Institutions and economic growth in Sub-Saharan Africa: a panel data analysis

Abstract

This article investigates the behavior of equilibrium exchange rate and real exchange rate misalignment in Sudan over the period 1979-2009. In addition, the impact of real exchange rate misalignment on economic performance is examined. The empirical results show that the equilibrium exchange rate is significantly influenced by economic policy variables such as trade openness, government expenditure and taxes. The results also reveal that the Sudanese economy has exhibited an exchange rate overvaluation over the period under consideration. Consistent with our expectations for the period that related to oil exploitation, the real exchange rate has shown a low volatility owing to huge inflows of foreign exchange. Moreover, the results demonstrate that exchange rate misalignment has a deleterious impact on Sudanese export performance.

Ending youth unemployment in sub‐saharan Africa: Does ICT development have any role?

“…The Classical Theory of Compensation by Marx (1961) argued in favour of a positive link between ICTs and employment, on the premise that technological innovation may create additional employment in the capital goods sector even after technologies have displaced workers. Also, the compensation mechanism may manifest through a decrease in prices resulting from a decrease in the cost of production and consequently creates new demand for product and employment (Ebaidalla, 2014; Vivarelli, 2007). In general, jobs lost due to new technologies may be compensated through the creation of opportunities for unemployed workers, driven by new products and investment that will create additional new jobs.…”

“…In any case, studies that have shown concern about the employment impact of ICTs across countries of the world have been inclusive. Several studies have reported in favour of positive effects of technological progress on employment generation (Ebaidalla, 2014; Meyer‐Krahmer, 1992; Simonetti et al, 2000; Sinclair, 1981; Whitley & Wilson, 1982), while few others have reported negative effects (Brouwer et al, 1993; Machin & Van Reenen, 1998; Zimmermann, 1991).…”

“…The transformative power of ICT can be relevant in modulating education for economic outcomes such as economic growth (Tchamyou et al, 2019). Moreover, advancement in ICTs makes digital literacy imperative, not only for wage employment but also for the creation of new businesses by individuals (Ebaidalla, 2014). This is so because ICT development and literacy qualify people for employment in a job market driven by technological advancement, as well as the opportunities to participate in rapidly growing markets in the form of business process crowd‐sourcing and micro work (Coward et al, 2014).…”

“…As important as this question seems, little research attention has been given in this area, as most empirical studies focused on economic growth and development impact of ICTs. The study by Ebaidalla (2014) on the effect of ICTs on youth unemployment in 30 SSA countries from 1995 to 2010 offers a great deal of insight for the current study. However, the use of only the mobile phone subscription and internet usage to capture the effect of ICT development on youth unemployment by Ebaidalla (2014) is rather insufficient.…”

“…The study by Ebaidalla (2014) on the effect of ICTs on youth unemployment in 30 SSA countries from 1995 to 2010 offers a great deal of insight for the current study. However, the use of only the mobile phone subscription and internet usage to capture the effect of ICT development on youth unemployment by Ebaidalla (2014) is rather insufficient. In recent times, ICTs have witnessed a phenomenal development in various fronts, especially in terms of speed and smartness in the area of internet connectivity (e.g.…”