Fordham Economics Department

Graduate and undergraduate programs in New York City

Archives for August 2015

Fordham CIPS Research Focuses on Senegal

by

Creating manufacturing employment in Franc CFA Countries

 

Senegal Pic 1

Darryl McLeod Pic

August, 2015: Senegal and other Franc CFA countries have their own currencies, but have a long history of pegging them to the Franc(now the Euro).   Aligning their monetary policy to that of France has its benefits: fiscal transfers and aid, trade and most important remittances amounting to about 12% of GDP.   Unlike Southern Europe however, the movement of workers from CFA countries to France is difficult and dangerous.  Long distance migration has a high human cost and is politically more problematic than movement of workers within the EU.  One alternative to migration is to create more jobs in CFA countries (Benin, Burkina Faso, Guinea-Bissau, Côte d’Ivoire, Mali, Niger, Senegal and Togo).  Senegal for example grew rapidly until it was hit by slower capital inflows in part due to the May 2013 shift in U.S. monetary policy (Taper Tantrum).   Overall managed exchange rate with capital inflows and remittances led to an exchange rate appreciation that has not been reversed and has reduced competitiveness , see the IMF Figures below. 

Senegal

Job growth matters because despite rapid growth over the last decade Senegalese youth have joined  MENA refugees in making the very hazardous 3000+ mile journey to Italy via Libya. A Wall Street Journal tells the story of Abrahima Ba who was doing OK in Senegal receiving $200 a month  from relatives in Paris.  Ironically these remittances and the prospect of much higher wages helped encourage him to try and join his father in Paris. Unfortunately, he may well have perished 700 other migrants in a tragic boat accident off the coast of Italy.   Ba’s story and many others like it underscores the importance of creating employment opportunities and higher wages in the Senegal and other CFA countries.

Several of us here at Fordham are very pleased to be working with a World Bank team headed by Ali Zafar analyzing various macroeconomic and industrial policy options that might increase the competitiveness in Guinea, Senegal, Benin, Togo, and Mali.  These CFA countries have natural ties to the EU region: a common language, a large Diaspora, aid and trade, Can these ties be translated into a comparative advantage in light manufactures?  This is the question explored by this four month research project.  Formal employment and productivity remain very low compared to France or Greece: even low wage jobs in Paris pay many multiples of Senegal earnings, especially in rural areas. The purpose of this research project is to find a mix of macroeconomic and industry specific policies that will increase the region’s competitiveness. In addition to entrepreneur interviews in Senegal, our group at Fordham will compute various measures of trade weighted real exchange rates.  The recent depreciation of the Euro has helped, but not with respect to large EU markets for the regions exports. If you are a student interested in working on this project please contact me at my department email ad

 

References

Devarajan, S., & Rodrik, Dani (1992). Do the Benefits of Fixed Exchange Rates Outweigh the Costs? The CFA Zone in Africa. Open Economies: Structural Adjustment and Agriculture, 66-85.

Dinh, H. T., Rawski, T. G., Zafar, Ali, Wang, L., & Mavroeidi, E. (2013). Tales from the development frontier: How China and other countries harness light manufacturing to create jobs and prosperity. World Bank Publications. http://elibrary.worldbank.org/doi/book/10.1596/978-0-8213-9988-0

IMF (2014) African Dept. Senegal: Article IV Consultation and Eighth Review Under the Policy Support Instrument-Staff Report; Press Release; and Statement by the Executive Director for Senegal.

The effects of the Euro zone crisis on the CFA franc zone: a View from Cameroon

McLeod, D. and Welch, J. (1993). The costs and benefits of fixed dollar exchange rates in Latin America. Dallas Federalr Reserve, Economic Review, 31-44.

 

 

Fordham CIPS Research Project-Creating productive employment in the CFA Franc Countries

by

 

Senegal Pic 1

Those of you who read the recent Wall Street Journal account of the long and often deadly trek from Senegal to France via Libya understand all to well the importance of creating employment opportunities in Senegal and the rest of the Franc CFA countries (Benin, Burkina Faso, Guinea-Bissau, Côte d’Ivoire, Mali, Niger and Togo).  Professor McLeod Chair of the Economics Department is part of a World Bank Team studying how to increase the regions competiveness even beyond the remarkable progress that has occurred the past decade.  Though the region has natural ties to the EU (including a large Diaspora) and some comparative advantage in light manufactures, unemployment rates remain high and wages low compared to low skilled jobs in Paris.  Senegal pic 2 lost boyThe purpose of this project is to recommend the right mix of macroeconomic and industry specific policies to increase the region competitiveness.  The recent depreciation of the Euro has helped, but not with respect to large EU markets for the region’s exports.  If you are interested in working on this project please contact Professor Darryl McLeod through his department email address.

 

 

Ibrahima Ba, in a family photo, is believed to have drowned in April alongside 700 migrants when their boat sank in the Mediterranean. His mother said, ‘He wanted to have his own means.’ PHOTO:DREW HINSHAW/THE WALL STREET JOURNAL

Research Assistant or Associate- Federal Budget an Tax Policy

by

The Center on Budget and Policy Priorities is a nationally recognized non-profit that conducts research on budget, tax, and other issues and promotes policies to improve the lives of low- and moderate-income people.  We are seeking a Research Assistant or Associate (RA) – title commensurate with experience – to work with a team of highly skilled national policy analysts on a range of current federal budget, tax, and low-income policy issues.

The RA will collect and analyze data, develop written analyses and graphic presentations of findings, and use academic research and other resources.  The RA will help prepare reports on, and analyses of, major decisions before Congress and the Executive Branch, examining the budget implications of such proposals, how their benefits would be distributed across different income groups, and the extent to which they will likely achieve their stated objectives.  The RA will also work on projects for Policy Futures, a new Center initiative that focuses on medium- and long-term policy challenges, particularly the link between budget choices and the need to boost economic security and opportunity for low- and moderate-income individuals and families.  In addition, the RA will respond to information requests by policymakers, the media, and other national organizations.

Candidates must have very strong quantitative skills and a background in economics, mathematics or statistics, public policy, or a related field.  Applicants must demonstrate a commitment to accuracy, strong writing skills, and the ability to work on multiple tasks at the same time, often on a time-sensitive basis.  Familiarity with statistical applications is desirable, as is experience analyzing large data sets.  We will consider applicants with a bachelor’s or master’s degree (the latter is not required).  A two-year commitment is expected.

This position offers an exceptional foundation for people seeking a career in public policy. Under the supervision of senior experts, the federal budget and tax RA will receive strong training in producing meticulous and relevant analyses, and a unique insight into federal policymaking.  The RA will also participate in a program of skill and knowledge development sessions for early-career Center staff.

The full job description and application can be found at http://www.cbpp.org/careers/research-assistant-or-associate-federal-budget-and-tax-policy

Research on Teaching Economics to Undergraduates

by

Research on Teaching Economics to Undergraduates

Abstract

Sam Allgood, William B. Walstad, and John J. Siegfried*

This survey summarizes the main research findings about teaching economics to undergraduates. After briefly reviewing the history of research on undergraduate economic education, it discusses the status of the economics major—numbers and trends, goals, coursework, outcomes, and the principles courses. Some economic theory is used to explain the likely effects of pedagogical decisions of faculty and the learning choices that students make. Major results from empirical research are reviewed from the professor perspective on such topics as teaching methods, online technology, class size, and textbooks. Studies of student learning are discussed in relation to study time, grades, attendance, math aptitude, and cheating. The last section discusses changes in the composition of faculty who teach undergraduate economics and effects from changes in instructional technology and then presents findings from the research about measuring teaching effectiveness and the value of teacher training. (JEL A22, I23, J44)

Journal of Economic Literature 2015, 53(2), 285–325

http://dx.doi.org/10.1257/jel.53.2.285*

*If you are unable to open this article, please use the Fordham’s University Library system for full text.