Browsing by Author "Turkson, F.E."
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Item Debt Capital Structure and Credit Information Sharing: Evidence on Listed Firms from an Emerging Market(Journal of African Business, 2020-04-01) Kusi, B.A.; Dzeha, G.; Gyan, K.K.; Turkson, F.E.This study examines the effect of credit information sharing on debt financing structure of listed firm on the Ghana Stock Exchange market between 2003 and 2013. Employing a panel data of 20 listed non-financial firms in Ghana in robust ordinary least squares, random effect and fixed effect models, findings are presented on how information sharing affect debt financing structure. Findings show that information sharing, coverage quality and the presence predominantly promote short-term debt financing options while these at the same time detract long-term debt financing options. While the positive nexus between credit information sharing and short-term debt financing confirms the information asymmetry and information sharing theories, We attribute the negative nexus between credit information sharing and long-term debt financing options to the shallow and weak nature of credit information sharing activities and institutions; hence making it difficult to permeate risks and uncertainties surrounding long-term financing options. This is an indication that credit information can increase access to debt financing for firms. These findings imply that policymakers must enact policies and laws that deepen, expand and enhance the coverage and quality of credit information in order for the full potency of information sharing can be realized on the debt financing structure of firms.Item Do Remittances Matter in Accelerating Labour Productivity and Capital Accumulation?(Springer, 2017) Dzeha, G.C.; Abor, J.Y; Turkson, F.E.; Agbloyor, E.K.In this paper, we examine the effect of remittances on labour productivity and capital accumulation through various channels. Our panel includes 25 African countries with data from 1990 to 2013. We employ the two-step generalized methods of moments estimator. The main results from this study are that remittances on their own do promote labour productivity but not capital accumulation. Indeed, remittances are observed to have a positive impact on labour productivity and a negative impact on capital accumulation. Moreover, remittances do not promote labour productivity in the presence of high natural resource endowment. The effect of remittances on labour productivity is not clear when we interact remittances with life expectancy. Further, remittances tend to promote capital accumulation in the presence of high quality human capital. Policies that promote remitting through formal channels will aid directing remittance inflows into productive investments thus encouraging labour productivity.Item An Empirical Investigation of Per Capita Income Convergence Hypothesis in Sub-Saharan Africa(University of Ghana, 2013-06) Aboagye, S.; Gockel, A.F.; Turkson, F.E.The incidence of cross-country per capita income convergence has been debated for long by economists; all in the attempt to either validate or reject the per capita income convergence hypothesis as predicted by the Human capital - augmented Solow model (HC-ASM). However, researchers seem to have given little attention to Sub-Saharan African (SSA) in this ongoing discourse despite the wide per capita income disparity gap in the region. This present study fills this gap by conducting an empirical investigation of per capita income convergence hypothesis in SSA based on the strict assumption of a closed economy without government activities of the HC-ASM. The hypothesis is further tested by relaxing these restrictive assumptions specifically, by including into the basic model, government spending, FDI and openness to trade. Using panel dataset on 37 SSA countries selected mainly on the basis of data availability, the study examined the convergence hypothesis employing panel Generalized Least Squares from 1980 to 2010. The study established per capita income divergence among the countries in SSA, with the level of divergence increasing with the inclusion of FDI, trade openness and government spending into the basic model. These findings are in complete disagreement with the prediction of the HC-ASM and further suggest that regardless of the presence of FDI, trade openness and government spending per capita income disparity gap among countries in SSA tends to widen. Against these findings, it is recommended that poorer countries in SSA should urgently make pragmatic policies to attract FDI and make efficient utilization of these resources to reduce the per capita income gap since FDI was found to positively impact on per capita income growth in SSA.Item Financial Development and the Social Cost of Financial Intermediation in Africa(Journal of African Business, 2018-03) Gyeke-Dako, A.; Agbloyor, E.K.; Turkson, F.E.; Baffour, P.T.This article investigates the effect of financial development on the social costs of financial intermediation across a large number of banks in Africa. The study distinguishes between countries that are financially developed and those that are not financially developed to examine the impact of financial development on the social costs of financial intermediation. A sample of 260 banks from 29 countries in Africa is used over an 8-year period from 2006 to 2013. We employ both Random Effect and GMM techniques to resolve the issues of unobserved heterogeneity and endogeneity. We observe that overall, financial development reduces the social costs of intermediation. We also determine that the social costs of intermediation are lower for countries that have more developed financial systems compared to those with less developed financial systems. Our study is useful because it suggests that if countries want to reduce their social costs of intermediation, they should develop their financial systems.Item Industrial policy in Ghana: Its Evolution and Impact(Oxford University Press, 2016) Ackah, C.; Adjasi, C.; Turkson, F.E.This chapter chronicles the evolution of industry in Ghana over the post-independence era from an inward overprotected ISI strategy of 1960–83 to an outward liberalized strategy during 1984–2000, and since 2001, to the private sector-led accelerated industrial development strategy based on value-addition. Industry in Ghana is mainly dominated by micro and small firms, privately owned and mainly located within urban areas in the form of industrial clusters. Patterns of labour productivity and wages indicate the food processing sub-sector, foreign owned and older firms as the most productive. The emerging policy issues from Ghana’s current industrial policy include how to empower SMEs to expand productive employment and technological capacity within a highly competitive manufacturing sector; how to promote agro-based industrial development to ensure value-addition to manufactures and Ghana’s exports among others.Item Influences of parental occupation on children’s occupational choices(International Journal of Social Economics, 2023) Rahaman, W.A.; Mohammed, I.; Turkson, F.E.; Baffour, P.T.Purpose – This study examines the relationships between parents’ and children’s occupations to determine the existence of intergenerational transmission of occupations. Design/methodology/approach – To achieve the purpose of the study, four predominant occupational types based on the International Standard Classification of Occupations (ISCO): agriculture and forestry; services and sales; managerial/administrative; and professional/technical are examined using data from the latest (7th) round of the Ghana Living Standards Survey (GLSS). Two complementary methods involving the correlational analysis and regression-based techniques are used. Findings – The findings indicate the presence of parental influences on children’s occupational choices (same sex and cross-sex) in the Ghanaian labour market, with maternals and same-sector effects having a more substantial influence on children’s occupational choices, especially in agriculture and forestry, and services and sales sectors. Research limitations/implications – The lack of panel data in observing children’s occupational choices over time makes it challenging to assume direct causation. Originality/value – The study is the first to highlight the relative strengths of paternal influence (father’s effect) and maternal impact (mother’s effect) on sons’ and daughters’ occupational choices in Africa. The findings have several implications for intergenerational (im)mobility of occupations including how policymakers can make career guidance more effective. Peer review – The peer-review history for this article is available at: https://publons.com/publon/10.1108/ IJSE-10-2022-0705Item Integration and regional trade in sub-saharan africa(Handbook on Trade and Development, 2015) Turkson, F.E.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.Item The role of formal and informal finance in the informal sector in Ghana(Journal of Small Business and Entrepreneurship, 2020-02-14) Turkson, F.E.; Amissah, E.; Gyeke-Dako, A.Within the developing world, especially Sub-Saharan Africa (SSA), informal (small and medium) enterprises’ (SMEs) access to financing has been extremely limited mainly because of the reluctance of banks and other formal financial institutions to lend to such firms. The impact of this challenge on their growth trajectory has remained relatively indeterminate. This study examines the differential impact of sources of finance on the growth of informal firms in Ghana. We employ the Heckman Selection Technique (HST) to model the selection process of firm financing choices and reverse causality problem. By making use of the World Bank’s enterprise survey data on 720 informal firms in Ghana from 2007 – 2010, we find that formal sources of finance, compared to informal sources, are superior in their impact on firms in Ghana. Formal finance institutions, with their ability to provide more than just finance, positively affect firm growth. This result has an important policy implication for the current focus of Government of Ghana in promoting indigenous entrepreneurship through initiatives that will enhance access to financial support of local enterprises in Ghana. In view of this, this study proposes that Government policy towards formal financing institutions and their lending to informal sector need adjustments to provide incentives that will encourage increased lending to informal firmsItem Trade costs(Handbook on Trade and Development, 2015-05) Turkson, F.E.Item Trade Logistics, Trade Costs and Bilateral Trade Within Sub Saharan Africa – A Panel Estimation(University of Ghana, 2014-07) Nutor, R.S; Assibey, E.O; Turkson, F.E.; University of Ghana, College of Humanities, School of Social Sciences , Department of EconomicsWorld trade has expanded over the last few decades, but the trade within Africa especially among Sub-Saharan African (SSA) countries has been low. Globally there has been a reduction in tariff rates, reducing trade costs in general, but the SSA region still records the high costs of trade as compared to other developing regions and this has hindered the flow of trade within the region (World Bank Doing Business report, 2013). SSA’s poorly developed trade logistics in the form of poor infrastructure, weak institutions, and trade facilitation have largely accounted for the region’s high trade cost (Turkson, 2011; Heokman and Nicita, 2008). Using a logistics augmented gravity model, the study analyzes the impact of improvements in trade logistics performance (aggregated and disaggregated) on the volume of bilateral trade between countries in SSA over a period 2007 to 2012. With three rounds of the Logistic Performance Index (LPI) published by the World Bank, and trade indicators from UNCOMTRADE and CEPII, the Hausman Taylor estimation results indicate a positive impact of logistics performance improvements of exporter country on volumes of bilateral trade among countries in SSA over time. Findings recommends the need for both private and public institutions that have direct or indirect influence on infrastructure and trade facilitation to develop innovative approaches to help tackle the challenges of high transport and transaction costs, and weak institutional capacities facing many countries in SSA, as a means of boosting trade within the region, increasing their ability to compete in the global economy and attracting Foreign Direct Investment (FDI).