The thesis aims to contribute to the question of the origins of efficient institutional arrangements, which are regarded essential for economic development and long-term economic growth. In Africa most institutional frameworks were established under colonial rule and then persisted to a large extent. In this sense colonialism offers a "natural experiment" - a phase in which European institutions were transferred to African countries. The thesis investigates the influence of colonial rule on the institutional development of two countries and former British colonies: Botswana and Nigeria. It applies a theoretical model of institutional legitimacy based on the theoretic work of Douglass North and Oliver Williamson. The case studies' findings highlight the persistence of pre-colonial informal institutions grounded in cultural norms and beliefs of the local populations. In addition, pre-existing levels of urbanisation, constraints on political power and integration in colonial labour markets have been factors which influenced the transfer of European institutions. (author's abstract)

Development economists generally argue that poor countries at their early stages of development are often faced with limited domestic resources for development, and can therefore borrow from the developed nations to boost their rate of growth and development. This financing gap problem, which is based on the Harrod-Domar growth theory, has made developing countries, especially Sub-Saharan Africa, to accumulate large amount of external debt that they could no longer sustain. Moreover, there is now a growing concern that the large external debt service payment is retarding economic growth and investment in the heavily indebted poor countries (HIPCs), while also displacing current expenditure in priority sectors like health, education, and social infrastructure. This dissertation therefore, examines the impact of external debt on economic growth and investment in ECOWAS Sub-Saharan Africa over the period 1980-1999. Unlike the traditional debt and growth studies that use a-spatial methods, this study employs spatial autoregressive growth and investment models to determine the effects of spatial interaction and spatial dependence among ECOWAS countries during the period of the crisis. It is obvious that countries are spatial entities that interact with one another, and as such, the growth trends in one country may actually depend on the growth trajectories of others. Based on the above assumptions, the models use external debt service and total debt stock ratios, which are extracted from the World Bank and African Development Bank databases, as key or control variables plus other explanatory variables. The maximum likelihood estimation of both models yield mixed results across time. The results indicate the presence of both positive and negative spatial dependence in ECOWAS countries across time. While external debt service ratio is found to have an inverse relationship with economic growth in most periods under investigation, the total debt stock to GDP ratio only affect growth in fewer periods than expected. With regards to public investment, the external debt service ratio is found to have no impact on public investment in ECOWAS countries. However, the total debt stock to GDP ratio is found to have a negative relationship with public investment in most periods, which suggest that relying on foreign capital to boost growth and investment could be counter productive in Sub-Saharan Africa. (author's abstract)

The objective of the study is to identify how micro-enterprises can be integrated into local value chains by using the so-called "value chain approach". The "value chain approach" has become a relatively popular approach among donor agencies and NGOs engaged in Private Sector Development in recent years, being based on insights from studies on global value chains. The study includes investigation into the following points: 1) Which business linkages exist among micro-enterprises and with enterprises of different sizes and sectors, and how are they related to the upgrading process of micro-enterprises? 2) What influence does the legal status of micro-enterprises have on the development of business linkages and on the upgrading process? 3) How can the development of business linkages and the upgrading process (and, therefore, the integration into value chains) be supported and enhanced within the framework of PSD? The empirical study was conducted in Uganda. It includes a combination of qualitative and quantitative approaches: (1) a questionnaire-based survey among micro-entrepreneurs, and (2) expert or key informant interviews, using a semi-structured interview guideline. The study provides an assessment of the relevance and applicability of the "value chain approach" to micro-enterprises and local value chains in the context of a developing country characterised by low levels of industrialisation, as well as policy recommendations for practitioners (from public and private sectors, as well as donor community, NGOs and civil society). Furthermore, the study highlights the importance of the issue of informality of micro- and small-scale enterprises. (author's abstract)