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Politics and Consumer Prices in Africa

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Author Info

  • Asongu Simplice

    ()
    (Yaoundé/Cameroun)

Abstract

The motivations of the Arab Spring that have marked the history of humanity over the last few months have left political economists, researchers, governments and international policymakers pondering over how the quality of political institutions affect consumer welfare in terms of commodity prices. This paper investigates the effects of political establishments on consumer prices in the African continent. Findings suggest that in comparison with authoritarian regimes, democracies better provide for institutions that keep inflationary pressures on commodity prices in check. As a policy implication, improving the quality of democratic institutions will ameliorate consumer welfare through lower inflation rates. Such government quality institutional determinants include, among others: voice and accountability, rule of law, regulation quality, control of corruption and press freedom.

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File URL: http://www.afridev.org/RePEc/agd/agd-wpaper/Politics-and-Consumer-Prices-in-Africa.pdf
File Function: Revised version, 2013
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Bibliographic Info

Paper provided by African Governance and Development Institute. in its series Working Papers with number 12/032.

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Length: 08
Date of creation: 25 Jan 2012
Date of revision:
Handle: RePEc:agd:wpaper:12/032

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Keywords: Consumer prices; Political institutions; Welfare; Africa;

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References

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  1. Simplice A., Simplice, 2011. "Why do French civil-law countries have higher levels of financial efficiency?," MPRA Paper 33950, University Library of Munich, Germany.
  2. Simplice A, Asongu, 2011. "Finance and democracy in Africa," MPRA Paper 35500, University Library of Munich, Germany.
  3. Stulz, Rene M. & Williamson, Rohan, 2003. "Culture, openness, and finance," Journal of Financial Economics, Elsevier, vol. 70(3), pages 313-349, December.
  4. Asongu Simplice, 2011. "Law and Investment in Africa," Working Papers 11/014, African Governance and Development Institute..
  5. Asongu Simplice, 2011. "Law and Finance in Africa," Working Papers 11/009, African Governance and Development Institute..
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Cited by:
  1. Asongu Simplice, 2012. "Fighting corruption when existing corruption-control levels count: what do wealth-effects tell us in Africa?," Working Papers 12/014, African Governance and Development Institute..

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