The University of Yaoundé II (French: Université de Yaoundé II) is a public university in Cameroon, located in the capital Yaoundé. It was formed in 1993 following a university reform that split the country's oldest university, the University of Yaoundé, into two separate entities: the University of Yaoundé I and the University of Yaoundé II..
Demand-following and supply-leading hypotheses have been extensively debated within the economic literature; however, there has been a significant absence of theoretical and empirical studies investigating these concepts in the realm of Microfinance Banks, with an emphasis on Post-Keynesian and Neoclassical perspectives in relation to financialisation amid structural breaks. The objective of this research is to fill the identified gaps by analysing whether the relationship between Microfinance Bank Savings (MBS) and Economic Growth (EG) is consistent with the Post-Keynesian demand-following hypothesis or the Neoclassical supply-leading hypothesis. Additionally, it aims to determine the significant threshold period that mitigates financialisation in Microfinance Banks and to identify which of the two hypotheses is less influenced by macroeconomic shocks. This analysis employs the Granger non-causality test to heterogeneous panel data models encompassing 25 Sub-Saharan African countries from 2005 to 2021. The findings reveal a bidirectional causal relationship between EG and MBS. However, the causal relationship from MBS to EG is prone to structural breaks and may trigger financialisation once it surpasses a critical threshold. Therefore, it is recommended that policymakers develop strategies aimed at fostering EG, taking into account the impact of financialisation on the EG in alignment with the principles of the Post-Keynesian demand-following hypothesis.
Shaping institutions is a major concern for policymakers in recent years, especially in SSA, which seeks to emerge economically. This paper explores the effect of FDI on institutional change within the region using the FGLS and LSDV as baseline models over a sample of 39 countries from 2000 to 2021. Institutional change is primarily captured by the change in the Economic Freedom Index. We obtained the following results: FDI improves institutional change, its speed, and various dimensions of institutions. Also, the results are robust and consistent over different sensitivities and estimation strategies. We also find that the positive institutional effect of FDI may be dampened by the mediating effect of the natural resource curse and the Dutch Disease on domestic investment. We recommend that economies could boost their institutions by attracting FDI and directing it to the most productive sectors, like the manufacturing sectors, rather than just rent-seeking FDI.
This study aims to analyze the impact of terrorism on the ability of 44 African countries to collect tax revenues between 2000 and 2020. Using the generalized system of moments method, we find that terrorism reduces the ability of African governments to collect taxes. This result remains unchanged after decomposing tax revenues into direct and indirect taxes, as well as after using alternative and disaggregated indicators of terrorism. Additional analyses based on a simple mediation approach and an instrumental variable mediation approach show that the indirect effect of terrorism is greater than its direct effect. This suggests that the impact of terrorism on taxation is exerted primarily through economic and structural mechanisms, notably the contraction of consumption, the disruption of trade, the decline in FDI, and the expansion of the informal sector. However, a comparative examination of the mediation results reveals that trade and consumption are the most robust transmission channels, their role being confirmed by both mediation approaches. In contrast, the influence of the informal economy and FDI is clearly established only within the framework of the instrumental variable mediation approach. In terms of economic policy implications, these results suggest that African authorities should find mechanisms to strengthen the resilience of domestic demand by supporting household purchasing power, stabilizing local markets, and securing trade flows, in order to reduce fiscal vulnerability to terrorist shocks. It is also essential to enhance the attractiveness of the business climate for foreign investors and to implement strategies to curb the expansion of the informal economy.
This study examines the moderating role of opportunity inequality through intergenerational mobility elasticity on the nexus between financial development and income inequality in sub-Saharan Africa (SSA) between 1990 to 2021. We consider two measures of intergenerational mobility elasticities (income and education) and various regression techniques (Driscoll-Kraay method, generalized method of moments [GMM], instrumental variable methods and threshold regression model) for robust results. Findings reveal that the joint effect of low intergenerational mobility and financial development is positively associated with income inequality. This suggests that SSA countries with high levels of opportunity inequality (low intergenerational mobility) experienced smaller reductions in income inequality compared to countries with low levels of opportunity inequality for the same level of financial development. Equalizing the circumstantial inequality therefore stands as a crucial lever for an effective inclusive financial system.
The integration of young people into productive employment is a major challenge in sub-Saharan Africa. To meet this challenge, many countries have implemented multiple policies to help vulnerable young people enter the labor market. The objective of this work is to evaluate the impact of job search support programs on the integration of young people in French-speaking sub-Saharan Africa. Using primary data from 14,936 individuals from Cameroon, Congo, C & ocirc;te d'Ivoire, Senegal, and Chad, we apply a difference-in-differences propensity score matching (DID-PSM) approach. Analyses show that job search support programs have a positive impact on the integration of young people and on their income in the short and long terms. This impact is heterogeneous from one country to another and remains very remarkable on the first incomes obtained and a little weak on the real income over time. These results highlight the importance of employability support organizations in terms of training, intermediation, and entrepreneurship aimed at improving the conditions of job seekers in the labor market.
