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

  • Simplice A, Asongu
  • Oasis, Kodila-Tedika

This paper assesses the determinants of state fragility in sub-Saharan Africa using hitherto unexplored variables in the literature. 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 de facto power holders is tested. 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 mitigate the probability of state fragility while the interaction between natural resources and political interferences breeds the probability of extreme state fragility. As a policy implication, 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.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 44066.

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Date of creation: 29 Jan 2013
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Handle: RePEc:pra:mprapa:44066
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  1. Timothy J. Besley & Torsten Persson, 2009. "State Capacity, Conflict and Development," NBER Working Papers 15088, National Bureau of Economic Research, Inc.
  2. Baliamoune-Lutz, Mina, 2009. "Institutions, trade, and social cohesion in fragile states: Implications for policy conditionality and aid allocation," Journal of Policy Modeling, Elsevier, vol. 31(6), pages 877-890, November.
  3. Daron Agemoglu & Davide Ticchi & Andrea Vindigni, 2006. "Emergence and Persistence of Inefficient States," LABORatorio R. Revelli Working Papers Series 54, LABORatorio R. Revelli, Centre for Employment Studies.
  4. Bandyopadhyay, Sanghamitra & Green, Elliott, 2013. "Nation-Building and Conflict in Modern Africa," World Development, Elsevier, vol. 45(C), pages 108-118.
  5. Sachs, Jeffrey D & Warner, Andrew M, 1997. "Sources of Slow Growth in African Economies," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 6(3), pages 335-76, October.
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  7. Asongu Simplice, 2011. "Law, Democracy and the Quality of Government in Africa," Working Papers 11/018, African Governance and Development Institute..
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  9. Yasutora Watanabe & Takanori Adachi, 2004. "Ministerial Weights and Government Formation: Estimation Using a Bargaining Model," Econometric Society 2004 Far Eastern Meetings 742, Econometric Society.
  10. Konstantin Sonin & Georgy Egorov & Daron Acemoglu, 2008. "Dynamics and Stability of Constitutions, Coalitions and Clubs," 2008 Meeting Papers 314, Society for Economic Dynamics.
  11. Nathan Nunn, 2008. "The Long-Term Effects of Africa's Slave Trades," The Quarterly Journal of Economics, MIT Press, vol. 123(1), pages 139-176, 02.
  12. Simplice Asongu, 2013. "How Would Population Growth Affect Investment in the Future? Asymmetric Panel Causality Evidence for Africa," African Development Review, African Development Bank, vol. 25(1), pages 14-29.
  13. Collier, Paul & Hoeffler, Anke, 2004. "Aid, policy and growth in post-conflict societies," European Economic Review, Elsevier, vol. 48(5), pages 1125-1145, October.
  14. Burnside, Craig & Dollar, David, 1997. "Aid, policies, and growth," Policy Research Working Paper Series 1777, The World Bank.
  15. Timothy Besley & Torsten Persson, 2007. "The Origins of State Capacity: Property Rights, Taxation, and Politics," NBER Working Papers 13028, National Bureau of Economic Research, Inc.
  16. Daron Acemoglu, 2007. "Oligarchic Versus Democratic Societies," Carlo Alberto Notebooks 47, Collegio Carlo Alberto.
  17. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert Vishny, 1998. "The Quality of Goverment," NBER Working Papers 6727, National Bureau of Economic Research, Inc.
  18. Simplice A. Asongu, 2013. "Fighting consumer price inflation in Africa: What do dynamics in money, credit, efficiency and size tell us?," Journal of Financial Economic Policy, Emerald Group Publishing, vol. 5(1), pages 39-60, February.
  19. Jos� G. Montalvo & Marta Reynal-Querol, 2005. "Ethnic Polarization, Potential Conflict, and Civil Wars," American Economic Review, American Economic Association, vol. 95(3), pages 796-816, June.
  20. Graziella Bertocchi & Andrea Guerzoni, 2012. "Growth, history, or institutions," Journal of Peace Research, Peace Research Institute Oslo, vol. 49(6), pages 769-783, November.
  21. Simplice A Asongu, 2012. "On the effect of foreign aid on corruption," Economics Bulletin, AccessEcon, vol. 32(3), pages 2174-2180.
  22. José Garcia Montalvo & Marta Reynal-Querol, 2004. "Ethnic polarization, potential conflict and civil wars," Economics Working Papers 770, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2005.
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  28. repec:rie:review:v:16:y:2011:i:2:n:6 is not listed on IDEAS
  29. Simplice A, Asongu, 2012. "Institutional benchmarking of foreign aid effectiveness in Africa," MPRA Paper 38095, University Library of Munich, Germany.
  30. Daron Acemoglu & Georgy Egorov & Konstantin Sonin, 2008. "Coalition Formation in Non-Democracies," Review of Economic Studies, Oxford University Press, vol. 75(4), pages 987-1009.
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  32. Kodila-Tedika, Oasis & Agbor, Julius, 2013. "Religious Diversity and Economic Development in Sub-Saharan Africa: So Far So Good," MPRA Paper 46305, University Library of Munich, Germany.
  33. Kodila-Tedika, Oasis, 2012. "Determinants of Peace : A Cross-Country Analysis," MPRA Paper 40812, University Library of Munich, Germany.
  34. Jean-Bernard Chatelain & Kirsten Ralf, 2012. "Les liaisons fallacieuses : quasi-colinéarité et « suppresseur classique », aide au développement et croissance," Revue économique, Presses de Sciences-Po, vol. 63(3), pages 557-567.
  35. Kodila-Tedika, Oasis, 2013. "Poor Numbers: explanation of Africa's statistical tragedy
    [Pauvreté de chiffres : explication de la tragédie statistique africaine]
    ," MPRA Paper 43734, University Library of Munich, Germany.
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