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State fragility, rent seeking and lobbying: evidence from African data

Author

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  • Oasis Kodila-Tedika
  • Asongu Simplice

Abstract

Purpose - The purpose of this paper is to assess the determinants of state fragility in Sub-Saharan Africa (SSA) using hitherto unexplored variables in the literature. Design/methodology/approach - The previously missing dimension of nation building is integrated and the hypothesis of state fragility being a function of rent seeking and/or lobbying by Findings - The resulting interesting finding is that political interference, rent seeking and lobbying increase the probability of state fragility by mitigating the effectiveness of governance capacity. This relationship (after controlling for a range of economic, institutional and demographic factors) is consistent with a plethora of models and specifications. The validity of the hypothesis is confirmed in a scenario of extreme state fragility. Moreover, the interaction between political interferences and revolutions mitigates the probability of state fragility while the interaction between natural resources and political interferences breeds the probability of extreme state fragility. Practical implications - There are two main policy implications. First, political interference, rent seeking and lobbying are likely to increase the fragility of SSA nations. Second, there is a “Sub-Saharan African specificity” in “nation building” and prevention of conflicts. Blanket fragility-oriented policies will be misplaced unless they are contingent on the degree of fragility, since “fragile” and “extreme fragile” countries respond differently to economic, institutional and demographic characteristics of state fragility. Originality/value - The study is timely given the political strife, violence and conflicts issues currently affecting African development.

Suggested Citation

  • Oasis Kodila-Tedika & Asongu Simplice, 2016. "State fragility, rent seeking and lobbying: evidence from African data," International Journal of Social Economics, Emerald Group Publishing, vol. 43(10), pages 1016-1030, October.
  • Handle: RePEc:eme:ijsepp:v:43:y:2016:i:10:p:1016-1030
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Francesco Forte & Mihai Mutascu, 2015. "State fragility and fiscal decentralization in EU ex-communist countries in a public choice approach," Working Papers halshs-01101558, HAL.
    2. Asongu Simplice, 2014. "Fighting African corruption when existing corruption-control levels matter in a dynamic cultural setting," International Journal of Social Economics, Emerald Group Publishing, vol. 41(10), pages 906-922, October.
    3. Oasis Kodila-Tedika & Remy Bolito-Losembe, 2014. "Corruption et Etats fragiles africains," African Development Review, African Development Bank, vol. 26(1), pages 50-58.
    4. Kodila-Tedika , Oasis, 2014. "Forget your gods: African evidence on the relation between state capacity and cognitive ability of leading politicians," European Economic Letters, European Economics Letters Group, vol. 3(1), pages 7-11.

    More about this item

    Keywords

    Africa; Lobbying; Nation building; Rent seeking; State fragility; C43; H11; O20; O43; O55;

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General

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