Thematic Research - Groups and Topics

AERC Groups:

• Group A: Poverty, Income Distribution and Labour Market Issues
• Group AT: Trade, Regional Integration and Sectoral Policies
• Group B: Macroeconomic Policies, Stabilization and Growth
• Group C: Finance, Resource Mobilization and Investment

Sample Topics for Group AT

Trade Policy
The effects of trade and exchange rate policy. This can be at the macro level (e.g., time series analysis on the effect of policy changes on the volume and composition of exports), but also at the micro level (e.g., using survey data to analyse the effects of policy changes on firms' decision to export).

Regional Integration
The analysis of preferential trade arrangements such as the Southern African Development Community (SADC). What is the effect of such trade blocs on trade flows, employment, public finance, welfare? The methodology can range from econometric analysis (e.g., estimating gravity models) to simulation experiments using multi-country general equilibrium models.

Political Economy
Why are policy changes adopted or resisted? Researchers are encouraged to analyse the incentives/interests of politicians and policy makers. The methodology can range from game theory to analytical economic history.

Industrial Performance
Why do most African industrial firms do so little investing and exporting? Can these outcomes be explained in terms of industrial policies, risk, poor infrastructure, high transaction costs or deficiencies in financial markets? AERC encourages proposals addressing such questions on the basis of firm level survey data. Researchers can use existing data (e.g., the Regional Programme on Enterprise Development (RPED) surveys or use purpose-built surveys to collect the data.

Applying Contract Theory
The principal-agent framework of modern contract theory can be fruitfully applied to improve our understanding of labour markets (e.g., apprentice systems or the use of casual labour in agriculture), the functioning of firms (e.g., the incentives for managers of public sector firms), and the relationships among the users, providers and financers of a public service (e.g., a school). Would a redesign of the "contract" between such groups improve public sector performance? Empirical work in these directions is strongly encouraged. Often such proposals will involve data collection.