3. Electronic Theses and Dissertations (ETDs) - All submissions
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Item Infrastructure, institutional quality and infrastructure financing gaps: the casee of selected afreican countries(2022) Nyamkure, BlondelThe aim of this thesis is to examine three related issues around institutions, infrastructure and economic growth of Sub-Saharan Africa (SSA) economies. The first essay (Chapter Two) chronicles the evolution of the SSA region’s gaps in infrastructure needs and financing. We observed that the SSA region’s infrastructure investment and financing gaps are widening and ballooning over time across the four infrastructure types. We also found evidence of positive and significant correlation between infrastructure quality and institutional quality among a sub-sample of former British colonies in the SSA region, which turn to be weak and insignificant in case of other former colonies. This is also influenced by the influence of the legal origins on the infrastructure development in the SSA region. Also, of interest is the observation that the SSA region’s debt is approaching unsustainable level, in which 40% of this debt burden is as a result of leakages through bureaucrats’ rent-seeking and managerial inefficiency tendencies necessitated by porous, opaque and weak institutions. This serves as a possible reason why the infrastructure investment and financing gaps for SSA economies is continuously widening over time despite funds; more of their funding requirements are lying idle under mutual management funds’ custody, which the region is failing to tape into. Therefore, to close its infrastructure investment and financing gaps, relevant authorities of SSA countries must develop great strong institutions, implement radical structural reforms which crowd-in and promote private sector participation in infrastructure projects. Also, given the complementarity between infrastructure stock and human capital, there is need to massively invest in soft infrastructure such as education and health care. Due to the conspicuous antecedent literature dearth on the institution-infrastructure nexus, the main thrust of the second essay (Chapter Three) is to estimate the static and dynamic threshold level of institutional quality that will ensure stimulation of infrastructure development through efficient use of public debt (PD), government (GR) financial sector funds (FMD) and services as well as crowd in foreign direct investment (FDI) inflows in a panel of 46 Sub-Saharan African region between 2000 and 2017. For robustness of results, we employed a Hansen fixed effects threshold approach, Fully Modified Ordinary Least Squares (FMOLS) static models and Seo and Shin (2016) and Seo et al. (2019) recent theorized dynamic panel threshold regression approaches as informed by the New Institutional Economics theory. For our estimation approach, we adopted non-linear ii asymmetric static and dynamic modeling which gained prominence in recent econometric literature. The dynamic panel data threshold model was estimated using the Seo and Shin (2016) theoretical first differenced Generalized Method of Moments (FDGMM) estimation technique as operationalized by Seo et al. (2019). Though it varies with the aspect of economic and political institutional quality measure and whether entangled or disaggregated, overall, the results revealed that the effect of institutional quality on infrastructure development is nonlinear, with thresholds ranging between 45 – 90% in the static case and 56 – 82% in the dynamic case. This provides support for the use of a threshold regression model, with institutional quality serving as the threshold variable. Further probing was done using PD, FMD, GR and FDI as additional transition variables. In terms of the threshold level, the findings show that the index of institutional quality that will ensure the efficient use of infrastructure in stimulating growth is 0.61. The study also found that, on average, most countries in the region are operating below this threshold level, hence their huge infrastructural investment and financing gaps as well as underdevelopment observed in Chapter Two. The conclusion that is drawn from the analysis is that poor institutional quality is one of the factors hampering development of infrastructure of SSA regional countries. Coupled with a huge debt burden, low institutional quality also hinders efficient allocation of funds by financial institutions towards infrastructure development and reduction of FDI inflow to SSA regional economies. Legal origin has also been found to play a pivotal role in shaping the SSA region’s state of infrastructure development. The major strength of this study is that the methodology employed for the threshold analysis is exhaustive since it encompasses both static and dynamic panel data models developed for single and multiple threshold(s) value(s). Weak political institutions have been found to be a major drag to SSA’s infrastructure development. Thus, it is recommended that governments in the region need to formulate and implement policies targeted at improving the level of economic and political institutional quality in their countries, which can crowd-in both domestic (public and private) and foreign infrastructure investors. Essay three (Chapter four) examines the non-linear threshold effect of infrastructure, quantity, quality and access on economic growth using a rich and robust sample of 46 SSA countries. The study was provoked by the observation that despite its largest infrastructure investment and financing gaps, the SSA region also scored the least on all infrastructure iii aspects across the globe. Furthermore, economy growth of SSA economies stalled post the global financial crisis and inequality and poverty trends were on an upward trajectory. From antecedent literature, we identified the following drawbacks: (a) The literature did not determine the minimum amount of infrastructure quality or quantity which is needed to boost growth; (b). Lack of ascertainment on whether infrastructure quality and quantity has a U or inverted U-shaped effect on growth; (c). Though infrastructure access is directly and indirectly linked to welfare issues, inclusive growth and SDGs, it was conspicuously omitted and(d). at the literature did not explore whether infrastructure quantity, quality and access has complementarity or substitutability effect on growth. These issues form the basis and contribution of this study to the body of existing knowledge. Thus, this study strived to close these gaps by employing a static model (Hansen fixed effects) and dynamic model (System Generalized Methods of Moments (SGMM). We found that, firstly, the infrastructure quantity, quality and access have positive effect on growth of the SSA region, with quantity on the top followed by access and lastly quality. Secondly, the three infrastructure dimensions act as complements as opposed to substitutability since combining the three infrastructure aspects yield more growth benefits than their individual effect. Thirdly, infrastructure quantity and quality have a non-linear U-shaped effect on economic growth of SSA with optimum minima thresholds levels of 60% and 71%, respectively while that of infrastructure quality is linear. Best growth benefits will accrue to the SSA region when the quantity dimension of infrastructure is combining or interacting with both quality and accessibility, followed by quantity and quality and lastly quantity and access. Fourth, relative to the world average benchmark (excluding SSA), the growth benefit of 14.25% per annum accrues to the SSA region if it closes its overall infrastructure gap. In a more granular form, closing the quantity infrastructure gap would deliver higher growth benefit of 8.67% per year, followed by increasing infrastructure accessibility of 3.92% per annum and lastly catching up in terms of quality will raise growth by 1.66% per year. We observed that major contributors were electricity power, road network and improved drinking water. We recommend that SSA governments, development financial institutions (DFIs) and the private sector across the globe, like sovereign wealth funds, pension funds, and insurance companies devote financial resources towards infrastructure investment in the SSA region for it to reachItem Extraordinary emergencies : reproducing the sacred child in institutional interaction.(2014-09-15) Rafaely, DaniellaThis research report examines telephonic and written data from an emergency medical services centre in the Western Cape and seeks to uncover the language practices that speakers use in order to create what I term “extraordinary emergencies”. Since one of the overarching institutional aims of the emergency call centre is that of “preservation of life”, the majority of emergencies are reproduced by emergency call-takers as routine events, specifically for the purpose of managing them most efficiently and thus working towards the institutional aim of preserving life. However, in certain instances, this institutional agenda is temporarily halted or abandoned in favour of a competing agenda, what I have termed the “personal” agenda enacted by the speaker. This personal agenda works to the reproduction of particular norms and values, and speakers are seen as morally accountable for reproducing them. This research report makes use of discursive analytic practices, specifically conversation analysis, as a method by which to highlight subtle and delicate moments in the interaction that recreate the shared value of the “sacred child” in real-time interaction. Keywords: emergency, childhood, sexual assault, conversation analysis, institutionsItem The political economy of poverty reduction in Kenya : a comparative analysis of two rural countries.(2014-09-04) Runguma, Sebastian NjagiEmploying empirical findings from Tharaka Nithi and Siaya counties, this thesis analyses the dynamics of citizen participation in development policy and planning process in Kenya and its effects on poverty reduction efforts in the rural parts of the country. The study is based on the premise that public participation enhances the quality and relevance of development processes and their outcomes and is, therefore, an important ingredient for achieving sustainable poverty reduction outcomes. It utilizes the political economy model and draws from the concepts of “power” and “interests” in understanding the poverty reduction „enterprise‟ in the two rural communities in Kenya. The study finds that the elites, bureaucrats, and institutions have dominated Kenya‟s post-colonial development policy and planning space to the exclusion and disadvantage of ordinary citizens. The capture of public decision-making spaces, processes and development outcomes by elites is widespread and has affected the extent and quality of citizen participation in decision-making and poverty reduction in rural Kenya. Although ordinary citizens generally view themselves as the front line duty bearers in the fight against poverty, they hardly fulfilled their perceived role in poverty reduction. Faced with a web of dominating forces and constraints, ordinary citizens have become passive and peripheral actors in the poverty reduction „enterprise‟ and local level development generally. As currently profiled, approached and directed, poverty reduction is an elitist project with its goals couched in populist terms, essentially in the service of powerful and influential people and institutions within the Kenyan society. This explains why, despite poverty reduction being a policy objective throughout the post-independence period, alarmingly high levels of poverty have persisted in Kenya, especially in the rural areas. The study concludes that the success of rural poverty reduction in Kenya is chiefly dependent on sufficient citizen participation in decision-making, quality of development planning, good leadership and the capacity and will of institutions at the grassroots to pursue sustainable development endeavors.Item Institutional arrangements for artisan development in the manufacturing sector(2014-08-26) Mgidi, SinayeItem Institutional dynamics and impact on capital formation: evidence from Namibia and Tanzania(2013-03-15) Zaaruka, Benethelin P.The purpose of this thesis is to examine the impact of institutions on fixed capital accumulation over time in two developing countries, both former German colonies: Namibia and Tanzania. This is motivated by two recent underpinning theories: the new institutional theory, which views institutions as fundamental determinants of economic outcomes and income variations among countries (the institutional hypothesis); and the theory of irreversible investment under uncertainty, which emphasis the impact of uncertainty on investment and capital-stock accumulation. The first part of the thesis deals with the measurement and definitions of institutions. Empirical measures of political and economic institutions have been previously produced; however, most cover short periods of time. The short time span of the institutional indices makes them practical in cross-countries and panel studies, rather than in country-specific studies. The importance of country-specific studies is underscored by the notion that different historical paths led to different ways of organising economic activities and political structures, yielding the differences in economic development across countries. To overcome this challenge, this thesis presents a database on institutional measures for Namibia and Tanzania for the period 1884 to 2009. These indicators are used to assess the nature of political and economic institutional transformation from the colonial legacy to the modern outcome, using Namibia and Tanzania as a natural experiment. Relying on archival information on formal laws in Namibia and Tanzania, the thesis constructs institutional indicators that are de jure in nature representing political freedom, property rights and judicial independence. These allow for the assessment of rules the game, rather than outcome. The formal codification of rights and freedoms is of little significance if those rights cannot be enforced. Therefore, the de facto element is also considered through the construction of separate indicators on political instability and judicial independence. A clear theoretical framework on each indicator provides the selection and combination of each sub-component. A meaningful composite measure is based on the techniques of principal components and factor analysis. v The thesis argues that despite changes in colonial identity in these countries (i.e. German, then British or South African), the broader framework of institutions remained partly the same, particularly in the case Namibia. It is true that, with the attainment of independence in Namibia, many institutions did change, particularly in the areas of political freedom, and judicial and political instability. Measures such as property rights, on the other hand, are slow to change. However, the overall long-lasting effect of these colonial institutions on economic outcomes remains an empirical question. Similarly, the case of Tanzania reflects the notion of institutional persistence as the country continued to undermine political freedom even after the attainment of independence. Tanzania is among the few countries which adopted a constitution without a bill of rights at independence. Also, the new indicators for both countries, while covering a long time period (1884–2009), correlate fairly well with some of the widely used institutional indices produced by Freedom House and the Heritage Foundation. The second part of thesis establishes the impact of institutional variables on capital accumulation in Namibia and Tanzania, applying the Johansen Vector Error Correction Model (VECM) technique. The data span for Namibia is from 1923 to 2009, and that for Tanzania is from 1946 to 2009. The findings highlight the importance of uncertainty (political instability) in explaining capital accumulation over time in Namibia. The results also show that other institutional variables are important in explaining uncertainty. Rising levels of property rights and political rights lower political instability in Namibia. The empirical evidence for Tanzania indicates the importance of property rights in explaining capital accumulation over time. The most interesting result is the importance accorded to the judicial independence, which showed a positive correlation to gross domestic product (GDP). It is also shown that other institutional variables (property rights and political rights) have a positive correlation to judicial independence. A further finding is that uncertainty (political instability) has a negative effect on economic development over time in Tanzania.Item Economic cooperation in Kenyan credit cooperatives: exploring the role of social capital and institutions(2012-01-18) Muthuma, Elizabeth WanguiCredit cooperatives make a significant economic and social contribution to development in Kenya. They are unique financial institutions that are jointly owned and democratically controlled by their members. This study explores how members of Kenyan credit cooperatives achieve economic cooperation. A sociological basis of cooperation exists because cooperatives are voluntary associations. Economic cooperation was thus conceptualised as collective economic action that enables individual actors to secure economic benefits through associational membership. An economic sociology perspective provided the theoretical basis for combining the analysis of economic interests and social relations. The study employed a qualitative case study research design involving a rural and an urban credit cooperative. Social capital was used to explore the role of associational features in facilitating collective action while the concept of institutions was used to examine how institutions organize and shape collective action. Each cooperative was conceptualised as a microstructure to enable an analysis of group relations. An analysis of the economic and socio-political context provided the contextual basis for economic cooperation. The findings suggest that shared values and solidarity bonds are important in creating collective economic resources while maintenance of the collective resources depends on regular reciprocity exchanges, effective enforcement and transparent representation. A new regulatory framework that emphasizes prudential standards and economic efficiency has redefined the incentive structure for Kenyan credit cooperatives. It is likely to favour a business rather than a social welfare mentality in the cooperatives. The socio-political context reveals persistent vertical linkages that have resulted in low political and economic power for rural smallholder farmers compared to urban public sector employees. The study concludes that although credit cooperatives have acted as financial catalysts by enabling the participation of disadvantaged groups in the economic sphere, they are also societal mirrors that reflect the broader income and gender inequalities existing in society. The recognition of cooperatives as economic and social organizations therefore contributes to a better understanding of how cooperatives work.