancontinent.
More information about this series at http://www.springer.com/series/13889
Almas Heshmati
Editor
Studies on Economic
Development and Growth
in Selected African Countries
123
Editor
Almas Heshmati
Jönköping International Business School
Jönköping University
Jönköping
Sweden
and
Department ofEconomics
SogangUniversity
Seoul
SouthKorea
ISSN 2367-1033 ISSN 2367-1041 (electronic)
Frontiers in AfricanBusiness Research
ISBN978-981-10-4450-2 ISBN978-981-10-4451-9 (eBook)
DOI 10.1007/978-981-10-4451-9
LibraryofCongressControlNumber:2017936352
©SpringerNatureSingaporePteLtd.2017
Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpart
of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations,
recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission
orinformationstorageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilar
methodologynowknownorhereafterdeveloped.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this
publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfrom
therelevantprotectivelawsandregulationsandthereforefreeforgeneraluse.
The publisher, the authors and the editors are safe to assume that the advice and information in this
book are believed to be true and accurate at the date of publication. Neither the publisher nor the
authorsortheeditorsgiveawarranty,expressorimplied,withrespecttothematerialcontainedhereinor
for any errors or omissions that may have been made. The publisher remains neutral with regard to
jurisdictionalclaimsinpublishedmapsandinstitutionalaffiliations.
Printedonacid-freepaper
ThisSpringerimprintispublishedbySpringerNature
TheregisteredcompanyisSpringerNatureSingaporePteLtd.
Theregisteredcompanyaddressis:152BeachRoad,#21-01/04GatewayEast,Singapore189721,Singapore
Contents
1 Introduction to Studies on Economic Development
and Growth in Selected African Countries. .... .... .... ..... .. 1
Almas Heshmati
Part I Women’s Empowerment and Demand for Healthcare
2 Measuring Women’s Empowerment in Rwanda .... .... ..... .. 11
Abdou Musonera and Almas Heshmati
3 Determinants of Demand for Outpatient Health Care
in Rwanda.. .... .... .... ..... .... .... .... .... .... ..... .. 41
Charles Mulindabigwi Ruhara and Urbanus Mutuku Kioko
Part II The Impact of Institutions, Aid, Inflation and FDI
on Economic Growth
4 The Impact of Institutions on Economic Growth
in Sub-Saharan Africa: Evidence from a Panel
Data Approach.. .... .... ..... .... .... .... .... .... ..... .. 63
Kokeb G. Giorgis
5 Fiscal Effects of Aid in Rwanda.. .... .... .... .... .... ..... .. 79
Thomas Bwire, Caleb Tamwesigire and Pascal Munyankindi
6 Relationship Between Inflation and Real Economic Growth
in Rwanda.. .... .... .... ..... .... .... .... .... .... ..... .. 103
Ferdinand Nkikabahizi, Joseph Ndagijimana
and Edouard Musabanganji
7 Macroeconomic, Political, and Institutional Determinants
of FDI Inflows to Ethiopia: An ARDL Approach ... .... ..... .. 123
Addis Yimer
v
vi Contents
Part III Capital Structure and Bank Loan Growth Effects
8 Firm-Specific Determinants of Insurance Companies’
Capital Structure in Ethiopia.... .... .... .... .... .... ..... .. 155
Yitbarek Takele and Daniel Beshir
9 Income Distribution and Economic Growth.... .... .... ..... .. 177
Atnafu Gebremeskel
Part IV Trade, Mineral Exports and Exchange Rate
10 Determinants of Trade with Sub-Saharan Africa:
The Secret of German Companies’ Success .... .... .... ..... .. 207
Johannes O. Bockmann
11 An Assessment of the Contribution of Mineral Exports
to Rwanda’s Total Exports ..... .... .... .... .... .... ..... .. 237
Emmanuel Mushimiyimana
12 Testing the Balassa Hypothesis in Low- and Middle-Income
Countries... .... .... .... ..... .... .... .... .... .... ..... .. 253
Fentahun Baylie
Part V Growth, Productivity and Efficiency in Various Industries
13 Agricultural Tax Responsiveness and Economic Growth
in Ethiopia.. .... .... .... ..... .... .... .... .... .... ..... .. 291
Hassen Azime, Gollagari Ramakrishna and Melesse Asfaw
14 Improving Agricultural Productivity Growth in Sub-Saharan
Africa.. .... .... .... .... ..... .... .... .... .... .... ..... .. 311
Olaide Rufai Akande, Hephzibah Onyeje Obekpa
and Djomo-Raoul Fani
15 Determinants of Service Sector Firms’ Growth in Rwanda..... .. 331
Eric Uwitonze and Almas Heshmati
16 Labor-Use Efficiency in Kenyan Manufacturing and Service
Industries... .... .... .... ..... .... .... .... .... .... ..... .. 369
Masoomeh Rashidghalam
Author Index ... .... .... .... ..... .... .... .... .... .... ..... .. 381
Subject Index ... .... .... .... ..... .... .... .... .... .... ..... .. 391
Contributors
Olaide Rufai Akande Department of Agricultural Economics, University of
AgricultureMakurdiNigeria
Melesse Asfaw School of Graduate Studies, Ethiopian Civil Service University,
Addis Ababa, Ethiopia
HassenAzime InstituteofTaxandCustomsAdministration,DepartmentofPublic
Finance Ethiopian Civil Service University, Addis Ababa, Ethiopia
Fentahun Baylie Department of Economics, Addis Ababa University, Addis
Ababa, Ethiopia
Daniel Beshir Libya Oil Ethiopia Ltd, Addis Ababa, Ethiopia
Johannes O. Bockmann Department of Economics and Logistics, International
School of Management Hamburg, Hamburg, Germany
Thomas Bwire Bank of Uganda, Kampala, Uganda
Djomo-Raoul Fani Department of Agricultural Economics, University of
Agriculture, Makurdi, Nigeria
Atnafu Gebremeskel Department of Economics, Addis Ababa University, Addis
Ababa, Ethiopia
Kokeb G. Giorgis Department of Economics, Addis Ababa University, Addis
Ababa, Ethiopia
Almas Heshmati Jönköping International Business School (JIBS), Jönköping
University, Jönköping, Sweden; Department of Economics, Sogang University,
Seoul, South Korea
Urbanus Mutuku Kioko University of Nairobi, Nairobi, Kenya
Pascal Munyankindi National Bank of Rwanda, Kigali, Rwanda
vii
viii Contributors
Edouard Musabanganji Economy and Rural Development Unit, Gembloux
Agro-Bio Tech, University of Liège, Liège, Belgium
Emmanuel Mushimiyimana Department of Political Science and International
Relations, College of Arts and Social Sciences, University of Rwanda, Butare,
Rwanda
Abdou Musonera MIFOTRA-SPIU, Kigali, Rwanda
JosephNdagijimana CollegeofBusinessandEconomics,UniversityofRwanda,
Butare, Rwanda
Ferdinand Nkikabahizi College of Business and Economics, University of
Rwanda, Butare, Rwanda
HephzibahOnyejeObekpa DepartmentofAgriculturalEconomics,Universityof
Agriculture, Makurdi, Nigeria
Gollagari Ramakrishna School of Graduate Studies, Ethiopian Civil Service
University, Addis Ababa, Ethiopia
Masoomeh Rashidghalam Department of Agricultural Economics, University of
Tabriz, Tabriz, Iran
Charles Mulindabigwi Ruhara University of Rwanda, Butare, Rwanda
Yitbarek Takele College of Business and Economics, Addis Ababa University,
Addis Ababa, Ethiopia
Caleb Tamwesigire University of Kigali, Kigali, Rwanda
Eric Uwitonze Ministry of Gender and Family Promotion (MIGEPROF),
MIGEPROF, Single Project Implementation Unit, Kigali, Rwanda
Addis Yimer Department of Economics, Addis Ababa University, Addis Ababa,
Ethiopia
Abbreviations
AD Aggregate demand
ADF Augmented Dickey-Fuller
AfDB African Development Bank
AIC Akaike information criteria
ANOVA Analysis of variance
AR Autoregressive
ARDL Autoregressive distributed lag
AS Aggregate supply
ATM Automatic teller machines
AVC Agriculture value chains
CBHIS Community-based health insurance schemes
CD Cobb–Douglas function
CEO Chief executive officer
CLRM Classical linear regression models
COPIMAR Mining Cooperative of Artisan Miners
CORR Control of corruption
CPI Consumer Price Index
CS Capital structure
CUSUM Cumulative sum
CUSUMQ Cumulative sum of squares
DC Developing countries
DHS Demographic and Heath Survey
EAC East African Countries
ECM Error correction model
EDPRS Economic Development and Poverty Reduction Strategy
EIA Ethiopian Investment Authority
EICV Integrated Household Living Conditions Survey
ELH Ethno-linguistic heterogeneity
ix