Papers by John Asafu-Adjaye
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Agricultural Systems, Jul 1, 1996
Agriculture provides a means of livelihood for over 80% of Papua New Guineans and contributes to ... more Agriculture provides a means of livelihood for over 80% of Papua New Guineans and contributes to over 30% of its national income. Although per capita income has not grown much in Papua New Guinea (PNG) since the 196Os, there has been a decline in the relative signtficance of agriculture and a dramatic rise in the contribution of mining activities. The purpose of this paper is to simulate the government policy and external factors on the agricultural sector using a computable general equilibrium model of the PNG economy. The results show that the resource boom could have a negative impact on the agricultural sector, while exchange rate depreciation and tariff reductions have positive impacts. It is concluded that PNG's best prospects for achieving a broad-based and sustainable growth lie in reinvesting revenues from mining and petroleum in agriculture and rural infrastructure.
International Journal of Social Economics, 2004
This paper investigates the effect of income inequality on health status. A model of health statu... more This paper investigates the effect of income inequality on health status. A model of health status was specified in which the main variables were income level, income inequality, the level of savings and the level of education. The model was estimated using a panel data set for 44 countries covering six time periods. The results indicate that income inequality (measured by the Gini coefficient) has a significant effect on health status when we control for the levels of income, savings and education. The relationship is consistent regardless of the specification of health status and income. Thus, the study results provide some empirical support for the income inequality hypothesis.
Contemporary Economic Policy, Apr 1, 2003
This paper empirically examines the relationship between biodiversity loss and economic growth in... more This paper empirically examines the relationship between biodiversity loss and economic growth in light of the current debate on the effects of economic growth on environmental quality. The basic premise of the paper is that biodiversity belongs to a special class of environmental degradation because it involves complex ecosystems the loss of which cannot be recovered by technological advances. The main finding is that while economic growth has an expected adverse effect on biodiversity, the composition of economic output can also be significant particularly in low-income countries. The study highlights the need to develop appropriate institutions and macroeconomic policies that allow biodiversity values to be internalized in decision-making processes. (JEL Q22, Q23, Q28) * This is a revised version of a paper initially presented at the Western Economic Association International annual conference in Vancouver, B.C., 2000. I would like to thank three anonymous referees whose constructive comments significantly improved the paper. I also wish to thank Renuka Mahadevan for helpful comments and Tracie-Lee Waldock for assistance with data collection. The usual caveat applies.
The World Economy, Oct 1, 2007
Journal of African Economies, Jul 30, 2014
In the following, the impacts of climate change on agricultural sector are analyzed through parti... more In the following, the impacts of climate change on agricultural sector are analyzed through partial equilibrium model and the effects of climate change scenarios on this section will be measured separately. To this end, the data of value added, labor and capital in the agricultural sector between 1991 and 2014 are derived from the Central Bank and National Statistics Portal. De Martonne index, which represents the climatic condition, is estimated using precipitation and temperature data extracted from the Meteorological Organization of Iran sector between 1991 and 2014. The current study measured the effects of climate change on the agricultural sector in Iran. For this purpose, the function of agricultural sector production, which is affected by climate (temperature and precipitation), was estimated using the ARDL approach; then, the effect of climate change on the agricultural sector was evaluated in the framework of the SAM model. Different scenarios were applied. In general, it can be concluded that improving the climate will increase the country's economic potential and reduce costs, while adverse climate conditions will worsen the country's economic situation and, consequently, increase costs.
Environmental economics, which used to be on the periphery of the economics discipline, is fast b... more Environmental economics, which used to be on the periphery of the economics discipline, is fast becoming mainstream as concern for the environment grows. Practitioners in other disciplines (e.g. engineering, science, natural resource management, social sciences) are increasingly faced with environmental problems that have an economic component. This invaluable book fills an important gap in the literature by teaching both economists and non-economists how to use economic tools to address environmental problems.
International Journal of Social Economics, Apr 1, 2004
Examines the role of trade in promoting sustainable economic development in Sub‐Saharan African (... more Examines the role of trade in promoting sustainable economic development in Sub‐Saharan African (SSA) countries. Opponents of trade liberalization argue that it results in environmental degradation. While there may be adverse environmental impacts from certain trade‐related economic activities, trade expansion could lead to increase in income that could be used to fund poverty reduction programs. Factors such as lack of macroeconomic and political stability, high labour costs, low skills and inability to tap into international marketing networks have inhibited trade expansion in the region. Firms in SSA could exploit their export potential by forming links with counterparts in the advanced countries. Advocates for governments in SSA to move away from command and control mechanisms towards market‐based incentive mechanisms.
Economic Analysis and Policy, Mar 1, 2003
The Papua New Guineaeconomy has been subjected to a series ofexternal shocks. starting with the B... more The Papua New Guineaeconomy has been subjected to a series ofexternal shocks. starting with the Bougainville war in 1989. The government has responded with a series of structural reforms, with the most recent one being implemented in 2000. This paper employs a computable general equilibrium model to evaluate the impacts of the government's reform policies. Policies simulated are reduction in current government expenditure, reduction in real wages, tariff cuts and a goods and services tax. The results show that the export-oriented and government sectors benefit. However, the service sectors are adversely affected. While the rural population could benefit from the reforms. a case is made for increased government investment spending in these areas to stem the rural-urban drift.
South African Journal of Economics, Jun 1, 2012
ABSTRACT The contribution of natural resources to tax revenues has generally yielded mixed result... more ABSTRACT The contribution of natural resources to tax revenues has generally yielded mixed results in the literature. This study asserts that the missing link to explaining these differences is the quality of institutions. More resource revenues reduce tax revenues when institutions are poor. Using an interaction term for natural resources and institutional quality, we show that institutions are decisive for the contribution of natural resources to tax revenue mobilisation. The interaction effect is statistically significant after controlling for per capita gross domestic product (GDP), an alternative measure of quality of institutions and additional regressors. This finding is robust to different econometric specifications and the type of natural resources.
Energy Economics, Nov 1, 2016
This study employs a Pooled Mean Group estimator to examine the nexus between economic growth and... more This study employs a Pooled Mean Group estimator to examine the nexus between economic growth and fossil and non-fossil fuel consumption for 53 countries between 1990 and 2012. The global sample was divided into four categories: developed exporters, developed importers, developing exporters and developing importers. The purpose of these categories was to observe whether factors unique to these countries influence the relationship between energy consumption and economic growth. With the exception of developing importers, evidence of bi-directional causality between fossil fuel consumption and real GDP across all subsamples is observed. This leads to the conclusion that efforts to directly conserve fossil fuels may harm economic growth. In terms of non-fossil fuel use, the results are more diverse. Bi-directional causality between non-fossil fuel use and real GDP is found in the long and short run for developed importers; bi-directional causality only in the long run for developed exporters; negative long-run causality from real GDP to non-fossil fuels for developing exporters; and long-run causality from non-fossil fuel use to real GDP for developing importers. These results lead to the conclusion that other factors have been responsible for the progress seen in non-fossil fuel use. Thus it is concluded that economic growth on its own is insufficient to promote clean energy development. There is a need for policy makers to create an environment conducive to renewable energy investment.
RePEc: Research Papers in Economics, 2000
WORLD SCIENTIFIC eBooks, Feb 1, 2005
AbstractThe following sections are included:ObjectivesIntroductionWhat is Ecological Economics?Ec... more AbstractThe following sections are included:ObjectivesIntroductionWhat is Ecological Economics?Economy-Environment SystemsA Traditional Economic SystemAn EcosystemAn Economy-Environment SystemThermodynamics and the EnvironmentThe First Law of ThermodynamicsThe Second Law of ThermodynamicsInterpretations of the Second Law of ThermodynamicsImplications of the Laws of Thermodynamics for the Economy-Environment SystemImplications of the First LawImplications of the Second LawModelling Economy-Environment InteractionsSummaryReview QuestionsExercisesReferences
RePEc: Research Papers in Economics, Sep 1, 1989
RePEc: Research Papers in Economics, 1989
This research could not have been completed without assistance from various sources. We gratei ul... more This research could not have been completed without assistance from various sources. We gratei ully acknowledge financial support provided by the Alberta Recreation, Parks and Wildlife Foundation. The protection of environmental resources, including wildlife, is becoming an urgent concern in national debate. There is therefore a need for increased financial support for research in this area. We are thankful to the foundation for putting funds at our disposal to initiate this research. We are indebted to Alison Coyne who provided full-time assistance in administering the survey and collating the returns. We would also like to thank other staff of Alberta Wildlife Division and Alberta Bureau of Statistics who provided valuable input in the questionnaire design phase of the project. Sincere thanks go to Judy Boucher, for data entry assistance; to Clare Shier for help in the computer analysis of the data; and to Barb Johnson for editorial assistance. Finally, we would like to express sincere appreciation to Alberta Forestry, Lands and Wildlife (Fish and Wildlife Division), for the considerable material and human resources placed at our disposal. We hope this effort will mark the beginning of many future joint research endeavors.
Asia-Pacific Development Journal, 2001
The Singapore Economic Review, 1999
ABSTRACT This paper examines the long-run relationship between exchange rates and inflation in Pa... more ABSTRACT This paper examines the long-run relationship between exchange rates and inflation in Papua New Guinea (PNG) during the post-independence period. A key aspect of government policy during this period was the 'Hard Kina' strategy. This strategy sought to maintain the convertibility and purchasing power of the kina with the view to avoiding imported inflation, among other things. Granger causality test results show that causality runs from exchange rates to domestic prices. The error-correction model results suggest that changes in foreign prices, exchange rate, excess money supply and price expectations jointly exert short-run inflationary pressures on the domestic price level. About 20 per cent of foreign price changes feed through to domestic prices immediately. Changes in the exchange rate have a relatively small short-run effect on inflation, with stronger effects being felt in the next period. Price expectations appear to have a larger effect on the inflationary process. It is concluded that, in the long run, devaluation per se has limited effectiveness in improving PNG's external competitiveness. For such a policy to be successful, it must be in combination with other policies that address the structural deficiencies in the economy.
environmental considerations into the development planning process. All types of development plan... more environmental considerations into the development planning process. All types of development planning rely on statistics. At the national level, the main source of statistical information used for macroeconomic policymaking is the system of national accounts. The system of national accounts is flawed in that it does not fully account for the role of environmental resources in national development. This point was forcefully underscored by Robert Repetto and others in their assertion that the system of national accounts • neglects new scarcities of natural resources which threaten the sustained productivity of the economy • fails to account for degradation of environmental quality and its effects on human wealth and welfare
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Papers by John Asafu-Adjaye