Adoption of Mobile Money Transfer Technology: Structural Equation Modeling Approach

In recent years, rapid spread of mobile phones use in the developing countries is as a consequence ofthe introduction of prepaid cards and the fallen prices of mobile handsets. One of such uses is the useof mobile phones in financial services industry. This study investigates the key factors that influencethe Ghanaian consumers' acceptance and use of mobile money transfer technology using keyconstructs from the Technology Acceptance Model (TAM) and Diffusion of Innovation (DoI) theory.We analyzed the data using a Structural Equation Modeling (SEM) to evaluate the strength of therelationship between the constructs. The results were consistent with the key TAM and DoI constructs.Keywords: Technology Acceptance Model, Adoption, Mobile Money Transfer Technology, Diffusionof Innovation theory, Ghana

Farm Households’ Livelihood Diversification into Agro-processing and Non-agro-processing Activities: Empirical Evidence from Ghana

This study seeks to identify the types of agro-processing and non-agro-processing activities in the Upper West Region of Ghana and the factors influencing households’ choice of diversification into each of these groups of activities as livelihood strategies. The study employs the multinomial logit model to identify the determinants of diversification. Data were obtained from a survey conducted by the International Food Policy Research Institute (IFPRI) in December, 2012 covering production activities for the 2011 agricultural year. The Primary data were collected from two hundred and fifty (250) food crop farmers selected using a multistage sampling procedure. The empirical results indicate that households in the Upper West Region diversify their livelihoods activities to agro-processing and activities not related to agro-processing. Households who are likely to diversify are females who are high income earners with small farm sizes. Further, educated and asset-rich farmers who produce for subsistence only are more likely to diversify to agro-processing while access to credit will influence diversification but not necessarily into agro-processing. These results have implications for the development of agro-processing ventures in developing countries

Assessing the Degree of Food Insecurity among Farming Households: Evidence from the Central Region of Ghana

This study seeks to determine the level of food insecurity among farming household in the Central Region of Ghana. A multistage sampling technique was used to select the respondents that were interviewed using a structured questionnaire. In all 240 households were interviewed for the study (i.e., 120 farming households in each of the Forest Communities and Coastal Communities). Data was obtained from 1690 individuals for the analysis of the food security status of the households. The empirical results reveal that majority of the respondents were food insecure. Though majority of the households were food insecure, the level of food insecurity was not severe. The months of April and May are the periods in which households experience severe food shortage. The immediate food insecurity coping strategies households adopt when faced with food insecurity are eating less preferred food, food rationing and skipping meal within a day. Most of the food insecurity coping strategies used by farming households are moderate, and only employed to temporarily minimize the impact of food insecurity. These results have implications for agricultural food policy in developing countries. Key words: Food insecurity, farming households, copping strategies, Ghan

TIME SERIES ANALYSIS OF A PRINCIPAL-AGENT MODEL TO ASSESS RISK SHIFTING AND BARGAINING POWER IN COMMODITY MARKETING CHANNELS

We apply the classic agency model to investigate risk shifting in an agricultural marketing channel, using time series analysis. We show that if the principal is risk-neutral and the agent is risk-averse instead of risk-neutral, then a linear contract can still be optimal if the fixed payment is negative. Empirical results for the Dutch potato marketing channel indicate that while fixed payments to farmers (agents) have decreased over time, even to negative levels, the incentive intensity has approximately doubled, and the risk premium the farmers ask for has remained considerable. These results imply that risk has shifted from wholesalers, processors, and retailers to farmers; we argue that this shift could be the consequence of chain reversal, i.e., the transformation of the traditional supply chain into a demand-oriented chain.Marketing, Risk and Uncertainty,

Risk Management Using Futures Contracts: The Impact of Spot Market Contracts and Production Horizons on the Optimal Hedge Ratio

We specify a principal-agent marketing channel involving producers, wholesalers, retailers and a futures market. Our hedge ratio for producers appears to be much lower than the common price-risk minimising ones as we account for producers vertical contracts and, by using annual data, their production horizon. The Dutch ware potato marketing channel and its futures market in Amsterdam show that possibly through decreases in producers and wholesalers risk aversions, their optimal dynamic hedge ratios decreased from 38% and 12%, respectively, in 1982 to 18% and 10%, respectively, in 2003. These results comply with the decreased futures volume traded in Amsterdam over the years.Principal-Agent Model, Risk Management, Futures and Spot Market Contracts, Production Horizons, Food Marketing Channels, Marketing, Risk and Uncertainty,

Harnessing Natural Resource Wealth for Development: The case of Ghana

Ghana’s economy depends largely on foreign aid and has performed well in recent years in terms of GDP growth after the launch of the economic recovery programme in 1983. In spite of this there has been minimal impact on poverty reduction with rural folks bearing the major brunt of poverty. Ghana on the other hand is endowed with rich natural resources that can prudently be managed to ensure sustainable economic growth, high standards of living and a prosperous new Ghana. The scary thing however, about windfall wealth is that they can be a blessing creating economic prosperity or a curse spawning war, corruption and deindustrialization. The recent discovery of oil and current discussion by government on the concept to adopt in managing oil revenues have also added to the hopes of many Ghanaians for a better life as they wait patiently on ‘Petro-dollars’ to help improve the performance of the economy. Irrespective of which strategy government adopts, engineering a new Ghanaian economy demands policies that uses natural resource revenues to diversify and produce a robust self reliant economy capable of sustaining itself against external shock necessary to avoid the resource curse or Dutch-Disease. Keywords: National Resources, Diversification, Value Addition, Development, Ghan

Macroeconomic Variables and Stock Market Returns: Full Information Maximum Likelihood Estimation

This study examines the relationship between macroeconomic variables and stock market returns using monthly data over period January 1992 to December, 2008. Macroeconomic variables used in this study are consumer price index (as a proxy for inflation), crude oil price, exchange rate and 91 day Treasury bill rate (as a proxy for interest rate). Full Information Maximum Likelihood Estimation procedure was used in establishing the relationship between macroeconomic variables and stock market returns in Ghana. The empirical results reveal that there is a significant relationship between stock market returns and three macroeconomic variables; consumer price index (inflation rate), exchange rate and Treasury bill rate seem to affect stock market returns. Consumer price index (Inflation rate) had a positive significant effect, while exchange rate and Treasury bill rate had negative significant influence on stock market returns. On the other hand, crude oil prices do not appear to have any significant effect on stock returns. The results may provide some insight to corporate managers, investors and policy makers. Key words: stock market returns, inflation rate, crude oil price, exchange rate, interest rate, Ghan

Analysis of Foodstuff Price Volatility in Ghana: Implications for Food Security

In recent years, price volatility is becoming increasingly relevant to producers and consumers in the saturated food markets amidst stiff completion and globalisation. The analysis of price volatility is necessary to develop bidding strategies or negotiation skills in order to maximize profit. The generalised autoregressive conditional heteroscedasticity (GARCH) regression model is used to forecast foodstuff prices in Ghana over the period 1970 to 2006. The data used are monthly wholesale prices for maize, millet, and rice obtained from the Ghana Ministry of Food and Agriculture. The empirical results reveal that foodstuff prices exhibit high volatility with continual increasing prices over the study period. The results of the out-sample forecast reveal that maize, millet and rice prices would increase by 23%, 11% and 10% respectively in the next month. The study recommends the provision of adequate storage facilities, and farmers’ market centres in the districts to stabilize food prices. The increases in food prices have implications for food and nutrition situation of the poor in Ghana

Design of Solar Drying Technology Equipment for Drying Food Consistent with Farmers' Willingness to Pay: Evidence from Ghana

In this study, a survey of two hundred and fifty-five (255) farmers, sampled from the Akuapim South District in the Eastern Region and the South Tongu District in the Volta Region of Ghana was undertaken to determine their willingness to adopt and pay for solar drying technology for drying food. Using descriptive statistics, farmers’ awareness, willingness to adopt and willingness to pay for solar drying technology were analyzed. A Logit model analysis was employed in identifying factors influencing farmers’ willingness to adopt the technology. The empirical results reveal a low level of awareness of the solar drying technology (27%) among the farmers. However majority (94.5%) were willing to adopt the technology and (88.2%) willing to pay for the technology. The modal amount farmers were willing to pay was GH¢100.00 and the highest amount GH¢1000.00. The modal amount of GH¢100.00 ($66.00) can produce a 4sq meter simple box type solar dryer that has a drying capacity of 50kg per sq meter, which guarantees the farmers shorter drying time and lower final moisture content. The study also found incentive provision, total monthly income of farmers and space to accommodate a solar dryer as the factors influencing farmers’ willingness to adopt the solar drying technology. In this respect, sensitization campaigns should be intensified to create more awareness of the solar drying technology among small holder farmers. In doing so, farmers should be introduced to varied designs and varied costs of the technology in order for them to make their own choice. Solar dried food products should be differentiated and considered for higher prices, ready market and export to motivate farmers to adopt the technology. Further, there is the need for the provision of space (land) by the District Assemblies in the various communities where these farmers can conveniently place their solar dryers for the purpose of drying the food products. Finally, since income is a factor that significantly influences farmers’ adoption of the technology, it is imperative that the government provides the solar drying equipments at vantage points in the communities that farmers could use to dry their products, even if at an affordable fee.Key words: Design, solar drying technology, drying food, adoption, farmers’ willingness to pay amount, Binary Logit Model, Ghan

Productivity and Resource Use Efficiency in Tomato and Watermelon Farms: Evidence from Ghana

This study examines productivity and resource use efficiency in tomato and watermelon farms in the Dangme East District of Ghana. Cross-sectional data of 200 farmers (100 tomato farmers and 100 watermelon farmers) were obtained from a field survey using structured questionnaires. The empirical results of this study show that, the value of output of watermelon is higher than that of tomato. The difference could be attributed to differences in output prices as well as labour and material input costs incurred in the production of each of these crops. Since prices of inputs are more or less stable over the season, output price difference could be said to be the main cause of this difference. For instance, it costs GH ¢704.59 to produce a hectare of tomato whereas the average cost of producing a hectare of watermelon is GH¢509.03. Conversely, a hectare of tomato yields GH¢480.37 whereas a hectare of watermelon yields GH¢1738.68. Analysis of the factors affecting the value of output of tomato and watermelon shows that, land, labour and experience exert significant influence on the value of output of tomato; whereas land, non-agricultural activity and training significantly influence the level of output of watermelon in the study area. Marginal value products computed for land and labour for each crop were found to be higher than the market prices of  these factors indicating that land and labour are inefficiently used in both tomato and watermelon production though labour did not significantly influence watermelon production. Also, neither did the amount of fertilizer used in tomato production nor the amount of capital used in watermelon production exert significant influence on their value of outputs; these inputs were found to be underutilized in each case. These results have implications for Agricultural policy in Ghana. Key Words: Productivity, Resource Use Efficiency, Tomato, Watermelon, Farms, Ghan