Stimulating Growth and Investment in Africa: From Macro to Micro Reforms

Abstract: How do we stimulate investment and growth in Africa? This paper focuses on low‐income countries that are ‘good performers’ and not especially endowed with natural resources. Many of these countries have undertaken a set of economic reforms, and have recorded growth rates in per capita GDP of around 5 percent over the past 10 years. But some constraints to growth persist. We look at three things — how business environments create ‘external costs’ for firms and inhibit performance, how investors perceive the constraints to doing business, and the role of political economy factors especially in those countries with lagging indigenous business sectors. Our analysis of investment climate and other data leads us to several recommendations for governments, donors and the private sector itself, including the following: deepen macro reforms; build a strong, unified business forum; create incentives for more responsive governments; and improve risk mitigation and broaden this to domestic investors.     

THE COST OF FOOD MARKETING*

There exists a wealth of statistical data in the Ministry of Agriculture, Fisheries and Food on agricultural structure and production, and on the consumption of food, much of which is well known and readily available to research workers outside. But much less is known about the manufacturing and distribution costs of food between the farm gate and the consumer. The purpose of this paper is to present aggregate data relating to food marketing, in much the same way that earlier contributions, notably to this Journal, have covered agricultural output and net income, and farm structure. Changes in the food marketing sector since the end of rationing are briefly set out and, following discussion of some of the conceptual problems involved, estimates are presented of the value added to food between farm or port and the retail level, and of the magnitude of the flows within the sector     

Union Presence, Union Service and Membership Participation

Much of the literature on the determinants of union activism has focused on biographical and attitudinal precursors or correlates of several measures of union participation. Although interactionist theory emphasizes the importance of social context, little attention has been paid to union presence. The argument of this paper is that union presence, defined by certain structural arrangements, and the quality of union service, influences measures of workplace and non-workplace union participation through the mediating influence of union orientation. The paper begins by reviewing the literature on union presence and participation, before presenting a model of the joint impact of union service and union presence on both on- and off-the job union participation. Data are drawn from a study of membership involvement within the Irish-based Services, Industrial, Professional and Technical Union (SIPTU). The main findings are that there are significant relationships between presence and service level variables and measures of union participation. In particular, service variables appear to affect workplace union participation largely through the mediating influence of union orientation. Presence variables, by contrast, have both direct and indirect influence on participation in union activities within and outside the workplace.     

Shame‐Free Guilt Appeals: Testing the Emotional and Cognitive Effects of Shame and Guilt Appeals

Although many health communication researchers use the terms “shame” and “guilt” interchangeably, arguably these constructs are distinct and have widely divergent psychological consequences. The purpose of this study was to explore distinct cognitive and emotional outcomes resulting from shame relative to guilt appeals. Specifically, this paper provides empirical evidence that negative outcomes such as anger and perceived manipulative intent are more likely to be associated with shame than guilt. Using an experimental design, participants were randomly assigned to view either a shame or a guilt appeal about getting tested for STDs and completed an online questionnaire. Shame was correlated with both anger and perceived manipulative intent whereas guilt was not. Participants who viewed the shame appeal reported higher levels of shame, anger, and perceived manipulative intent. Tactics for creating shame‐free guilt appeals and future research are discussed.     

Homeownership, wealth accumulation and income status

This paper examines the extent to which homeownership had an independent effect on the ability of low- and moderate-income (LMI) households to accumulate wealth during the mid-to-late 1990s. Using household data from the PSID, we generate a panel of households whose homeownership we observe over a 15 year period and whose wealth accumulation we observe at three points in time: 1994, 1999 and 2001. We investigate the extent to which homeownership has an independent impact on the wealth accumulation of LMI households, controlling for a host of other variables and unobserved heterogeneity. Accounting for the skewed nature of the wealth distribution, we find that each additional year of homeownership increases total net wealth by $13.7 K on average for the full sample. Interacting income status with years of homeownership indicates that the impact of homeownership varies by income status, with each additional year of homeownership being associated with $15 K more in wealth holdings for high-income households and roughly $6 to 10 K more in wealth holdings for LMI households.     

Property Taxes and Residential Rents

Property taxes are a fundamental source of revenue for local governments, constituting 73% of local government tax revenue in the United States. In this article, we empirically investigate the impact of residential property taxes on residential rents. Using data from the American Housing Survey and the National League of Cities, we estimate numerous specifications of a hedonic rent equation with comprehensive unit-level, neighborhood-level and city-level controls. We find that a one standard deviation increase in the property tax rate raises residential rents by roughly $400 annually.     

Real Wages,Demand and Employment in the UK 1921–1938: A Disaggregated Analysis

This paper uses the Layard and Nickell model of the labour market to examine the determinants of employment at a sectoral level for the interwar UK economy. Sectoral level data permits examination of the differing responses to changes in the determinants of employment. Estimation of employment functions indicates significant elasticities with respect to aggregate demand variables across a wide range of sectors but less support for a negative real wage effect, particularly in those industries responsible for major losses in employment. The evidence is therefore more consistent with the low-aggregate-demand explanation of labour market behaviour than it is with the high-real-wage hypothesis.     

Rate-of-return guarantees for defined contribution plans

This article explores the conceptual basis for an employer-backed minimum rate-of-return guarantee as an option under defined contribution plans. Expanding an earlier analysis, the author presents a prototype model of how the guarantee would work and discusses how it might be used for a mandatory Social Security defined contribution plan.