Working Paper 78 - Trade Policy and Performance in Sub - Saharan Africa since the 1980s

This paper reviews trade policy reform and performance in Africa since the 1980s. African countries have implemented significant trade liberalisation in this period, in particular reducing tariffs. This has usually resulted in an increase in imports, but export growth has often been sluggish so that in many countries the trade deficit has increased. The paper documents trends and performance and reviews the explanations for poor export response. While trade policy reform has been beneficial, the impact has not been as great as expected and the core challenge facing African countries is how to diversify and increase exports.

Internal migration in Ghana : determinants and welfare impacts

Using a recently compiled dataset on migration and remittances in Ghana, this paper estimates the determinants of an individual’s likelihood to be an internal migrant and the relationship between internal migration and welfare. The analysis finds that the likelihood to migrate is determined by a combination of individual (pull) and community-level (push) characteristics. The probability of migration is higher for younger and more educated individuals, but communities with higher levels of literacy, higher rates of subsidized medical care, and better access to water and sanitation are less likely to produce migrants. The analysis finds that households with migrants tend to be better off than similar households without migrants, even after controlling for the fact that households with migrants are a non-random sample of Ghanaians. However, the positive relationship is only true for households with at least one migrant in urban areas; the welfare of households with migrants exclusively in rural areas is no different from households without any migrants.Population Policies,Anthropology,Gender and Development,Remittances,Voluntary and Involuntary Resettlement

Food Price Changes and Consumer Welfare in Ghana in the 1990s

In this paper, we analyse the effect of food price changes on household consumption in Ghana during the 1990s and assess the extent to which changes can be explained by trade and agricultural policy reforms. The measurement of the total household welfare effect, one that jointly considers (static) first order effects as well as (dynamic) consumption responses, is the object of this study. Food consumption behaviour in Ghana is analyzed by estimating a complete food demand system using the linear approximate version of the AIDS model with household survey data for 1991/92 and 1998/99. The estimated price elasticities are then utilized to evaluate the distributional impacts of the relative food price changes in terms of compensating variation. The results indicate that the distributional burden of higher food prices fell mainly on the urban poor. While it is difficult to attribute the price changes and by implication the welfare losses, to any particular policy per se, a simulation analysis indicates that trade liberalisation may not have been responsible for the welfare losses. Our simulation exercise suggests that further tariff liberalisation would tend to offset the welfare losses for all households although it is the poor and rural consumers who stand to gain the most.Food prices, Demand analysis, Consumer behaviour, Welfare, Ghana

Trade Liberalisation is Good for You if You are Rich

This paper investigates the relationship between trade policy and growth using a dynamic panel regression model with GMM estimates for data on 44 developing countries over 1980-1999. Trade policy is captured by measures of tariffs, import and export taxes. Typically, the average effects of changes in such policy variables have been investigated. However, from a policy perspective, the differential effects on high-or low-income countries may be of more interest. Our preferred specification for growth thus includes as an explanatory variable an interaction term between trade barriers and initial income levels to capture the non-linearity in the relationship. This specification reveals a significant interaction effect under which the marginal impactof tariffs on growth is declining in initial income. In particular, for low-income countries tariffs appear to be associated with higher growth, whereas only for middle-income and richer countries is there a negative impact of tariffs on growth. The impact of a marginal change in protection on growth changes from positive to negative as income increases beyond a threshold level of GDP per capita (below which, in rough terms, a country would be classed as low-income). Put differently, trade liberalisation seems to offer the possibility of achieving faster growth only in relatively richer countries.Growth; Openness; Trade barriers; Cross-country analysis

Trade, tariffs, growth and poverty

Increased globalization and widespread trade liberalization in developing countries since the 1980s has inspired considerable debate on the impact of globalization in general, and trade liberalization in particular, on growth, incomes and poverty. This chapter provides an overview of the issues and evidence in a selective literature review. After considering why trade is important and arguments for and against protection in the remainder of this section, we focus on three issues. Section 2.2 provides an overview of the literature on the relationship between trade and growth, noting that whilst a positive correlation is well established it is difficult to assert ‘causality’ (whether trade drives growth or growth leads to increased trade). Section 2.3 addresses the related issue of how trade liberalization (trade policy reforms reducing barriers to trade, especially on imports) affects growth, for which the evidence is less clear. Section 2.4 considers the broader issue of how trade relates to poverty, especially in low-income countries (LICs) or sub-Saharan Africa (SSA). Section 2.5 provides a very brief conclusion. Economists disagree about many things, but one proposition that attracts widespread agreement is that high barriers to trade damage the economy, especially if there is considerable variation across sectors and products in the extent of barriers (as this induces prices distortions that generate inefficiency)

Determinants of Types of Underemployment in the MiDA Intervention Zones of Ghana

Underemployment is a severe form of human resource underutilization, especially in the rural areas of Ghana. Unfortunately while its ‘twin brother’, unemployment, had for many years enjoyed some attention in the world of research, much cannot be said of underemployment. Using labour underutilization framework, the paper employs multinomial logistic regression to investigate empirically the various forms of underemployment and their determinants in the three MiDA intervention zones in Ghana. The empirical analysis was done with the data of the Ghana Living Standard Survey Five Plus (GLSS 5+) and factors such as: experience, employment in the manufacturing sector and settlement in an urban location tend out not to be in support of underemployment. Consistent with findings of previous studies, the study found all forms of underemployment to be highly pervasive in the rural areas. Unexpectedly, acquisition of tertiary academic qualification was found to exacerbate the incidence of underemployment. Suggestion was therefore made to the stakeholders of the Ghanaian economy to develop pragmatic measures to address the problem of labour underutilization, especially those involving graduates of tertiary institutions, in order not to discourage Ghanaians from seeking higher academic laurels. Keywords: Underemployment, Unemployment, Labour underutilization framework, MiDA Intervention Zon

Antiretroviral Therapy during Tuberculosis Treatment and Marked Reduction in Death Rate of HIV-Infected Patients, Thailand1

Antiretroviral therapy is associated with a substantial reduction in deaths during TB treatment for HIV-infected TB patients

Circulating Naturally-Occurring Anticoagulants before Treatment and after Recovery from SARS-CoV-2 Infection in Ghana

Background: Disturbance in naturally-occurring anticoagulants may contribute to the hypercoagulable state in COVID-19. This study determined the plasma antigen levels of protein C (PC), protein S (PS), antithrombin-III (AT-III), and thrombomodulin (TM) before treatment and after recovery from COVID-19. Materials and Methods: This cross-sectional study, conducted from February to August 2022 at Kumasi South Hospital, recruited sixty-five RT-PCR-confirmed COVID-19 participants. A venous blood sample was taken for full blood count (FBC) analysis using a 3-part fully automated haematology analyzer, and PC, PS, AT-III, and TM antigen levels measured using ELISA. The data were analyzed using SPSS version 26.0. P<0.05 was considered statistically significant. Results: Severe COVID-19 participants had relatively lower haemoglobin (p<0.001), RBC (p<0.001), HCT% (p<0.001) and platelets (p<0.001), but higher RDW-CV% (p=0.013), WBC (p<0.001), and absolute lymphocyte counts (p<0.001) compared to those with the non-severe form of the disease. The overall prevalence of anaemia among the participants was 58.5%, and 32 (84.2%) and 6 (15.8%) of the anaemic participants had mild and moderate anaemia respectively. Protein C (p<0.001), PS (p<0.001) and ATIII (p<0.001) levels were lower among the severe COVID-19 participants than in the non-severe group. But severe COVID-19 group had higher TM levels (p<0.001) than the non-severe group. Again, participants had higher haemoglobin (p<0.001), RBC (p<0.001), HCT% (p=0.049), absolute neutrophil count (p<0.001) and platelets (p<0.001) after recovery from COVID-19 than the values on admission. Additionally, after recovery, participants had higher levels of PC (p<0.001), PS (p<0.001), and ATIII (p<0.001), but reduced TM (p<0.001). Conclusion: Severe COVID-19 patients had higher PC, PS, and AT-III, but lower TM levels. The changes in circulating anticoagulants may contribute to the hypercoagulable state of COVID-19. Blood cell indices are negatively affected during COVID-19. Complete recovery from the SARS-CoV-2 infection normalised the haematological indices. Assessment of naturally-occurring anticoagulants and the provision of anticoagulants are recommended in the management of COVID-19.   Doi: 10.28991/SciMedJ-2022-04-04-01 Full Text: PD