Browsing by Author "Sulemana, Mahawiya"

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    Does energy consumption improve human capital development? Empirical evidence from panel non-linear autoregressive distributed lag in Africa
    (OPEC Energy Review, 2023) Dramani, John Bosco; Tetteh, Bright; Sulemana, Mahawiya; Aawarr, Godfred; 0000-0002-3640-2664; 0000-0003-3121-3618; 0000-0003-2281-3590
    The contributions of human capital to improvement in socio-economic outcomes have generated significant interest in its determinants. On one hand, there is the orthodox view which states that energy consumption does not promote human capital development. In contrast, the heterodoxies argue that energy consumption is an essential driver of human capital development. Thus, we explore the asymmetric effects of energy consumption on human capital development for 22 African countries from 2000 to 2018 within the framework of panel non-linear ARDL (NARDL). The long-run results indicate that energy consumption is vital for human capital development. Specifically, in the long-run, positive and negative shocks to energy consumption significantly improve human development. In addition, we find that economic growth, government effectiveness and foreign direct investment improve human capital only in the long-run, while carbon dioxide emission retards it in both the long- and short-runs. We found similar results for oil and non-oil producing countries, ECOWAS, SADC, CEN-SAD and COMESA countries
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    Effect of financial sector development and institutions on economic growth in SSA. Does the peculiarities of regional blocs matter?
    (Journal of Sustainable Finance & Investment, 2022) Sulemana, Mahawiya; Dramani, John Bosco; 0000-0003-2281-3590; 0000-0002-3640-2664
    The link between financial sector development (FSD) and economic growth has generated a great deal of interest among academics. Some studies argued that financial sector stimulates growth while others suggested the opposite. Thus, we conducted a comparative analysis of the effect of FSD on economic growth between Economic Community of West African States (ECOWAS) and Southern African Development Community (SADC). In addition, we sought to find out the transmission of FSD through institutional development on economic growth. The results suggested the existence of FSD-led growth in SADC but revealed no statistically significant effect in ECOWAS. Furthermore, the effect of FSD through institutional development supported a positive complementarity effects on growth in both regions but only statistically significant in ECOWAS, suggesting strong institutions complemented FSD effects on growth. We recommended that ECOWAS take steps to improve both political structures and democratic dispensation to boost the development of the financial sector.
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    Effect of oil price volatility on the trade balance in sub-Saharan Africa
    (OPEC Energy Review, 2022-09) Forson, Priscilla; Dramani, John Bosco; Frimpong, Prince Boakye; Arthur, Eric; Sulemana, Mahawiya; 0000-0002-4863-7065; 0000-0002-3640-2664; 0000-0002-2829-9257; 0000-0003-2327-1797; 0000-0003-2281-3590
    Crude oil price volatility as an important driver of the trade balance of economies has been widely documented in the literature. However, studies on the effect of oil price volatility on the trade balance in sub-Sahara Africa (SSA) are limited. In this paper, we explore the effect of crude oil price volatility on the trade balance across 34 SSA countries using Pooled Mean Group (PMG) and Common Correlated Effect Pooled Mean Group (CCEPMG) estimators for the period January 2004 to December 2017. We find that crude oil price volatility exerts a negative effect on the trade balance of SSA countries. We further demonstrate that inflation, interest rates and exchange rates are significant transmission channels for oil price volatility to impact trade balance. We suggest that policymakers hedge as well as adopt price-smoothing schemes to minimise the volatility of oil prices on trade balance. Again, countries should adopt an inflation-targeting regime to ensure the stability of the general price level. Finally, central banks of the respective countries should apply a combination of foreign exchange market interventions and interest rate changes to reduce the effect of oil price volatility on their trade balance when the exchange rate is taken into account.
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    Natural resource dependence and economic growth in SSA: are there threshold effects?
    (Natural resource dependence and economic growth in SSA: are there threshold effects?, Development Studies Research,, 2022) Dramani, John Bosco; Rahman, Yahuza Abdul; Sulemana, Mahawiya; Takyi, Paul Owusu; 0000-0002-3640-2664; 0000-0002-8261-3075; 0000-0003-2281-3590; 0000-0001-9033-0764
    The debate on the natural resource curse hypothesis has attracted the attention of policy makers and policy analysts for the past few decades. However, the empirical findings on such a hypothesis have proven inconclusive. Our study investigates the threshold effects of natural resource dependence on economic growth in sub-Sahara Africa (SSA) using both aggregate and disaggregate data from 1990 to 2019 by employing a threshold effect model. The results indicate a double threshold effect of natural resource rent on economic growth. In particular, below 6% of GDP, aggregate natural resource rent exerts a significant negative effect on economic growth. However, as the rents increase above 6% to about 15% of GDP its negative effect on economic growth significantly reduces. In addition, beyond 15% of GDP natural resource rent exhibit a substantial significant positive impact on economic growth. Further, the disaggregated data reveal that forest rents exhibit a strong weighty adverse effect on economic growth at all levels of thresholds. The study recommends that governments within the sub region need to put in policies to ensure that natural resources generate at least 15% of GDP annually to promote growth.