Entrepreneurship and unemployment nexus in MENA: Does institutional quality matter?

Afolabi, Joshua Adeyemi; Raifu, Isiaka Akande; Aminu, Alarudeen

doi:10.1080/08276331.2022.2119739

Cited by 9 publications

(6 citation statements)

References 56 publications

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“…The magnitude of the growth impact across the three classes of governance reflects that economic governance has the greatest impact on economic growth. This result aligns with the earlier assertions by Asongu and Odhiambo (2019), Padil et al (2021) and Afolabi et al (2022) that good governance is a major growth-enabler. This is because good governance improves a country’s ease of doing business and enables a friendly business climate that not only incentivise domestic firms but also attract foreign firms to establish their business in such country.…”

Section: Resultssupporting

confidence: 91%

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Growth effect of trade misinvoicing in Sub-Saharan Africa: the role of governance

Babatunde

Afolabi²

2023

IJDI

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Purpose The growing volume of trade misinvoicing in Sub-Saharan Africa (SSA) calls for serious concern, particularly given its effect on macroeconomic fundamentals. Despite the growing body of literature on the growth effect of trade misinvoicing, empirical evidence on the role of governance in moderating the effect is quite scarce, particularly for SSA. The purpose of this paper is to provide insights into the growth effect of trade misinvoicing in SSA as well as the moderating role of governance in this regard. Design/methodology/approach The feasible generalised least square estimator was applied to analyse relevant data, spanning 2009–2018, of 35 SSA countries. Governance indicators were classified into economic, political and institutional governance, and their individual role in moderating the nexus between trade misinvoicing and economic growth was explored. Findings This paper showed the presence of cross-sectional dependence among SSA countries and long-run convergence of the estimated variables. The empirical finding showed that trade misinvoicing has a negative growth effect in the selected SSA countries, but both economic and political governance are crucial in lowering the observed negative growth effect. Practical implications To curtail trade misinvoicing, SSA policymakers should go beyond just designing anti-money laundering policies to effectively implementing the policies for improved growth prospects. More so, the government of each SSA country must devise means of strengthening governance and building effective, accountable and transparent institutional frameworks that will constantly check and discourage trade misinvoicing activities. Originality/value The originality of this paper stems from its novel assessment of the role governance plays in moderating the growth effect of trade misinvoicing in SSA using the feasible generalised least square estimator. It also details the strategies needed to effectively tackle trade misinvoicing.

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Section: Resultssupporting

confidence: 91%

“…With regard to governance indicators, empirical studies have shown that countries with good governance indicators tend to attain higher growth than countries where governance is weak (Asongu and Nnanna, 2020; Padil et al , 2021; Afolabi et al , 2022). In view of this, the estimate of governance indicators should have a positive sign.…”

Section: Methodsmentioning

confidence: 99%

Growth effect of trade misinvoicing in Sub-Saharan Africa: the role of governance

Babatunde

Afolabi²

2023

IJDI

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“…In time series and panel studies, it is very important to ascertain the unit root properties of the variables of interest. This information is crucial in the choice of a suitable estimation technique to prevent spurious results that could lead to misleading policy formulation (Afolabi et al , 2022; Raifu and Afolabi, 2022). The unit root test approaches of Augmented Dickey Fuller (ADF) and Phillip Perron (PP) are adopted in this study.…”

Section: Resultsmentioning

confidence: 99%

Trade misinvoicing and domestic resource mobilization in Nigeria

Afolabi¹

2022

IJDI

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Purpose Mobilizing domestic resources has been a daunting task for the Nigerian government given its growing fiscal responsibilities and the limited domestic resources at its disposal. However, little is known empirically about the role trade misinvoicing plays in this regard. Hence, this study evaluates the effect of trade misinvoicing on domestic resource mobilization in Nigeria. Design/methodology/approach Sourcing annual data spanning 1981–2018 on key variables of interest, this study adopts the Dynamic Ordinary Least Squares (DOLS) estimation method to evaluate the effect of trade misinvoicing on domestic resource mobilization in Nigeria. Findings In conformity with extant studies, the result reveals that trade misinvoicing adversely affects domestic resource mobilization. It also showed that domestic resources are highly sensitive to the dynamics of trade misinvoicing in Nigeria. Other determinants of domestic resource mobilization in Nigeria include public debt, official development assistance, trade openness and inflation. Practical implications The study suggests the need to take expeditious and pragmatic actions against the rising tides of trade misinvoicing in Nigeria with a view to improving the volume of domestic resources required for financing development objectives. This will facilitate the achievement of the Sustainable Development Goals (SDGs) and enable Nigeria to maximally enjoy gains from trade. Originality/value There is an overwhelming evidence on the effect of foreign capital inflows on the Nigerian economy but, little is known about the effects of foreign capital outflows. Specifically, there is a dearth of studies on the effect of trade misinvoicing on domestic resource mobilization, particularly for Nigeria. Therefore, this study fills this knowledge gap by evaluating the effect of trade misinvoicing on domestic resource mobilization in Nigeria.

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“…Understanding these differences can provide valuable insights into the factors that contribute to unemployment reduction within these regions. In the context of the enduringly high unemployment rates and the pressing need for economic growth in the A&F nations of SSA, sustainable entrepreneurship emerges as a potential solution (see Afolabi et al, 2022; O'Leary, 2022; Peprah & Adekoya, 2020; Zhakupov et al, 2023). SSA has been experiencing a surge in its youth population, with approximately 297 million people aged between 10 and 24.…”

Section: Literature Reviewmentioning

confidence: 99%

Sustainable entrepreneurship: A catalyst for unemployment reduction and economic growth in Anglophone and Francophone countries

Mathibe,

Oppong

2024

Bus Strat Dev

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The purpose of the study is in two fold. First, the study examines the impact of language, history, and culture in Anglophone and Francophone countries on the rate of unemployment and economic growth. Second, the study explores the extent to which sustainable entrepreneurship influences the rate of unemployment, and economic growth in Anglophone and Francophone (A&F) countries. The study employed a descriptive and quantitative research design where a longitudinal data were sourced from the World Development Indicators and World Bank Entrepreneurship databases on 12 and 9 Francophone and Anglophone countries respectively. The random effect and the generalized method of moments (GMM) regression models were employed to attain the objectives of the study. The findings of the study revealed that there is a significant negative effect of sustainable entrepreneurship on unemployment; sustainable entrepreneurship has a positive significant effect on economic growth; and also, history and culture were found to have a significant impact on unemployment reduction and economic growth. However, language was found to have an insignificant influence between A&F countries suggesting that the ability of sustainable entrepreneurship to minimize the rate of unemployment and boost economic growth is generic irrespective of linguistic factors.

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Entrepreneurship and unemployment nexus in MENA: Does institutional quality matter?

Cited by 9 publications

References 56 publications

Growth effect of trade misinvoicing in Sub-Saharan Africa: the role of governance

Growth effect of trade misinvoicing in Sub-Saharan Africa: the role of governance

Trade misinvoicing and domestic resource mobilization in Nigeria

Sustainable entrepreneurship: A catalyst for unemployment reduction and economic growth in Anglophone and Francophone countries

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