Money and physical capital are complementary in Kenya

Odhiambo, Nicholas M. 한국국제경제학회 2004 International Economic Journal Vol.18 No.1

In this paper, two models have been used to test the relevance of McKinnon’s complementarity hypothesis in Kenya. In the first model, the demand for money has been included in the savings function and, simultaneously, savings rate has been included in the real money balances function. In the second model, the investment variable has been included in the money demand function. Contrary to the results obtained from some previous studies, the paper finds strong support for McKinnon’s complementarity hypothesis in both models. This applies irrespective of whether the models are estimated in a static long-run formulation (cointegration model) or in the dynamic formulation (error correction model). The paper therefore concludes that money and physical capital are complementary in Kenya. [ E41, E44]

CO2 emissions and economic growth in sub-Saharan African countries: A panel data analysis

Nicholas M Odhiambo 한국외국어대학교 국제지역연구센터 2017 International Area Studies Review Vol.20 No.3

This paper examines the causal relationship between CO2 emissions and economic growth in 10 sub-Saharan African (SSA) countries. This study attempts to answer one critical question: does economic growth Granger-cause CO2 emissions in SSA countries? Unlike some of the previous studies, this paper uses a dynamic panel data analysis procedure to examine this linkage. The results of the error-correction model (ECM)-based panel causality show that there is a unidirectional causal flow from economic growth to CO2 emissions in the 10 studied countries. This applies irrespective of whether the causality is tested in the short run or in the long run. These findings have important implications. They demonstrate that CO2 emissions mitigation policies are unlikely to have any adverse effects on these countries’ long-term growth paths. This implies that these countries can pursue CO2 emission reduction policies without necessarily compromising their quest for a long-term positive growth trajectory

Capital flows to low-income sub-Saharan Africa: an exploratory review

Braiton Nombulelo,Odhiambo, Nicholas M. 경희대학교 글로벌 통상·금융연구원 2023 International Trade, Politics and Development Vol.7 No.1

The purpose of the paper is to examine macroeconomic and institutional factors that influence capital flows to low-income sub-Saharan African (SSAn) countries. It analyzes capital flows in a disaggregated manner: foreign divert investment, portfolio equity and portfolio debt. There is a gap in the empirical literature in examining the factors that are important for various types of capital flows to low-income SSAn countries. Low-income SSAn countries attract very low levels of foreign investment compared to other developing economies in the SSAn region and other developing economies and this paper attempts to make a contribution in this area.This paper examines data on capital flows and that of various push and pull factors. Trends and dynamics of capital inflows and their macroeconomic and institutional drivers are analyzed for low-income sub-Saharan African countries. Such an analysis has not been fully explored for low-income SSAn countries.Capital inflows to low-income sub-Saharan Africa (SSA) have increased sevenfold since the 1990s, dominated by foreign direct investment (FDI). They overtook official development assistance and aid in the 2010s. Mozambique and Ethiopia attract the largest size of FDI compared to other low-income SSAn economies, with natural resources as key factors in the former. The largest share of FDI to low-income SSAn countries comes from other SSAn countries, mostly South Africa and Mauritius. Among macroeconomic push factors, capital inflows are more closely related to commodity prices, while the volatility index and global liquidity are also important. Among macroeconomic pull factors, trade openness and economic growth appear more closely related to capital inflows. The surge in capital inflows in the 2000s also followed the implementation of several regional trade and investment agreements in the region. The improvement in internal conflict in the 1990s and mid-2000s seems to have helped support the increase in capital inflows during that period. This institutional quality variable appears to more closely track capital inflows compared to other institutional quality indicators. There were also improvements in the investment profile, law and order, and government stability in the 1990s to early 2000s when capital inflows picked up.This study focuses on low-income SSAn countries, which are less studied in the empirical literature and that face immense developmental needs that require foreign and domestic capital.Findings of this paper can shed light to policy makers on the factors that are most important to help the region attract capital inflows and areas where further improvement is needed in the macroeconomic and institutional environment.There is a gap in the empirical literature in examining the factors that are important for attracting capital flows to low-income SSAn countries. To our knowledge, this study may be the first to explore dynamics of capital flows against institional quality for low-income SSAn countries at a disaggregated level.

Inflation-poverty causal nexus in sub-Saharan African countries: an asymmetric panel causality approach

Clement Olalekan Olaniyi,Nicholas M Odhiambo 경희대학교 글로벌 통상·금융연구원 2024 International Trade, Politics and Development Vol.8 No.1

Abstract Purpose – This study examines the roles of cross-sectional dependence, asymmetric structure and country-to- country policy variations in the inflation-poverty reduction causal nexus in selected sub-Saharan African (SSA) countries from 1981 to 2019. Design/methodology/approach – To account for cross-sectional dependence, heterogeneity and policy variations across countries in the inflation-poverty reduction causal nexus, this study uses robust Hatemi-J data decomposition procedures and a battery of second-generation techniques. These techniques include cross- sectional dependency tests, panel unit root tests, slope homogeneity tests and the Dumitrescu-Hurlin panel Granger non-causality approach. Findings – Unlike existing studies, the panel and country-specific findings exhibit several dimensions of asymmetric causality in the inflation-poverty nexus. Positive inflationary shocks Granger-causes poverty reduction through investment and employment opportunities that benefit the impoverished in SSA. These findings align with country-specific analyses of Botswana, Cameroon, Gabon, Mauritania, South Africa and Togo. Also, a decline in poverty causes inflation to increase in the Congo Republic, Madagascar, Nigeria, Senegal and Togo. All panel and country-specific analyses reveal at least one dimension of asymmetric causality or another. Practical implications – All stakeholders and policymakers must pay adequate attention to issues of asymmetric structures, nonlinearities and country-to-country policy variations to address country-specific issues and the socioeconomic problems in the probable causal nexus between the high incidence of extreme poverty and double-digit inflation rates in most SSA countries. Originality/value – Studies on the inflation-poverty nexus are not uncommon in economic literature. Most existing studies focus on inflation’s effect on poverty. Existing studies that examine the inflation-poverty causal relationship covertly assume no asymmetric structure and nonlinearity. Also, the issues of cross- sectional dependence and heterogeneity are unexplored in the causal link in existing studies. All panel studies covertly impose homogeneous policies on countries in the causality. This study relaxes this supposition by

Factors influencing farmed fish traders’ intention to use improved fish post-harvest technologies in Kenya: application of technology acceptance model

Jimmy Brian Mboya,Kevin Odhiambo Obiero,Maureen Jepkorir Cheserek,Kevin Okoth Ouko,Erick Ochieng Ogello,Nicholas Otieno Outa,Elizabeth Akinyi Nyauchi,Domitila Ndinda Kyule,Jonathan Mbonge Munguti 한국수산과학회 2023 Fisheries and Aquatic Sciences Vol.26 No.2

Improved fish post-harvest technologies (IFPT) have been promoted as more efficient methods of fish processing, preservation, and value addition than the traditional methods prevalent in developing countries. The adoption rates, however, do not appear to be convincing. The purpose of this study was to determine the socio-demographic and psychological factors that influence intention of Kenyan farmed fish traders to use IFPT. The technology acceptance model (TAM) was used to properly explain the impact of TAM constructs such as perceived usefulness (PU), perceived ease of use (PEOU), and attitude (ATT), as well as socio-demographic factors such as gender, age, education level and fish trading experience on traders’ intention to use the technologies. A cross-sectional survey was conducted to collect data using a semi-structured questionnaire from 146 traders in Busia, Siaya and Kakamega counties. At a significance level of p = 0.05, a linear regression model was used to examine the socio-demographic and psychological determinants of the traders’ behavioral intention to use the improved technologies. The regression analysis revealed that PU (β = 0.443; p = 0.000), PEOU (β = 0.364; p = 0.000) and ATT (β = 0.615; p = 0.000) influence traders’ intention to use IFPT, with ATT having the highest influence on intention. However, the traders’ socio-demographic characteristics have no effect on their intention to use the technologies, as the coefficients for gender (β = 0.148; p = 0.096), age (β = 0.016; p = 0.882), level of education (β = –0.135; p = 0.141) and fish trading experience (β = 0.017; p = 0.869) are all insignificant. These findings show that the traders intend to use IFPT and will use them when it is in their best economic interests.