An Essay on Child Labor in Sub-Saharan Africa - A Bargaining Approach
The separation of children from their families have a large number of social and economic aspects. At least the economic aspects are under-researched. At the point of transition of leaving their families somehow the children have to be considered as separate decisionmakers. This is the perspective I adopt in this essay. The question raised is whether poverty, changes in social norms or external shocks to the family system such as the AIDS epidemic, lead the children to prematurely fend for themselves in the context of Sub-Saharan Africa.
Patterns of Trade and Foreign Direct Investment in Africa : A simple test of the new trade theory with multinationals
In this study, we present an empirical survey of the patterns of trade and FDI in Africa based on a sample of 28 countries and their transactions with the OECD countries. These patterns are used to test whether the predictions of the new trade theory with multinationals as described by Markusen and Venables (1995,1998) fit the development in Africa. The theory states that multinational production will gradually outgrow trade as countries converge in terms of income, yet our econometric study gives only week evidence supporting such a pattern. Alternative explanations are also investigated,and it is shown that trade barriers, geographical distance, income per capita and access to ocean explain much of the variation in trade and FDI in Africa.