Browsing by Author "Akoena, S.K.K."
Now showing 1 - 8 of 8
Results Per Page
Sort Options
Item Bank Portfolio Allocation: Evidence from Sierra Leone(University of Ghana, 2012-06) Bockarie, B.A.; Akoena, S.K.K.; Osei-Assibey, E.Bank portfolio allocation is an important determinant of the efficacy of monetary policy through the bank lending channel of monetary policy transmission mechanism. This study generally investigates the factors that influence banks‟ portfolio allocation in Sierra Leone. Specifically, the study looks into the effects of risk premium, leverage ratio, and credit risk on banks‟ earning asset portfolio allocation in Sierra Leone between 2002 and 2011. Using annual bank level data on an unbalanced panel of thirteen commercial banks for the study period, and employing time and bank specific fixed effects model for estimation, it is confirmed that risk premium, the share of non-performing loans in the banks‟ loan portfolio, tier 1 capital ratio (leverage ratio), and local currency deposit levels positively and significantly affect the share of loan supply to the private sector in banks‟ earning assets. On the other hand the loan-deposit ratios (or advance-deposit ratio) and bank size has significant negative effects on the share of loans in banks‟ earning assets. The study also finds bank type (state, private domestic, and foreign) and the growth rate of real Gross Domestic Product - a control variable for economic activities and hence, loan demand - to be important determinants of the share of loans in banks‟ earning assets. Based on these results, the study makes a number of recommendations including the following: Action should be taken to increase risk premium to banks, for example, through exercising stronger fiscal discipline so as to bring down the yield on government securities. The Central Bank of Sierra Leone should play a parental role in strengthening the depth of the Interbank Market operations as a secondary market. This will have the effect of increasing access of banks to short term liquidity The availability of more funding sources other than client deposits reduces the risk of adverse deposits shocks. Banks should be encouraged to have capital in excess of the minimum paid up capital (Capital buffers) so as have more room to absorb the inherent risk in the business of banking.Item Feasibility Study of a Single Currency for West African Monetary Zone(University of Ghana, 2013-06) Amoah, D.; Gockel, A.F.; Akoena, S.K.K.The formation of a Monetary Union by the West African Monetary Zone has been in pursuance for more than a decade. The WAMZ is made up of six countries in West Africa; The Gambia, Ghana, Guinea, Liberia, Nigeria and Sierra Leone. One significant benefit from using a common currency is the lower costs of transactions; however member countries will lose the ability to use monetary policy to respond to different shocks. The participating countries need to converge or ultimately attain an Optimum Currency Area to mitigate the asymmetric shocks. The WAMZ has a set of Macroeconomics Convergence Criteria to be attained by its member countries before the commencement of the Monetary Union. The study assesses the performance of all the WAMZ countries based on the MCC from 2001 to 2011. The study also uses various theoretical criteria to assess the Optimum Currency Area in the WAMZ. The study further employs the exchange rate variability based on the OCA index to analyze the possibility of currency integration among three of the WAMZ’s countries consisting of The Gambia, Ghana and Nigeria using time series data from 1980 to 2011. The assessment based on the MCC indicates that WAMZ is not ready to form the Monetary Union as of 2011. However, there are some convergences in the primary MCC. The results from the study also indicate that the WAMZ is not an Optimum Currency Area. The OCA index results show that the Nigerian Naira was the most stable currency in the region during the period of analysis. Furthermore, the method confirms that the WAMZ single currency (if it will be established) should start with Nigeria and Ghana, followed by The Gambia.Item Green National Accounting: A Case of Ghana’s Mining Sector(University of Ghana, 2014-07) Anku, E.K.; Akoena, S.K.K.; Twerefou, D.K; University of Ghana, College of Humanities, School of Social Sciences , Department of EconomicsEconomic activity in Ghana is largely dependent on natural resources, more specifically minerals which are exploited unsustainably. Using the net price and user cost approaches, the paper estimates the depletion of mineral resources for the period 2000 – 2012 and consequently the adjusted national income for these resources. The results using the net price method indicates that gold, diamond, bauxite and manganese exhibit some level of depletion cost with gold having the highest depletion, implying that without reinvesting the proceeds from the sale of the minerals resources in alternative capital, the welfare of future generations will be compromised. Estimates using the user cost also follows similar trend but lower than that of the net price approach. The study therefore recommends government to adapt a green accounting framework into its System of National Accounts and also reinvest some of the proceeds generated from the exploitation of mineral resource in other forms of capital such as education, health, roads which has the capacity to reproduce itself so that there will be sustainable use of the resourceItem The Impact of Oil Price Changes on Inflation in Ghana(University of Ghana, 2015-07) Kpogli, C.; Akoena, S.K.K.; Fosu, A.; University of Ghana, College of Humanities, School of Social Sciences, Department of EconomicsGhana still depends largely on imported crude oil to meet its crude oil needs since oil is an integral part of her economy. This dependency makes most macroeconomic indicators such as inflation of the Ghanaian economy vulnerable to fluctuations in the world price of crude oil. This study therefore employed Vector Autoregression (VAR) to examine the impact of oil price changes on inflation in Ghana using monthly data from 1998 to 2013. Unlike previous studies on oil price inflation relationship conducted on developed countries, this study is done for Ghana as a developing nation. The study aimed at finding the nature of the relationship between oil price changes and inflation in Ghana. To achieve this aim, it dealt with three main objectives .The study first estimated a relationship between oil price changes and inflation. The next objective was to determine the presence of asymmetry in the relationship. The last objective was to find the direction of causality and hence the transmission mechanism through which oil price changes might affect inflation. The result indicates a positive effect of oil price on inflation in both the short run and the long run. The study reveals that in Ghana as a developing country, oil price increase results in higher inflation directly and through the exchange rate. To reduce the inflationary pressure in Ghana, government should find a way to blunt this cost-push inflation emanating from oil prices.Item Modelling aggregate domestic electricity demand in Ghana: An autoregressive distributed lag bounds cointegration approach(Energy Policy, 2012-03) Adom, P.K.; Bekoe, W.; Akoena, S.K.K.In spite of the varying supply boosting efforts made by various governments to deal with the existing demand-supply gap in the electricity sector, the incessant growth in aggregate domestic electricity demand has made these efforts futile. As an objective, this paper attempts to identify the factors responsible for the historical growth trends in aggregate domestic electricity demand quantifying their effects both in the short-run and long-run periods using the ARDL Bounds cointegration approach and the sample period 1975 to 2005. In the long-run, real per capita GDP, industry efficiency, structural changes in the economy, and degree of urbanisation are identified as the main driving force behind the historical growth trend in aggregate domestic electricity demand. However, in the short-run, real per capita GDP, industry efficiency, and degree of urbanisation are the main drivers of aggregate domestic electricity demand. Industry efficiency is the only factor that drives aggregate domestic electricity demand downwards. However, the negative efficiency effect is insufficient to have outweighed the positive income, output, and demographic effects, hence the continual growth in aggregate domestic electricity demand. As a policy option, we recommend that appropriate electricity efficiency standards be implemented at the industry level. © 2011 Elsevier Ltd.Item Non-Farm Income Diversification In Rural Ghana; Determinants And Implications For Income Distribution And Welfare(University of Ghana, 2010-06) Senadza, B.; Asante, Y.; Akoena, S.K.K.; Asante, F.A.; University of Ghana, College of Humanities , School of Social Sciences, Department of Economics.Rural households in developing countries have for a long time been perceived as farm households, and that they receive their income predominantly from agriculture. There is growing evidence however in the rural livelihoods literature to show that rural households in developing countries derive a significant proportion of their incomes from non-farm activities, and income from this source is growing. In addition, nonagricultural activities constitute the main occupation of an increasing number of rural households. National level household survey data indicates that Ghana is not different in this regard. This study investigates the patterns as well as the determinants of nonfarm income diversification (participation, income and portfolio of income activities) among rural households in Ghana using GLSS 5 data. It also examines the effect of non-farm income on income distribution and household welfare. Results show that non-farm activities constitute an important source of employment and income for rural households in Ghana. Non-farm income accounted for 41 percent of rural household income in 2005/06, with more than 50 percent of rural households having at least one non-farm income activity. Education and land are important for the type of income strategy adopted by households. Education is important for a purely non-farm wage employment income strategy or combination of non-farm wage and other strategies. For a purely non-farm wage income strategy, the effect of education is evident only after the mean years of education of the household exceeds six years. Households with land above 20 hectares derive income from three main strategies: on-farm only; on-farm and non-farm self-employment only; and onfarm and non-farm self- and wage-employment only. Overall the study obtains robust results for participation (number of non-farm activities), income shares and income strategies regressions. Education, household size and composition, wealth status (poorest 40% relative to richest 20%), access to credit, electricity and markets are main the determinants of non-farm income diversification in rural Ghana. On the effect of non-farm income on income inequality, the study finds that in aggregate, non-farm income worsened income inequality. In terms of its components, while non-farm self-employment income reduced income inequality, non-farm wage income on the other hand, worsened income inequality in rural Ghana. The results of the effect of non-farm income diversification on welfare indicate that participation in non-farm activity has a positive effect on household welfare. For instance, participation in non-farm activity increases welfare by approximately 10% above that of a household that does not participate in non-farm activity. The welfare level of households with two non-farm activities is 21% above that of households that do not participate in non-farm activity . The results also indicate that households combining on-farm activities with other offfarm activities or are engaged in purely non-farm activities are better off than households deriving income purely from on-farm activities. The findings call for a rethinking of strategies that have traditionally focused on improving agriculture as the solution to rural poverty. Strategies to promote rural economic activities need to take into account the heterogeneity in the asset positions across rural households and the multiplicity of activities in which they are engaged to generate income. A key determinant of non-farm income diversification is education. Enhancing better access to education and narrowing education inequality among rural households would go a long way to create opportunities for effective participation in non-farm activities and to alleviate rural poverty. Access to credit and electricity are important for non-farm self-employment (small and micro enterprises) activities. Policy should therefore aim at enhancing access to small credits to bridge the gap in physical assets endowments between asset-rich and asset-poor households. The policy of rural electrification must also be effectively implemented to promote village/ cottage industries. Improving the physical infrastructure like roads and markets would help in the growth of non-farm employment opportunities. Policy should aim at promoting access to well developed infrastructure. This study however does not advocate for a promotion of non-farm activities as a substitute for agriculture, but rather highlights the potential complementarities that may exist between the two.Item Tax Reforms & Revenue Mobilisation: A Case Study of the Mining Sector of Ghana(University of Ghana, 2013-06) Appiah, H.L.; Akoena, S.K.K.; Twerefou, D.K.A strong and efficient tax system provides the basis for enhanced economic growth and development. Ghana‘s fiscal structure prior to 1983 had generally been characterized by low revenue. As a result, Ghana undertook a number of reforms prescribed by the International Monetary Fund (IMF) and the World Bank under the Economic Recovery Programme (ERP) and the Structural Adjustment Programme (SAP). Under the programmes, numerous policies were amended to establish a more attractive investment climate for foreign-owned mineral-exploration and extraction companies. The country‘s mining industry has since expanded rapidly experiencing, by 2004, a fivefold increase in annual gold output and big rises in bauxite, diamond, and manganese production. However, at the same time, there is an on-going debate as to whether the country is benefiting from mining operations in terms of tax revenue mobilization. The purpose of this study is to assess the impact of fiscal regimes in the mining sector in Ghana on revenue mobilization in the sector using tax elasticity and buoyancy ratios. The Singer method of dummy variables was employed in order to make adjustment for the effect of discretionary tax measures so as to compute and then compare buoyancy and elasticity measures. The empirical results indicated that buoyancy estimates were higher than elasticity estimates; and the short-run elasticities were lower than the static long-run elasticities. Estimation results further showed that discretionary tax measures were effective in mobilizing additional tax revenues and that the tax system was inelastic during the period. The study recommends that there is the need to reduce capital consumption allowances, a holistic review of the principle of ring-fencing and identifying new sources of taxation that are elastic.Item Trade-Off between Price and Improvement in Quality of Service on Utilisation of Public Health Facilities in the Ashanti Region of Ghana(University of Ghana, 1998-09) Osei-Akoto, I.; Akoena, S.K.K.; Jackson, H.E.; University of Ghana, College of Humanities, School of Social Sciences, Department of EconomicsThis thesis assessed quantitatively, the improvement of drug availability at two district hospitals, two urban and two rural health centers in the Ashanti Region of Ghana after the introduction of “Cash and Carry” policy in the country. The supply situation of these public institutions in both periods was compared to the coverage of the facilities by using panel data analysis. As an input to the debate on the design of the national health insurance scheme, the work also used contingent valuation methods to assess the willingness of patients to change their current out of pocket payment system for drugs. On average the percentages of desired drug quantities and drug types that were supplied increased remarkably. The findings on coverage trends were mixed. One of each of the two facilities in the rural, urban and district communities had its coverage reduced in the post period while the other ones in the same community types had theirs improved. The study re-emphasizes the importance of drugs in the delivery of health care in the public health institutions in Ghana. The relative negative responsiveness of coverage to price changes in the pre-period was greater than the post-period, implying that patients are more likely to pay higher fees in improved quality periods. There was also high acceptance of prepayment scheme for drugs in these communities. The improvement in quality of care like drug availability has a big role to play in the delivery of health care in Ghana. There is the need to minimise the effects of the noticeable bottlenecks in the improvement of quality of care like management inefficiencies, under staffing in remote areas and the unfunctional credit facilities set up for the needy in society. It is also recommended that there should be a simple and selective, but affordable health insurance package for drugs to at least serve as a start for the implementation of the national health insurance policy that has remained a dream for more than a decade.