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• Open Access Article Economics Macroeconomics

  10 Pages Download PDF: Tourism, Migration, And Productive Capacity Growth In Sub-Saharan Africa

  Tourism, Migration, And Productive Capacity Growth In Sub-Saharan Africa

  Anthony Orji, Elis Moses Onoh, Onyinye Imelda Anthony-Orji, Jonathan Emenike Ogbuabor, Oluchi Okoro, Joseph Fanen Akpesue

  2025-12-19 https://doi.org/10.36923/ie-frontiers.v28i2.406

  Productive capacity has emerged as a critical indicator of long-term economic development, particularly for regions undergoing rapid structural transformation, such as Sub-Saharan Africa (SSA). Despite increasing global interest, the key drivers of productive capacity in SSA remain insufficiently explored, especially within the context of tourism and migration. Existing studies predominantly rely on GDP-based growth models and often examine tourism and migration separately, overlooking their combined influence on structural development. Moreover, the role of institutional quality in shaping productive capacity is under-investigated. This study examines how international tourism and migration affect productive capacity growth in SSA, while also considering the contributions of urbanization, trade openness, and institutional quality. Using panel data from 38 SSA countries between 2011 and 2021, the analysis employs a dynamic System Generalized Method of Moments (System GMM) estimator to address endogeneity, unobserved heterogeneity, and simultaneity among variables. The results indicate that international tourism and migration exert positive and statistically significant effects on productive capacity. Institutional quality emerges as the most influential driver, followed by urbanization and trade openness. These findings underscore the importance of structural and governance-related factors in enhancing the region’s productive capacity. Tourism and migration contribute meaningfully to productive capacity growth; however, their impact is substantially conditioned by the quality of governance and structural enablers. Policymakers should adopt sustainable tourism strategies, strengthen security and infrastructure, develop migration-friendly frameworks, enhance human capital, and prioritize institutional reforms to maximize long-term productive capacity in SSA.

  pp. 31-40 Abstract views:738 Downloads:244

• Open Access Article Economics

  15 Pages Download PDF: Alternating Heads of State And Structural Transformation In Sub-Saharan Africa: A Panel VAR Analysis

  Alternating Heads of State And Structural Transformation In Sub-Saharan Africa: A Panel VAR Analysis

  Tourere Zenabou, Nzepang Fabrice

  2026-09-30 https://doi.org/10.36923/ie-frontiers.v29i2.436

  This study examines the dynamic interaction between head-of-state alternation and structural transformation in sub-Saharan Africa (SSA), an issue that has received limited attention compared with the established literature on political alternation and economic growth. Using data from Limi Kouotou and Epo (2019), the Africa Sector Database, and World Development Indicators for 17 SSA countries over 1970–2015, the study estimates a panel vector autoregression (pVAR) model. The study examines structural transformation through two components: structural change and intra-industry productivity. The results show that innovations in head-of-state alternation are more strongly associated with structural change than with intra-industry productivity. The impulse-response analysis further indicates that head-of-state alternation responds positively to structural-change shocks and negatively to intra-industry-productivity shocks. Forecast-error variance decomposition shows that innovations in head-of-state alternation explain 25.5% of the variance in structural change and 13.4% of the variance in intra-industry productivity, while FDI accounts for 51.2% of the forecast-error variance in head-of-state alternation. The study contributes to the literature by moving beyond the conventional growth–politics relationship and demonstrating the dynamic association between political alternation and the components of structural transformation in SSA.

  pp. 1-15 Abstract views:118 Downloads:55

• Open Access Article Macroeconomics

  14 Pages Download PDF: Technological Innovation, Governance Institutions, Infrastructure Development, and Economic Complexity in Africa: Evidence from Dynamic Panel Data

  Technological Innovation, Governance Institutions, Infrastructure Development, and Economic Complexity in Africa: Evidence from Dynamic Panel Data

  Obed Ifeanyichukwu Ojonta, Jonathan Emenike Ogbuabor

  2026-03-17 https://doi.org/10.36923/ie-frontiers.v29i1.419

  Africa continues to face persistent development challenges, including poverty, income inequality, limited access to healthcare services, and disparities in education. These challenges contradict the objectives of the Sustainable Development Goals (SDGs), which emphasize the importance of innovation, infrastructure development, and strong institutions. Technological innovation has increasingly been recognized as a key channel for promoting infrastructure development, improving economic complexity, and strengthening institutional performance. Motivated by these considerations, this study examines the combined effects of technological innovation, governance institutions, human capital development, infrastructure, and foreign direct investment on economic complexity in Africa. In addition, the study investigates how technological innovation, governance institutions, remittances, foreign direct investment, and economic complexity influence infrastructure development across African economies. The analysis employs the system generalized method of moments (system GMM) estimator using panel data for 31 African countries covering the period from 2011 to 2020. The results reveal that technological innovation has a positive and statistically significant effect on both economic complexity and infrastructure development in Africa. However, the indicators of governance institutions are largely negative and statistically insignificant in their influence on economic complexity and infrastructure. Furthermore, governance institutions do not significantly moderate the relationship between technological innovation and these development outcomes. These findings highlight the importance of strengthening technological innovation systems while addressing institutional weaknesses to promote sustainable economic development across the African continent.

  pp. 11-24 Abstract views:634 Downloads:581

• Open Access Article Economics Macroeconomics

  13 Pages Download PDF: Foreign Direct Investment, Capital Flows, and Sectoral Growth in Nigeria: A Comparative Analysis of Agriculture and Manufacturing

  Foreign Direct Investment, Capital Flows, and Sectoral Growth in Nigeria: A Comparative Analysis of Agriculture and Manufacturing

  Anthony Orji, Jovita Nneka Uwakwe, Onyinye Imelda Anthony-Orji, Jonathan Emenike Ogbuabor, Juliana Ngozi Obiorah

  2025-09-23 https://doi.org/10.36923/ie-frontiers.v28i2.404

  The nexus between the agricultural sector, manufacturing sector, and FDI has been a topic of debate over the years. While the fundamental role of FDI in the growth of the overall economy has been widely recognized, findings of existing literature have remained unclear and inconclusive on how the impact of FDI varies across these distinct sectors, especially within the context of developing countries like Nigeria. This study aims to provide a comprehensive comparative analysis of the impact of FDI and other capital inflows on Nigeria’s agricultural and manufacturing sectors between 1980 and 2021. Using annual time-series data from the World Bank’s World Development Indicators (WDI) and the Central Bank of Nigeria (CBN), the study employs the Autoregressive Distributed Lag (ARDL) modelling approach. Four sector-specific ARDL models were specified, each subjected to extensive diagnostic and robustness checks to ensure the reliability of the estimates. The findings reveal a contrasting effect: while FDI exerts no statistically significant influence on manufacturing output, it has a strong and transformative impact on agricultural performance. In addition, other capital inflows, including official development assistance, development finance, and remittances, were found to significantly influence both sectors. The study concludes that FDI is not a universal driver of growth, and its effectiveness depends on sectoral characteristics, investment type, and policy environment. It contributes to the literature by offering one of the first sector-specific comparative analyses of capital flows in Nigeria, providing evidence to guide policies aimed at shifting the economy from consumption-driven patterns toward sustainable, production-oriented growth.

  pp. 1-13 Abstract views:806 Downloads:860

• Open Access Article Economics Digital Economy

  16 Pages Download PDF: From Peg to Float: Economic and Political Implications of the Ethiopian Birr Flotation

  From Peg to Float: Economic and Political Implications of the Ethiopian Birr Flotation

  Fentahun Admassu Yayeh

  2025-04-16 https://doi.org/10.36923/iefrontiers.v28i1.286

  The adoption of a floating exchange rate system constitutes a pivotal economic policy decision that both reflects and influences a nation’s broader political economy. The flotation of the Ethiopian Birr (ETB) marks a substantial shift in Ethiopia’s monetary policy framework, carrying significant implications for the country's macroeconomic stability and development trajectory. This paper investigates the rationale behind the policy shift, its anticipated economic impacts, and potential future pathways for Ethiopia. Through a systematic review of the literature and comparative analysis of case studies from other countries, the study provides a comprehensive evaluation of the benefits, risks, and strategic considerations associated with the move to a floating exchange rate. While the reform offers promising prospects for greater economic autonomy, enhanced trade competitiveness, and market-driven growth, it also introduces considerable challenges, including inflationary pressures, socioeconomic inequality, and political uncertainty. To fully leverage the potential of this transition, Ethiopia must prioritize sound policy management, institutional strengthening, and structural economic reforms. These measures are critical to mitigating the inherent risks of exchange rate liberalization and to ensuring that the country achieves long-term macroeconomic stability, inclusive growth, and sustained structural transformation.

  pp. 46-61 Abstract views:1264 Downloads:716