Browsing by Author "Mkenda, Beatrice K."

Now showing 1 - 11 of 11
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    A Comparative Analysis of Firm Based Training in East African Manufacturing Sector: Does Level of Education Matter?
    (2006-05) Kweka, Josaphat; Aiko, Rose; Kessy, Flora; Ndlovu, Tchaka; Kabelwa, George; Kajiba, John; Mkenda, Beatrice K.
    Using World Bank's (2003) firm-level Investment Climate Survey (ICS) data for Kenya, Tanzania and Uganda, this paper examines extent in which education and skill levels are important determinants of Firm-based Training (FBT) in the East African manufacturing sector. The findings show weak evidence on complementary hypothesis between education and FBT but one which differs significantly across (perhaps depending on educational and training capacity of) different countries. Although other determinants of FBT apply differently to specific countries, size and technology characteristics are common determinants across the three countries. Furthermore, firms that care about HIV epidemic train more as a means to abate the negative effects of the epidemic on their human resources. Since FBT has potential to contribute to skill development, the findings imply that enterprise training should receive similar policy emphasis as education in the bid to enhance human resource development for growth and poverty reduction.
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    An Empirical Test of Purchasing Power Parity in Selected African Countries - A Panel Data Approach
    (2001-05) Mkenda, Beatrice K.
    The paper tests whether the theory of Purchasing Power Parity holds in a selected sample of twenty African countries. The paper employs a panel unit root test to test whether the real exchange rates in the panel are mean reverting or not. The test employed is the Im et al (1997) test. Results show that the null of a unit root is rejected for the three real exchange rate indices, namely, the import-based and trade-weighted multilateral indices, and the bilateral indices, while for the export-based indices, the null hypothesis is not rejected. That is, Purchasing Power Parity is confirmed for the import-based and trade-weighted multilateral indices, and the bilateral indices, while it is rejected for the export-based multilateral indices. After performing the demeaning adjustment to account for cross-sectional dependence, our results show that the null hypothesis of a unit root is rejected for the import-based multilateral indices and the bilateral indices, while the null is not rejected for the trade-weighted multilateral indices. Purchasing Power Parity is therefore only confirmed for the import-based multilateral indices and bilateral indices, while it is rejected for the trade-weighted multilateral indices.
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    Essays on Purchasing Power Parity, Real Exchange Rate, and Optimum Currency Areas
    (2000-11) Mkenda, Beatrice K.
    This thesis contains three separate papers. Paper I tests whether the theory of Purchasing Power Parity holds in a selected sample of twenty African countries. The paper employs a panel unit root test to test whether the real exchange rates in the panel are mean reverting or not. The test employed is the Im et al (1997) test. Results show that the null of a unit root is rejected for the three real exchange rate indices, namely, the import-based and trade-weighted multilateral indices, and the bilateral indices, while for the export-based indices, the null hypothesis is not rejected. That is, Purchasing Power Parity is confirmed for the import-based and trade-weighted multilateral indices, and the bilateral indices, while it is rejected for the export-based multilateral indices. After performing the demeaning adjustment to account for cross-sectional dependence, our results show that the null hypothesis of a unit root is rejected for the import-based multilateral indices and the bilateral indices, while the null is not rejected for the trade-weighted multilateral indices. Purchasing Power Parity is therefore only confirmed for the import-based multilateral indices and bilateral indices, while it is rejected for the trade-weighted multilateral indices.
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    Estimating Transaction Costs in Tanzanian Supply Chains
    (2011-04) Mkenda, Beatrice K.; Campenhout, Bjorn V.
    Kilimo Kwanza1 emphasizes modernization and commercialization of agriculture, which entails improving current technology used, and access and participation of smallholder farmers in markets. However, market participation is not costless. Transaction costs exist in all market exchange, and high transport costs, which are an element of transaction costs2 , are a major deterrent for market participation of farmers in Africa, and they affect the price farmers receive3 as well as their productivity (Hine and Ellis, 2001). This implies that a reduction in transaction costs can encourage smallholder farmers to participate in marketing of their produce. In addition, and potentially more important in the longer run, the increased prices may trigger the farmer to review his product portfolio in the light of these new opportunities. As such, indirectly, the reductions of inefficiencies along the marketing chain may lead to everlasting productivity gains through a reshuffle of the product portfolio of smallholder farmers that better exploits their comparative advantage.
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    Exchange Rate in Zambia
    (2000-12) Mkenda, Beatrice K.
    The paper analyses the main determinants of the real exchange rate in Zambia. It first gives a brief review of the Zambian economy and a review on real exchange rate studies. Then an illustrative model is presented. The study employs cointegration analysis in estimating the long-run determinants of the real exchange rates for imports and exports, and of the internal real exchange rate. The finding is that terms of trade, government consumption, and investment share all influence the real exchange rate for imports, while terms of trade, central bank reserves and trade taxes influence the real exchange rate for exports in the long-run. The internal real exchange rate is influenced by terms of trade, investment share, and the rate of growth of real GDP in the long-run. Error-correction models are then estimated. Besides the difference of the fundamentals mentioned above, aid and openness are found to impart short-run effects on the real exchange rate indices. The coefficients of adjustment are found to be-0.38,-0.79 and-0.80 respectively for the real exchange rates for imports and exports, and for the internal real exchange rate.
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    Globalisation and Rural Household Welfare in Tanzania
    (2005-08) Mkenda, Beatrice K.
    ABSTRACT This study examines the impact of globalisation on rural households in Tanzania. In particular, the study compares ,the welfare of the more globalised regions of Tanzania with the not so globalised regions. The globalised regions are defined as those regions whose contribution to export production of four crops is more than 20 percent. The welfare of rural households in more globalised regions is more likely to be affected by changes,occurring in the international market for the crops that they grow. The
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    The Impact of Globalisation on Tanzania's Labour Market: Evidence From The Manufacturing Sector
    (2004-12) Mkenda, Beatrice K.
    paper prepared for a Policy Dialogue for Accelerating Growth and Poverty Reduction in Tanzania, held at the Conference hall, ESRF, on July 28 th , 2005.
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    Informal Construction Employment, Earnings and Activities: A Boon or Bane for Tanzania?
    (SSRN Electronic Journal, 2015-02) Mkenda, Beatrice K.; Aikaeli, Jehovaness
    This paper assesses whether the growth of informal construction employment and activities in Tanzania are a boon or bane for informal workers. It examines the importance of employment and income provision, employment conditions, and linkages between formal and informal firms. It also examines the determinants of earnings of workers and the challenges faced by the informal construction sector. The study finds that informal construction activities are important in providing employment and income to people, although a significant number of employees work without contracts and pensions. The level of informal sector earnings is also lower than that of the formal sector. The statistically significant results from regression analysis of the determinants of earnings, which are positively related to earnings are; age, education level, and number of years of experience. The policy implications of this study include: the need for informal construction employees to be affiliated to pensions and health insurance benefits; requirement of a mechanism to enable them to formalize easily in order for them to access credit and to expand their operations; improvement in their skills is also important to enhance their income levels so as to reduce poverty; and to empower them to share in the growth of construction activities is important.
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    Is East Africa An Optimum Currency Area?
    (2001-05) Mkenda, Beatrice K.
    The paper investigates whether the East African Community, comprising of Kenya, Tanzania, and Uganda, constitutes an optimum currency area or not. The East African Community has been revived, and one of the long-term objectives of the Community is to have a common currency. The paper employs the Generalised Purchasing Power Parity method, and various criteria suggested by the theory of Optimum Currency Areas to investigate the optimality of the Community as a currency area. While the various indices that we calculated based on the theory of Optimum Currency Areas gave mixed verdicts, the Generalised Purchasing Power Parity (G-PPP) method supports the formation of a currency union in the region.Using the G-PPP method, we were able to establish cointegration between the real exchange rates in East Africa for the period 1981 to 1998, and even for the period 1990 to 1998. This finding suggests that the three countries tend to be affected by similar shocks.
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    Long-Run and Short-Run Determinants of The Real Exchange Rate In Zambia
    (2001-05) Mkenda, Beatrice K.
    The paper analyses the main determinants of the real exchange rate in Zambia. It first gives a brief review of the Zambian economy and a review on real exchange rate studies. Then an illustrative model is presented. The study employs cointegration analysis in estimating the long-run determinants of the real exchange rates for imports and exports, and of the internal real exchange rate. The finding is that terms of trade, government consumption, and investment share all influence the real exchange rate for imports, while terms of trade, central bank reserves and trade taxes influence the real exchange rate for exports in the long-run. The internal real exchange rate is influenced by terms of trade, investment share, and the rate of growth of real GDP in the long-run. Error-correction models are then estimated. Besides the difference of the fundamentals mentioned above, aid and openness are found to impart short-run effects on the real exchange rate indices. The coefficients of adjustment are found to be -0.38, -0.79 and -0.80 respectively for the real exchange rates for imports and exports, and for the internal real exchange rate.
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    To What Extent is East Africa Globalised?
    (2002-10) Mkenda, Beatrice K.
    It is argued in the literature that Africa is marginalised in global trade. An indicator used to back this argument is based on data on African trade as a percentage of world trade. The indicator is calculated for several years back and it is compared to more recent years. Using this index, it has been found that the proportion of Africa’s exports and imports in world trade is marginal, and the proportion has been declining over time. For example, Ng and Yeats (2000, p.10) note,