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Item Financial Development, Institutional Quality and Inclusive Growth in Africa(Global Business Review, 2022) Ntow-Gyamfi, M.; Bokpin, G.A.; Aboagye, A.Q.Q.; Ackah, C.G.We investigate the relationship between Financial Development (FD) and Inclusive Growth (IG) unlike extant literature, whose concentration has been on economic growth, which we refer to as wholesale growth. While we examine the effect of FD on IG, we investigate the moderating role played by institutions and the regulatory ambience in conveying the strides of FD towards the poor. We measure IG through a social mobility function approach and also construct an IG Index using Asian Development Bank’s framework of IG for robustness. We employ a 27-year-old panel data collected from across 48 African countries in our dynamic estimations of the FD-IG nexus. We find a non-linear relationship between finance and IG. Our results show that for FD to lead to IG, there is a need to have an effective institutional setup that regulates financial market participants to be inclusive in their operations. With weak institutions, FD’s effect on IG is negative. Our study does not just investigate how FD explains how much money there is overall, but how the money is shared across societies as well. This study is the first to examine the finance-growth nexus from the perspective of inclusivity. Practical policy implications are also discussed.Item Foreign and domestic private investment in developing and emerging economies: A review of literature(Cogent Economics & Finance, 2022) Ababio, J.O.; Aboagye, A.Q.Q.; Barnor, C.; Agyei, S.K.This study surveys and synthesizes the literature on foreign and domestic private investment over the period 1980–2022 witemerging economies. The documentary sources method was used to examine one hundred and forty (140) peer-reviewed articles (selected based on source, journal of publication, database, time frame, relevance language, geographical restrictions, and search descriptions) published in a broad range of internationally recognized journals, with special analytical focus placed on forty (40) recent articles. It provides fresh evidence that literature on overall private investment and that of foreign direct investment have been given paramount interest and attention, but domestic private investment has received relatively little attention to date. This review will serve as a roadmap, indicating the current state, contributions made, and unsolved issues in the existing studies as well as situating works to enrich the literature. It, therefore, offers specific directions for researchers, academics, and practitioners evidence from developing andItem Bank mergers and acquisitions and the post-merger and acquisition performance of combined banks: evidence from Sub-Saharan Africa(Cogent Economics & Finance, 2024) Ayagre, P.; Aboagye, A.Q.Q.; Sarpong-Kumankoma, E.; Asuming, P.O.This study sought to ascertain the effects of bank mergers and acquisitions on the performance of merged banks in Sub-Saharan African (SSA) countries between 2003 and 2019. Specifically, the study aimed to investigate the impact of regulation-induced bank mergers and acquisitions (M&A’s) on the post-merger profitability of merged banks in SSA. The motivation for the study is to provide evidence for or against the regulator’s claims that regulation-induced bank M&As will improve the performance of merged banks in SSA. The article presents the results of the total sample of all mergers and acquisitions examined in the study and two sub-samples: the regulation-induced M&A sub-sample and the voluntary M&A sub-sample. We measure profitability by return on assets, return on equity, and net interest margin. The paper employed a dynamic panel Generalized Methods of Moments approach to analyse the relationship between bank M&As and profitability. The study found no profitability improvement after M&A across all profitability measures for the total sample and the two sub-samples. Instead, the empirical results reveal that bank profitability suffers after mergers and acquisitions across all profitability measures. The results show that, for regulation-induced mergers and acquisitions, a merged bank’s profitability is adversely affected from the beginning of the merger or acquisition to the sixth year of mergers and acquisitions. The findings also reveal that bank risk negatively affect profitability, while liquidity positively affect profitability, except returns on equity. Bank costs-to-income ratios as expected to show negative relationship with profitability. All macroeconomic variables show the expected relationship, positive for GDP growth and negative for inflationItem Financial inclusion and poverty: evidence from developing economies(International Journal of Social Economics, 2023) Nyarko, E.S.; Amoateng, K.; Aboagye, A.Q.Q.Purpose – This paper examines the impact of financial inclusion on poverty through access to mobile money in developing economies. Design/methodology/approach – The authors employ the principal component analysis to construct an index of financial inclusion using demand and supply indicators, including mobile accounts. The authors use the two-step system GMM estimator for the analysis because of its efficiency and robustness in addressing heteroscedasticity and autocorrelation. Findings – The main finding is that financial inclusion generally increased and significantly reduces poverty in the sample period. Furthermore, income inequality worsens poverty. Research limitations/implications – This study has few limitations. First, the empirical analysis of the study is restricted to macroeconomic factors only because of limited Household Finance Survey data set and time availability. Second, the study is limited to developing countries and the results cannot be generalized. Practical implications – Financial inclusion is a significant policy tool for poverty reduction. There is the need to enhance strategies that further improve financial inclusion by expanding and improving the use of mobile money accounts. Social implications – The paper sheds light on how developing countries can harness financial inclusion to reduce poverty. Originality/value –The paper differs from the previous studies in two ways. Firstly, mobile money account is included in the computation of financial inclusion index over the sample period. It also determines the impact of financial inclusion on poverty for short-run and long-run periods.Item A real options approach to investment timing decisions in utility-scale renewable energy in Ghana(Elsevier, 2021) Bokpin, G.A.; Ofori, C.G.; Aboagye, A.Q.Q.; et al.a b s t r a c t Private capital is required to urgently complement government's efforts to meet initial capital outlay in renewable energy investments. However, minimising the downside risks for a given return in such a venture presents valuation challenges, including the timing of such investments. Investment timing is therefore relevant to consider when making investments in utility-scale renewable energy technologies which require high initial capital. This study assesses the value of investment delay in renewable energy projects using real options analysis. A model that combines binomial trees and Monte Carlo simulations are used to evaluate the optimal investment timing of the first cycle of Ghana's Renewable Energy Master Plan. The model in- corporates multiple dimensions of uncertainties related to market, economic and technological factors to determine the value of delaying utility-scale renewable energy investments. The results show value in delaying investments until uncertainties are reduced and maximum benefit is obtained. Also, high system capacities and favourable renewable energy policies that border on attractive feed-in tariffs are required to drive private investment in utility-scale renewable energy.Item Financial freedom, market power and bank margins in sub-Saharan Africa(Journal of Financial Regulation and Compliance, 2019-10-31) Sarpong-Kumankoma, E.; Abor, J.; Aboagye, A.Q.Q.; Amidu, M.Purpose – This paper examines the effect of financial (banking) freedom and market power on bank net interest margins (NIM). Design/methodology/approach – The study uses data from 11 sub-Saharan African countries over the period, 2006-2012, and the system generalized method of moments to assess how financial freedom affects the relationship betweenmarket power and bank NIM. Findings – The authors find that both financial freedom and market power have positive relationships with bank NIM. However, there is some indication that the impact of market power on bank margins is sensitive to the level of financial freedom prevailing in an economy. It appears that as competition intensifies, margins of banks in freer countries are likely to reduce faster than those in areas with more restrictions. Practical implications – Competition policies could be guided by the insight on how financial freedom moderates the effect of market power on bank margins. Originality/value – This study provides new empirical evidence on how the level of financial freedom affects bankmargins and the market power-bank margins relationship.Item Financial Viability of District Mutual Health Insurance(Ghana medical journal, 2010-12) Aboagye, A.Q.Q.Healthcare systems in many developing countries do not have enough healthcare providers or healthcare facilities to service their populations. In recent times, nations and groups are setting up health insurance programmes as one way of addressing the myriad of problems that confront healthcare delivery. Develtere et al., discussed the role of mutual health insurance in helping address the situation.1 They drew heavily on the 2003 seminar organised by the Belgian Raiffeisen Foundation, titled Mutual Health In-surance – In Search of Success Factors Learned Through Belgian Field Experience in Developing Countries.2 They concluded that it is best to look at such insurance institu-tions as affording social protection in the health care sec-tor. On financial viability, they argued that it is important for such institutions to find the right balance between individual contributions and refunds to service providers. Building up reserves against “rainy” days is also impor-tant, as is re-insurance.Item Firm Specific, Financial Development and Macroeconomic Determinants of Credit Union Lending(Journal of International Development, 2018-10) Amoah, B.; Aboagye, A.Q.Q.; Bokpin, G.A.; Ohene-Asare, K.Credit unions are set up to providefinancial services, especially loans to members in acooperative setting. The increasing competition from banking and non-bankingfinancial institutionsimplies credit unions must providefinancial products and services with a clear understanding offactors that interact in this competitive industry. This paper evaluates the discretional and non-discretional factors that tend to influence loans credit unions grant their members. Fromfixed effectmodel estimate, discretional factors such as size, profitability, management quality and solvencypositively associate with credit union loan business whiles loan loss, net worth, non-loan incomeand non-loan activities associate negatively. Contractionary monetary policy creates an increase inloan demand in the credit union. Credit union managers should monitor developments taking placein the loanable funds market as increasing overhead cost of banks may imply a possible increasein loan demand leading to diseconomies of scale. Copyright © 2018 John Wiley & Sons, Ltd.Item Technical efficiency: the pathway to credit union cost efficiency in Ghana(Managerial Finance, 2018-10) Amoah, B.; Ohene-Asare, K.; Bokpin, G.A.; Aboagye, A.Q.Q.Purpose The purpose of this paper is to investigate the factors that tend to influence credit union efficiency, specifically examining cost efficiency (CE) and technical efficiency. Design/methodology/approach Using a two-stage method, the authors first estimate CE using Tones’ SBM data envelopment analysis method and technical efficiency in a variable returns to scale setting during the period 2008–2014. The authors estimate a mixed-effects and two-limit Tobit regression to examine the effect of credit union specific characteristics, banking industry and macroeconomic conditions, on efficiency. Findings Credit unions’ CE averaged 38.9 percent compared to 54.4 percent for technical efficiency. The authors find that technical efficiency does not translate into CE and vice versa. Practical implications The authors suggest that when targeting CE, credit union managers would have to make technical efficiency a priority. A monopolized and inefficient banking sector does not challenge efficiency improvement in the credit unions industry. Originality/value This study employs data from a frontier market.Item Freedom, competition and bank profitability in Sub-Saharan Africa(Journal of Financial Regulation and Compliance, 2018-11) Sarpong-Kumankoma, E.; Abor, J.; Aboagye, A.Q.Q.; Amidu, M.Purpose This paper aims to examine the effects of financial freedom and competition on bank profitability. Design/methodology/approach The study uses system generalized method of moments and data from 139 banks across 11 Sub-Saharan African countries during the period 2006-2012. Findings The results of the study show that higher market power (less competition) is positively related to bank profitability, but operating efficiency is a more important determinant of profitability than market power. Also, both financial freedom and economic freedom show a positive impact on bank profits. The authors find evidence that banks with higher market power operating in countries with higher freedom for banking activities are more profitable than their counterparts in countries with greater restrictions on banking activities. Practical implications The results have shown that allowing banks greater freedom to operate would enhance their performance, without necessarily damaging the economy, as operating efficiency appears to be a more important reason for the observed profitability than market power. Originality/value This study provides insight on the ambiguous relationship between competition and bank profitability by considering the moderating effect of financial freedom which has not been taken into account in previous studies.