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Item Reinsurance and Financial Performance of Non-life Insurance Companies in Ghana(Management and Labour Studies, 2021) Andoh, C.; Yamoah, S.A.The study examines how premiums ceded to a reinsurer affect the profitability of non-life insurance companies in Ghana. Secondary data on reinsurance ceded, combined ratio, assets, liabilities, and return on assets for 20 non-life insurance companies over the period 2008–2018 were sourced from the National Insurance Commission whilst interest and exchange rate variables were obtained from the Bank of Ghana. A panel regression model was employed for the analysis of the data collected. The results show that purchasing high levels of reinsurance alone does not affect the profitability of non-life insurance companies, but the combined effect of reinsurance and solvency ratio significantly impacts their profitability. Managers of non-life insurance companies in Ghana should increase their ability to repay all financial obligations in the short, medium, and long term in combination with reinsurance. This will enable insurers to stabilize growth, earn profits, and meet their obligations to policyholders in a timely fashion.Item Financial globalization and institutions in Africa: the case of foreign direct investment, central bank independence and political institutions(Journal of Institutional Economics, 2020) Agoba, A.M.; Agbloyor, E.; Gyeke-Dako, A.A.; et.alIn this paper, we examine the bi-directional relationship between financial globalization (proxied by foreign direct investment (FDI) flows) and economic institutions (proxied by central bank independence (CBI)) taking into consideration the role of political institutions. We test our argument on a sample of 48 African countries (1970–2012) using a two-step System Generalized Methods of Moments, with collapsed instruments and Windmeijer robust standard errors. Using two proxies for CBI, the study finds that while legal CBI does not have a significant impact on FDI, high central bank governor turnover rates have a significantly negative impact on FDI inflows. However, higher levels of political institutions significantly enhance the impact of legal CBI on FDI inflows, and dampen the impact of high central bank governor turnover rates on FDI inflows. The study also shows that higher FDI inflows have a significantly positive impact on both legal and de facto CBI. This impact is accelerated in countries characterized by higher levels of political institutions.Item Fiscal rules, fiscal performance and economic growth in Sub‐Saharan Africa(African Development Review, 2021) Nabieu, G.A.A.; Bokpin, G.A.; Osei, A.K.; Asuming, P.O.Over the past four decades, many economies have striven to find permanent solutions to persistent increases in public deficits and deterioration of growth. For most economies, the solution to this problem was the adoption of fiscal rules. This paper presents empirical evidence on the effects of fiscal rules on fiscal performance and economic growth using a dataset of 43 countries in Sub‐Saharan Africa over 27 years. The study applies simultaneous equation models to determine the relationship between performance and growth in the public sector and also to avoid structural equation and endogeneity biases. The results show that fiscal rules significantly foster fiscal performance and decelerate growth. The study further finds the expenditure rules to be most effective in influencing fiscal balance and economic growth. The robust estimates further confirm that expenditure rules and government spending efficiency are necessary for promoting fiscal outcomes and economic growth. The study recommends the implementation of more revenue rules, debt rules, and balance budget rules to ameliorate the negative effects of government spending on economic growth. In addition, Sub‐Saharan African economies should carefully consider the rules applied to government spending since fiscal rules on productive spending will impede economic growth.Item Stock Market Reaction To The Recent Banking Reforms: Evidence From The Ghana Stock Exchange.(University Of Ghana, 2020-06) Azina-Nartey, K.N.This study examines the reaction of the Ghana Stock Exchange to the recent banking reforms and tests the semi-strong form efficiency of the GSE. Daily stock returns of listed companies and market returns consisting of both GSE composite index and GSE financial stock index are analyzed for all listed companies and listed financial institutions respectively. It employs event study methodology and cross-sectional regression. Market model is used in this study. Evidence is found of a reaction in the GSE to the banking reforms. On the event date, which is the announcement of the increase in the minimum capital requirement of banks, positive returns were made by investors. The reason for this reaction could be as a result of high anticipation among the investors that the recapitalization exercise would boost the financial system. This resulted in the demand of shares to rise during this period ensuing in more investors buying shares than selling thereby causing stock prices to rise. Investors who held shares during this period earned positive returns on their investment. The positive impact on share prices could also be attributed to banks issuing shares to raise the extra capital and investors buying those shares thereby giving rise to an increase in the demand of shares triggering share price to increase. Additionally, in the cross-sectional regression, the Market model shows a positive relationship between Cumulative Abnormal Returns and Abnormal Returns for both GSE CI and GSE FSI. The upward movement of Cumulative Average Abnormal Returns represents investors earning positive returns. The prevalence of significant abnormal returns infers that some investors were able to spot mispriced shares springing from inadequate circulation of information in the stock market and earn abnormal returns by taking either a short position or long position. This should not have been the case in an efficient market which would have limited the occurrence of some investors gaining. In addition to that, some investors made significant abnormal returns even days after the event date. Generally, from the results, the Ghana Stock Exchange is found to be inefficient in the semi-strong form. The study recommends that regulators should be cognizant of the impact of their policies on the stock market in order to improve liquidity in the Ghanaian stock market. Keywords: Banking reforms, Bank recapitalization, Semi-strong form market efficiency, Event study, Market model, Cross-sectional regressionItem The Impact Of Income Inequality On Economic Growth In Sub-Saharan Africa(University Of Ghana, 2021-12) Brehini, E.The main focus of this research is to examine the impact of income inequality on the economic growth using the Palma ratio and Gini index. The scope of the study is Sub-Sahara African countries. The two-step System Generalized Method of Moment (GMM) estimator was used in analyzing secondary panel data of 47 SSA countries spanning from 2000-2018. The Palma ratio and Gini coefficient were used as a measure for income inequality. After measuring the effect of unequal access to finance, unequal access to the labour market, and unequal access to education on income inequality, the outcome of the study revealed that, unequal access to finance had a positive and significant effect on the income inequality, unequal access to the labour market had a positive and significant effect on income inequality and unequal access to education also had a positive effect on income inequality. Also, the study found that government expenditure and fertility rate had significant and mitigating effect on income inequality. Population growth rate had negative and significant effect on income inequality. In measuring the effect of income inequality on economic growth, the result revealed that, income inequality had a negative and significant effect on economic growth. Furthermore, unequal access to finance, unequal access to the labour market, and unequal access to education negatively and significantly affected economic growth. Government expenditure and fertility rate had negative and significant effect on economic growth. The study recommends that much attention be given to unequal access to finance, labour market, and education because of their association with income inequality and economic growth. They tend to increase income distribution disparities and lower the economic growth of Sub-Saharan African countries. Keywords: Income Inequality, Economic GrowthItem Assessing The Multi-Directional Efficiency Analysis Of Ghanaian Insurers In The Presence Of Undesirable Output(University Of Ghana, 2022-01) Addo, D.A.A.Insurance contributes to a country’s economic growth and development. However, despite the plethora of insurance efficiency studies in literature, there are very few insurance efficiency studies in Ghana. Besides, insurance penetration is yet to grow significantly in Ghana, even though various reforms have been enacted to increase insurance penetration and insurance efficiency in Ghana. This study seeks to evaluate the aggregated and disaggregated efficiencies of insurers in Ghana over a sample of 30 insurers from 2008 to 2019, using the non-oriented non-radial multi-directional efficiency analysis and to investigate the impact of competition, leverage, size, solvency, profitability, insurer type and underwriting risk on MEA insurance efficiencies using robust econometric models. The study data was obtained from the audited financial reports submitted to the NIC. The results confirmed the distortions in insurance efficiency assessment when undesirable outputs are excluded from insurance efficiency estimation. Among the insurer variables, investment income was identified as the worst performing output variable, reducing the overall performance of insurers. Claims was identified as the best performing variable followed by labour. Among the insurance groups, life insurers were observed to be performing significantly well on its aggregated and disaggregated efficiencies than the non-life insurers. Finally, the previous year’s overall performance of insurers and the level of competition were identified as the determinants of MEA insurance efficiency in Ghana. The inclusion of claims as an undesirable in insurance efficiency assessment enables insurance regulators identify the true efficiency levels of Ghanaian life and non-life insurers. Key words: Claims, Insurance, Multi-Directional Efficiency Analysis, Second-Stage Analysis, Undesirable Output.Item Trade Mis-Invoicing And Abusive Transfer Pricing In Ghana’s Commodity Sector(University Of Ghana, 2022-07) Alu, A.A.This thesis contributes to the limited empirical analysis of the volumes of Illicit Financial Flows (IFFs) through trade mis-invoicing recorded in exports from Ghana. The thesis examines the volumes of illicit financial flows through trade mis-invoicing in five top export commodities of Ghana, namely: gold, cocoa beans, cocoa paste, bauxite, and manganese. It answers the questions of what the value chains and the risks for IFFs for those commodities are, how much trade mis-invoicing there is in these important export commodities and what the determinants for trade mis-invoicing are in those commodities. The study uses the Partner Country Trade Gap (PCTG) method to measure trade mis-invoicing with macro macro-level statistics from the UN COMTRADE Database as an initial step to determine the presence of trade mis-invoicing, followed by the Price Filter Method, which has been shown to provide more accurate estimates of IFFs due to the use of transaction transaction-level data. The thesis employs transaction-level data from the Customs Division of the Ghana Revenue Authority in generating the estimates of trade mis-invoicing for the Price Filter Method. The study ends with a regression analysis of the determinants of IFFs in the selected commodities. The value chain analyses of the commodities show that risks for IFFs arise mainly from transfer pricing due to multinational firms’ international trade operations. Other risk factors include artisanal, small-scale, and informal firms, regulatory infrastructure for verifying export valuation and transit trade from neighbouring countries. The estimates of trade mis-invoicing generated using the transaction level data from Ghana Customs with the price filter methods indicate that: 18.87% of bauxite exports, 11% of gold exports, 7.2% of cocoa paste exports, 1% of cocoa bean exports and 0.65% of manganese exports were undervalued while 0.2%, 0.9% 3.2%, 4.7% and 2.4% of gold, cocoa beans, cocoa paste, bauxite and manganese exports respectively were over-valued from 2011 to 2017. Overall, the results indicate the presence of trade mis-invoicing in Ghana’s commodity exports. In analyzing the determinants of trade mis-invoicing in the selected commodities, the study finds that for undervaluation, GDP growth, Current Account Balance and the Exchange Rate have some influence while the Current Account Balance, Inflation, Tax Differential, GDP growth, Transfer Pricing Risk and Transfer Pricing Rank have some influence in the overvaluation observed. The study has the following policy implications. First, it recommends that policymakers need to prioritize the development of institutional expertise to map, control and block the sources of the resulting tax base erosion as a result of trade mis-invoicing. Second, there is a need to improve data collection capacity of the various institutions engaged in the export of these commodities, greater co-operation among the various institutions in these sectors to reconcile data collected and constant skills improvement of personnel of these units. Finally, information and communication technology tools, especially computers, relevant software and access to critical databases also need to be upgraded to match those of the private sector actors in order to ease tax assessments and payments tracking.Item Disillusionment And Survival In African Migration Literature: A Study Of Okey Ndibe’s Foreign Gods, Inc. And Unoma Azuah’s Edible Bones.(University of Ghana, 2020-10) Brobbey, G.The phenomenon of human migration, as Marie McAuliffe and Marfin Ruhs (2017) agrees, “stretches back to the earliest periods of human history” (1). Human migration in the modern world has been massively enhanced by the ease of mobility due to the massive advancements in transport technology. People tend to migrate from one part of the globe to another where they hope to achieve better socio-economic life, or where they can be free from persecution and conscription. The compelling phenomenon of migration have found expression in African literature of the past and the present. This thesis analyses the experiences of African migrant characters in Okey Ndibe’s Foreign Gods, Inc. and Unoma Azuah’s Edible Bones. The disillusionment of the migrant characters as well as their strategies of survival forms the main stay of the study. Drawing on the conceptual framework of the new African diaspora, this study focuses on the diasporic experiences of what Ali Mazrui (2001) calls “the diaspora of colonialism”, Africans who voluntarily migrate to the United States of America. The study shows that creative writers do provide important insights into the conditions of African migrants in the West. From the analysis in this study, one realizes that the issues of unemployment, racism and the difficulty of acquiring legal documents to live and work in the United States stand out as part of the major causes of disillusionment among African immigrants. Both writers present return migration as a better option than chasing after an American dream of success which, like a mirage, is endlessly shiftingItem Assessing The Impact And Challenges Of Mobile Money: A Case Study Of University Of Ghana(University of Ghana, 2019-07) Addo, G.A.N.The significant role technology plays in boosting societies’ development cannot be overlooked. Mobile phone has been recognized as an important technology that has an impact on the lives of its users and the country at large. Mobile money service is one of the innovative products available to users of mobile phones. Accordingly, students find joy in using mobile phones due to its usefulness when it comes to retrieving information, and recently, the usage of mobile money. Against this background, this study analyzed the impact and challenges of mobile money use among students in the University of Ghana. The study obtained data solely from primary sources using questionnaires and semi-structured interviews to capture information from four hundred (400) students. Both descriptive analysis and the Person’s Moment Correlation Analysis were carried out to analyze the data. The result revealed that “perceived ease of use” of the mobile money service is the key factor that drives the use of the service among students in the University of Ghana. Thus, saving some money on your mobile money wallet is not only safe, but very convenient as well. Also, it has been shown that all the correlation coefficients on the impact of mobile phone use on savings, expenditure and safety were positive and significant, with savings having the greatest impact. Furthermore, majority of the students think that the main challenge with the mobile money service is the individuals’ preference in using cash for the payment of goods and services instead of mobile money. Finally, the findings from this study have managerial implications: network service providers need to sensitize their public education activities on how mobile money technology operates and its usefulness. Also, a system upgrade can ensure that their mobile money system is reliable for subscribers and make using the system convenient.Item Factors Influencing Liquidity Of Banks Listed On The Ghana Stock Exchange(University of Ghana, 2019-07) Adu, F.The conduction of this study involves regressing some specific external and internal factors on the dependent liquidity function which is, liquid assets to the total asset (LIQ) for the 11-year period from 2007-2017 of 8 Ghanaian banks listed on the stock exchange. Two separate analyses, fixed effect, and random effect panel regressions were conducted during the analyses of the study with the Hausman test performed to choose the best among the two. The result showed that bank size is the only bank-specific variable that positively affects liquidity at 5% significant level whilst capital adequacy, profitability, management efficiency did not show any significant impact on liquidity. In addition, inflation rate, exchange rate, GDP and unemployment significantly influenced liquidity, though inflation and GDP exhibited a positive impact whiles exchange rate and unemployment had a negative impact at that same level of significance. The variables highly explained variations on commercial banks liquidity as indicated by the coefficient of determination of 0.8083. The study recommended banks consider both the external settings and internal factors simultaneously in developing strategies for managing their liquidity position efficiently and the constant reviewing of such policies and directives by Bank of Ghana, as the macroeconomic factors continue and frequently varies in making sure they add to economic growth.Item Examining The Relationship Between Electricity Consumption And Economic Growth Of Ghana.(University of Ghana, 2019-07) Amoako, F.An important goal of government agricultural sector policies is to improve food security through high agricultural production and job creation. Implementation of the flagship policy of the government of Ghana dubbed the ―Planting for Food and Jobs‖ started in 2017. After three years of implementation, the study sought to examine whether the policy has impacted on food security among smallholder farmers in the Wa West District of the Upper West Region. The study also examined the kind of on-farm jobs created, youth involvement as well as the experiences of farmers with the programme. The study employed a quasi-experimental cross-sectional survey design involving semi structured questionnaire administered to 200 farmers of whom 62 represented the participant group and 138 the non-participant group. Logit regression was employed to identify the factors that determine household participation in the programme. Age, education, capital access, monthly income, infrastructure, community group association and assets were found to have statistically significance in association with the probability to participate in the Planting for Food and Jobs Programme. A propensity score matching technique was applied to assess the impact of the programme on food security. At the end of the survey, participation in the PFJ has a significantly higher average food security than the non-participantsItem Examining The Determinants Of Employee Fraud And The Effectiveness In Managing Employee Fraud In The Banking Sector Of Ghana: The Case Of Some Selected Universal Banks In Ghana(University of Ghana, 2019-06) AndersonThe general objective of this research was to examine the determinants of employee fraud in the banking sector of Ghana, using some selected universal banks as the case study. These objectives included ascertaining factors that drive employee fraud among universal banks in Ghana, examining the effectiveness of managing employee fraud among the universal banks in Ghana and identifying the challenges confronting the universal banks in the management of employee fraud in Ghana. The study was limited to selected local and foreign banks in Ghana. They included the GCB Bank, the Consolidated Bank Ghana, Ecobank Ghana Limited, and Access Bank Ghana Limited. The study targeted bank staff within the Greater Accra region of Ghana, comprising of both management and non-management staff. The research analysed the previous related studies by focusing on the theoretical reflections of the problem under investigation, examining the conceptual framework, and reviewing the extant empirical literatures with regards to the determinants of employee fraud in the banking sector of Ghana. The literature review revealed four factors that drive employee fraud in the banking sector, the four factors include opportunity, rationalization, pressure and capitalization. The respondents indicated that, all the four factors were key determinants of employee fraud in the banking sector of Ghana (M=3.58, SD=0.79). They all agreed that opportunity, rationalization, pressure, and capability were the key factors driving employee fraud in the banking sector of Ghana. The overall significance level of 0.3% further indicated that majority of the respondents agreed to all the issues raised with regards to the factors that were likely to drive employee fraud within the banking sector of Ghana. The research recommends that, structures must be put in place in order to reduce staff involvement in the fraud practices in the banking sector of Ghana and these structures include counseling sessions, strengthening its control measures, reviewing feedbacks from staff concerning operational issues and introduction of a quality control department in the banks. University of Ghana http://ugspace.ug.edItem Risk Attitudes, Entrepreneurship Decision And Financing Preference: Evidence From Non-Farm Household Enterprises In Ghana(University of Ghana, 2020-07) Gaisie, D.A.Several theories in economics and finance suggest that risk attitudes perform a vital role in economic choices, including being an entrepreneur and the choice of finance for businesses. However, there are a limited number of empirical tests of these theories in the African context, where majority of firms are small and medium-scale enterprises. Using the 7th round of the Ghana Living Standards Survey (GLSS 7), this study characterizes the risk attitudes of Ghanaians and also estimates the influence of risk attitudes on the choice to own a household enterprise and the choice of financing by owners of household enterprises. Using a Probit model to investigate the relationships, the results show that a high fraction of Ghanaians are risk averse. Specifically, females, married persons, people in the poorer wealth quintiles, Muslims, craft workers and individuals from urban coastal areas have a higher likelihood of being risk averse. The study finds that risk aversion has an impact on entrepreneurship: individuals who are risk averse are 7 percentage points less likely to own household enterprises. The study also finds that risk averse business owners are 5 percentage points less likely to self-finance their businesses at the start-up stage. While risk aversion has no significant impact on using loan financing as working capital, the wealth of the enterprise owner, the age and size of the enterprise were found to be significant predictors of using loan financing as working capital. The findings from this study suggest that risk attitude plays a strong role in entrepreneurial decision. Also, as risk averse owners are dependent on external finance at the early phase of business growth, strengthening access to capital has the potential of improving entrepreneurship at the household level. The findings largely hold when Propensity Score Matching technique is employed to address potential endogeneity issues. On the whole, the paper highlights that policies that target small enterprise development shouldItem Examining The Link Between Market Power In The Telecommunication Industry And Financial Inclusion In Ghana(University of Ghana, 2020-07) BaidooIt is increasingly acknowledged that the telecommunication industry plays a crucial role in enhancing financial inclusion with a considerable literature that explores the relationship between market power in the telecommunication industry and financial inclusion. The purpose of this study is to examine the link between market power in the telecommunication industry and financial inclusion in Ghana with a focus on the mobile financial service. The study uses secondary sources spanning the period 2012 to 2018, from the World Development Indicators (2018) and annual reports of the National Communication Authority and payment systems reports of the Bank of Ghana. Both descriptive analysis and the Person’s Moment Correlation Analysis were carried out to analyse the data. The result reveals that there is an upward trend in market power in the telecommunication industry. The trend shows the existence of an oligopolistic market structure which is featured by a leading position of two mobile network operators (MTN and Vodafone) in the period under consideration. The study also reveals a persistent increase in the use, value and volume of the mobile money service, which signifies that a lot of the populace is now financially included which can be a step leading to achieving a cashless economy. Furthermore, it is shown that financial inclusion (i.e. active number of users and volume of mobile money transactions) has a positive and significant impact on the payment system (value of mobile money transactions). Moreover, for the macroeconomic variables, population growth has a negative effect, gross national income has a positive effect, whilst literacy rate has an insignificant effect on financial inclusion and payment system in Ghana. Therefore, the regulators should put in place holistic and sustainable mobile money/payment policy actions (revising the e-money issuer guidelines by the Bank of Ghana) which will incorporate mobile money services into all financial operations and sectors within Ghana.Item Does Trade Enhance Inclusive Growth? Empirical Evidence From Africa(University of Ghana, 2020-07) Osei, A.ABSTRACT In March 2018, Africa created the largest free trade zone by membership. The African Continental Free Trade Agreement (AFCFTA) is expected to promote intra-regional trade, particularly among small scale enterprises hence greater inclusive economic growth. In this study, the researcher explored the relative impact of intra-regional trade and extra-regional trade on inclusive growth, measured by using the Asian Development Bank (AsDB) framework. Using data from 46 African countries covering 1995 to 2016, we estimated the impact of disaggregated trade flows (intra-regional trade and extra-regional trade) using the Spatial Tobit Panel Generalised Method of Moment (STPGMM) Estimator. The STPGMM allows us to control for potential spatial effect while eliminating potential biases and inconsistencies that may result from the tobit effect. The empirical evidence indicates that there is a significant positive relationship between both intra-regional and extra-regional trade and inclusive growth. In terms of magnitude, the evidence also indicates that the effect of extra-regional trade is higher compared with intra-regional trade on inclusive growth. Besides, the difference in the relative impacts of intra-regional and extra-regional trade, growth impact of intra-regional trade depended on political instability, market size, nature of commodities and excessive intervention and regional trade agreements. Accordingly, African countries must facilitate intra-regional trade to boost inclusive growth by reducing trade barriers, cost and promote infrastructure to enhance intra-regional trade in Africa.Item Assessing The Effectiveness Of Fraud Risk Management Practices In The Banking Sector Of Ghana(University of Ghana, 2019-07) Asomaning, A.O.ABSTRACT The purpose of the study was to examine the effectiveness of fraud risk management practices in the banking sector of Ghana. The structured questionnaire was used as the main research instrument. Items in the questionnaire were measured on a five-point ranking scale. Both local and foreign universal banks in Ghana, were included study. A total of 100 employees, 50 from the local banks, and another 50 from the foreign banks, were sampled through purposive and convenient sampling techniques. Descriptive and inferential statistics were used to present and analyze the collected data. From the findings of the study, it was revealed that, the level of exposure to both internal and external fraud risk by the universal banks was very low. Largely the banks implemented fraud risk management practices by putting in place strategies in the area of sound risk management environment, policies and procedures and risk mitigation. The banks were highly effective in the management of fraud risk leading to improvement in the performance of the banks. Having a sound risk management environment, policies and procedures, coupled with an effective risk mitigation strategy, mainly contributed to the overall effectiveness of the universal banks in the management of fraud risk. High cost in the implementation of fraud risk management practices was the main challenge facing the universal banks in fraud risk management. The banks are encouraged to invest more in modern software tools, so as to control the incidence of fraud risks.Item Is There a Link Between the Ghana Reference Rate and Lending Rates of Banks in Ghana?(University of Ghana, 2020-07) Amponsah, E.A.S.This thesis examined the macrodynamic hyperlink between the Ghana Reference Rate (GRR) model and interest rates in Ghana. Although other studies abound, both in Ghana and abroad, that explored interest rates and its impacts on commercial bank lending rates, none of these studies specifically studied addressed the question of whether the GRR has any link with commercial bank lending rates. This study employs the non-experimental, quantitative-correlational, ex-post-facto design within a time series framework. Besides, it utilises secondary, quantitative data lending rates, the GRR, and the control variables collected from the website of the Bank of Ghana (BoG), representing monthly time series data spanning the period April 2018 to January 2020, capturing only the post-GRR introduction period in Ghana. The data was analyzed using descriptive statistics and inferential statistics. After performing individual unit root tests and the Engle-Granger single equation cointegration tests coupled with graphical representations, a multivariate linear regression model was employed to examine the effects of the Ghana reference rate (GRR), bank-specific variables of profitability, liquidity, interest expenses, and the macroeconomic factors of the exchange rate, money supply, and inflation rates on commercial bank lending rates in Ghana. The parameters of the multivariate regression model were estimated using the Fully Modified Ordinary Least Squares (FMOLS). Moreover, a pairwise Granger causality test was performed to test the causal link between the GRR and lending rates in Ghana. The robustness of the FMOLS multivariate regression findings, in terms of the consistency of the statistical significance and effects of the parameter estimates, were checked using three estimators, namely, 1) Dynamic OLS (DOLS) Estimator; 2) Two-Stage Least Squares (TSLS); and 3) Generalized Methods of Moments (GMM). The predictive ability of the FMOLS model was further ascertained using the bias proportion, variance proportion, andcovariance proportions. The FMOLS model is further tested for serial correlation and asymptotic normality. The study pursued five main research questions and below is a summary of the findings. Concerning the first research question, what is the causal effect of the GRR on commercial bank lending rates in Ghana, the analysis revealed that the Ghana Reference Rate has a positive and statistically significant causal effect on commercial bank lending rates in Ghana based on the FMOLS and Granger causality results. The finding implies that the introduction of the GRR has caused commercial bank lending rates to increase substantially, hence the two variables are temporally related. Concerning the second research question was, what are the effects of the bank profitability or financial performance indicators of ROA and ROE on lending rates of commercial banks in Ghana, the results revealed that the bank profitability variable of ROA exerts a statistically significant positive effect on lending rates, whiles the effect of ROE on lending rates is negatively significant. In relation to the third research question, to what extent does the bank liquidity variable of Core Liquid Assets to Total Assets (CLATTA) ratio influence lending rates of commercial banks in Ghana, the analysis indicated that banks liquidity (CLATTA) has an insignificant positive relationship with lending rates. When it comes to the fourth research question, what are the effects of bank interest expense variables of savings deposit interest (SDR) rates and 3 months’ Time Deposits Rates (TDR) on commercial bank lending rates in Ghana, the results reveal that positively significant effect of the Savings Deposit rate (SDR) on lending rates, whereas the 3-Month-Time Deposit rates (TDR) have a significant negative effect on lending rates in Ghana. Regarding the fifth and final research question, do the macroeconomic factors of the exchange rate, money supply, and inflation rates significantly impact commercial bank lending rates in Ghana, the findings reveal that all the macroeconomic variables of inflation, and exchange rates and money supply. influence commercial bank lending rates negatively and significantly. The study recommends, amongst other things, that future studies focus on the determinants of credit risk premium of commercial banks as the findings from that study could help banks properly determine interest rates in Ghana.Item Does Trade Enhance Inclusive Growth? Empirical Evidence from Africa(University of Ghana, 2020-07) Osei, A.In March 2018, Africa created the largest free trade zone by membership. The African Continental Free Trade Agreement (AFCFTA) is expected to promote intra-regional trade, particularly among small scale enterprises hence greater inclusive economic growth. In this study, the researcher explored the relative impact of intra-regional trade and extra-regional trade on inclusive growth, measured by using the Asian Development Bank (AsDB) framework. Using data from 46 African countries covering 1995 to 2016, we estimated the impact of disaggregated trade flows (intra-regional trade and extra-regional trade) using the Spatial Tobit Panel Generalised Method of Moment (STPGMM) Estimator. The STPGMM allows us to control for potential spatial effect while eliminating potential biases and inconsistencies that may result from the tobit effect. The empirical evidence indicates that there is a significant positive relationship between both intra-regional and extra-regional trade and inclusive growth. In terms of magnitude, the evidence also indicates that the effect of extra-regional trade is higher compared with intra-regional trade on inclusive growth. Besides, the difference in the relative impacts of intra-regional and extra-regional trade, growth impact of intra-regional trade depended on political instability, market size, nature of commodities and excessive intervention and regional trade agreements. Accordingly, African countries must facilitate intra-regional trade to boost inclusive growth by reducing trade barriers, cost and promote infrastructure to enhance intra-regional trade in Africa.Item Risk Attitudes, Entrepreneurship Decision and Financing Preference: Evidence from Non-Farm Household Enterprises in Ghana(University of Ghana, 2020-07) Gaisie, D.A.Several theories in economics and finance suggest that risk attitudes perform a vital role in economic choices, including being an entrepreneur and the choice of finance for businesses. However, there are a limited number of empirical tests of these theories in the African context, where majority of firms are small and medium-scale enterprises. Using the 7th round of the Ghana Living Standards Survey (GLSS 7), this study characterizes the risk attitudes of Ghanaians and also estimates the influence of risk attitudes on the choice to own a household enterprise and the choice of financing by owners of household enterprises. Using a Probit model to investigate the relationships, the results show that a high fraction of Ghanaians are risk averse. Specifically, females, married persons, people in the poorer wealth quintiles, Muslims, craft workers and individuals from urban coastal areas have a higher likelihood of being risk averse. The study finds that risk aversion has an impact on entrepreneurship: individuals who are risk averse are 7 percentage points less likely to own household enterprises. The study also finds that risk averse business owners are 5 percentage points less likely to self-finance their businesses at the start-up stage. While risk aversion has no significant impact on using loan financing as working capital, the wealth of the enterprise owner, the age and size of the enterprise were found to be significant predictors of using loan financing as working capital. The findings from this study suggest that risk attitude plays a strong role in entrepreneurial decision. Also, as risk averse owners are dependent on external finance at the early phase of business growth, strengthening access to capital has the potential of improving entrepreneurship at the household level. The findings largely hold when Propensity Score Matching technique is employed to address potential endogeneity issues. On the whole, the paper highlights that policies that target small enterprise development should consider the important role of risk attitudes and focus on mechanisms that ease access to external finance.Item Does Trade Enhance Inclusive Growth? Empirical Evidence from Africa(University of Ghana, 2020-07) Osei, A.In March 2018, Africa created the largest free trade zone by membership. The African Continental Free Trade Agreement (AFCFTA) is expected to promote intra-regional trade, particularly among small scale enterprises hence greater inclusive economic growth. In this study, the researcher explored the relative impact of intra-regional trade and extra-regional trade on inclusive growth, measured by using the Asian Development Bank (AsDB) framework. Using data from 46 African countries covering 1995 to 2016, we estimated the impact of disaggregated trade flows (intra-regional trade and extra-regional trade) using the Spatial Tobit Panel Generalised Method of Moment (STPGMM) Estimator. The STPGMM allows us to control for potential spatial effect while eliminating potential biases and inconsistencies that may result from the tobit effect. The empirical evidence indicates that there is a significant positive relationship between both intra-regional and extra-regional trade and inclusive growth. In terms of magnitude, the evidence also indicates that the effect of extra-regional trade is higher compared with intra-regional trade on inclusive growth. Besides, the difference in the relative impacts of intra-regional and extra-regional trade, growth impact of intra-regional trade depended on political instability, market size, nature of commodities and excessive intervention and regional trade agreements. Accordingly, African countries must facilitate intra-regional trade to boost inclusive growth by reducing trade barriers, cost and promote infrastructure to enhance intra-regional trade in Africa.