Browsing by Author "Idun, A.A."
Now showing 1 - 2 of 2
Results Per Page
Sort Options
Item Bank Market Power, Financial Innovation and Economic Growth in Africa(University Of Ghana, 2018-07) Idun, A.A.This thesis has four empirical papers. The first paper examines the determinants of bank market power in Africa. The second paper contains analyses of how financial development and financial innovation lead to economic growth convergence between African countries and the world’s technological leader. The second paper also analyzes whether financial innovation lead to economic growth in six sub-regions in Africa. The third paper examines whether bank market with power promote financial innovation that in turn leads economic growth in Africa. The last examines the nexus between bank market power and economic growth using country-level data. The paper also explores how institutional quality factors influence the mechanisms through which banks with market power influence economic growth. Finally, the last paper analyzes how the level of bank market power interact with sub-regional integration to induce economic growth across six sub-regions in Africa. The period of the study spans from 2002 to 2015 and the study includes 44 African countries. The study employs the first difference GMM model to achieve the above objectives. However, in order to analyze finance-growth convergence, the study employs the robust least squares estimation procedure on an averaged cross-sectional data. The results show that bank concentration, bank efficiency, and foreign ownership have negative influence on the level of bank market power. On the other hand, the level of bank stability induces bank market power positively. Moreover, the interaction between: bank concentration and efficiency; bank concentration and access to credits; bank stability and access to credit and foreign bank ownership and access to credits have strong positive effects on the level of bank market power. The results also show that financial development lead to economic growth convergence provided other policy measures are present. Similarly, the study found that the level of financial innovation does not lead to economic growth for the overall sample and the sample below the median level of financial innovation. Finally, the study reports that bank with market power employ screening processes that induce economic growth in Africa. However, the adoption of ATMs by the banks does not induce economic growth which indicates that in the absence of ATMs banks with market power can still channel funds into productive sectors to induce growth. The study therefore provides information on how the banking system development can induce financial innovation toward economic growth in Africa. The results also show that the level of bank market power in Africa induces economic growth. In addition, institutional quality improvement induces positive economic growth and improves the degree at which bank market power affect economic growth. The influence of institutional quality on economic growth however, vary depending on specific institutional factors even when we differentiated the effect of the level of bank market power. In West Africa, banks with market power induce economic growth but the less competitive nature in the banking environment of the other sub-regions does not induce economic growth.Item Dynamic Connectedness between Indicators of the Ghana Stock Exchange Returns and Macroeconomic Fundamentals(Risks, 2022) Idun, A.A.; Isshaq, Z.; Asafo-Adjei, E.; Adam, M.The performance of the Ghana Stock Exchange (GSE) over the years has been susceptible to both crises and country-specific factors reflected in its macroeconomic fundamentals. Accordingly, the GSE composite index (GSECI) has experienced rapid fluctuations across time, coupled with a declining market capitalisation from a reduction in the number of existing firms. The plunge in the number of firms is partly linked to the banking sector clean-up in 2017, which induced the collapse and consolidation of some financial institutions as well as weaknesses in other macroeconomic variables. This ignites an investigation into whether the synergistic impact of listed firms that represent the financial sector and the soundness of banking sector measures are dominant factors that could drive or respond to shocks. Hence, the study investigates the lead-lag relationships and degree of integration among two indicators of the GSE—GSECI and GSE financial index (GSEFI), seven banking financial soundness indicators and eight interest rate measures. The wavelet approaches (biwavelet and wavelet multiple) are utilised to address the research problem. The DCC-GARCH connectedness approach is then employed as a robustness check. We found high interconnectedness between the indicators of the GSE and banking sector financial soundness, relative to the interest rates. Notwithstanding, the Treasury bill measures drive the GSE indicators in the short- and medium-terms. In comparison with the two indicators of the GSE, significant changes are dominant between the GSEFI and the two forms of selected macroeconomic variables. We advocate that the comovements among the indicators of the GSE, banking sector financial soundness, and interest rate measures are heterogeneous and adaptive, especially during crises, but more significant comovements are germane to the GSEFI. The study provides further implications for policy, practice, and and theory