Sanjeev K. Sobhee

The environmental Kuznets curve (EKC): a logistic curve?

This study argues that the environmental Kuznets curve (EKC) can be shaped as a logistic curve rather than a mere quadratic equation. Instead of being modelled as a polynomial of degree two, the EKC can be characterized by a polynomial of degree three. The inverted-U shape remains. However, in the proposed specification, what matters, is the rate at which total environmental degradation (TED) occurs, that is, marginal environmental degradation (MED). When TED is quadratic, MED is linearly represented with respect to per capita output. This is considered to be inconsistent with real-life situations, and instead a quadratic MED is postulated, from which a logistic EKC is derived. Prior to a given income threshold, MED rises, attains a maximum at the threshold, and falls ultimately beyond it. This formulation of the EKC conforms to the probabilistic econometric models usually applied in environmental studies.

The economic success of Mauritius: lessons and policy options for Africa

As a sub‐Saharan country, Mauritius has been branded a success story in terms of its sustained economic growth performance, with major improvements in the living standards of its population at large over the past few decades. This paper has the objectives of revisiting this success story, essentially by analyzing the numerous policies that have been adopted, to provide insights into Africa’s policy options. The Mauritian case study demonstrates that no single dose of economic reforms may generate growth dividends to perpetuity, especially when the current economic environment differs from initial conditions.

Is Donors' Concern About the Fungibility of Foreign Aid Justified?: A Panel Data Analysis

This paper addresses donors’ policy of providing external assistance to developing countries using an inter-temporal framework, over a finite horizon. While the framework adopted tracks the motivation of providing foreign aid, it is altogether consistent with the paradigm of forward-looking governments in developed economies. Given uncertainties surrounding income flows, and the gradual convergence towards generational accounting conventions in public finances of donor countries, an attempt is made to empirically ascertain whether foreign assistance is provided on a random basis or is backed by a systematic foreign aid policy. Our findings from a panel of 27 developing countries clearly contest the hypothesis that grants are provided on a random basis. This would otherwise suggest the existence of a consistent policy characterising granting behaviour, urging the need for recipient governments to incorporate grants in their budgetary decision-making.

An empirical analysis of the determinants of expenditure on alcohol by alcohol dependent individuals in Mauritius

Purpose – Without an understanding of the factors that influence the expenditure of alcohol-dependent individuals on alcohol, it is unclear whether policies to control excessive consumption of alcohol can be effective. The purpose of this paper is to empirically investigate the factors that affect the expenditure of alcohol-dependent individuals on alcohol. Design/methodology/approach – The main contribution of this paper is that it relies on a survey consisting exclusively of 300 alcohol-dependent individuals to capture the variables influencing their expenditure on alcohol. The survey was carried out by fieldworkers in the year 2012. The respondents come from varied socio-economic backgrounds and consist of both male and female alcohol-dependent individuals living in various geographical parts of the island of Mauritius. Findings – The results obtained indicate that expenditure on alcohol by alcohol-dependent individuals increases as income increases. Given that the coefficient on the income variable is...

The Effects of Bad Institutions on Economic Growth – Investigating the Case of Latin American and Sub-Saharan Economies Prior to the World Economic Downturn

Current empiricism provides sparse evidence on the incidence of bad institutions on economic growth in developing countries. This paper tries to fill up this gap by experimenting with a broad data set comprising of 45 economies pertaining to Latin America and sub-Saharan Africa while using Kaufmann et al. (2005 and 2007) indices of institutional quality in several endogenous growth equations prior to the downturn of the world economy. An endogenous growth model is proposed and augmented with institutional quality variables to track idiosyncratic elements in obstructing growth. After performing a battery of econometric tests, our major findings unravel that not only does institutional capital play a fundamental role in fostering economic growth in developing countries, but the latter badly need drastic public sector reforms to render their public sector more vibrant, effective, market friendly and growth perpetuating.

Alcohol dependence: the case of small Mauritius

Purpose The purpose of this paper is to analyse the drinking behaviour of alcohol dependents in the small island economy Mauritius, which is characterised by different cultures and ethnic groups. The drinking culture of Mauritius as a nation has dramatically changed over recent decades. Design/methodology/approach The analysis is based on a survey carried out on 300 alcohol dependents in different regions across the island in 2012. Information on alcohol consumption is derived from data obtained on the different types of drink consumed, their drinking preferences and habits, combined with information from the respondents on their alcohol intake. Alcohol-dependent individuals in this study are defined as those people who drink every day, drink in the morning before work and also drink during their working hours. Furthermore, they may also drink to get drunk and may encounter alcohol-related health problems. Findings The results first reveal that there is a gender gap in alcohol consumption with men being more dependent on alcoholic beverages on a daily basis, in the morning and at work. Second, the paper innovates by focussing on the most vulnerable segment of the population, that is those working in the informal sector. There is evidence that operating in the informal sector or being self-employed enhances the probability of the individual to become alcohol dependent through daily intake and consumption at the workplace. Informality is characterised by low wages, poor working conditions and high vulnerability which makes alcohol an escape avenue from financial difficulties. Consumption of other substances is also entwined with alcohol intake. Originality/value The authors focus on the characteristics and behaviour of alcohol-dependent individuals in a small pluriethnic changing society.

Foreign aid and donor's trade gains

This paper shows that the impact of foreign aid on recipient output and donors trade gains are greater when aid is utilized as intended by the donor than when foreign funds are funged in the form of tax relief. A lower impact of fungibility on output is caused by the fact that the multiplier effect is reduced when spending units are consumers because the latter save a part of the additional disposable income obtained from tax relief, whereas the government spends the entire aid amount.