Browsing by Author "Ofosu-Mensah Ababio, J."
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Item Financial Inclusion, Financial Sector Development and Inclusive Development: Evidence from Frontier and Emerging Markets(University Of Ghana, 2017-07) Ofosu-Mensah Ababio, J.This thesis analyzes financial inclusion, financial sector development and inclusive development with evidence from frontier and emerging markets. It employed the dynamic panel Generalized Methods of Moments (system GMM) approach for the empirical analysis. It examined whether the level of economic development drives or hampers financial inclusion in frontier markets. It finds that income level, financial literacy and healthy lives are the decisive factors for promoting financial inclusion in the banking sector, bond and stock markets. It shows new evidence that the underlying cause of low financial inclusion is low human development. The thesis further examines the role of financial inclusion in financial sector development in frontier markets. It finds that bank account penetration is important for expanding the depth of the banking sector, but it plays no decisive role in expanding the access (breadth) and efficiency of the banking sector. Also, it finds that borrowers’ penetration is very critical for scaling up the breadth of the banking sector. In addition, it shows that ATM penetration is a driver of the depth and the breadth of the banking sector. Besides, it documents empirical evidence that financial inclusion is essential in promoting the depth and access dimensions of bond and stock markets, but it worsens their efficiency. Contrarily, it finds new evidence of developed financial sector promoting financial inclusion. Additionally, the thesis contends that the banking sector and capital market cannot independently drive each other’s progress unless there is the presence of greater financial inclusion. Employing the panel granger causality test, it empirically establishes evidence of a strong two-way causality between the banking sector and bond (debt) market development via the catalytic role of financial inclusion. But a one-way causality in the case of the banking sector and stock market development via the catalytic role of financial inclusion both in the context of emerging markets. Finally, the thesis investigates whether financial inclusion is a precondition for promoting inclusive development in frontier and emerging markets. It empirically shows evidence University of Ghana http://ugspace.ug.edu.gh iv that financial inclusion empower the poor and vulnerable groups to engage in economic activities to obtain basic incomes, healthcare and education. It documents that mobile telephony, and internet are instrumental in promoting greater financial inclusion, developed financial sector and inclusive development. The thesis concludes with empirical evidence that frontier and emerging nations can better promote financial inclusion and inclusive development through banks and capital markets. Financial regulators, supervisors and providers musts therefore, provide affordable, diversified and customized financial products and services through more mobile banking, internet banking, on-line trading and other branchless avenues to promote inclusive finance and development by inclusion.Item Financing Cost and Private Investment in Ghana(University of Ghana, 2010-06) Ofosu-Mensah Ababio, J.; Osei, K.; Kumankuma, S.; University of Ghana, College of Humanities, Business School, Department of Banking and FinanceThis study has investigated empirically the effect o f Financing Cost on Private Investment in Ghana, over the period 1970 - 2008. To this end, the variables used were classified as Cost factors and Non Cost factors o f private investment, using the latter as control variables. The private investment function derived is a variant o f the flexible accelerator principle designed to account for the objective o f the study. It employed the Augmented D ickey-Fuller (ADF) test to address the problem o f unit root faced in time series analysis. The long run estimate o f the private investment function for Ghana was estimated using the Johansen co-integration technique. The Error Correction model was used to determine the short-run dynamics o f the variables used in the model. The study found that all the cost factors (interest rate, inflation rate, exchange rate and budget deficit) had negative and statistically significant impact on private investment in the long run. On the other hand, in the long run. the non cost factors (credit to the private sector, real GDP and public investment) impacted positively on private investment but external debt had adverse effect. The results also found that with the exception o f the stock market variable, all the variables used co-integrated with private investment. The study further revealed that not all the variables used were significant in the long run, since variables such as public investment and external debt had the expected signs but were not significant. This study provided direct evidence that high cost o f financing is associated with low private sector participation in investment activities in Ghana. Accordingly, the study recommended among others that long term policies should be directed towards cost control and macroeconomic stabilization in order to boost private investment in Ghana.