Governance for Structural Transformation in Africa Edited by Adam B. Elhiraika Gamal Ibrahim William Davis Governance for Structural Transformation in Africa Adam B. Elhiraika · Gamal Ibrahim William Davis Editors Governance for Structural Transformation in Africa Editors Adam B. Elhiraika William Davis Economic Commission for Africa (ECA) Economic Commission for Africa (ECA) Addis Ababa, Ethiopia Addis Ababa, Ethiopia Gamal Ibrahim Economic Commission for Africa (ECA) Addis Ababa, Ethiopia The views expressed herein are those of the authors and do not necessarily reflect the views of the United Nations. ISBN 978-3-030-03963-9 ISBN 978-3-030-03964-6 (eBook) https://doi.org/10.1007/978-3-030-03964-6 Library of Congress Control Number: 2018960883 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG, part of Springer Nature 2019 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Cover credit: GettyImages/Navaswan This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Contents 1 Overview 1 Adam B. Elhiraika, Gamal Ibrahim and William Davis 2 Institutional and Governance Weaknesses and African Transformation 11 Tafah Edokat and Aloysius Njong 3 Sub-Regional Perspectives on Structural Change 37 Pedro M. G. Martins 4 Economic Regulation and Employment Intensity of Output Growth in Sub-Saharan Africa 101 Abidemi C. Adegboye, Monday I. Egharevba and Joel Edafe 5 Governance in the Mineral Dependent Economy: The Case of Botswana 145 Ita M. Mannathoko v vi Contents 6 Can Export Promotion Agencies Stem the Deindustrialisation in Sub-Saharan Africa? 189 Isaac Marcelin and Malokele Nanivazo 7 Exploring Multidimensional Fiscal Incentives and Firms’ Productivity in a Developing Country 221 Rapuluchukwu Efobi Uchenna, Belmondo Tanankem Voufo and Beecroft Ibukun 8 Food and Agriculture Global Value Chains: New Evidence from Sub-Saharan Africa 251 Jean Balié, Davide Del Prete, Emiliano Magrini, Pierluigi Montalbano and Silvia Nenci 9 The Role of Regional Trade Integration and Governance in Structural Transformation: Evidence from ECOWAS Trade Bloc 277 Abiodun Surajudeen Bankole and Musibau Adekunle Oladapo Index 315 Notes on Contributors Abidemi C. Adegboye is currently a Ph.D. student in Development Economics at the Department of Economics, University of Benin, Benin City Nigeria. He is also a lecturer in Economics at Adeyemi College of Education. His areas of interest include labour markets in SSA and fiscal policy. Jean Balié is Senior Economist in the FAO Agricultural Development Economics Division, where he manages the Monitoring and Analyzing Food and Agricultural Policies (MAFAP) Programme. He has over 20 years of experience in policy analysis in developing and developed countries. He also worked for the French Ministry of Agriculture on bilateral cooperation and international trade negotiations. He wrote sev- eral papers, articles and reports on topics such as policy processes, policy monitoring, commodity chain analysis and price volatility. Abiodun Surajudeen Bankole is Professor of Economics in the Department of Economics at the University of Ibadan, Nigeria. William Davis is Economic Affairs Officer working with the Macroeconomic and Governance Division of the Economic Commission for Africa. vii viii Notes on Contributors Davide Del Prete is Economist at the FAO Agricultural Development Economics Division, where he is currently working at the Monitoring and Analyzing Food and Agricultural Policies (MAFAP) Programme and as an Assistant Professor at University of Naples Parthenope. He holds a Ph.D. in Economics from Sapienza University of Roma, Italy. His research interests cover: international trade, value chains, applied economics and micro-econometrics. He has experience consulting with the International Trade Center (UN), UNCTAD and the Italian Ministry of Foreign Affairs. Joel Edafe is a Ph.D. student in Economics at the Benson Idahosa University, Benin City Nigeria. He is also a lecturer in Economics at Adeyemi College of Education. His area of interest is development finance and household welfare. Tafah Edokat is Professor of Economics and former Vice-Chancellor of The University of Bamenda. Rapuluchukwu Efobi Uchenna holds a Ph.D. from the College of Business and Social Sciences Covenant University with a special inter- est in Development Economics. He is a Hewlett Fellow and is inter- ested in issues on household and firm outcomes, while considering sustainability. Monday I. Egharevba is a Ph.D. student in Economics at the Benson Idahosa University, Benin City, Nigeria. He focuses on demographic implications of government policies. He is also a lecturer in Economics at Adeyemi College of Education. Dr. Adam B. Elhiraika is the Director of the Macroeconomic and Governance Division of the United Nations Economic Commission for Africa (ECA). He directly supervises ECA work on macroeconomics, development planning and economic governance and public finance, including key flagship publications: The Economic Report on Africa, the African Governance Report and the Sustainable Development Report. Before joining the United Nations, Elhiraika served as Economist at the Islamic Development Bank (Saudi Arabia), Associate Professor of Economics at the United Arab Emirates University (UAE), Notes on Contributors ix Senior Lecturer at the University of Fort Hare (South Africa) and the University of Swaziland (Swaziland) and Assistant Professor at the University of Gezira (Sudan). In addition to the contribution to official reports and publications, he has published extensively in internationally refereed journals, books and monographs. Gamal Ibrahim leads the technical work on public finance and illicit financial flows in ECA and has been a member of the secretariat of the High Level Panel on Illicit Financial Flows from Africa since its inception in 2011. Dr. Ibrahim has an M.A. in Development Economics from the University of Leeds, UK and a Ph.D. from Nottingham Trent University, UK. He taught Economics at Nottingham Business School, Nottingham Trent University before joining the Arab Monetary Fund in Abu Dhabi as a Senior Economist. In 2010, he joined the United Nations Economic Commission for Africa. Dr. Ibrahim has published widely in books and leading economics Journals. His main field of specialisation is institu- tional economics with a particular emphasis on economic governance, finance for development, illicit financial flows and private sector develop- ment. He served as a resource person for the African Economic Research Consortium (AERC) research and training programmes. Gamal is a research fellow for the Economic Research Forum (ERF). Beecroft Ibukun is Economics Researcher and Faculty at Covenant University (CU), Nigeria. Her research is centred on Fiscal Studies and Economic Development in Africa, and she has collaborated with a number of scholars in her field on various grants and award-winning research projects. Emiliano Magrini is Economist at the FAO Agricultural Development Economics Division, where he is currently working in the Monitoring and Analyzing Food and Agricultural Policies (MAFAP) Programme. His research focuses on agricultural and food value chain analysis in Sub-Saharan Africa, with particular interest in the impact of domestic and trade policies on price fluctuations, production choices and farm- ers’ poverty and food security. He obtained a Ph.D. in Development Economics from the University of Rome “Sapienza” and a Masters in International Economics from the University of Sussex. x Notes on Contributors Ita M. Mannathoko is an independent researcher formerly of the Bank of Botswana, World Bank and International Monetary Fund. Isaac Marcelin has taught finance for the past 8 years at University of Maryland Eastern Shore, served as the Senior Advisor in Finance to two Prime Ministers; has published in top-tier journals and conducted M&E of public or social programs along with authoring policy briefs. Pedro M. G. Martins is Senior Economist for Timor-Leste at the World Bank. Prior to joining the World Bank, Pedro had been an Economic Affairs Officer at the Economic Commission for Africa, a Research Specialist at UNDP’s Human Development Report Office and a Research Fellow at the Overseas Development Institute (UK). He holds an M.A. in Development Economics and a Ph.D. in Economics, both from the University of Sussex (UK). Pierluigi Montalbano is Associate Professor of International Economic Policy, Chair Holder of the Jean Monnet Chair on “EU Trade Policy for Development” and Associate Faculty at the University of Sussex (UK). He holds a Ph.D. in Quantitative Methods from Sapienza University and in Economics from Sussex University. He is author and co-author of several articles and scientific publications in peer-reviewed international journals and an invited speaker at sev- eral national and international conferences and seminars. His research interests lie at the crossover between International Economics and Development. Malokele Nanivazo is a visiting scholar at the University of Kansas. She worked as a research fellow at the United Nations University— World Institute for Development Economics Research (UNU- WIDER). She contributed to several projects on the roots causes of conflicts for the Economic Commission for Africa of the United Nations. Silvia Nenci is Associate Professor of Economic Policy at the Roma Tre University, Italy. She holds a Ph.D. in Economics from Sapienza University of Rome. Her research interests focus on international trade and development, trade policy, global value chains and network