Productivités et externalités des dépenses publiques en zone UEMOA

Abstract: The purpose of the present study is to estimate the public expenditure sector's respective roles in the ‘productive’ and ‘non productive’ components of the economy of WAEMU (West African Economic and Monetary Union) member states. An econometric analysis aims to reveal the externalities and/or relative factorial marginal productivity effects on the long‐term economic growth rate. It appears that public capital expenditure positively affects relative factorial productivity but public consumption expenditure has no effect on economic growth. The study confirms the productive contribution of public infrastructures on GDP growth in the WAEMU area. Résumé: L'objet de la présente étude est d'estimer les rôles respectifs des différentes composantes “productive” et “non productive” des dépenses du secteur public dans l'économie des pays de l'UEMOA. Une analyse économétrique vise à capter les effets de productivité marginale factorielle relative et/ou d'externalités sur le taux de croissance économique en longue période. L'analyse montre que les dépenses en capital public ont un effet positif de productivité factorielle relative alors que les dépenses publiques de consommation ne laissent apparaître aucun effet sur la croissance. L'étude apporte une confirmation de la contribution productive des infrastructures publiques à la croissance du PIB dans l'espace UEMOA.     

Dynamic implications of tourism and environmental quality

Many studies draw attention to the rising number of tourists seeking destinations in environmental hotspots. However, it is also recognized that tourism activities significantly deteriorate the environment. Our paper investigates the dynamic interaction between tourism and environmental quality, focusing on its effect on the development of tourism‐driven economies. We use a theoretical model to study the dynamic implications of this interaction. In this respect, we point out the role played by environmental maintenance activities and ecotourism. Ecotourism allows the economy to improve welfare in the long‐term, but we identify a social cost regarding current generations’ welfare. Finally, the existence of imbalance effects between tourism infrastructures and environmental quality provides new insights into the transitional dynamics of tourism destinations.     

Formal and informal sectors: is there any wage differential?

ABSTRACT

The main objective of this paper is to investigate if a wage difference exists between formal and informal sectors in the case of the Turkish labour market using a sample of wageworkers. To this end, we use data for 2004 and 2009 and a novel definition of the informal sector. On the methodological front, we adopt three alternative decomposition techniques, namely, the Oaxaca-Ransom [(1994). On discrimination and the decomposition of wage differentials. Journal of Econometrics, 61, 5–21] decomposition in the context of mean regression, the Machado and Mata [(2005). Counterfactual decomposition of changes in wage distributions using quantile regression. Journal of Applied Econometrics, 20(4), 445–465] decomposition in the quantile regression framework and the non-parametric decomposition method proposed by Nopo [(2008). Matching as a tool to decompose wage gap. The Review of Economics and Statistics, 90(2), 290–299]. The results reveal the existence of a wage gap between the two sectors. We found education and experience to be key determinants of earnings. The findings of this paper have implications for policies, which might be directed towards developing approaches with a focus on education and experience.     

The impact of climatic change on agricultural production: Is it different for Africa?

This paper examines the impact of climatic change on the level of total agricultural production of Sub-Saharan Africa (SSA) and non-Sub-Sahara Africa (NSSA) developing countries. In doing so it uses a new cross-country panel climatic dataset in an agricultural production framework. The results show that climate, measured as changes in country-wide rainfall and temperature, has been a major determinant of agricultural production in SSA. In contrast, NSSA countries appear not to be affected by climate in the same manner. Simulations using the estimates suggest that the detrimental changes in climate since the 1960s can account for a substantial portion of the gap in agricultural production between SSA and the rest of the developing world.     

Risk aversion and land allocation between annual and perennial crops in semisubsistence farming: a stochastic optimization approach

This article analyzes the effect of production uncertainty on farmland allocation decisions between perennial and annual crops, focusing on a representative farmer's attitude toward risk. A dynamic stochastic optimization model that considers net planting—the difference between new plantings and removals of perennial crops that achieve full production cycle—is used. The effect of uncertainty on the representative farmer's decisions to increase or decrease perennial crops’ acreage, on the optimal path, is examined. Our results reveal that the response of optimal path of net planting to uncertainty related to perennial crop production is highly affected by the farmer's attitude toward risk. A risk‐averse or a low‐risk loving farmer tends to reduce land allocation to perennial crops under uncertainty, while a high‐risk loving farmer will do exactly the opposite. Also, due to disutility of farming, the farmer tends to reduce land allocation to perennial crops when prices are high enough for him to attain a desired income level expectation. One implication of this research is the need for mechanization—in sub‐Saharan countries in particular—that increases per‐acreage yield and output in semisubsistence agriculture.     

Aid Modalities and Budgetary Response: Panel Data Evidence

We investigate the budgetary effects of project and program financing on the behavior of recipient governments. For this purpose, we developed a simple fiscal response model. The solution of the model is then tested using panel data techniques for a relatively large sample of 106 aid-recipient countries spanning the period 1970–2001. With respect to public expenditure, our results suggest that the impacts of project aid and financial program aid on total expenditure are positive and statistically significant. In terms of the composition of total expenditure, we find that project aid flows are associated with increases in capital expenditure while financial program aid is associated with an increase in government consumption. Turning to the revenue side we found no evidence that aid flows, project or financial program aid, are associated with a reduction in taxation effort. The evidence also shows that project aid flows are associated with an increase in trade tax. JEL no. F35, H2, H5