Browsing by Author "Adu, F."

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Asymmetric effect of tax systems on poverty and inequality: Exploring the distributional impact of domestic resource mobilization systems in Ghana
(Cogent Economics & Finance, 2023) Adu, F.; Alagidede, I.P.; Osei, D.B.; Asamoah, M.E.
Abstract: Earlier studies have assumed the effect of tax systems on poverty and inequality to be symmetric by imposing linear specifications. In this study, we account for possible asymmetries by re-examining the effect of tax systems on poverty and inequality in Ghana. We rely on the Nonlinear Autoregressive Distributed Lag (NARDL) estimation technique and time-series data from 1983 to 2016. The findings revealed that, while the nexus between tax systems and poverty is asymmetric, the reverse holds for the relationship between tax systems and inequality. Specifically, we establish that, while positive (negative) shocks in direct taxes raise (reduce) the level of poverty, the shocks in indirect and overall tax systems produce negative results. Moreover, the symmetric evidence is observed only for indirect taxes and inequality in the long-run, and the relationship is positive. We recommend for a poverty reduction strategy that is centered on tax reduction at all levels. Equally important is a policy that has a firm foundation in the indirect tax system to bridge the inequality in Ghana.
Ethnomedicinal survey and mutagenic studies of plants used in Accra metropolis, Ghana
(Journal of Ethnopharmacology, 2019-10-23) Bekoe, E.O.; Agyare, C.; Boakye, Y.D.; Baiden, B.M.; Asase, A.; Sarkodie, J.; Nettey, H.; Adu, F.; Otu, P.B.; Agyarkwa, B.; Amoateng, P; Asiedu-Gyekye, I.; Nyarko, A.
Ethnopharmacological relevance: Majority of people living in Ghana and many other developing countries rely on traditional medicinal plants for their primary healthcare. These plants are used either alone or in combination to manage a wide range of ailments. However, most of these plants have not been investigated for their mutagenic effects. Aim of the study: This study, therefore aimed at evaluating the mutagenic activity of the most frequently used medicinal plants amongst Ghanaians living within the Accra metropolis, Ghana. Materials and methods: Validated questionnaires were administered to 53 herbalists and herbal medicines dealers in the Makola, Madina and Nima communities. Plants that were identified as being frequently used were investigated for their mutagenicity using the Ames test. Results: A total of 110 medicinal plants belonging to 53 families were identified as most frequently used plants in the study sites. These are used to treat various ailments including gastric ulcer, fever, malaria, male impotence, diabetes, typhoid, high blood pressure and candidiasis. Thirteen samples (52%) showed moderate to high mutagenicity in the TA 100 bacterial strain before and after metabolism with rat liver enzyme. Conclusions: The study showed that over half of the frequently used medicinal plants showed moderate to high mutagenicity before and after metabolism at the concentration of a 100 μg/mL. This may have implications for the safety of those who use them to manage diseases. These findings will suggest the need for an in-depth study of the mutagenic potentials of plants commonly used by indigenous people and more especially for those exhibiting high mutagenicity in this study.
Exchange Rate Uncertainty And Foreign Direct Investment In Africa: Does Financial Development Matter?
(Review of Development Economics, 2021) Asamoah, M.E.; Alagidede, I.P.; Adu, F.
The orthodox view is that uncertainty deters investments and, by extension, private capital inflows. Paying With specific attention to the volatility of the domestic exchange rate, foreign direct investment (FDI), and financial development indicators, this study investigates the impact of exchange rate uncertainty on FDI and whether financial development matters in such a situation. We establish our empirical relationship with a system general methods of moments (GMM) two-step robust estimator with orthogonal deviations. We found evidence supporting a nonlinear U-shaped relationship between uncertainty and FDI and that the impact of uncertainty on FDI depends on varying levels of uncertainty. We also document that uncertainty deters FDI flows and that countries with a well-functioning financial development can transform the adverse impact of volatility on FDI. However, curbing the adverse effect depends on the specific indicator and the threshold value of financial development (financial institutions or financial markets).
Factors Influencing Liquidity Of Banks Listed On The Ghana Stock Exchange
(University of Ghana, 2019-07) Adu, F.
The conduction of this study involves regressing some specific external and internal factors on the dependent liquidity function which is, liquid assets to the total asset (LIQ) for the 11-year period from 2007-2017 of 8 Ghanaian banks listed on the stock exchange. Two separate analyses, fixed effect, and random effect panel regressions were conducted during the analyses of the study with the Hausman test performed to choose the best among the two. The result showed that bank size is the only bank-specific variable that positively affects liquidity at 5% significant level whilst capital adequacy, profitability, management efficiency did not show any significant impact on liquidity. In addition, inflation rate, exchange rate, GDP and unemployment significantly influenced liquidity, though inflation and GDP exhibited a positive impact whiles exchange rate and unemployment had a negative impact at that same level of significance. The variables highly explained variations on commercial banks liquidity as indicated by the coefficient of determination of 0.8083. The study recommended banks consider both the external settings and internal factors simultaneously in developing strategies for managing their liquidity position efficiently and the constant reviewing of such policies and directives by Bank of Ghana, as the macroeconomic factors continue and frequently varies in making sure they add to economic growth.
On the allocation puzzle and capital flows: Evidence from foreign direct investment and real sector growth in Africa
(Wiley, 2022) Asamoah, M.E.; Alagidede, I.P.; Adu, F.
This paper takes a new dimension on the foreign direct investment (FDI)–growth nexus through the lens of the allocation puzzle. We examine how the influx of FDI affects the broader economy through its impact on real economic sectors in a panel of 42 Sub‐Saharan African (SSA) countries over 1980–2017. Using a dynamic panel model and decomposing the real sector into its parts, we test for the possibility of a two‐way bi‐directional relationship between growth in agriculture, manufacturing, industry and service value additions, and FDI. There is no evidence of an allocation puzzle at the level of the real sector and the components parts, which suggests that SSA countries with relatively high growth in the real sector will attract more FDI. While the effect of FDI on the real sector is positive at the disaggregated level, there is a positive bi‐directional effect between FDI and growths in manufacturing, industry and service value additions. The results are robust to key determinants of the growth–FDI nexus.