We investigate the effect of remittances on bank credit in developing countries. Understanding this link is important in view of the growing relevance of remittances as a source of external finance and of the beneficial impact that financial intermediation is likely to have on economic growth....

A single equation model is inadequate to capture the various transmission channels linking civil war to per-capita income. Therefore, this paper uses a system of four equations to estimate the economic cost of civil con‡ ict. In the system, con‡ is allowed ict to a¤ect per-capita...

The paper studies the effect of resource abundance on human development. A simple theory is presented to show that resource abundance negatively affects human development through its effect on inequality. The prediction of the theory is then tested using a system of three equations. Estimates...

A system of three endogenous equations is used to estimate the determinants of poverty eduction. The system incorporates: (i) the direct effect of growth and income inequality on poverty, (ii) the feedback effect of poverty on inequality and growth, and (iii) different channels through which...

Africa is a case of structural change without industrialization and without diversification. Agriculture�s decline was matched by an increase in services and non-manufacturing industry, with manufacturing remaining low and stagnant throughout the post-colonial period. To what extent do...

We study the nexus between natural resources and growth in Sub-Saharan Africa (SSA) and find that SSA is indeed special: resources dependence retards growth in SSA, but not elsewhere. The natural resources curse is thus specific to SSA. We then show that this specificity does not depend on the...

Purpose- The chapter studies the impact of fiscal policy on the stabilization of peace in the aftermath of a civil war. Methodology- We use data from African war-torn countries and study the issue of post-conflict stabilization from an empirical perspective. We employ probit analysis to formally...

We present an empirical model where output growth volatility and government expenditure are jointly endogenous and both are affected by policies and institutions. We ¯nd that output volatility increases government expenditure, but higher expenditure, causes greater out-put volatility. This...

The Central African Economic and Monetary Community (CAEMC) has been a monetary union for several decades now. According to the hypothesis of endogenous optimal currency areas (OCA), the degree of business cycles synchronization across its member states should be significantly higher today than...

On the question of whether natural resources kill growth, the jury is still out. While waiting for a decision, we provide evidence that Mother Nature is responsible for slowing down social development over and above any effect it might have on income or growth. We define social development by a...