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Vol.9 No.2
June 2021

 Page Number

 Article Information

67-78

Socioeconomic Determinants of Women’s Empowerment: A Case of Farm Households in Abeokuta, Ogun State

Chioma Patricia AdekunleAugustine Adebayo Kutu, and David Alaba Alori

DOI: 10.15604/ejef.2021.09.02.001

Abstract

This study examines the socioeconomic determinants of women’s empowerment or bargaining power among married couples living in farm households in Nigeria. A multistage random sampling technique is employed to collect cross-sectional data from 320 farm households aged between 15 to 50 years. Women’s empowerment or bargaining power is measured using 18 questions, and a Tobit regression model is used to analyze all the variables employed. According to the findings, husbands have five more years of formal education than wives and literacy rates are higher for men (62%) than for women (30%). This difference leads to more decision-making power for men. The result shows that there is a visible gender disparity in the worth and value of assets brought into the marriage, with the men bringing around 34% while that of the women is around 3% making men the main decision-makers and women less empowered. As a policy recommendation, women’s status in society should be enhanced through investment in education and well-being. Additionally, policies and programs aimed at leveraging the bargaining power of the woman in her attempts to make decisions in the household and increasing her empowerment should be formulated and implemented by policymakers.

Keywords: AWEAI, Decision-Making, Tobit Regression, Women’s Empowerment

79-88

Trade and Investment-Led Growth in Southern African Development Community (SADC) 

Strike Mbulawa

DOI: 10.15604/ejef.2021.09.02.002

Abstract

The growth in the gross domestic product (GDP) has been below zero within the Southern Africa Development Community (SADC) region in recent years. Some member states have consistently experienced negative growth rates for an extended period which has contributed to low growth for the region on average. The lack of consensus on the findings in literature requires further research work to be done to guide policymakers on the potential sources of growth. This study examines the contribution of trade and investment on growth in the context of SADC. It applies the Autoregressive Distributed lag (ARDL) model to test relationships in both short and long run using annual data for the period 1994 to 2019. Findings confirm the existence of the trade and investment-led growth hypothesis. There is a short run, long run, and joint causality from both explanatory variables to economic growth. Cointegration between growth, trade, and investment is confirmed. Specifically, an increase in investment spurs growth in both the short and long run. Investment expenditure seems to double the growth potential in the long run. On the other hand, the study shows that an increase in trade openness retards growth which is consistent with the Prebisch-Singer hypothesis. Results suggest that policies that focus on the development and improvements in fixed investment, locally, help to drive the growth potential. The improvement of capitalization by manufacturing-oriented firms, as opposed to primary product-oriented firms, is ideal.

Keywords: Trade, Investment, Economic Growth, SADC

89-106

Corporate Ownership Structure and Firm Value: Empirical Evidence of JSE-Listed Firms, South Africa 

Adeyanju Adebiyi Sunday and Farai Kwenda

DOI: 10.15604/ejef.2021.09.02.003

Abstract

This paper examines the relationship between corporate ownership structure and firm value of JSE-listed firms in the phase of the Black Economic Empowerment program in South Africa. Since the end of the apartheid era, corporate governance practices have evolved and the enactment of the BBE Act has altered ownership and control in the South African corporate sector. Using data from 187 firms between 2004 and 2016, we observed that ownership concentration measured by five large shareholders and foreign ownership has a negative impact on firm value proxied with Tobin’s Q and return on assets, while domestic share ownership has a positive relationship with corporate performance. Contrary to the agency theory notion on the role of large shareholders in minimizing losses that arise from the separation of ownership and control and significant foreign investors corporate governance practices in the host countries, the results obtained in this study suggest that local shareholders in the host capital market are important in strengthening corporate governance practices and improve corporate performance. This study contributes to the ownership-firm value relationship literature by offering new evidence on the impact of ownership concentration, foreign ownership, and domestic ownership in an emerging market undergoing transformation through programs addressing its historical inequalities.

Keywords: Ownership Structure, Corporate Governance, Dynamic Model, Black Economic Empowerment, South Africa

107-127

In- and Out-of-Sample Performance of Nonlinear Models in International Price Differential Forecasting in a Commodity Country Framework 

Nicola Rubino

DOI: 10.15604/ejef.2021.09.02.004

Abstract

This paper presents an analysis of a group of small commodity-exporting countries’ price differentials relative to the US dollar. Using unrestricted self-exciting threshold autoregressive models (SETAR), we evaluate the sixteen national Consumer Price Indexes (CPI) differentials relative to the US dollar CPI. Out-of-sample forecast accuracy is estimated through calculation of mean absolute errors measures based on the monthly rolling window and recursive forecasts, and this estimation is extended to three additional models, namely a logistic smooth transition regression (LSTAR), an additive nonlinear autoregressive model (AAR), and a simple neural network model (NNET). Our preliminary results confirm the presence of some form of nonlinearity in most of the analyzed countries. The parsimonious AR(1) model does not appear to perform any worse than any nonlinear model in the rolling sample exercise. However, in terms of a long-run equilibrium driven by purchasing power parity, its validity is undermined by the results of the recursive estimates and the outcome of the Diebold-Mariano type tests, which favor generally the Heckscher commodity points theory. As a policy advice to commodity-exporting countries, we find no apparent reason to suggest commodity export price pegging as a generalized foreign exchange policy.

Keywords: Transition Regression Model, Real Exchange Rate, Nonlinearities, Price Differentials, Purchasing Power Parity (PPP), Commodity Points

128-144

Can Remittances Boost Tax Revenues in Zimbabwe? A Secondary Quarterly Time-Series Analysis

Michael Takudzwa Pasara and Michael Zuze

DOI: 10.15604/ejef.2021.09.02.005

Abstract

The study applied the ordinary least squares (OLS) technique on quarterly time-series data to analyze if remittances can boost tax revenue in Zimbabwe. The main challenge faced in Zimbabwe is the insufficient tax revenues to finance growing public spending needs. Results indicate that the share of remittances both in the current and lagged period significantly influenced income tax revenue and the volume of manufacturing. Trade openness was found to be insignificant. Similar results were also observed for the variables when value-added tax to total revenue was the dependent variable. When lagged variables were taken into account, results showed that only remittances were significant. Thus, increased remittance inflows have significant potential to generate more taxes for the government through income and consumption taxes. The study recommends the creation of platforms, which stimulate and attract more remittances, such as reducing costs of sending remittances through formal channels. Secondly, good governance and quality institutions provide appropriate economic environment and growth policies. Economic growth fosters increased and sustainable tax due to an increased tax base.

Keywords: Monetary Policy, Optimal Currency Areas, Exchange Rate, Franc Zone

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