Trade openness,FDI, and income inequality: Evidence from sub‐Saharan Africa

The motivation for this study stems from the United Nations Sustainable Development Goals (UN‐SDGs) and their impact by 2030. The UN highlights 17 SDGs that address pertinent local and global issues, one of which—SDG‐10—has been devoted to reducing inequality. This study investigates the nexus between trade openness, foreign direct investment (FDI), and income inequality in sub‐Saharan Africa using panel data from 2000 to 2015 and the generalized method of moment (GMM) technique approach. The findings show that FDI and income have a negative, statistically significant relationship with income inequality, signifying that as FDI and income per capita increase, the level of income inequality decreases. However, trade openness, education, political stability, corruption, and rule of law have a positive, statistically significant relationship with inequality. This study, therefore, offers some recommendations that will help policymakers. First, develop good policies to attract more foreign investors, which will contribute to creating employment opportunities in the region. Second, create more infrastructures to provide good quality education. Third, implement a good policy to motivate local production which will contribute to creating jobs. Fourth, build a strong institution(s) to fight against corruption.     

The South African labour market, 1995–2015

This study investigates the changes in the South African labour market in the post-apartheid period. While unemployment increased over the 1995–2015 period, employment also increased. Nonetheless, the extent of employment increase is not rapid enough to absorb all net entrants into the labour force, resulting in increasing unemployment, or an employment absorption rate of 65.3%. Unemployment is concentrated in specific demographically and geographically defined groups, most notably Africans, the lowly educated and those aged below 30 years, residing in rural areas in Gauteng. Finally, four worrying findings are observed: youth jobseekers aged below 30 years struggle to find their first job; chronic unemployment is more serious for the relatively older jobseekers (aged 45 years or above) with past work experience; employees working for small, medium and micro enterprises still stagnate at approximately 3.5 million; and jobseekers from the older age cohorts are less likely to actively seek work by enquiring at workplaces and answering job advertisements.     

Environmental degradation,energy consumption and sustainable development: Accounting for the role of economic complexities with evidence from World Bank income clusters

The anthropogenic consequences of renewable and non-renewable energy consumption, economic growth, and air transport have been assessed enormously in the literature. However, given the complexities in many economies of the world today, it is important to reassess the ecological concerns of these factors in light of the Environmental Kuznets Curve framework. Therefore, this current study investigates the global assessment using data from World Bank Development database from 1995 to 2016. Evidence from the method employed, sys-GMM, revealed that the economic complexities index increases the carbon emission in low-income groups while it significantly decreases the carbon emission for upper-middle and high-income groups. For the combined group, the EKC hypothesis holds, and ECI significantly hampers carbon emissions. For the other variables, it is worthy of note that (1) economic growth contributes to the high carbon contents across the income group especially for low-income, upper-middle-income and high-income group; (2) the effects of air transport on carbon emission is positive for lower-middle-income and high-income group and negative for the upper-middle-income group; (3) the use of coal rents and energy use leads to high release of carbon contents across all the income groups; and (4) a significant increase in the utilization of energy leads to increase in carbon contents except for lower-income group, it leads to a decrease. From this empirical assessment, vital energy policy directions are suggested.     

Effects of Budget Deficit on Trade Balance in Nigeria: A Simulation Exercise

This article uses a macroeconomic model to investigate the effects of budget deficit on trade balance in Nigeria. Evidence from policy simulations shows that budget deficit arising from increased government spending adversely affects the balance of trade irrespective of whether it is money-financed or by external borrowing. This suggests that, in part, demand management policies can be explored to achieve external balance in Nigeria. Le présent article part d’un modèle macroéconomique pour analyser les effets du déficit budgétaire sur la balance commerciale au Nigeria. D’après les résultats des simulations de l’action des pouvoirs publics, il ressort que le déficit budgétaire causé par l’augmentation des dépenses publiques a des incidences négatives sur la balance commerciale, quel qu’en soit le mode de financement: le recours à la planche à billet ou l’emprunt extérieur. Ce qui donne à penser qu’en partie, il est possible d’étudier les politiques de gestion de la demande pour résoudre le problème de la balance extérieure au Nigeria.     

Financial Development and the Social Cost of Financial Intermediation in Africa

This article investigates the effect of financial development on the social costs of financial intermediation across a large number of banks in Africa. The study distinguishes between countries that are financially developed and those that are not financially developed to examine the impact of financial development on the social costs of financial intermediation. A sample of 260 banks from 29 countries in Africa is used over an 8-year period from 2006 to 2013. We employ both Random Effect and GMM techniques to resolve the issues of unobserved heterogeneity and endogeneity. We observe that overall, financial development reduces the social costs of intermediation. We also determine that the social costs of intermediation are lower for countries that have more developed financial systems compared to those with less developed financial systems. Our study is useful because it suggests that if countries want to reduce their social costs of intermediation, they should develop their financial systems.     

Political Economy of Intergovernmental Fiscal Transfers: The Rural‐Urban Dynamics in Ghana

This study examined the political economy dimension of fiscal transfers from the national government to district assemblies based on the formula distribution policy created under Ghana's 1992 Constitutional democracy. The two‐step system GMM for dynamic linear panel analysis was estimated from locational perspectives of rural and urban in relation to political swing and aligned districts. Data on annual District Assemblies Common Fund transfers and election results were used for the analyses from 1994 to 2014 covering 167 assemblies. From the results, average transfers to each district was Gh 6.28 million but it increased by 3.5 per cent in politically aligned rural districts and by 6.4 per cent in urban swing districts. During election years, the increases were even higher, precisely 5 per cent and 10 per cent for rural aligned and urban swing districts, respectively. These suggested that the government generally targets more urban swing voters than rural aligned voters. The allocation formula was influenced by political factors, as election years tended to be associated with higher transfers. The swing effects dominated the sharing mechanism. Therefore, to reduce political influence on the allocation formula, an independent body should be established to make recommendations directly to parliament. This should dampen the political influence of incumbent governments on the allocations.     

Modeling the dynamic linkage between financial development,energy innovation,and environmental quality: Does globalization matter?

In the modern era of the wave of globalization, financial development is leading toward a higher rate of economic expansion and promoting energy innovation around the globe. Nevertheless, environmental impact of financial development has preoccupied government officials to circumvent adverse impact on environmental quality. Thus, this paper examines the nexus between financial development, economic growth, energy innovation, and environmental pollution for the period of 1990–2017 for the panel of Organization for Economic Cooperation and Development (OECD) countries. To obtain robust and unbiased results, this study utilizes Pooled Mean Group Autoregressive Distributed Lag (PMG/ARDL) estimator that counters the issue of heterogeneity and cross-sectional dependence. Empirical evidence suggests that financial development promotes energy innovation and improves environmental quality. Globalization also has a long-term relationship with energy innovation and reduces greenhouse gas (GHG) emissions. Moreover, findings validate the environmental Kuznets curve for OECD countries in the significance of financial development, globalization, and energy innovation.     

Commercialization of eHealth innovations in the market of the UK healthcare sector: A framework for a sustainable business model

Demographic trends with extended life expectancy are placing increasing pressures on the UK state‐funded healthcare budgets. eHealth innovations are expected to facilitate new avenues for cost‐effective and safe methods of care, for enabling elderly people to live independently at their own homes and for assisting governments to cope with the demographic challenges. However, despite heavy investment in these innovations, large‐scale deployment of eHealth continues to face significant obstacles, and lack of sustainable business models (BMs) is widely regarded as part of the greatest barriers. Through various empirical methods that include facilitated workshops, case studies of relevant organizations, and user groups, this paper investigates the reasons the private market of eHealth innovations has proved difficult to establish, and therefore it develops a framework for sustainable BMs that could elimiesnate barriers of eHealth innovation commercialization. Results of the study suggest that to achieve sustainable commercialization, BM frameworks and innovation diffusion characteristics should be considered complements but not substitutes.     

Causal interactions among tourism,foreign direct investment,domestic credits,and economic growth: evidence from selected Mediterranean countries

Portuguese Economic Journal - This study explores the nexus between tourism and economic growth in countries bordering the Mediterranean Sea while controlling for foreign direct investment and...     

Safety evaluation of heavy metals exposure from consumer products

The determination of heavy metals in consumer products is crucial for the safety appraisal and sources classification of human and environmental exposures. These products contain various undisclosed chemical constituents with no or little known health safety information. The public is generally unaware of these types of everyday exposure from chemical constituents of consumer products and their health consequences. In this study, we recorded a body of proof demonstrating potential harm of consumer goods, by determining concentrations of total cadmium (Cd), chromium (Cr), copper (Cu), zinc (Zn), iron (Fe), lead (Pb) and nikel (Ni contents in a variety of personal care products (n = 82) commonly used in Nigeria, using flame atomic absorption spectrometer after dry and wet digestion methods. The results of the analysis indicated that the range of Cd was 0.035 ± 0.023–0.467 ± 0.167 ppm, Cr 0.015 ± 0.009–0.435 ± 0.232 ppm, Cu 0.230 ± 0.08–0.603 ± 0.025 ppm, Zn 0.003 ± 0.005–0.743 ± 0.066 ppm, Fe 0.233 ± 0.219–1.401 ± 1.878 ppm, Pb 0.02 ± 0.007–0.2050.129 ppm and Ni 0.035 ± 0.015–0.093 ± 0.06 ppm. The values of Cd and Cr are a cause for alarm because the elements are not allowed in any amount in cosmetics. Despite the fact that zinc is essential in the body, the values obtained in this study deserves safety concerns due to cumulative effect, arising from incessant exposure.