Determinants of economic resilience response in sub-Saharan Africa to a common exogenous shock: roles of demographic differences, exchange rate regimes and institutional quality

Nchofoung, Tii N.; Ngouhouo, Ibrahim

doi:10.1007/s40847-023-00258-9

J. Soc. Econ. Dev.

2023

DOI: 10.1007/s40847-023-00258-9

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Determinants of economic resilience response in sub-Saharan Africa to a common exogenous shock: roles of demographic differences, exchange rate regimes and institutional quality

Tii N. Nchofoung

Ibrahim Ngouhouo

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2024

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Cited by 2 publications

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Revisiting the sustainable industrialization paradigm in Africa: Exploring the influence of digitalization

Ketchoua,

Avenyo,

Tregenna

2024

Sustainable Development

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This research contributes to the ongoing discourse surrounding the sustainable industrialization of African nations, a pivotal aspect emphasized by the United Nations within the Sustainable Development Goals. Drawing inspiration from the burgeoning digitalization trends across Africa, this study examines the role of digitalization in mediating the environmental repercussions of industrialization within the 45 African countries spanning the years 2000–2022. The assessment of environmental sustainability is gauged through ecological footprint and biocapacity. Employing the Environmental Kuznets Curve, and the Stochastic Impacts by Regression on Population, Affluence, and Technology framework, empirical analyses leverage the Generalized Method of Moments and the mediation analysis using structural equation modeling to unveil insightful findings. The research findings highlight the detrimental impact of industrialization on ecological health, evidenced by its correlation with an increase in ecological footprint and a decrease in biocapacity. Conversely, digitalization emerges as a positive influence on environmental well‐being. These findings remain consistent across diverse categorizations of digitalization, and ecological balance. Further examination of their interplay reveals a discernible favorable impact on environmental sustainability, with mediation analysis suggesting that digitalization mitigates approximately 4% and 6% of the overall impact of industrialization on ecological footprint and biocapacity, respectively. Additionally, our analysis lends credence to the Environmental Kuznets Curve hypothesis. As a result, it is imperative for governments to incentivize industries to adopt eco‐friendly practices and technologies in order to mitigate their ecological footprint. At the same time, policies that promote digitalization should be encouraged to further enhance environmental quality.

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Revisiting the sustainable industrialization paradigm in Africa: Exploring the influence of digitalization

Ketchoua,

Avenyo,

Tregenna

2024

Sustainable Development

View full text Add to dashboard Cite

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Toward economic resilience in Sub‐Saharan Africa: The role of institutional quality and human capital development

Afolabi,

Raifu

2024

Sustainable Development

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A viable economy's hallmark is its ability to generate positive growth rates and its capacity to sustain such growth, especially during a crisis. Economic crises have the potential to induce uncertainty, reverse pre‐crisis economic gains and force preexisting challenges to reemerge, necessitating actions on building economic resilience. Given the fragility of most countries in Sub‐Saharan Africa (SSA), the current paper evaluates the role of institutional quality (INSQ) and human capital development in boosting economic resilience in SSA. The sampled countries were classified into fragile and resilient countries. Annual data spanning 2000–2021 was obtained and analyzed using the Bias‐Corrected Method of Moments (BCMM) estimation method, which can adequately account for cross‐sectional dependence, endogeneity, and heterogeneity in the sample. The results revealed that human capital development improves the resilience of fragile and non‐fragile economies, and INSQ has a higher positive impact in fragile countries than in non‐fragile countries. The results of the bundled INSQ support the positive effect of economic governance, institutional governance, and political governance on the resilience of fragile and non‐fragile countries. Therefore, group‐specific economic resilient policies need to be designed to strengthen economic resilience in the SSA region, and buffers that will ensure a healthy response to economic crises need to be strengthened. In addition, sound institutions and massive investment in human capital development should be pursued to boost economic resilience in the SSA region.

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Determinants of economic resilience response in sub-Saharan Africa to a common exogenous shock: roles of demographic differences, exchange rate regimes and institutional quality

Cited by 2 publications

References 56 publications

Revisiting the sustainable industrialization paradigm in Africa: Exploring the influence of digitalization

Revisiting the sustainable industrialization paradigm in Africa: Exploring the influence of digitalization

Toward economic resilience in Sub‐Saharan Africa: The role of institutional quality and human capital development

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