Macroeconomic determinants of interest rate spreads in Ghana

Purpose: The purpose of this paper is to examine macroeconomic determinants of interest rate spreads in Ghana for the period 1980-2013. Design/methodology/approach: The autoregressive distributed lag bounds test approach to cointegration and the error correction model were used for the estimation. Findings: The results indicate that exchange rate volatility, fiscal deficit, economic growth, and public sector borrowing from commercial banks, increase interest rate spreads in Ghana in both the long and short run. Institutional quality reduces interest rate spreads in the long run while lending interest rate volatility and monetary policy rate reduce interest rate spreads in the short run. Research limitations/implications: The depreciation of the Ghana cedi must be controlled since its volatility increases spreads. There is a need for fiscal discipline since fiscal deficits increase interest rate spreads. Government must reduce its domestic borrowing because the associated crowding-out effect increases interest rate spreads. The central bank must improve its monitoring and regulation of the financial sector in order to reduce spreads. Originality/value: The main novelty of the paper (compared to other studies on Ghana) lies on the one hand; analysing macroeconomic determinants of interest rate spreads and, on the other hand, controlling for the impact of institutional quality on interest rate spreads in Ghana

Explaining the Growth of Government Spending in Ghana

Government spending is a reflection of government policy choices. However, the implications of government spending growth necessitate an understanding of the drivers of the growth of government spending. The present paper modifies the median voter model to explain the growth of government spending by introducing foreign aid, public debt, and democracy. The paper argues that these variables are important drivers of government spending for developing countries, hence a model explaining the growth of government spending of these group of countries that ignores the potential impact of foreign aid, public debt and democracy does not capture fully what determines the growth of government spending. Such a model is too simplistic and less relevant for policy purposes. The paper therefore makes use of annual time series data to determine the long-and short-run impact of per capita income, tax share, minimum wage, population growth, foreign aid, public debt and democracy on the growth of government spending in Ghana over the period 1980-2012. The autoregressive distributed lag (ARDT) bounds test for cointegration and the error correction model (ECM) procedures were used for the estimation. Additionally, the paper provides results of generalized forecast error variance decomposition in order to determine the effect of innovations in both the dependent and independent variables on the dependent variable. The findings reveal that per capita income, tax share, population growth, minimum wage, foreign aid, public debt, and democracy are key determinants of the growth of government spending in the long-run. With the exception of minimum wage, these variables are also key determinants of the growth of government spending in the short-run. Variance decomposition results suggest innovations in per capita income and population growth generally account for the largest variations in government spending over the horizon considered. Also, innovations in foreign aid, public debt, and democracy are responsible for significant variations in government spending. The findings and policy recommendations of the paper provide vital information for policy implementation in Ghana

Watching the Smoke Rise Up: Thermal Efficiency, Pollutant Emissions and Global Warming Impact of Three Biomass Cookstoves in Ghana

In Ghana, about 73% of households rely on solid fuels for cooking. Over 13,000 annual deaths are attributed to exposure to indoor air pollution from inefficient combustion. In this study, assessment of thermal efficiency, emissions, and total global warming impact of three cookstoves commonly used in Ghana was completed using the International Workshop Agreement (IWA) Water Boiling Test (WBT) protocol. Statistical averages of three replicate tests for each cookstove were computed. Thermal efficiency results were: wood-burning cookstove: 12.2 ± 5.00% (Tier 0); coalpot charcoal stove: 23.3 ± 0.73% (Tier 1–2); and Gyapa charcoal cookstove: 30.00 ± 4.63% (Tier 2–3). The wood-burning cookstove emitted more CO, CO2, and PM2.5 than the coalpot charcoal stove and Gyapa charcoal cookstove. The emission factor (EF) for PM2.5 and the emission rate for the wood-burning cookstove were over four times higher than the coalpot charcoal stove and Gyapa charcoal cookstove. To complete the WBT, the study results showed that, by using the Gyapa charcoal cookstove instead of the wood-burning cookstove, the global warming impact could be potentially reduced by approximately 75% and using the Gyapa charcoal cookstove instead of the coalpot charcoal cookstove by 50%. We conclude that there is the need for awareness, policy, and incentives to enable end-users to switch to, and adopt, Gyapa charcoal cookstoves for increased efficiency and reduced emissions/global warming impact

Biologische Bekämpfung des Maiskäfers Sitophilus zeamais (L.) (Coleoptera: Curculionidae) in Mais mit der Lagererzwespe Lariophagus distinguendus (Förster) (Hymenoptera: Pteromalidae) sowie der Reismotte Corcyra cephalonica (Stainton) (Lepidoptera: Pyralidae) in Reis mit der Mehlmottenschlupfwespe Habrobracon hebetor (Say) (Hymenoptera: Braconidae)

Maize and rice constitute some of the most important cereals cultivated in the world, being used as staple food for people especially in Africa. The rice moth, Corcyra cephalonica, and the maize weevil, Sitophilus zeamais, are major pests of stored grains in the tropics. The use of parasitoids in biological pest control is already common in different agricultural and horticultural fields. At present, grain managers tend to look at alternatives to chemicals to control insects in stored grain. Lariophagus distinguendus (Förster) is a synovigenic, solitary larval and pupal ectoparasitoid of several beetle species that infest stored goods. The ability for long-range host finding of this parasitoid mediated by volatiles has been shown (Steidle & Schöller 1997). Habrobracon hebetor (Say) is a gregarious ectoparasitoid of many lepidopterous pests. This wasp occurs naturally in the stored grain ecosystem (Keever & al. 1985) where it attacks several pyralid moths, including the rice moth, Corcyra cephalonica. The present study was conducted to assess the host finding of the two parasitoids H. hebetor and L. distinguendus.Wenn Vorratsschädlinge gefüllte Säcke befallen ist eine Bekämpfung mit Hilfe durchgreifender Methoden wie z.B. Begasung oder der Einsatz von Kälte möglich. Die Anwendung dieser Verfahren ist aber technisch nicht immer realisierbar. Verschiedene parasitoide Hymenopteren werden zur biologischen Bekämpfung von Vorratsschädlingen eingesetzt. Diese Wespen dringen in der Regel nicht in Verpackungen ein. Säcke aus Jute besitzen jedoch eine Maschenweite, die das Eindringen von Nützlingen erlauben könnte. Um die Möglichkeit des Nützlingseinsatzes in Sacklägern zu prüfen, wurden folgende Untersuchungen durchgeführt: (1) Wirtsfindung von Habrobracon hebetor in gesacktem Langkornreis (5 kg-Säcke, Raupen von Corcyra cephalonica 4 cm tief im Reis) (2) Wirtsfindung von Lariophagus distinguendus in gesacktem Mais (5 kg-Säcke, Befall durch Sitophilus zeamais). Es wurde täglich auf eindringende L. distinguendus bzw. H. hebetor hin kontrolliert. Der tägliche Schlupf der Nachkommen der Wespen wurde dokumentiert. H. hebetor war nur zu einem sehr geringen Anteil in der Lage, in die Säcke einzudringen. 50% der eingesetzten L. distinguendus drangen in die Jutesäcke ein und verringerten den Populationsaufbau der Maiskäfer. Begleitende Untersuchungen in unverpacktem, geschüttetem Reis ergaben, dass H. hebetor mindestens 14 cm tief eindringt und Reismottenraupen parasitiert

Inflation Targeting Framework and Interest Rates Transmission in Ghana: An Empirical Investigation

This paper investigates the long-and short-run rate of transmission of the prime rate to interest rates since the implementation of inflation targeting policy in Ghana. Monthly data covering the period January 2002 to March 2016 is used. The Johansen and Hansen parameter instability cointegration, the FMOLS and DOLS estimation procedures were used. The long-run results show incomplete pass-through of the prime rate to commercial banks’ lending and deposit rates but over pass-through to the 91-day Treasury bill rate. The short-run adjustment shows relatively slow transmission of the prime rate to the respective interest rates. Given the findings, relevant policy suggestions are provided

Bioefficacy of enhanced diatomaceous earth and botanical powders on the mortality and progeny production of Acanthoscelides obtectus (Coleoptera: Chrysomelidae), Sitophilus granarius (Coleoptera: Dryophthoridae) and Tribolium castaneum (Coleoptera: Tenebrionidae) in stored grain cereals

This publication is with permission of the rights owner freely accessible due to an Alliance licence and a national licence (funded by the DFG, German Research Foundation) respectively.Food losses caused by insects during postharvest storage are of paramount economic importance worldwide, especially in Africa. Laboratory bioassays were conducted in stored grains to determine the toxicity of powders of Eugenia aromatica and Moringa oleifera alone or combined with enhanced diatomaceous earth (Probe-A® DE, 89.0% SiO2 and 5% silica aerogel) to adult Sitophilus granarius, Tribolium castaneum and Acanthoscelides obtectus. Adult mortality was observed up to 7 days, while progeny production was recorded at 6–10 weeks. LD50 and LT50 values for adult test insects exposed to plant powders and DE, showed that A. obtectus was the most susceptible towards the botanicals (LD50 0.179% and 0.088% wt/wt for E. aromatica and M. oleifera, respectively), followed by S. granarius. Tribolium castaneum was most tolerant (LD50 1.42% wt/wt and 1.40% wt/wt for E. aromatica and M. oleifera, respectively). The combined mixture of plant powders and DE controlled the beetles faster compared to the plant powders alone. LT50 ranged from 55.7 h to 62.5 h for T. castaneum exposed to 1.0% M. oleifera and 1.0% DE, and 0.5% E. aromatica and 1.0% DE, respectively. Botanicals caused significant reduction of F1 adults compared to the control. Combined action of botanical insecticides with DE as a grain protectant in an integrated pest management approach is discussed.Peer Reviewe

Econometrics of Domestication of the African Palm Weevil (<em>Rhynchophorus phoenicis</em> F.) Production as Small-Scale Business in Ghana

A reconnaissance survey of the domestication of the African palm weevil (APW) (Rhynchophorus phoenicis), which produces the edible larvae that are cherished as a delicacy among many tribes in Ghana, was conducted. Out of a total number of 560 semi-trained farmers, 271 (48.39%) were actively engaged in R. phoenicis farming near their homes or gardens, while 289 (51.61%) were non-active. Economic viability analyses showed that the active farmers would break even and repay their loans of GH¢1000 when they produce 3020 larvae at unit selling price of GH¢0.33, within a period of 4 months and 7 days (17 weeks). In a year, a farmer would have three production cycles and generate a total revenue of GH¢3018.79, at average monthly production of 755 edible larvae, net cash availability of GH¢1448.79, and projected net profit of GH¢448.79 in the first year of production. The farmer would make more profit and become wealthy in business in subsequent years. The pilot scheme of palm weevil farming was viable and ameliorated poverty and malnutrition of rural farmers in Ghana

COLOUR IN FASHION: EFFECTS ON PERSONALITY

Colours have much impact on users – either positively or negatively – when they are used for fashion objects. This paper is purposed to identify major ways in which fashion designers in tertiary institutions within Kumasi metropolis use colours for their fashion objects and the effects of the colours on their clients. Qualitative research approach was employed for this research. Specifically, the descriptive research method was adopted for the study. One hundred and fifty (150) respondents with fashion design and textiles background from three public tertiary institutions offering fashion design and textiles as programme of study in the Kumasi metropolis of Ashanti region, were purposively sampled for the study. Identification, beautification and communication, constituting 92.0%, 84.7% and 84.7% respectively of the 150 respondents, ranked as the top three purposes for which people use colours in fashion goods. Interior decoration, communication, designing textiles and enhancement of the aesthetic appeal of clothes, representing 100%, 92.7%, 92.7% and 92.7% respectively were found to be the highest positive impact of colour in fashion. In the study, 85.3% of the respondents stated that some colours cause people to have low self-esteem while 62.0% of them said some colours cause people to feel lazy. It is recommended that people should select colours wisely to enhance their images.  Article visualizations

Firm Level Technical Efficiency between Foreign-Owned and Domestic-Owned Firms: Case Study of Pharmaceutical Manufacturing Industry in Ghana

This study aims at comparing the levels of technical efficiency of domestic-owned and foreign-owned pharmaceutical manufacturing firms in Ghana and analyse the responsiveness of their respective outputs to capital and labour as major inputs. A stochastic frontier analysis based on the Cobb-Douglas production functional form was applied to estimate the parameters of the data and the technical efficiency of production among firms. The findings show that technical efficiency levels among foreign-owned firms range between about 47% and 88.6% with the mean technical efficiency level of 65.7% whilst those of the domestic-owned firms range between 40.33% and 75.05% with the mean efficiency level of 56.64%. The student t-ratio was used to test the equality of the mean values of efficiency.  In addition, capital and skilled labour had greater positive impacts on output levels of capsules and tablets produced by the firms. It is recommended that domestic-owned firms enter into joint venture agreement with their counterpart foreign ones to promote technology transfer to their operations. This will ultimately enhance technical efficiency among domestic-owned firms and hence, make them operate closer to their potential frontiers (more technically efficient) so as to be more cost effective and competitive