Seminar by Hung LAM and Fangyuan PENG (June 26)
Let me inform you of the following research seminar.
Date: June 22 (Thursday), 2023
Time: 5:15PM - 7:00PM
Venue: 11th Floor, Bldg.No.2 Meeting Room B & ZOOM (HyFlex)
Speaker: Hung LAM and Fangyuan PENG (Hong Kong University of Science and Technology)
Organizer: Takuya Hasebe
Title: International Aid, Electrification and economic outcomes in African Countries
In the past two decades, notable strides have been made in enhancing electricity access in Africa. Nevertheless, there remains a dearth of empirical research investigating the impact of electrification on economic outcomes in the region. This study aims to fill this gap by providing fresh and causal empirical evidence on the relationship between electrification and labor participation in Sub-Saharan Africa, utilizing international aid projects as a prominent exogenous shock in the region. The current findings underscore that completed electrification projects yield a substantial increase in labor participation, amounting to 4% of the sample mean. Importantly, these benefits are primarily observed among individuals with higher initial capital such as those who are residing in urban areas and have better family backgrounds. These outcomes highlight the vital role of electrification aid in driving economic development while also emphasizing concerns regarding inequality in Africa.
Title: Excess Capacity and Vent for Surplus: Evidence from China's overcapacity elimination policy
Machinery utilization holds significant potential for facilitating the transition of low-income countries from agriculture to manufacturing, which has long been recognized as a cornerstone for job creation, poverty reduction, and rapid economic growth. How to achieve industrialization is also one of the pillars of Africa. This paper investigates the potential effects of importing machinery on the industrialization efforts and local progress of African nations. The analysis is divided into two sections. Firstly, it examines the impact of China's policy of eliminating domestic manufacturing machinery on the export of machinery to Africa. The findings indicate that cities implementing machinery elimination tasks export approximately 6% more machinery value to African countries. This suggests that China's industrial policy contributes to improving the availability and accessibility of industrial machinery in Africa. Secondly, the paper explores the potential advantages of imported machinery for recipient countries. The study demonstrates that machinery imports contribute to the growth of downstream sectors but have a limited effect on job creation. Using firm-level data from Ethiopia, the research confirms this pattern and reveals that machinery imports primarily benefit large firms and exporters without significant increases in employment. This paper offers valuable insights into the role of machinery imports in promoting industrialization and local development in Africa.
* Please contact the organizer via email, if you'd like to participate in the online seminar.
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