Harnessing international remittances for financial development: The role of monetary policy

This study investigates how remittances and monetary policy independently and interactively shape the financial system of developing countries. It employs single equation instrumental variable based estimation procedures to test the hypothesis that, to boost financial development, remittances require a complementary domestic monetary policy framework which ensures price stability while limiting price distortions. The results show that remittances stimulate financial development only in countries with a favourable monetary environment. Building on these results and employing various indicators of financial development, the results suggest that remittances rise to cushion migrant households from the repercussions of poor financial intermediation, weak institutions and unfavourable business environment in the home country. By extension, the findings are germane to monetary and financial policy in developing countries

International Migrant Remittance and Productivity Growth in Ghana

The study assessed the relationship between productivity growth and remittance at the macro level. Existing studies have largely focused on the micro level which falls short of revealing how shocks in the economy are transmitted through international remittance. Using time series analysis for data covering the period 1975-2013, the results from trend equation revealed that remittance inflows remained positive and increased modestly over time while economic growth as measured by the growth in labour productivity per person has been fluctuating. Regression results showed that remittance is significantly and negatively related to productivity in Ghana. The study revealed that foreign direct investment, official development assistance and international trade are positively related to productivity. It is recommended that government should make the business environment friendly so as to enhance foreign direct investment and boost trade as these have positive impact on productivity

Repositioning the Disabled Entrepreneur Towards Socio-Economic Development: The Case of Sagnarigu District in the Northern Region of Ghana

This research is an exploratory one which intends to delve into how disabled entrepreneurs can be better placed to contribute their quota to the socio-economic development of the Ghanaian economy using the newly created Sagnarigu District as a case research. Snowball sampling strategy was used to select 45 disabled entrepreneurs using questionnaires and interviews as research instruments to collect data. Data analysis were done manually and results presented in tables.We found that majority of the disabled entrepreneurs are in their youthful ages. Majority of them do not have the requisite educational qualification even though they contribute meaningfully to employment generation. The research further showed that stigmatization has been a major setback in translating the skills and experiences of the disabled entrepreneur into viable businesses. Also Sole proprietorships is the main form of business ownership operated by disabled entrepreneurs in the District resulting in low asset and their inability to provide collateral to obtain loans for business expansion and improvement.The researchers recommended that government, non-governmental organizations and civil society groups should advocate for the welfare, rights of the disabled, build their capacities to ignite and bring out their untapped skills, experiences and provide avenues for the easy access to information and funding opportunities.International Development organizations and donor agencies like the USAID, UKAID, DFID, World Vision, KOICA, JICA, SNV etc should model or develop projects or programmes specially targeting the disabled to make them socially inclusive and bring out their untapped skills, experiences and innovative ideas for economic development Keywords: Disabled, Entrepreneurship, repositioning, socio-economic development, challenges, Sagnarigu Distric

An Assessment of the Banking Regulatory and Market Framework in Ghana in the Wake of DKM Diamond Micro-finance Limited Financial Saga

The DKM Diamond Micro-Finance Limited (DKM) financial saga caused rapid loss of unprecedented amounts of money. One effect of this development is the fact that farmers in most of the places of its operations have stopped farming whiles many customers are under pressure to find a secure way through life. This portends a rather disastrous consequence on the country's already-battered agricultural sector. Many blame it on the banking and financial regulatory framework of Ghana. They argued that a sound financial system is indispensable for a healthy and developing economy. The purpose of this paper is to analyze the strength, weaknesses, opportunities and threats inherent in the Banking and financial regulatory framework of the Ghana Banking Act. Primary data was sourced from fifty (50) bankers using a multi-stage and convenience sampling techniques. Data was analyzed with the use of tables and percentages. Even though the banking sector is currently doing well economically, but based on the data gathered, we found that supervision of the activities of the various Micro Finance Companies is not timely enough to avert some of these challenges as witnessed in the recent DKM crisis. Our literature also found that formulation of regulation and supervision of the sector is lagging behind most countries.  It is recommended that supervision of the activities of the various Micro Finance Companies should be strengthened whiles banks and other financial institutions in Ghana must formulate their domestic regulations in line with International regulations to encourage trading among other countries in the global community. Key words: Financial Institutions, DKM Diamond Micro Finance Limited, Financial Crisis, Regulation

Evaluating the Viability of Shea Butter Production: A Comparative Analysis

This paper analysed the viability of shea butter processing in the Northern Region of Ghana using household level data on three different processing methods. Semi-structured questionnaires were administered to shea butter processing units. In all 110 processors were interviewed comprising 40 processing units for each of the Traditional and the Improved Shea Butter Processing Technology (ISBPT) methods and 30 for the Bridge Press (BP) method.  The analytical techniques used included NPV, B/C ratio, sensitivity analysis and switching values. From the NPV and B/C ratio analyses, shea butter processing generally is a viable enterprise. While the estimates (NPV and B/C) of the BP method are higher than those of the ISBPT method, the estimates of the ISBPT method are higher than those of the Traditional method. The switching value and sensitivity analysis showed that the BP and ISBPT methods are more conditioned to handle risk than the Traditional method. Based on the findings, shea butter processing is recommended to government, Non-governmental Organisations and other stakeholders involved in the fight against poverty as a viable enterprise that offers an opportunity for the economic empowerment of women in both urban and rural areas. Keywords: NPV, B/C ratio, switching values, sensitivity analysis, shea butter, viability

A count model of financial inclusion in Ghana: evidence from living standards surveys

Purpose: This paper aims to estimate the determinants of the intensity of use of financial inclusion by households in Ghana. Design/methodology/approach: Due to the reality of a household using one or more financial products or services, this study uses the generalised Poisson model applied to GLSS6 and GLSS7 data collected in 2012/2013 and 2016/2017 respectively, to estimate the determinants of the intensity of use of financial inclusion. To deepen the analysis, a multinomial probit model is also applied. Findings: Results show that infrastructural variables such as roads, public transport and banks stimulate the intensity of financial inclusion. In addition, agricultural development characteristics such as markets and cooperatives are essential for the intensity of inclusion. Research limitations/implications: There is a need to incorporate how many services or depth of services that people use as part of the conceptualisation of financial inclusion, as this can provide more policy-relevant evidence to enhance priority setting in financial inclusion policies. Also, micro-level financial inclusion studies in agrarian economies should consider exploring agricultural development and infrastructure variables in the modelling framework. As lead to further studies, count models of financial inclusion should consider exploring cross-country analysis, the use of panel data, or other methodological approaches to provide more robust evidence. Originality/value: Previous studies have not modelled financial inclusion based on a count model as a means of measuring intensity though conceptualisations highlight the fact that people use varied financial products or services. Following from this angle, to the best of the authors’ knowledge, this study provides the first attempt at analysing the underlying determinants of the number of financial products or services used by households

Wood Based Biomass Fuel Consumption in the Upper West Region of Ghana: Implications for Environmental Sustainability

Households' fuel consumption decisions are affected by a number of factors. But the choice of fuel can affect environmental sustainability, especially where wood based biomass fuel is preferred. This paper examines households' fuel consumption decisions with emphasis on biomass and its implications on environmental sustainability. In all, 200 heads of households were selected through a multistage sampling procedure. The binary logit model was used to examine the factors influencing households' decision to use wood based biomass fuel for their cooking needs. The major factors influencing such decisions are years of completed school by household head, household size, price of the fuel and household income. Given that the removal of wood based biomass from the land results in very negative consequences in the form of soil erosion, reduced moisture and soil nutrients, it is recommended that alternative livelihoods be found for the people to both help them move up the energy ladder to cleaner fuels and also increase their incomes

The effects of cross-border banking and institutional quality on accounting information of banks in Africa

This paper seeks to analyse the implications of cross-border banking and institutional quality for accounting information quality. We sample 330 banks across 29 African countries and employ system GMM estimator as a methodological approach to test for two related hypotheses. First, banks financial statements are prepared on the basis of international accounting standards as banks cross-border when national institutions are strengthened. We build on these results and employ various specifications of institutional quality; the second test suggests that the relative quality of accounting information among banks in Africa during the period, 2002–2013, is attributed to cross-border banking, larger market share and the level of transparency

INNOVATION AND OBSTACLES IN WEST AFRICAN FIRMS: AN EVIDENCE FROM THE GHANAIAN CONTEXT

Innovation is a concept that has kept the attention of researchers worldwide. Innovation leads to product and process improvement, assists the organization to survive, grow faster, efficiently, and be more profitable than non-innovative organisations. However, the innovation level among Ghanaian firms is not yet reaching its full potential. In addition, innovative behaviour among Ghanaian enterprises is still at the infancy stage. To boost the innovation rate, it is imperative to solve the challenges and issues faced by Ghanaian firms. Innovation has become the building block of development in both developed and developing countries it is commonly agreed that innovation is the critical path towards growth and prosperity for countries as well as for individual firms. It is the key to technology adoption, creation and explains the vast difference in productivity across and within countries. However, in Africa, the case seems to have faced a challenging time due to obstacles like finance accessibility, electricity, trade regulations, land access, tax, corruption, informal sector malpractices, tax administration, political instability, transportation, and others. It is against some of these obstacles that we decided to embark on this study to help us critically investigate the effect of the barriers to firms’ growth and its effect on the degree of innovation among Ghanaian firms. To help recommend possible solutions to these obstacles. Hence, this will help facilitate firms’ growth and their degree of innovation. Keywords: Innovation, Obstacles, Firms, Ghana

A Factor Analysis Approach in Identifying Influential Factors in the Selection of a Mobile Service Provider: A Case of Students from Bolgatanga Polytechnic.

This study was carried out with the aim of identifying factors that are considered important to students of Bolgatanga Polytechnic in selecting a particular mobile service provider and classifying these factors under broad umbrella names using Factor Analysis. Five factors emerged in the study in order of importance with the umbrella names Affordability, Visibility, Service quality, Support schemes and Acquaintances as the major factors considered significant to students of Bolgatanga Polytechnic in deciding on a mobile service provider. The second ranking factor which is Visibility provides a justification for the spending patterns of mobile operators on adverts, promotional activities and sponsorships in Ghana. Keywords: Factor Analysis, Communality, Unique Factor, Mobile Service Provider, Affordability, Visibility, Service Quality, Support schemes, Acquaintances