Browsing by Author "Antwi-Asare, T.O."
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Item An Evaluation of Ghana’s Trade and Investment Policy Reforms: Towards Further Commitments to Reforms(African Economic Research Consortium (AERC), Nairobi, Kenya, 2007) Aryeetey, E.; Laryea, A.D.A.; Antwi-Asare, T.O.Item Explaining Interest Rate Spreads in Ghana(2008) Aboagye, A.Q.Q.; Akoena, S.K.; Antwi-Asare, T.O.; Gockel, F.A.The question of the optimal spread between bank lending rates and rates that banks pay on deposits, which is fair to bankers, depositors and borrowers, has dogged economies for some time. In Ghana, there is widespread perception that the spread is too wide. Bankers, on the other hand justify the spread on the basis of economic variables that affect them. This paper contributes to the literature by identifying, in the case of Ghana, the short-run response of the net interest margin of banks to changes in bank-specific, industry-specific and macroeconomic variables within the broad framework of Ho and Saunders (1981). We find that increases in the following factors significantly increase net interest margin — bank market power (or concentration), bank size, staff costs, administrative costs, extent of bank risk aversion and the rate of inflation. On the other hand, increases in the following variables decrease net interest margin significantly — bank excess cash reserves, the central bank lending rate, management efficiency and the passage of time. To help reduce interest rate margins, we recommend that banks should not get too big, the central bank should consider lowering the capital adequacy ratio and banks should be required to pass on to borrowers the full extent of reductions or increases in the central bank lending rate. Continued efforts at keeping inflation at bay will also help.Item Explaining the market power of Ghanaian banks(South African Journal of Economics, 2009-02) Aboagye, Q.Q.A.; Akoena, S.K.; Antwi-Asare, T.O.; Gockel, A.F.A competitive banking system helps lower transaction costs and risks. It also helps make financial markets more efficient. In Ghana however, observers believe that the banking industry is not competitive and point to the huge spread between bank lending and borrowing rates as evidence. The Ghanaian banking industry is analysed for evidence of market power by computing the Lerner Index of banks using quarterly data from 2001 to 2006. The evidence is that Ghanaian banks possess market power. Factors that significantly explain the market power of Ghanaian banks are: bank size, efficiency of banks with respect to staff costs, the macroeconomic environment and time. © Journal compilation © 2008 The Economic Society of South Africa.Item Financial Deepening, Trade Openness, and Economic Growth in West Africa(University of Ghana, 2013-12) Iyke, B.N.; Gockel, A.F.; Antwi-Asare, T.O.The dilemma concerning the choice between austerity and stimulus packages has reignited the finance-growth debate. This study joins the debate to examine the linkages between financial deepening, trade openness and economic growth in selected West African countries. The study looks at the two monetary zones in West Africa, namely the West African Monetary Zone (WAMZ) and West African Economic and Monetary Union (WAEMU). Using a panel data of twelve (12) countries covering 1992—2009 period, the study finds that financial depth, trade openness and economic growth are non- stationary in both WAMZ and WAEMU. This means that the variables cannot be used for policy forecasting, when in their levels. The study also finds that all three variables are not cointegrated in WAMZ and WAEMU; hence, no panel error correction model was required for the causality tests. Finally, the study performs the Granger Panel Causality Test in a trivariate VAR and found that causality runs from financial deepening to economic growth through trade openness for countries of both WAMZ and WAEMU. The study concludes that financial deepening produces positive economic growth. However, this was possible if the trade sector was liberalised to allow global participation in the local markets. It recommends suitable policies that enhance both financial sector and trade sector development, such as the existence of a strong common currency, the liberalisation of interest rates, the reduction in government interference (in both the trade and financial sectors), improved bilateral and multilateral trade agreement which benefits all parties. The study predicts favourable economic growth in both WAMZ and WAEMU when these policies are put in place.Item Fishery Value Chain Analysis: Ghana(FAO. Rome, Italy, 2012) Antwi-Asare, T.O.; Abbey, E.Item Production, Employment and Income Generation in the Basket, Wood Handicraft and Furniture Sectors of Ghana(West African Trade Hub/USAID, Accra, 2010) Antwi-Asare, T.O.; Wassiuw, A.; Bromley, D.Item The Relative Effectiveness of Monetary and Fiscal Policy on Growth in Waemu Countries(University of Ghana, 2013-07) Gafa, D.W.A.; Laryea, A.D.A.; Antwi-Asare, T.O.In order to promote sustainable economic growth, there is a need for WAEMU countries to implement an appropriate policy mix. The study empirically analyses the relative effectiveness of monetary and fiscal policy on economic growth in WAEMU countries. The investigation of the relative effect of both policies was done in an unrestricted vector autoregressive VAR framework which was based on a modified version of the St Louis model. The VAR model was analysed using the Impulse Response Functions (IRFs) and Variance decompositions (VDCs). The results showed that in WAEMU countries, the effect of fiscal policy on growth is more important and lasting relative to monetary policy. However, due to the differences in their macroeconomic structure, the effect of both policies on growth in terms of sign and magnitude differs from one country to the other. Promoting growth in WAEMU countries would therefore require the implementation of reforms to improve the quality of public spending. Furthermore, economic reforms to improve liquidity trading, strengthen financial intermediation and reduce excess liquidity in the financial market would help increase the effectiveness of monetary policy in the zone.Item Simulating the Impact of the Global Economic Crisis and Policy Responses on Children in Ghana. Country Report(Innocenti, Florence, Italy, 2010) Akoena, S.K.; Aboagye, A.Q.Q.; Antwi-Asare, T.O.; Gockel, A.F.; Hester, S.Item A Study of Bank Efficiencies in Ghana(2012) Akoena, S.K.; Aboagye, A.Q.Q.; Antwi-Asare, T.O.Reform of the financial system in Ghana started in the late 1980s. To date, the foreign exchange market and interest rate regimes have been liberalized; distressed banks have been restructured and the range of financial services available have been diversified. Reform has also meant a more liberal approach to bank licensing. As a result, the number of banks in the economy has increased, so has bank-intermediated debt. There is now some integration of the Ghanaian financial system with the global economy. The central bank however believes that the capital bases of the banks are too low and too shallow to support significant lending. To address this situation it proposes to increase the minimum capital requirements of banks nine fold over a maximum of four years (two in some cases). This study investigates the technical efficiency and economies of scale of Ghanaian banks to obtain a sense of what might happen to efficiencies in the industry when banks get bigger. Have large banks been more efficient than small banks? A data enveloping analysis was performed on annual bank data from 2000 to 2006. Findings suggest that the technical efficiencies of large banks as a group, and small banks as another are similar. However, the findings also suggest that small banks have larger scale efficiencies than the big banks. The implication of this is that (on the average at least) the large banks in Ghana are more removed from the point of their lowest average costs than the small banks and the central bank should be careful about encouraging banks to get bigger if its objective is to improve scale efficiency.Item The Tomato and Rice Value Chains in Ghana(Ghana Trade and Livelihoods Centre, Accra Ghana, 2010) Antwi-Asare, T.O.