Ghanaian Journal of Economics - latest Issue
Volume 4, Issue 1, Dec 2016
Author Paul AlagidedeSource: Ghanaian Journal of Economics 4, pp 1 –3 (Dec 2016)More Less
When this journey of the Ghanaian Journal of Economics (GJE) started four years ago little did we at the editorial board and the reading and contributing public know that such humble beginnings will turn out to be a very magnificent endeavor giving opportunity to young and established researchers to express themselves through their research findings. It is hoped that this enterprise would continue to illuminate the path of research and open up more avenues for academics and policy makers to engage on critical matters of national and international concern.
Author Stephen D. YoungerSource: Ghanaian Journal of Economics 4, pp 5 –34 (Dec 2016)More Less
Ghana is in the midst of a severe but not unprecedented macroeconomic crisis. This paper helps to evaluate the government’s policy options by (1) explaining the crisis’s causes, and (2) comparing it to previous macroeconomic crises and the policies that corrected them. Two large shocks are to blame for the crisis: an increase in the fiscal deficit of about 6 percent of GDP and a reduction in hydroelectric production that has not been replaced with thermal generation. The latter is more difficult to quantify, but may be as large as 4 percent of GDP. Although large, Ghana has recovered from similar shocks in the past, and with luck, should be able to do so now. But this will require reversal of the large increases in the public sector wage bill that drove much of the fiscal shock.
Author Nana K. AkosahSource: Ghanaian Journal of Economics 4, pp 35 –70 (Dec 2016)More Less
The paper examines macroeconomic determinants of stock market performance in Ghana for the period 2000Q2-2014Q1, using a battery of time series models. The empirical result established that financial deepening, real GDP growth, foreign direct investment, current inflation and election cycles stimulate stock market development in both short and long run. On the other hand, Treasury bill rate, government expenditure and country risk premium were found to have deleterious impact on stock market development in both short run and long run. However, the effect of nominal exchange rate depreciation on stock market performance was found to be negative in the short run but positive in the long run. In contrast, the long run impact of openness to international trade on stock market development was negative, while the short run effect of the former on the latter was mixed. The study therefore recommends coordinated fiscal and monetary policies that guarantee a sustained macroeconomic stability, and reflecting low and stable prices (foreign exchange rate, short-term money market interest rates and inflation). The attainment of these goals is essential to minimize the uncertainties and systemic risks, while enhancing public’s confidence in holding long term financial assets and also strengthening foreign inflows.
Credit market participation by women-owned small scale enterprises in Wa and Jirapa districts of the Upper West region of GhanaSource: Ghanaian Journal of Economics 4, pp 71 –97 (Dec 2016)More Less
This study looks at owner, enterprise and credit institution characteristics that may influence access to credit, source of credit and the quantum of the credit by small scale enterprises operated by women. Literature so far has overly concentrated on access to credit by households in general. Those that focus on women do not usually look at women as entrepreneurs and how their entrepreneurial environments affect access to credit. This study in response investigates the theme of credit in a triple hurdle fashion. Primary data were collected from a representative sample of 250 women entrepreneurs using structured questionnaires. Probit model with sample selection and tobit model were employed in analysing the data. The results indicated that characteristics surrounding the entrepreneur and the enterprise such as entrepreneur’s age, education and size of business among other economic activities affect access to credit. The results confirm that owner, enterprise and credit institution characteristics influence access to credit as has been established in literature. The study recommends that the Business Advisory Centre of the National Board for Small Scale Industries should be more proactive and well-resourced to enable it perform its core mandate of facilitating the growth of micro and small scale industries to ensure access to credit.
Author Anthony Rahim AtelluSource: Ghanaian Journal of Economics 4, pp 98 –115 (Dec 2016)More Less
This study examines the determinants of non-interest income in Kenya’s commercial banks. Using panel data for the period 2003-2012 the study concludes that noninterest income of commercial banks in Kenya is affected by management efficiency, bank size, technological innovation and macroeconomic factors. An important policy implication of this article is that government should make every effort to create conducive environment for competition in the banking sector so as to ensure efficiency and expansion of the banking sector in terms of deposit mobilization by commercial banks. Moderating the lending rates of commercial banks may reduce overreliance on traditional interest income.
Source: Ghanaian Journal of Economics 4, pp 116 –138 (Dec 2016)More Less
Energy-based inputs continue to feature prominently in all economic activities and the linkages between energy inputs and economic expansion has received considerable attention in the literature. The aftermath of the oil price shocks in the 1970s coupled with the unreliable and insufficient supply of energy resources has spurred a great shift of emphasis from mere energy consumption to a thorough investigation into efficient consumption or utilization of energy-based resources and the factors underlying the behaviour of energy intensity. This quest is particularly important against the evidence that in many Sub Saharan African (SSA) countries, energy supply has not only been very insufficient to meet the every growing demand but has also been uncertain and unreliable. In addition, since every growth process requires some energy consumption, it is vital that energy resources are consumed in more efficient manner given that shortages could threaten the sustainable development of an economy. Using the system Generalized Method of Moments analysis on a panel dataset for 36 SSA countries over the period 1980-2015, this study examines how some key macroeconomic parameters explain the observed rising trend in energy intensity in SSA. It is established among others that, energy consumption efficiency is a function of the extent of openness of an economy to external commerce and domestic price developments. In particular, greater openness to trade and higher domestic prices tend to reduce energy intensity. Further, the results show that while the industrial and services sectors have adverse effect on energy consumption efficiency, the reverse is true for the agricultural sector. We discuss some policy options.
Author Pam ZahonogoSource: Ghanaian Journal of Economics 4, pp 139 –157 (Dec 2016)More Less
This article analyzes the relationship between land tenure arrangements and households’ investment in soil improvement and conservation measures. The research is based on survey data collected from 2,160 households across Burkina Faso and uses a model that accounts for endogeneity between land rights and investment decisions as well as interdependence between investment decisions. The findings show that land tenure arrangements seem to stimulate farmers’ short-term investment decisions such as buying fertilizer while significantly reducing incentives for long-term investment decisions such as tree planting. Further, education and technology do affect investment decisions, suggesting that land tenure arrangement policies should take these issues into account.
Source: Ghanaian Journal of Economics 4, pp 158 –177 (Dec 2016)More Less
The Bank of Ghana formally adopted inflation targeting in 2007 and the goal was to stabilize inflation and increase real economic growth. However, much is not known regarding the success and/ or otherwise of this monetary policy regime. This paper has investigated the effect of inflation targeting, inflation and inflation volatility on economic growth using time series data for the period 1980-2013. We found that average inflation and inflation volatility were lower during the post-inflation targeting period compared with the pre-inflation targeting period. The study showed that inflation volatility has significant negative effect on economic growth.