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Strong foreign relations among nations are crucial for fostering global stability, economic growth, and cross-cultural understanding. A stable global system that resolves conflicts through dialogue rather than confrontation benefits from positive foreign relations. This paper examines Turkiye's changing foreign policy approach towards Sub-Saharan African regional blocs, with an emphasis on their political, cultural, and economic facets. Turkiye's strategic involvement with influential regional bodies such as the African Union (AU) and the Economic Community of West African States (ECOWAS), among others, reflects its broader objective to expand its influence and cultivate multifaceted partnerships across the African continent. The scope of this paper is limited to the AU and ECOWAS. Through a comprehensive analysis, the paper evaluates Turkiye's economic initiatives, including trade agreements and investment flows, as well as its contributions to infrastructure development. The findings established Turkiye's peacekeeping roles, cultural diplomacy, diplomatic efforts, and educational exchanges. Through the investigation of these diverse aspects, the conclusion outlines a comprehensive understanding of Turkiye's place in geopolitical dynamics and regional integration in Sub-Saharan Africa. Keywords: Foreign Policy, Foreign Relations, Turkiye, Sub-Saharan Africa, Regional Blocs, Introduction Following the end of the Cold War, a new concept emerged to deal with international and foreign affairs. This concept was dubbed the 'New World Order.' (1) However, the [...]

The urgent imperative to confront the complex interplay between managing natural resources and fostering technological innovation, particularly in OECD countries, has become a focal point in global conversations. It is abundantly clear that critical issues such as the rampant overexploitation of our natural resources, insufficient embrace of sustainable practices, and the profound repercussions of technological advancements on our ecological footprint demand meticulous scrutiny and comprehensive action. This scrutiny is vital to guide the formulation of judicious policies and strategies capable of addressing these complex challenges. The challenges faced by OECD countries, distinguished by their advanced industrialization, and elevated standards of living, are further compounded by the depletion of natural resources resulting from extensive economic activities. The extraction and utilization of resources, encompassing water, minerals, and energy, emerge as significant contributors to ecological degradation. The heightened demand for raw materials to sustain technological industries has precipitated the overexploitation and depletion of natural resources, manifesting in activities such as mining, deforestation, and other extraction processes, leading to habitat destruction and biodiversity loss. Furthermore, the manufacturing and utilization of technology, particularly within industries heavily reliant on non-renewable energy sources, have been substantial contributors to pollution and greenhouse gas emissions. The study assesses the dynamic relationship between natural resources, economic growth, and technological innovation with respect to ecological footprints. It analyses the annual data series of a panel of 20 organisation for economic cooperation and development countries using the second-generation cointegration panel and cross-sectional autoregressive distributed lag methodology. The results of the slope coefficient confirm the existence of slope heterogeneity among countries. Furthermore, it affirms the long-term relationship among variables. Overall, the findings highlight the importance of effective utilisation of resources while investing in technological innovation to attain sustainable development goals. JEL Classifications: O11; O13; Q1; Q32; Q51 Keywords: Ecological Footprint, Natural resource, Technology, CS-ARDL, OECD, INTRODUCTION Natural resources play a critical role in sustaining economic growth, while also protecting the environment. They contribute directly towards raw materials and the supply of items that are essential [...]

Several studies have used various datasets and methodologies to analyze the relationship between bilateral trade and income convergence among trading partners. However, most studies have not paid attention to the effect that income levels and nature of bilateral trade have on the speed of income convergence. In this paper, we argue that the income levels of trading partners and the nature of bilateral trade play important role in the relationship between bilateral trade and international income convergence. To account for the effect of income levels of trading partners, this paper presents an approach that explicitly accounts for bilateral trade among high-income (OECD) countries, bilateral trade between high-income and low-income (SSA) countries, and bilateral trade among low-income (SSA) countries. We also used total trade data for 25 OECD countries and 30 Sub-Saharan African countries over the period 1980-2018 to avoid the potential bias for selecting certain countries based on arbitrary percentage of trade relationship. We used the 2SLS estimations technique to avoid endogeneity problems due to the nature of the dataset. The paper finds that the bilateral trade-income convergence relationship for OECD to SSA is the strongest. This result throws light on the claim that the nature of bilateral trade between high-income and low-income countries promotes one directional knowledge spillover from high-income to low-income countries which enables low-income countries to adopt new technologies and grow faster than their high-income counterparts. Also, bilateral trade among OECD countries, which mostly comprises of differentiated products, promotes descent income convergence among them. However, bilateral trade among SSA countries has the least effect on income convergence. Findings of the study have important implications for bilateral trade among low-income countries and between low income and high income countries. First, if SSA countries want to develop and catch up with their rich counterparts, they should continue to promote free trade with high income countries by dismantling remaining protection policies. Second, the African Continental Free Trade Area's (AfCFTA) efforts to boost the manufacturing sector through industrialization is in the right direction to promote the production of more differentiated products in Africa which will create growth in income for member countries as they trade more. Finally, there is the need for SSA countries to increase investment rates and improve human capital accumulation to enable them to accelerate the adoption of new technologies and grow faster than their high-income counterparts, while bridging the income gap between them through trade. JEL Classifications: F11; F14; O33; O47 Keywords: Economic Openness; Income Convergence; Bilateral Trade; Economic Growth; 2SLS Estimator, INTRODUCTION The implications of international trade on income differential among trading nations have been professionally researched since the works of neoclassical growth theorists (Solow, 1956; Swan 1956) which generated the [...]

Existing studies have examined only the unidirectional impact of cultural diversity on the economic performance of countries, regions, and cities, not the other ways. They have assumed the diversity as given, while it may also grow, due to in-migration of workers and entrepreneurs, with economic growth and may be dependent on it. This paper models diversity and economic growth in a bi-directional causal frame and demonstrates that economic growth has a substantial impact on religious, language, and overall cultural diversities in the major states of India. However, the Granger causality between economic growth to language diversity and overall cultural diversity is found to be stronger and more widespread across the states than the causality from economic growth to religious diversity. The findings of this paper may have significant theoretical and empirical implications, as mainly the unidirectional way the impact of cultural diversity on economic growth has been advocated and the empirical studies have been modelled to date., Author(s): Abdul Shaban [sup.1] , Philippe Cadene [sup.2] Author Affiliations: (1) grid.419871.2, 0000 0004 1937 0757, School of Development Studies, Tata Institute of Social Sciences, , Mumbai, India (2) grid.5842.b, [...]

The purpose of this research is to assess the economic growth and sustainable development of Ethiopia. To what extent does the Chinese investment contribute to the overall economic development of Ethiopia after the Belt Road Initiative (BRI)? What are the main focus areas for development in the region and how does the BRI initiative connect people in the country? This research examines the development process through the use of a case study and discursive analysis to know the result of the investigation. The study is deeply elaborated and the technique adds analytical and qualitative methods. Furthermore, this research attempts to highlight the key approaches and concepts of Chinese engagement in Ethiopia as it attains development in several sectors through the BRI. The BRI is successfully pioneering transport systems, roads, railways, small industries, automotive sectors, and health development programs in Ethiopia. As result, the Chinese investments bring changes to the country after the successful launch of the BRI. Furthermore, the study concludes that there is a need to initiate numerous projects to improve human, social, and economic life in Ethiopia because the country is suffering from many internal problems and China has to work to eradicate recurring problems in the country. As an external actor, the role of China gains importance in Ethiopia in the context of the New Silk Road economic engagement in the African Continent., Author(s): Mukesh Shankar Bharti [sup.1] Author Affiliations: (1) grid.10706.30, 0000 0004 0498 924X, Centre for European Studies, School of International Studies, Jawaharlal Nehru University, , 110067, New Delhi, India Introduction [...]

Fish farms are occasionally built on delicate natural habitats, which can have severe environmental effects. Many industrial fishing methods also devastate aquatic habitats with the addition of overfishing practices. While environmentalists and academics have been concerned about the rapid extinction of fishery resources, the existing evidence is still inconclusive. This study examined whether catching overfishing could explain the environmental Kuznets curve (EKC) hypothesis among Organisation for Economic Cooperation and Development (OECD) countries. The study used four empirical strategies, which are framed in the panel time series analysis. (a) it assessed the prior behaviour of the variables based on second-generation panel unit roots tests using Cross-sectional ADF(CADF) and Cross-sectional IPS. (b) it also assessed the potential long-run relationship among the variables using the Westerlund Panel Cointegration test. (c) it explores the fishery Kuznets curve for OECD countries using Cross-sectional Dependency - Autoregressive Distributed Lag (CS-ARDL) and Augmented Mean Group (AMG) methodology. (d) it also examines the short direction of causality among the variables using the Dumitrescu--Hurlin Panel Granger Causality test, which is built on standardised panel statistics suitable for small sample properties, even in the presence of cross-sectional dependency. Five main findings can be deduced from our analysis. Firstly, the preliminary check confirms are only stationary only after the first difference. Secondly, the analysis also suggests that there is a long-run relationship among the variables. Thirdly, the findings showed that fish exploration has a negative effect on carbon emissions. Fourthly, the quadratic term of economic growth unidirectionally Granger causes CO2 emissions. Fifthly, we found evidence in support of the EKC hypothesis across OECD countries. Finally, our results highlighted the importance of fishery control in promoting environmental quality among OECD countries. We recommend reform in public policy that encourages sustainable fishing along with innovative research into modern fishing methods that reduces emissions. A better method of fishing can be developed with the support of cutting-edge research, which can also help reduce water pollution and the threat that overfishing poses to biodiversity. JEL classifications: Q12; Q15; Q54 Keywords: Fishery, Kuznets Curve, time Series; environment, OECD countries Contact author's email address: olatunji.shobande1@abdn.ac.uk, INTRODUCTION The role of fishing activities in carbon emissions has long been a concern among academia and environmental experts. Fishing is not only an important source of food for the [...]

Financial inclusion is vital in economic development as it empowers families and communities to meet basic needs, such as nutritious food, clean water, housing, education, and healthcare. Financial inclusion is also a tool for hedging against extreme weather events, disasters, and health crises such as the COVID-19 pandemic. Moreover, access to financial services has the potential to alleviate poverty, reduce income inequality, and stimulate economic growth and development. However, there is limited literature regarding the impact of financial inclusion at the household level. According to the latest World Bank Global Findex, the number of financially included adults has risen substantially in Tanzania due to the introduction of mobile money and baking financial inclusion. Based on Tanzania World Bank's Global Findex micro-data set for 2011, 2014, and 2017 surveys, this study uses the ordered probit regression model with endogenous treatment assignment to evaluate factors influencing financial inclusion and estimate the impact of financial inclusion on income in Tanzania. The available literature guided us in selecting the independent variables to include in the financial inclusion and impact models. The applied model allows for correcting for self-selection bias and endogenous effects associated with financial inclusion and income. Self-selection bias can occur when individuals choose whether to participate in a program based on their socioeconomic and demographic circumstances. Due to self-selection, participants often differ from nonparticipants in ways significant to the research, leading to a biased sample, which affects the generalizability of the research results. The results show that formal education and lack of money are the most crucial factor influencing financial inclusion and exclusion. Moving from financial exclusion to inclusion increased the probability of being in the higher income brackets. Personal finance education programs geared towards the most vulnerable groups would improve financial inclusion and income in Tanzania. Results from this study indicate that financial inclusion has a positive impact on income, and thus, it is crucial to enhance the scope coverage via more extensive and swift channels, such as mobile money and baking. Enhanced financial inclusion in Tanzania will lead to higher and quicker integration of the excluded community members into formal financial systems, thereby maximizing the effects of financial inclusion on the poor and the country's economic growth. JEL classifications: G21, O16 Keywords: Barrier, inclusion, income, finance, ordered logit, Tanzania Contact author's email address: aloyce_kaliba@subr.edu, INTRODUCTION AND CONTEXT As defined by the World Bank (2018), financial inclusion allows individuals and businesses to access valuable and affordable financial products and services that meet their needs. Therefore, [...]

We present a version of the Pontryagin maximum principle for the general infinite-horizon optimal control problem with an additional specific asymptotic endpoint constraint under weak regularity assumptions. Such problems arise in economics when studying growth models. The proof is based on reducing the original problem to a family of finite-horizon problems for a mixed type functional containing a terminal term in the form of the conditional cost of the phase vector at a finite time. The results are illustrated by an example. Bibliography: 29 titles., In recent years, the attention of many researchers, both economists and mathematicians studying economic growth models, has been attracted by issues related to the concept of sustainable development in economics [...]

Fish farms are occasionally built on delicate natural habitats, which can have severe environmental effects. Many industrial fishing methods also devastate aquatic habitats with the addition of overfishing practices. While environmentalists and academics have been concerned about the rapid extinction of fishery resources, the existing evidence is still inconclusive. This study examined whether catching overfishing could explain the environmental Kuznets curve (EKC) hypothesis among Organisation for Economic Cooperation and Development (OECD) countries. The study used four empirical strategies, which are framed in the panel time series analysis. (a) it assessed the prior behaviour of the variables based on second-generation panel unit roots tests using Cross-sectional ADF(CADF) and Cross-sectional IPS. (b) it also assessed the potential long-run relationship among the variables using the Westerlund Panel Cointegration test. (c) it explores the fishery Kuznets curve for OECD countries using Cross-sectional Dependency - Autoregressive Distributed Lag (CS-ARDL) and Augmented Mean Group (AMG) methodology. (d) it also examines the short direction of causality among the variables using the Dumitrescu--Hurlin Panel Granger Causality test, which is built on standardised panel statistics suitable for small sample properties, even in the presence of cross-sectional dependency. Five main findings can be deduced from our analysis. Firstly, the preliminary check confirms are only stationary only after the first difference. Secondly, the analysis also suggests that there is a long-run relationship among the variables. Thirdly, the findings showed that fish exploration has a negative effect on carbon emissions. Fourthly, the quadratic term of economic growth unidirectionally Granger causes CO2 emissions. Fifthly, we found evidence in support of the EKC hypothesis across OECD countries. Finally, our results highlighted the importance of fishery control in promoting environmental quality among OECD countries. We recommend reform in public policy that encourages sustainable fishing along with innovative research into modern fishing methods that reduces emissions. A better method of fishing can be developed with the support of cutting-edge research, which can also help reduce water pollution and the threat that overfishing poses to biodiversity. JEL classifications: Q12; Q15; Q54 Keywords: Fishery, Kuznets Curve, time Series; environment, OECD countries, INTRODUCTION The role of fishing activities in carbon emissions has long been a concern among academia and environmental experts. Fishing is not only an important source of food for the [...]

Financial inclusion is vital in economic development as it empowers families and communities to meet basic needs, such as nutritious food, clean water, housing, education, and healthcare. Financial inclusion is also a tool for hedging against extreme weather events, disasters, and health crises such as the COVID-19 pandemic. Moreover, access to financial services has the potential to alleviate poverty, reduce income inequality, and stimulate economic growth and development. However, there is limited literature regarding the impact of financial inclusion at the household level. According to the latest World Bank Global Findex, the number of financially included adults has risen substantially in Tanzania due to the introduction of mobile money and baking financial inclusion. Based on Tanzania World Bank's Global Findex micro-data set for 2011, 2014, and 2017 surveys, this study uses the ordered probit regression model with endogenous treatment assignment to evaluate factors influencing financial inclusion and estimate the impact of financial inclusion on income in Tanzania. The available literature guided us in selecting the independent variables to include in the financial inclusion and impact models. The applied model allows for correcting for self-selection bias and endogenous effects associated with financial inclusion and income. Self-selection bias can occur when individuals choose whether to participate in a program based on their socioeconomic and demographic circumstances. Due to self-selection, participants often differ from nonparticipants in ways significant to the research, leading to a biased sample, which affects the generalizability of the research results. The results show that formal education and lack of money are the most crucial factor influencing financial inclusion and exclusion. Moving from financial exclusion to inclusion increased the probability of being in the higher income brackets. Personal finance education programs geared towards the most vulnerable groups would improve financial inclusion and income in Tanzania. Results from this study indicate that financial inclusion has a positive impact on income, and thus, it is crucial to enhance the scope coverage via more extensive and swift channels, such as mobile money and baking. Enhanced financial inclusion in Tanzania will lead to higher and quicker integration of the excluded community members into formal financial systems, thereby maximizing the effects of financial inclusion on the poor and the country's economic growth. JEL classifications: G21, O16 Keywords: Barrier, inclusion, income, finance, ordered logit, Tanzania, INTRODUCTION AND CONTEXT As defined by the World Bank (2018), financial inclusion allows individuals and businesses to access valuable and affordable financial products and services that meet their needs. Therefore, [...]

Women in Japan have almost always been intertwined with agriculture. However, agri-women could not see the value of theirdeserve in agricultural production processes. The increasing importance of agriculture in the economic growth and the raising awareness on food safety brought the issue of women's empowerment in agriculture. Although the general entrepreneurship tendencies are not high in Japan, in order to ensure that agriculture has positive effects on the economy, it is seen that the arrangements for the development of agri-women entrepreneurship have accelerated after 2015. Our study is aimed to reveal the situation of women in agricultural works, the reasons that lead women to work in agriculture, the support provided to women as agricultural entrepreneurs and the problems have experienced by Japanese women entrepreneurs in agriculture. Based on these statements, it is also aimed to present concrete proposals that will ensure the empowerment of women in Japan on the axis of agricultural entrepreneurship. According to the main results, women entrepreneurship in agriculture is getting more attention due to the increasing importance of safe food production in agriculture and agricultural factors for economic development. On the other hand, it is understood that more social consciousness is needed to increase the women entrepreneurship in agriculture. Keywords: Entrepreneurship, agri-women's empowerment, agricultural entrepreneurrship, Japan. Japonya'da kadinlar neredeyse her zaman tarimla ic ice olmustur. Ancak tanmda yer alan kadmlar tanmsal uretim sureclerinde hak ettikleri degeri gbrememislerdir. Ekonomik buyumede tanimin artan bnemi ve gida guventigi konusunda artan farkindahk, kadinlann tanmda giiclendirilmesi konusunu gundeme getirmistir. Japonya'da girisimcilik egilimleri yuksek olmasa da tanmm ekonomiye olumlu etkilerinin olmasi icin 2015 yilndan sonra tanm-kadin girisimciliginin gelistirilmesine ybnelik duzenlemelerin hiz kazandigi gorulmektedir. Cahsmamiz, Japonya'da kadinlann tanmdaki durumunu, kadmtan tanmda calismaya iten sebepleri, tanmda girisimci olarak kadmtara saglanan destekleri ve Japan kadin girisimcilerin tanmda yasadiklan sorunlan ortaya koymayi amaclamaktadir. Bu yaklasimdan hareketle, Japonya'da kadinlann tanmsal girisimcilik ekseninde giiclenmesini saglayacak somut oneriterin sunulmasi da amactanmaktadir. Bu calismanin ana sonuctanna gore, tanmda guvenli gida uretimi ve tanmsal faktorlerin ekonomik kalkmma icin artan bnemi nedeniyte tanmda kadin girisimciligi daha fazla ilgi gormektedir. Ote yandan, tanmda kadm girisimciliginin artinlmasi icin daha fazla toplumsal bilince ihtiyac oldugu anlasilmaktadir. Anahtar Kelimeler: Girisimcilik, tanmda kadinlann giiclendirilmesi, tanmsal girisimcilik, Japonya., Introduction Agriculture has a long history in Japan. In this process, agricultural activities has primarily carried out for small-scale production and consumption purposes. Agricultural production has been a job covering [...]

Abstract This article is an edited transcript of the session of the same name at the 38th Annual NABE Economic Policy Conference: Policy Options for Sustainable and Inclusive Growth. The [...]

The term 'Great Enrichment' is not a simple metaphor. According to Nobel-laureate economic historian Douglass North: 'The process of sustained economic growth that historians believe began between 1750 and 1830 [...]

This paper investigates the role of human capital and institutional quality in the nexus of foreign direct investment (FDI) and economic growth in 46 African countries between 2002 and 2018. Based on panel data modelling, the empirical findings suggest that FDI in itself does not promote economic growth in Africa; however, we observe that human capital and institutional quality play a supportive role in enhancing the positive spillover effect of FDI on economic growth in upper-middle-income countries in the region. The findings for low-income and lower-middle-income countries are mostly not significant. Given the initial conditions and absorptive capacity constraints in these countries, the positive spillover effects of FDI might be limited. From a policy perspective, the findings call for special attention by policymakers to improving the quality of their human capital and strengthening their institutions to maximize the benefits of FDI. Keywords: Africa, economic growth, foreign direct investment inflows, human capital, institutions JEL classification codes: F21, F43, J24, O43, O55, 1. Introduction Foreign direct investment (FDI) plays a critical role in growth in developing countries. It is a source of employment generation, skill acquisition and transfer of technology know-how, and [...]

From the founding of the republic to the turn of the millennium, America's core economic creed was growth. That growth religion enabled the United States to become the world's richest [...]

We examine the impact of improved quality of exports on per capita income convergence between the United States (U.S.) and Sub-Saharan Africa (SSA) countries. We repeat that analysis for East Asian Tiger economies and SSA. We use a two-step system GMM estimator for dynamic panel models to test two hypotheses. First, that improved quality of exports increases per capita income convergence between the U.S. and the SSA region. Second, that the magnitude of the convergence is augmented by observed improvements in the quality of institutions and policy frameworks in the SSA region. Our findings show that improvements in the quality of food and livestock exports from SSA countries does indeed increase the rate of convergence in per capita GDP between the U.S. and SSA. Also, the convergence effect between the U.S. and SSA is observed with increased quality of manufactured exports from SSA, and it is about twice the effect obtained from increases in the quality of food and livestock exports. Similar results are obtained for convergence between the East Asian Tiger countries and the SSA region. In addition, the rate of convergence between the U.S. and SSA is highly augmented by increases in; anti-corruption efforts, ease of doing business, economic freedom, public investment in health, and progress in the quality of country policies and institutions. These results show that both food and livestock products, and manufactured goods, that are produced for export remain highly relevant for economic growth in the SSA region. International data shows that, when compared with the rest of the world, the SSA region scores low on these social and economic indicators. This underscores the importance of improving the quality of SSA public institutions to achieve sustainable, export-led economic growth. JEL Classifications: C20, C23, F14, F43 Keywords: Export Quality, Growth, Income Convergence, Sub-Saharan Africa, INTRODUCTION What does the economic literature suggest about the explicit relationship between the quality of exports and economic growth? We find that U.S. import prices are positively correlated with exporter [...]

The effectiveness of foreign aid in promoting economic growth is one of the most controversial debates yielding different results in literature. Foreign aid has fluctuated to a large extent in Democratic Republic of the Congo (DRC). However, the foreign aid-growth nexus is still inconclusive. The main purpose of this study is to explore the relationship between foreign aid and economic growth in the case of the DRC, more specifically by investigating on both short and long run relationship to test the foreign aid-led growth hypothesis. The study employs the ARDL bounds test proposed by Pesaran, Shin and Smith (2001) which can be used with variables integrated of different orders unlike other cointegration tests. The study uses annual data for the period 1980-2019 sourced from the World Bank's World Development Indicators. GDP growth is used as a proxy for economic growth while the net official development assistance as a measure of foreign aid. Inflation, population growth, exports and oil rents are selected as control variables. The bounds test confirmed the presence of cointegration between the variables while the model passes the diagnostic tests. The study found that foreign aid has a positive and statistically significant impact on economic growth in both the long-run and short-run. The main research findings support the view that foreign aid has been pro-growth in the DRC, but its contribution has been of small magnitude falling in the case of a worse scenario where foreign aid is mismanaged or dilapidated by the government of the recipient country. The control variables reported that inflation has a negative but insignificant effect on economic growth in both the long-run and short-run, oil rents and exports have a positive and significant impact on economic growth. Population growth is negatively and significantly correlated with economic growth. Considering these results, the research recommends that foreign assistance institutions continue to support DRC. A reduction in aid would negatively impact on the growth which is a major determinant of the overall development of the country. However, measures should be put in place to monitor the maximum effective utilization of foreign aid to avoid dilapidation and mismanagement. JEL Classifications: C22, E20, F35 Keywords: Foreign Aid, Economic Growth, ARDL, DRC., INTRODUCTION The official development assistance, as a measure of foreign aid, to the Democratic Republic of the Congo (DRC) declined significantly in the 1980s, and then almost suspended during the [...]

Over 400 municipalities have been created since 1990, the majority of which are in the American South. Though municipal incorporation can bring positive changes to a locality, such as higher home values and economic growth, the creation of new cities leads to more fragmented political geographies resulting in negative outcomes like inefficient resource and land use. Recent studies of newly incorporated municipalities (NIMs) find that these newly created cities tend to be either majority White or majority non-White or BIPOC. This type of Tieboutian residential sorting has been linked to increased levels of racial segregation in some areas of the US with recent evidence showing that parts of the country remain highly segregated, especially between Black Americans and White Americans. The present study seeks to quantitatively examine the relationship between municipal incorporation and change in BlackWhite racial segregation in the South between 1990 and 2010. Using both a first difference regression model and a spatial first different regression model, we find evidence that municipal incorporation is positively related to the change in Black-White racial segregation across southern counties. A discussion of the results is offered. KEYWORDS: Municipalities, Incorporation, Segregation, Fragmentation, HIGHLIGHTS * Municipal incorporation is positively related to the change in Black-White segregation across southern counties. * Holding all else constant, new city formation increases Black-White county-level segregation by 2 [...]

In developing countries where self-employment is a survival strategy forced on the poor due to their precarious circumstances, corruption and economic growth (growth) relationship cannot work in isolation. Insufficient earnings from self-employment can make people vulnerable to engage in corruption, or they might be victimized by it. The study aims to examine the impact of selfemployment on corruption and growth relationship. A sample of 79 developing countries covering 2013-2018 is used. The empirical analysis is done using the two-step system GMM estimation technique. Self-employment is measured in male self-employment, female self-employment, and total self-employment. Following the comparability issues with the Corruption Perception Index (CPI) from Transparency International (TI) prior to 2012, the study employed CPI data after 2012. Further, the study has used marginal effects to provide substantially meaningful information on the impact of corruption on growth at varying levels of self-employment. Prima facie, evidence suggests that self-employment plays a vital role in moderating the effects of corruption on growth. This is because the effects of corruption on growth are not static, and they vary based on the levels of selfemployment. In the case of all three forms of self-employment, i.e., male, female, and total, corruption and growth are negatively related at one standard deviation above the mean on selfemployment levels. The negative relationship is less pronounced at the mean. Corruption and growth are positively related at one standard deviation below the mean. Substantively, these results imply that corruption decelerates growth when more individuals are self-employed. When fewer individuals are self-employed, corruption accelerates growth. These findings are robust to several sensitivity checks. As the effect of corruption on growth is found to vary based on the levels of self-employment, any anti-corruption policy that does not take on board the levels of self-employment might prove to be ineffective. Therefore, any policy intervention to mitigate the effects of corruption on the growth of developing countries should consider the levels of self-employment. Policies to foster selfemployed and strengthen their skills to help them find better-earning jobs are a way forward. JEL Classifications: D73, E24, J21, O47 Keywords: corruption, self-employment, economic growth, dynamic panel data analysis, two-step system GMM, marginal effects., INTRODUCTION Two characteristics that are common among developing countries are high corruption (Gyimah-Brempong 2002, Svensson 2005) and high self-employment (Blau 1985, Fields 2019, Gindling and Newhouse 2014, Li and Zhao [...]

The increasing sustainability and the causes of economic growth in African countries, provide a set of new research questions for development scholars around the World. The possible determinants of this phenomenon are usually considered to be of economic, social, and institutional natures. In this work is assessed which economic, social, and institutional determinants of economic development are important to the development of Africa countries, for the years 1996 and 2014. The similarities amongst countries and the evolution between the two years are also analyzed. A principal components analysis for categorical data to examine the inter-relationships between the indicators in 1996 and also in 2014. An agglomerative clustering algorithm was used through two different methods: ward's method and complete linkage method (also called furthest neighbor). The Hierarchical Cluster Analysis (HCA) was suited by a k-means algorithm, to obtain an optimal solution and a typology of countries was identified for each year. The main contribution of the work is to make a joint analysis of the three determinants of economic growth and development--economic, social, and institutional, in which the literature is extremely scarce. Results indicate a positive association amongst institutional, economic, and social determinants of development, which means that countries that exhibit a good performance in institutional indicators also have a good performance in economic and social indicators, and vice-versa, although results are not as clear for 2014 as they are for 1996. Additionally, a higher concentration of countries in the two clusters in which these three indicators are better in 2014 (31 countries in 1996 and 49 countries in 2014), seems to indicate a positive evolution for development of African countries from 1996 to 2014. Results show that policy makers should take an integrated view regarding development and economic growth policies and take in consideration both the economic, social, and institutional characteristics of each country. If an economic, social, or institutional policy is designed independently of the other two, this policy will probably fail in reaching its development or economic growth goal, since all these three factors are interconnected. JEL Classifications: C00, E02, O11, O55 Keywords: determinants of development; Africa; institutional, social, and economic dimensions; Principal Components Analysis for Categorical Data; Cluster Analysis Corresponding Author's Email Address: amnfl@iscte-iul, INTRODUCTION In this work the study of the main economic, social, and institutional determinants of development for the African Continent is done. The assessment of which of these determinants matters [...]

Volatility is an essential parameter in risk management applications, and it can affect economic activity and public confidence. It is also a key parameter in several studies examining the link between the stock market, economic growth, and other financial variables. This paper seeks to broaden our understanding of volatility in a Small Island Developing State capital market by conducting a Bayesian model comparison of several volatility models for modeling stock returns on the Jamaica Stock Exchange (JSE). The paper uses a formal Bayesian model comparison methodology to compare seven generalized autoregressive conditional heteroskedastic (GARCH) type models and seven stochastic volatility (SV) type models using the daily JSE index, All Items, from January 03, 2012, December 31, 2019, from the Jamaica Stock Exchange Database. The models include the standard models of GARCH(1,1) and SV with an AR(1) log-volatility process and models with jumps, volatility in mean, leverage effects, heavy-tailed distribution, and moving average innovations. The results reveal that SV models generally fit the data better than their GARCH counterparts. The heavy-tailed distributed innovations and the jump component substantially improve the performance of the basic GARCH and SV models. It also finds that allowing for the moving average component improves the fit of both GARCH and SV models. The result also indicates that volatility feedback is essential. There is also evidence of a significant inverse leverage effect. In total, the SV model with Student-t innovations is the best. The result presented has a potential value for academics, policymakers, and practitioners. For academics, the evidence of the dominance of the SV models over their GARCH counterparts would suggest that spillover studies involving Jamaica would gain from adopting the SV specification. The result presented also has a potential value for the Bank of Jamaica (BOJ). The BOJ can adopt the SV-t framework rather than a GARCH framework as a tool for gauging volatility in the JSE. Lastly, using the SV model to compute volatility would provide more accurate pricing and risk management results for practitioners, especially global fund managers who plan to include JSE stocks for asset allocation. JEL Classifications: E31, C11, C15, and C22 Keywords: Bayesian model comparison, Jamaica, stocks, moving average, jumps, leverage, GARCH, stochastic volatility. Contact author's email address: Email: tagbeyeg@hunter.cuny.edu, INTRODUCTION This paper deals with modeling the volatility of stock returns on the Jamaica Stock Exchange (JSE). The statistical modeling of volatility returns can yield insights into valuable trading opportunities [...]

This paper studies the main drivers of inflation in Suriname over the period 1971 to 2018. The motivation to investigate the determinants of inflation in Suriname is based on the various episodes of inflation the country went through. Hence, to conduct effective monetary policy, it is of great interest to identify the key drivers of inflation. The variables in the econometric model are selected based on relevant empirical literature and the characteristics of the Surinamese economy. We test for unit roots and conducted the necessary data transformations. Consequently, we employ cointegrating regression, as we encountered at least one cointegrating relationship. More specifically, we utilize a dynamic ordinary least squares regression model that separates the long-run from the short-run effects. The long-run results reveal the strong impact of the exchange rate on consumer prices in Suriname. The exchange-rate pass-through is almost a one-on-one, in the long run. A depreciation of the USD/SRD exchange rate translates rapidly to consumer prices because of the high import intensity of the country. Output and broad money also have an upward effect on consumer prices, while the impact of oil prices and the interest rates on the price level is relatively low. The relatively low impact of international oil prices on consumer prices may be ascribed to fuel price subsidies by different regimes in the period under consideration. The results from the long-run equation are robust since the residuals pass the relevant diagnostic tests. The short-run estimations suggest that inflation is mainly caused by the exchange rate. Changes in the money supply, oil price changes, and inflation persistence also account for contemporaneous inflation. Economic growth and trade openness are found to significantly dampen the inflation rate in the short run. The error-correction term which is negative and statistically significant, confirms at least one cointegrating relationship. Based on the findings of this study, policymakers in Suriname are urged to adhere to active monetary and liquidity-managing policies aimed at achieving a stable exchange rate and low inflation. We also suggest promoting trade openness by increasing exports, as trade has a dampening effect on inflation. JEL Classifications: E31, C32 Keywords: Inflation, Money, Time-Series Models, Suriname Contact author's email address: gavin.ooft@uvs.edu, INTRODUCTION Suriname went through several phases of inflation, often caused by macroeconomic, political, or external imbalances. The highest level of inflation in the history of the Surinamese economy was reached [...]

Poverty in Africa has long been a big concern that tremendous worldwide anti-poverty efforts have been poured into African countries. Suggested by the Big Push theory, outside capitals, such as foreign direct investment (FDI), foreign aid and concessional debts, should be encouraged to flow into poor countries to stimulate capital accumulation. This paper aims to examine if foreign aid and concessional debts can significantly attract FDI inflows to underdeveloped African countries. The study sample covers fifty African countries during the period 1993-2011. This study highlights the heterogeneity problems existing in the recipient countries, which varies with each other in terms of income levels, financial creditworthiness, and institutional conditions. For this reason, the sample countries are divided into two groups, IBRD and IDA countries, according to the World Bank's lending categories. Based on the F-test, Breusch-Pagan test, and Hausman test results, the random effects model is more efficient than pooled OLS and fixed effect model in the panel data analysis. In addition, this study applies GMM methodology to address the endogeneity problem existing in panel data analysis. Based on the Hansen test results, lagged FDI inflows and exogenous variables are justified to be introduced into the SYS-GMM as instruments. As expected, the main results generated from the analysis for IBRD countries and IDA countries are fairly diverse. Results developed by random effects model show that foreign aid and concessional debts have significant positive effects on FDI inflows for IDA countries. Neither foreign aid nor concessional debts are significantly related with FDI inflows for IBRD countries. The GMM generates similar results for IDA countries. In addition, the results suggest that previous FDI inflows have significant impact on current decisions. Hence, as suggested by the results, foreign help and capital resources should be diversified and allocated according to development levels of different countries. Foreign aid and concessional loans should be encouraged to invest in IDA countries so that FDI can be attracted to flow into recipient countries. For IBRD countries with higher level of development, economic growth plays a more important role in attracting FDI inflows. Keywords: foreign aid, FDI, concessional debts, IBRD countries, IDA countries, INTRODUCTION Africa has long been a continent suffering from wars, famine, and serious poverty. This perspective has slowly changed with the average 4.5 percent economic growth rate of African countries [...]