Abstract We investigate the relationship between digitalization and the shadow economy in 42 African countries using unbalanced panel data from 2003 to 2016. We begin by drawing on modernization theory to hypothesize that digitalization efforts in African economies represent an augmentation of public service delivery as well as a channel through which the size of the continent's informal economic activity might be reduced. We employ the fixed effects estimation technique as its baseline estimator while correcting for potential endogeneity concerns using an instrumental variable two‐stage least squares technique. We show compelling evidence that digitalization is associated with a decrease in the size of the shadow economy in Africa. However, evidence of a larger influence is driven by the availability of telecommunications infrastructure and the expansion of government online services. These findings suggest that policymakers should invest more in digital technology to formalize Africa's hidden economic activity, particularly to fill the post‐COVID‐19 financing gap.

Abstract As coronavirus disease‐2019 (COVID‐19) and other restrictions intensified, individuals, businesses and governments turned to mobile digital platforms to reduce the financial costs and mitigate the risk of spreading the virus within the population. Drawing on lessons from Kenya and Uganda, our study examines the drivers of digital financial inclusion as a pathway for financing post‐COVID‐19 recovery. We find that digital financial inclusion is higher in middle‐aged male digital users with more SIM cards registered in their names. Results also show that users who trust mobile money agents were likely to use more digital financial platforms than others. Based on these results, we recommend the need for government to strengthen the National Identification Systems and consumer protection policies to increase trust in digital financial services. Additionally, financial sector players such as mobile network operators and commercial banks need to innovate and roll out customized digital financial products for the marginalized/unbanked population such as women, the elderly and the youth.

Abstract African countries generally cut corporate income tax (CIT) rates in the hopes of attracting foreign direct investment (FDI), whereas the effectiveness of tax rate reductions in attracting extractive industries FDI is controversial. This paper estimates the impact of the statutory CIT rate, as applied to mining companies, on FDI inflows to the gold and silver sectors of African economies. The estimation results indicate that the impact of the mining CIT rate on the host country's gold and silver FDI inflows is negative, but not statistically significant, at the conventional levels of significance. These results suggest that cuts in the CIT rate applied to mining companies will not necessarily attract FDI to gold and silver projects. Moreover, we find a strategic complementarity in gold and silver FDI inflows between countries, suggesting that an increase in the host country's gold and silver FDI inflows may stimulate FDI to gold and silver projects in neighbouring countries. Furthermore, the results show that infrastructure, government stability and gold and silver reserves positively affect gold and silver FDI inflows. The main findings of the paper suggest that, instead of granting corporate tax incentives, governments may consider improving the quality of socio‐economic infrastructure, the availability of geological information and promoting political and economic stability for attracting mining investments.

Abstract Cet article analyse les effets de l'exploitation des ressources naturelles sur les recettes fiscales non liées aux ressources naturelles dans les pays de l'Union Economique et Monétaire Ouest Africaine (UEMOA) de 1996 à 2015 en utilisant les Effets Fixes Dynamiques (Dynamic Fixed Effects, DFE). Les résultats montrent que l'exploitation des ressources naturelles dissuade la mobilisation des recettes fiscales non liées aux ressources naturelles. La mauvaise qualité des institutions amplifie l'effet corrosif. Les résultats restent stables suivant les différents indicateurs de la qualité institutionnelle et les types de ressources naturelles. Ces résultats impliquent que les pays de l'UEMOA doivent améliorer la qualité des institutions de sorte à accroître leur capacité à gérer d'importants revenus provenant des ressources naturelles.

Abstract This paper examines the determinants of private tutoring in five major Middle East and North Africa (MENA) countries: Egypt, Algeria, Lebanon, Morocco, and Tunisia. The paper uses data extracted from the SAHWA Youth Survey (2016) and runs a probit model. The main findings indicate that age, receiving financial support, having educated parents and living in urban areas increase the demand for private tutoring. Conversely, the results show that being a male student or a child of an employed mother will decrease the need for a private tutor. The empirical findings propose potential policy implications for MENA countries facing the exacerbation of gaps in the education system while emphasizing the challenges hindering public schools from delivering quality education.

Abstract This article aims to analyse the spillover effects of corruption and democracy on foreign direct investment (FDI) attractiveness in sub‐Saharan Africa. To accomplish this, a dynamic spatial Durbin model that allows identification of both the endogenous and contextual effects was estimated. The results of the analysis show the presence of spatial interdependence of FDI attractiveness in sub‐Saharan African countries. The spillover effects transiting through democracy push FDI to agglomerate, while corruption pushes FDI to disperse. Furthermore, we find a strategic complementarity in FDI inflows between the countries in sub‐Saharan Africa, suggesting that an increase in FDI inflows to a host country is likely to stimulate FDI inflows to its neighbours. Therefore, they must coordinate their policies to attract FDI by setting up non‐discriminatory incentives between countries to limit the costs linked to attractiveness policies.

Abstract The objective of this work was to analyse the effects of environmental quality and environmental regulations on the exports of sub‐Saharan African countries. Adopting the pollution haven hypothesis as a theoretical framework, we use a gravity model enriched by environmental variables. Our main results indicate that it is the environmental quality of sub‐Saharan African (SSA) countries, as measured by the Environmental Performance Index, and the differences in environmental quality between a country and its partner that constitute a barrier to SSA exports. It therefore appears important for SSA countries to integrate the environmental factor into their policies to improve the competitiveness of their exports.