Browsing by Author "Iddrisu, A.G."
Now showing 1 - 4 of 4
Results Per Page
Sort Options
Item Effective monetary policy, banks’ pricing behaviour and human development in Africa(International Journal of Banking Accounting and Finance, 2022) Iddrisu, A.G.; Abor, J.Y.; Andani, A.This paper empirically examines the effect of monetary policy effectiveness on human development in Africa. We employ both micro-bank level and macro-country-level data. Bank-level data is taken from the bank scope database maintained by Fitch, IBCA, and Bureau Van Dijk. Series are yearly, covering a sample of 320 banks across 29 African countries. Panel fixed effects, random effects and IV regressions were estimated for the period 2002 to 2013. For our IV estimation, the paper explores an instrumental variable based on the fact that effective monetary policy is conditional on the independence of the central bank. The regression results that ensued suggest that first, effective monetary policy translates to high banks’ loan and deposit prices. Building on these results and employing various specifications of banks’ pricing strategy, the second test suggests that high banks’ pricing induced by effective monetary policy tends to increase human development. Results of the net effects eventually suggest that effective monetary policy, overall, does not improve human development.Item Is political business cycle an enemy to human development? Empirical evidence from Africa(Journal Economic and Political Studies, 2019-01-10) Iddrisu, A.G.; Mohammed, J.I.Extant literature has argued that, with major extension of democracy since the 1990s, political business cycle has become more intense and has made African political systems more fragile. In light of this, this paper examines both the existence of African political business cycles and their impact on human development. It confirms the existence of political business cycles in Africa. Estimates of a panel fixed effects and system-GMM regression techniques for 38 African countries from 1990 to 2015 also suggest that such cycles worsen human development in African countries. This finding is consistent if we limit our analysis to various sub-regions of Africa, and also at two different income levels.Item Political business cycles and economic growth in Africa(Journal of Economic Studies, 2018-01) Iddrisu, A.G.; Bokpin, G.A.Purpose The purpose of this paper is to understand both the incidence and the impact of the African political business cycle (PBC) in the light of a literature which has argued that, with major extensions of democracy since the 1990s, the cycle has both become more intense and has made African political systems more fragile. It answers two very important macroeconomic questions crucial to the validity of the opportunistic model. It, first, answers the question of whether election cycles contribute to money growth in the light of government expenditure, and second, whether election cycles have an effect on economic growth in the light of money supply. Design/methodology/approach The study employs data from 39 African countries from 1990 to 2014 to address these important empirical questions using panel regression techniques. Findings The paper found PBC to be present in Africa. It also found that such cycles do not translate to economic performance in African countries. The paper therefore indicates the need for African policy makers to take measures to eliminate or lessen the scale of PBCs. Social implications There are many ways in which today’s political choices affect future well-being. Recently, economists have concluded that we pass on the inflationary (or deflationary) consequences of current policies to the future generation. Originality/value This paper is unique in its approach to investigate the objectives.Item Political business cycles, bank pricing behaviour and financial inclusion in Africa(Cogent Economics & Finance, 2020-05-13) Turkson, F.E.; Iddrisu, A.G.This paper analyses financial inclusion in Africa focusing on the role of political business cycles and pricing behaviour of banks. We employ a sample of 330 banks operating in 29 African countries to test for two related hypotheses. Panel fixed and random effects were estimated for the period 2002 to 2013. The regression results that ensued suggests first that loan price increases in pre-election and election years. Building on this result and employing various specifications of financial inclusion, the second results suggest that, high bank loan prices in election years tend to increase financial access more, compared to non-election years, and that, high deposit price reduces financial usage but increases financial access in election years, compared to non-election years. By extension, these results have important policy implications for policymakers.