11 research outputs found
A Dynamic Analysis of the Link between Public Expenditure and Public Revenue in Nigeria and Ghana
This paper investigated the nature of the relationship between government expenditure and government revenue for Nigeria and Ghana within a dynamic framework. The major empirical and methodological contribution of this study is the use of Dynamic Ordinary Least Squares (DOLS) proposed by Stock and Watson (1993). Dynamic OLS becomes better than OLS by coping with small sample and energetic sources of bias. An Engle-Granger two-step methodology for error correction was employed. The models for revenue and expenditure for the two countries reveal causation running in both directions to and from revenue and expenditure. However, the conclusion drawn from the study supports the fiscal synchronisation hypothesis which is in dissension with views held by earlier researchers. Further, results indicate that lagging, leading and coincident effects of revenue on expenditure and vice versa are present for the two countries. On the other hand, changes in expenditure have a negative impact on revenue for the Nigerian economy and a positive impact for the Ghanaian economy. Moreover, changes in past values of expenditure impact positively on changes in revenue. This finding is peculiar to the Nigerian economy. Keywords: Dynamic ordinary least squares, fiscal synchronisation, hypothesis, error correction
Fiscal Sustainability in the Ghanaian Economy: A Fiscal Reaction Function Approach
Fiscal Policy sustainability has been a major concern in Ghana with an increasing debt situation. This has led to the Government of Ghana seeking a bailout from the International Monetary fund. The objective of this research is to determine the role of budget deficits on the growth of debt. It will also evaluate the current fiscal stance on sustainable economic growth. This is achieved by testing a fiscal reaction function for the Ghanaian Economy based on the Intertemporal Budget Constraint. The estimation was performed using the Ordinary Least Squares (OLS) estimation technique. Stationarity test for the variables was conducted using the Augmented Dickey-Fuller Tests. The results point to a high degree of inertia present in government behaviour when it sets its primary balance. An increase in past primary deficit leads to an increase in current primary deficits. Also increase in debt has a significant and positive influence on primary balance. The study thus recommends that government should cut down on borrowing to finance its deficits
The Role of Microfinance Institutions in Disaster Management A Case Study of Upper West Region -Ghana
This paper studied the role of Microfinance Institutions in Disaster Management in the Upper West Region of Ghana. The methodology used was both secondary and primary data. Stratified sampling method was also used. The total population was 200 with a sample size of 95 disaster victims and five Microfinance Institutions. The main objective of the study was to find out how Microfinance Institutions assist their clients in times of disaster. The study found that 40% of the victims received reliefs from some Microfinance Institutions, just as 30% received relief items from other organizations. It indicated that female forms the largest percentage of victims during disaster constituting 65% whiles their male’s counterparts constitutes 35%. The study also established that Moslem victims formed the majority of disaster victims with 67% whiles Christians constitutes 33% of the victims. The research revealed that 5% of the victims received support from family and friends whiles 25% of the victims did not received any assistance at all. The study further shown that, 90% of those victims who accessed the loan facility have paid back with the required interest. Based on the above findings the paper recommended that stakeholders in disaster management should ensure that all disaster victims benefits from the relief items. Microfinance Institutions should endeavor to develop special loan products for disaster victims. Keywords: Disaster management, microfinance, beneficiaries, Ghan
An Analysis of the Determinants of business growth in Ghana: A study of Wa Municipal in the Upper West Region
Sources of firm growth and development have received much attention in the field of research. These studies vary in content and perspective. Changes in the size of firms are therefore extremely important events in a firm’s demography. The growth of firms has consequences for employment and consequently economic growth. The objectives of this study are to explore the factors that affect business growth and the determinants of the size of business. The techniques used for data collection included questionnaires and interviews. Purposive sampling was employed to identify the sample. For robustness, both parametric and nonparametric methods were combined for the analysis. Further, simple regression analysis was used to ascertain the factors that affect the size of businesses. Correlation analysis was employed to examine the nature of the relationship between firm size and other variables. Furthermore, Pearson’s chi-square test of independence was also used in the study. The correlation analysis showed that business age had a positive and statistically significant association with business size. The regression analysis revealed that business age and record keeping had significant impacts on business size. For policy, business start-ups should be encouraged supported to survive over time. Keywords: Business size, Business age, Ghana JEL Classification: C21, D22, L25, M2
Demographic Factors and Students’ Academic Achievement in Tertiary Institutions in Ghana: A study of Wa Polytechnic
Academic performance manifested in the class obtained is the indicator or the performance measure of academic achievement. However, the variation in achievement scores among students is indicative that there exist some factors that influence this situation. This study sought to investigate the influence of some demographic factors on students’ academic performance in tertiary institutions in Ghana. The study used primary data collected from graduating students of Wa Polytechnic. Both descriptive and explanatory techniques were used for the study. Simple regression analysis was employed to determine among others the combined effect of age and sex on academic performance. Statistical tests of significance were performed to determine the models reliability at predicting future outcomes. Tables and graphs were used to present these findings. Key findings of the study revealed that both age and sex were positively related to the class obtained. However, the coefficient of sex was statistically significant whereas that of age was not significant. Also, an increase (decrease) in age of male will decrease (increase) academic performance by that margin more than their female counterparts. The novel contribution of this study is to examine the role of the combined effect of age and sex on academic performance. Therefore, it is fit for counselors and policy makers to consider these background attributes in assessing and projecting the outcomes of students’ academic performance. Keywords: Age, sex, demographic characteristics, polytechnic
Decentralization in the Ghana Health Service: A Study of the Upper West Region
This study analysed the extent of decentralization in the Ghana Health Service (GHS) and the effect it has on the management of the Service. A retrospective descriptive study method was employed in the study. Questionnaires and interviews were used to obtain views from health managers at the various levels in the GHS. The study used frequencies, percentages, tables and graphs to analyze the results. The study revealed a limited application of decentralization in the GHS. The execution of key management functions were adversely affected by the level of decentralization in the study area. For decentralization in the GHS to yield beneficial outcome or be successful, there is the need for some reforms or preconditions. Without these reforms, the status quo may just persist. Keywords: Decentralization, Ghana Health Service, Upper West Regio
Fiscal Sustainability in the Ghanaian Economy: A Fiscal Reaction Function Approach
Fiscal Policy sustainability has been a major concern in Ghana with an increasing debt situation. This has led to the Government of Ghana seeking a bailout from the International Monetary fund. The objective of this research is to determine the role of budget deficits on the growth of debt. It will also evaluate the current fiscal stance on sustainable economic growth. This is achieved by testing a fiscal reaction function for the Ghanaian Economy based on the Intertemporal Budget Constraint. The estimation was performed using the Ordinary Least Squares (OLS) estimation technique. Stationarity test for the variables was conducted using the Augmented Dickey-Fuller Tests. The results point to a high degree of inertia present in government behaviour when it sets its primary balance. An increase in past primary deficit leads to an increase in current primary deficits. Also increase in debt has a significant and positive influence on primary balance. The study thus recommends that government should cut down on borrowing to finance its deficits
Modelling Real Exchange Rate Volatility in a Developing Country
Existing studies have provided empirical evidence on volatility clustering on exchange rate. This presents a situation of uncertainty and risks for future outcomes. This paper investigated the presence and nature of real exchange rate volatility in the Ghanaian Economy. This study would inform and guide policy-makers on currency risks and currency crises management. A Breusch-Pagan test for ARCH effects was performed. Further, an ARCH(1) and GARCH(1,1) processes were explicitly modelled to measure volatility. The major empirical and methodological contribution of this study is the explicit modelling of the conditional mean and conditional variance processes. The GARCH(1,1) model was the right model for exchange rate risk modelling in Ghana. The exchange rate regime change from fixed to floating caused a spike in volatility from 1983 to 1986. Over the period, there have been intermittent spikes in volatility indicating that Ghana’s international competitiveness deteriorated over the period of study. However, from 2001 to 2010, the volatility has been minimal. Keywords: GARCH, Uncertainty, Volatility clustering, Exchange rate, Ghana