Thinking about developmental states in Africa

During much of the 1980s and 90s, a literature emerged suggestingthat ‘developmental states’ were impossible in Africa.The arguments given ranged from cultural ones about the pervasivenature of clientalism to structural ones on the dependence ofAfrican economies or the atypical levels of rent seeking inAfrican economies. This paper argues that Africa has had statesthat were ‘developmental’ in both their aspirationsand economic performance. It further argues that these experiencesneed to be examined critically for useful lessons, an exercisethat has been hindered by an excessive levelling of the Africanpolitical and economic landscapes.     

Adoption and welfare impacts of multiple agricultural technologies: evidence from eastern Zambia

Using plot level panel data and multinomial endogenous switching regression, this article analyzes the adoption and welfare impacts of multiple agricultural technologies in eastern Zambia. We adapt a multinomial endogenous switching/treatment effect regression framework to correct for selection bias and endogeneity originating from both observed and unobserved heterogeneity. Results indicate that joint adoption of multiple agricultural technologies had greater impacts on crop yields, household incomes, and poverty than the adoption of individual components of the technology package. Our findings suggest that efforts aimed at raising household incomes and reducing poverty should focus on promoting the adoption of multiple agricultural technologies through provision of improved support services such as extension and input supply.     

The Efficacy of Official Intervention in the Foreign Exchange Market in Malawi

Abstract: This paper analyses the effectiveness of foreign exchange market interventions by the Reserve Bank of Malawi (RBM). We use a GARCH (1, 1) model to simultaneously estimate the effect of intervention on the mean and volatility of the Malawi kwacha. Results from the GARCH model indicate that net sales of US dollars by the RBM depreciate, rather than appreciate, the kwacha. Empirically, this implies the RBM ‘leans against the wind’, that is, the RBM intervenes to reduce, but not reverse, exchange rate depreciation. On the other hand, results for the GARCH model for the post‐2003 period indicate the RBM intervention in the market stabilizes the kwacha. In general, results for the entire study period show that the RBM interventions have been associated with increased exchange rate volatility, with the only exception being the post‐2003 period. The implication of this finding is that intervention can only have a temporary influence on the exchange rate.