Research Articles

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A research article reports the results of original research, assesses its contribution to the body of knowledge in a given area, and is published in a peer-reviewed scholarly journal. The faculty publications through published and on-going articles/researches are captured in this community

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Subject: search.filters.subject.Economic growth

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Now showing 1 - 10 of 23
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    Drivers of income diversification in credit unions: Do size, resource, liquidity, and environment matter?
    (M.D.E., 2021) Bokpin, G.A.; Amoah, B.; Ohene-Asare, K.; et al.
    Abstract This paper investigates income diversification in credit unions in Ghana. We make use of the random effect, Hausman–Taylor, and fractional regression to assess income diversification. We find empirical support that there exist differences between workplace credit union income diversification and other types of credit union. We also find that within nonfinancial income, size, liquidity, loan portfolio, net worth, and economic growth are important. For within liquid financial investment diversification, size, liquidity, resource usage, age, net interest margin, bank concentration, inflation, and economic growth matter. We recommend that with excess reserves, credit unions should pursue liquid financial investment.
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    The nexus of economic growth and environmental degradation in Ethiopia: time series analysis
    (Climate and Development, 2020-01-31) Adem, M.; Negasi, S.; Moghaddam, S.M.; Ozunu, A.; Azadi, H.
    Economic growth and environmental degradation are like two sides of a coin implying that these two variables are interdependent. Therefore, the main objective of this study is to investigate the relationship between economic growth and environmental quality. Moreover, this study attempted to identify the relationships between the environmental quality, population growth, and economic growth using a time series data from 1981 to 2012. The result showed that the Vector Error correction model was appropriate to show both short-run and long-run relationships between variables. The results also indicated that the long-run economic growth helps to improve the environmental quality and/or reduce environmental degradation, while population growth worsens the environmental degradation. This study concluded that a major cause of bio-diversity loss is the degradation of vegetation in order to expand agriculture production for a rapidly growing population. Therefore, the country should formulate an appropriate policy for monitoring population growth
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    Effect of HIV/AIDS on Economic Growth in Sub-Saharan Africa: Recent Evidence
    (International Advances in Economic Research, 2019-11-26) Nketiah-Amponsah, E.; Abubakari, M.; Baffour, P.T.
    This paper examines the effect of human immunodeficiency virus/acquired immunodeficiency syndrome (HIV/AIDS) on economic growth in sub-Saharan Africa (SSA) using data from 46 SSA countries spanning the period 2000–2015. Results based on the system-generalized method of moments estimation showed that a 1% increase in the HIV/AIDS prevalence rate in SSA decreased the growth in per capita income by 0.47%. The impact of HIV/AIDS on economic growth was felt most in Eastern Africa followed by West Africa, although the prevalence rate was highest in Southern Africa. In particular, a 1% increase in the prevalence rate of HIV/AIDS in Eastern Africa and West Africa retarded growth in per capita income by 0.64% and 0.47%, respectively, over the study period. The paper suggests that for SSA to minimize the impact of HIV/AIDS prevalence on growth, African governments should take a cue from the southern African countries by making anti-retroviral drugs more accessible and affordable to persons living with the disease.
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    Effect of Infrastructure and Foreign Direct Investment on Economic Growth in Sub-Saharan Africa
    (Global Journal of Emerging Market Economies, 2019-11-19) Nketiah-Amponsah, E.; Sarpong, B.
    This article investigates the effect of infrastructure and foreign direct investment (FDI) on economic growth in Sub-Saharan Africa (SSA) using panel data on 46 countries covering the period 2003– 2017. The data were analyzed using fixed effects, random effects, and system generalized method of moments (GMM) estimation techniques. Based on the system GMM estimates, the results indicate that a 1 percent improvement in electricity and transport infrastructure induces growth by 0.09 percent and 0.06 percent, respectively. Additionally, FDI proved to be growth enhancing only when interacted with infrastructure. The interactive effect of FDI and infrastructure improves economic growth by 0.016 percent. The results suggest that public provision of economic infrastructure reduces the cost of production for multinational enterprises, thus providing an incentive to increase investment in the domestic economy to sustain economic growth. The results also suggest that the impact of FDI on economic growth is maximized when some level of economic infrastructure is available. Our findings thus provide ample justification on the need for a significant government investment in infrastructure to provide a less costly business environment for both local and multinational enterprises to improve economic growth.
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    Financial consumer protection and economic growth
    (International Journal of Emerging Markets, 2019-03-11) Kriese, M.; Abor, J.Y.; Agbloyor, E.
    Purpose – The purpose of this paper is to examine the link between financial consumer protection (FCP) and economic growth. Design/methodology/approach – The authors use cross-country data on 114 countries surveyed in the World Bank Global Survey on FCP and Financial Literacy (2013) and endogenous treatment regressions for the estimation. Findings – The results indicate that FCP enhances economic growth through fair treatment, responsible lending, enforcement and dispute resolution and recourse regulations. The authors find no evidence to suggest that disclosure and compliance monitoring regulations have an effect on economic growth. Practical implications – This study provides rich insight into the important question faced by policy makers, as to which FCP regulatory mechanisms to put in place to enhance economic growth. Originality/value – This study provides current, cross-country empirical evidence on the debate as to whether FCP enhances economic growth
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    Bank-based and market-based development and economic growth: an international investigation
    (Studies in Economics and Finance, 209-07-26) Osarfo, D.; Boadi, I.; Boadi, P.
    Purpose – The purpose of this paper is to investigate the relative impact of bank-based and market-based financial developments on economic growth from 1984 to 2015, using 60countries. Design/methodology/approach – This study uses fixed effect and generalized method of moments (GMM) to investigate the relative impact of bank-based and market-based financial developments on economic growth from 1984 to 2015, using 60 countries. The study further controls regional effects and the Asian crisis, as well as the global economic crisis. Findings – The empirical results of the study revealed that market-based development positively affects economic growth. Besides, market-based financial development indirectly promotes investment, which has the potential to strongly enhance growth. The findings of this study, therefore, provide more support to promarket- based financial development policies in these regions. Interestingly, bank-based development has no direct impact on development, but indirectly encourages investment, which also promotes growth. Originality/value – This paper is the first of its kind to empirically examine fixed effect and GMM to investigate the relative impact of bank-based and market-based financial developments on economic growth from 1984 to 2015, using 60 countries.
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    Health and Economic Growth Nexus: Evidence from Selected Sub-Saharan African (SSA) Countries
    (Global Business Review, 2018-06) Sarpong, B.; Nketiah-Amponsah, E.; Owoo, N.S.
    This article examines the effect of health on long-run economic growth in 35 selected sub-Saharan African (SSA) countries using panel data covering the period 1997–2016. Data were analysed using panel co-integration tests, panel Granger causality tests and the dynamic OLS estimator. The results show that health human capital is a significant determinant of long-run economic growth in SSA. In particular, a percentage increase in health human capital proxied by per capita health expenditure increases growth by 0.207 per cent. The prime contribution of this article to the literature lies in the results of the novel interaction between health human capital and institutional quality. More precisely, by using the dynamic panel least square estimation technique, we found that the effect of institutional quality on economic growth is positive and robust only when it is interacted with the required health human capital. It is further revealed that the causal link between economic growth and health is bidirectional.
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    Political business cycles and economic growth in Africa
    (Journal of Economic Studies, 2018-01) Iddrisu, A.G.; Bokpin, G.A.
    Purpose The purpose of this paper is to understand both the incidence and the impact of the African political business cycle (PBC) in the light of a literature which has argued that, with major extensions of democracy since the 1990s, the cycle has both become more intense and has made African political systems more fragile. It answers two very important macroeconomic questions crucial to the validity of the opportunistic model. It, first, answers the question of whether election cycles contribute to money growth in the light of government expenditure, and second, whether election cycles have an effect on economic growth in the light of money supply. Design/methodology/approach The study employs data from 39 African countries from 1990 to 2014 to address these important empirical questions using panel regression techniques. Findings The paper found PBC to be present in Africa. It also found that such cycles do not translate to economic performance in African countries. The paper therefore indicates the need for African policy makers to take measures to eliminate or lessen the scale of PBCs. Social implications There are many ways in which today’s political choices affect future well-being. Recently, economists have concluded that we pass on the inflationary (or deflationary) consequences of current policies to the future generation. Originality/value This paper is unique in its approach to investigate the objectives.
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    External Debts, Institutions and Growth in SSA
    (Journal of African Business, 2018-03) Mensah, L.; Bokpin, G.; Boachie-Yiadom, E.
    The study investigates the impact of institutional quality on the external debt–growth nexus in SSA. Data from 36 SSA economies over the 1996–2013 periods were used. The results from the IV-System GMM imply that institutional quality has robust effects on the external debt–growth nexus. Thus, the impact of external debt on growth is through host nation’s institutional quality. However, the mediating effect of institutional quality on this nexus is up to a point. When a country is on the wrong side of the debt-laffer curve, external debt becomes irrelevant; and institutional quality can no longer help.
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    Financial inclusion and financial sector development in Sub-Saharan Africa: a panel VAR approach
    (International Journal of Managerial Finance, 2019-04) Anarfo, E.B.; Abor, J.Y.; Osei, K.A.; Gyeke-Dako, A.
    Purpose: The purpose of this paper is to investigate the dynamic link between financial inclusion and financial sector development (FSD) in Sub-Saharan Africa. Design/methodology/approach: This paper employs a panel vector autoregressive framework to examine the dynamic link between financial inclusion and FSD in Sub-Saharan Africa. Findings: The findings indicate that there is a reverse causality between FSD and financial inclusion in both the Sub-Saharan Africa countries sample and the full sample. It is evident that financial inclusion is a driver of FSD and vice versa. Practical implications: The practical implication of this study is that financial inclusion should not only be pursued as a policy objective but it could also be an outcome variable of FSD and vice versa. This implies that African economies and governments in their effort to enhance financial inclusion, FSD can serve as a policy tool. This means that policies aimed at promoting financial inclusion will not impede FSD because the two are complementary. This suggests that we can achieve financial inclusion without sacrificing FSD and vice versa. Originality/value: This paper provides first empirical evidence of the link between financial inclusion and FSD from the Sub-Saharan Africa perspective using data sourced from World Development Indicators spanning from 1990 to 2014 for 48 Sub-Saharan African economies and 217 economies in the world for the full sample. © 2019, Emerald Publishing Limited.