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Article
Publication date: 30 August 2023

Solomon Yemidi, Grace Nkansa Asante and Paul Owusu Takyi

The purpose of this research is to examine the impact of alterations in the path of monetary policy rates on inflation via the supply side of an emerging economy.

Abstract

Purpose

The purpose of this research is to examine the impact of alterations in the path of monetary policy rates on inflation via the supply side of an emerging economy.

Design/methodology/approach

The study employed semi-annual data covering the period 2007S1 to 2020S2 on the inflation rate, the combined outputs of industry and agriculture, the lending rate, and the monetary policy rate. The vector autoregression model was estimated and counterfactual simulation exercises were conducted.

Findings

The study revealed that a move from a higher to a lower monetary policy rate regime resulted in a shift in inflation from a higher to a lower regime. In particular, a 200-basis point reduction in the monetary policy rate over the simulation horizon produces a 1.3% fall in the inflation rate over the same period.

Research limitations/implications

The study has a limitation due to the unavailability of a long-span dataset on all relevant variables. As a result, it is important to exercise caution when interpreting the study's findings. A potential area for further research is to explore how changes in interest rates impact inflation in the real economy by utilising other multiple-variable time series techniques.

Practical implications

It is the opinion of the authors that for inflation in Ghana to move to a lower regime, conscious efforts should be made by the monetary authorities to gradually move from a regime of a high monetary policy rate to a lower one.

Social implications

In particular, a 200-basis point reduction in the MPR over the simulation horizon produces a 1.3% fall in the inflation rate over the same period.

Originality/value

This study enhances the authors' knowledge of how monetary policy can affect inflation in developing countries through the supply-side channel.

Details

African Journal of Economic and Management Studies, vol. 14 no. 4
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 11 May 2023

Paul Owusu Takyi, Daniel Sakyi, Hadrat Yusif, Grace Nkansa Asante, Anthony Kofi Osei-Fosu and Gideon Mensah

This paper explores the implications of financial inclusion and financial development for the conduct of monetary policy in achieving price stability and economic growth in…

Abstract

Purpose

This paper explores the implications of financial inclusion and financial development for the conduct of monetary policy in achieving price stability and economic growth in sub-Saharan Africa (SSA).

Design/methodology/approach

The paper employs the system-generalized methods of moment (GMM) estimation technique using panel data spanning 2004 to 2019 and sourced from Databases of (International Monetary Fund's) IMF's Financial Access Survey (FAS), IMF's International Financial Statistics (IFS), World Bank's Global Financial Development Database (GFDD) and World Bank's World Development Indicators (WDI).

Findings

The authors find that financial inclusion has a double-edge effect in SSA. That is, it increases economic growth and lowers inflation in SSA. Furthermore, the results show that a simultaneous increase in financial inclusion and financial development have restrictive effects on economic growth. On the evidence provided, the authors conclude that financial inclusion is an important predictor of economic growth and the conduct of monetary policy in the sub-region.

Originality/value

This paper expands and contributes to the frontier of knowledge how financial inclusion is important for the conduct of monetary policy by monetary authorities in achieving its intended objectives in SSA. The paper highlights the need for ongoing enhancement of financial inclusion of many governments in the sub-region to achieving high economic growth and price stability. Thus, there is the need for policy makers to ensure that a more stringent, effective and appropriate policies and measures are put in place to enhance financial inclusion while taking into consideration the extent of financial development in SSA.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 22 December 2021

Paul Nayaga, Frank Adusah-Poku, John Bosco Dramani and Paul Owusu Takyi

The quest for economic development has brought adverse effects on the environment through the release of greenhouse gases, such as carbon dioxide (CO2). This will counter the…

Abstract

Purpose

The quest for economic development has brought adverse effects on the environment through the release of greenhouse gases, such as carbon dioxide (CO2). This will counter the efforts to achieve the Sustainable Development Goals (SDGs) by 2030. This study, therefore, investigates the effect of electricity consumption and urbanization on CO2 emissions in Ghana. Electricity consumption and urbanization are among the factors that can be used to reduce CO2 emissions.

Design/methodology/approach

Following the STIRPAT framework with the Hansen (2000) least squares threshold estimation strategy, the study employed annual time series data from 1971 to 2019.

Findings

The study revealed a single threshold effect of both electricity consumption and urbanization on CO2 emissions. Electricity consumption intensity reduces CO2 emission when electricity consumption is below the threshold (6287GWh) but increases when consumption passes the threshold. However, urbanization exerts a positive influence on CO2 emissions regardless the level of urbanization (either before or after the threshold point). Again, the empirical results revealed that the urbanization threshold moderates the effect of electricity consumption on CO2 emissions.

Research limitations/implications

Policymakers have to consider redesigning the current urbanization mode to include some new-type urbanization elements.

Originality/value

The threshold effect of electricity consumption and urbanization on CO2 emissions in Ghana is examined using the Hansen (2000) least square method.

Details

Management of Environmental Quality: An International Journal, vol. 33 no. 3
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 12 July 2023

Kwadwo Antwi-Wiafe, Grace Nkansa Asante and Paul Owusu Takyi

This paper aims to examine whether financial technology is complementing the performance of domestic financial institutions or substituting their performance in Ghana.

Abstract

Purpose

This paper aims to examine whether financial technology is complementing the performance of domestic financial institutions or substituting their performance in Ghana.

Design/methodology/approach

The paper used data from the Bank of Ghana Payment System Statistics and Time Series Data of the Bank of Ghana from 2012 to 2021, by using autoregressive distributive lags estimation technique.

Findings

The results showed that in both the long run and short run, financial technology has a significant negative impact on bank performance, indicating that fintech serves as substitutes rather than complements for Ghanaian banks. These results suggest that there must be a critical review on the interoperability policy in Ghana and that banks should take advantage of the financial technology to increase profit.

Originality/value

Based on the authors’ study, no empirical work has been extensively done in the Ghanaian context by examining how financial technology serves as either a complement or substitute for domestic banking institutions. This paper focuses on exploring the key definition of financial technology in Ghana and how transactions through these media are affecting or improving the performance of banks.

Details

Journal of Financial Economic Policy, vol. 15 no. 4/5
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 3 May 2022

Emmanuel Duodu, Eric Fosu Oteng-Abayie, Prince Boakye Frimpong and Paul Owusu Takyi

This study is motivated by the Compact with Africa (CWA) initiative to promote foreign direct investment (FDI) in Africa. However, FDI is argued to be one of the primary causes of…

210

Abstract

Purpose

This study is motivated by the Compact with Africa (CWA) initiative to promote foreign direct investment (FDI) in Africa. However, FDI is argued to be one of the primary causes of environmental pollution (CO2 emissions). In that regard, this study estimates the impact of the CWA initiative on FDI and environmental pollution.

Design/methodology/approach

The study utilized the difference-in-difference (DID) and triple difference (DDD) estimation strategies to examine the causal impact of the CWA initiative on FDI and environmental pollution from 2005 to 2019. The study selected nine CWA countries and nine non-CWA countries as treatment and control samples.

Findings

The authors found that the CWA initiative positively promotes FDI in the participant countries compared to non-participant countries. The CWA initiative also promoted environmental pollution in the CWA countries compared to non-CWA countries. Furthermore, the DDD estimates show that the effect of the CWA initiative on environmental pollution is through FDI.

Practical implications

The authors recommend policies to attract environmentally friendly FDI for both Compact and non-Compact economies.

Originality/value

The study is the first to provide empirical evidence on the CWA initiative on FDI and environmental pollution in Africa. The study used a quasi-experimental method on the relationship between FDI and environmental pollution in Africa.

Details

Management of Environmental Quality: An International Journal, vol. 33 no. 6
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 26 April 2022

Paul Owusu Takyi, Constance Sorkpor and Grace Nkansa Asante

The purpose of this paper is to explore the impact of mobile money on savings and saving practices among individuals in Ghana.

Abstract

Purpose

The purpose of this paper is to explore the impact of mobile money on savings and saving practices among individuals in Ghana.

Design/methodology/approach

Employing an instrumental variable (IV) estimation technique, comprehensive data from the Financial Inclusion Insight (FII) Survey is used, implemented by InterMedia company and conducted from December 2014 to January 2015 in Ghana.

Findings

It is found that mobile money use generally increases savings and saving behavior among individuals in Ghana. In particular, our results show that mobile money use increases the probability of individuals saving for business startup or business expansion, child's education and emergencies. Also, for the heterogeneous effects of mobile money use on saving practices, strong evidence that the use of mobile money is more pronounced in rural areas than in urban centers is found.

Originality/value

To the best of our knowledge, no empirical study has been done on Ghana to extensively examine how mobile money affects various saving practices in Ghana as it is done in this paper. The paper highlights the need for ongoing enhancement of financial inclusion in rural areas by the government of Ghana and other stakeholders to boost savings among rural folks, while not neglecting that in urban areas. Generally, the findings for this paper support the use of mobile money as a tool for enhancing the financial inclusion agenda by policymakers in Ghana and many other countries around the world.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 9 January 2024

Benjamin Boahene Akomah and Prasanna Venkatesan Ramani

This paper aims to identify the unidimensionality and reliability of 84 factors that influence the performance of construction projects and develop a confirmatory factor analysis…

Abstract

Purpose

This paper aims to identify the unidimensionality and reliability of 84 factors that influence the performance of construction projects and develop a confirmatory factor analysis (CFA) model.

Design/methodology/approach

The study adopted a deductive research approach and started by identifying the positive factors that influence construction project performance. This was followed by the modification of the identified factors. After that, a questionnaire was developed out of the factors for data collection. Exploratory factor analysis was used to establish the factor structure of the positive factors, and this was verified using CFA afterwards. A model fit analysis was performed to determine the goodness of fit of the hypothesised model, followed by the development of the confirmatory model.

Findings

The study demonstrated substantial correlation in the data, sufficient unidimensionality and internal reliability. In addition, the estimated fit indices suggested that the postulated model adequately described the sample data.

Practical implications

The paper revealed that performance can be enhanced if stakeholders identify and leverage the positive factors influencing performance. The paper suggests that project stakeholders, particularly government, project owners, consultants and construction firms, can improve project performance by critically examining economic and financial systems (EFS), regulation and policy-making systems (RPS), effective management practices (EMP) and project implementation strategies (PIS).

Originality/value

The contribution of this paper to the present literature is identifying the positive factors and developing the confirmatory factor model. The model comprised 42 positive variables under four indicators: EMP, RPS, PIS and EFS.

Details

Construction Innovation , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1471-4175

Keywords

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