SMEs’ Financing and Banks’ Profitability: A “Good Date” for Banks in Ghana?

Small and medium enterprises (SMEs) are the core of most economies and are a major source of economic growth. In recent times, banks have been actively involved in the financing of SMEs through the provision of loans to this sector. This paper investigates the impact of SMEs financing on banks’ profitability in Ghana. The study employed the fixed effect model as the main regression tool. The study result reveals that SMEs significantly contribute to banks’ profitability in Ghana. Interestingly, transaction cost in administering SME loans was insignificant in all the models. Higher inflation reduces the real value of the loan and erodes the interest returns on the total credit to the SMEs. Conversely, growth of GDP enhances the growth of the bank profit.     

State policies and the challenges in attracting foreign direct investment: A review of the Ghana experience

Foreign direct investment (FDI) to low‐income countries has not only received much publicity in the past two decades due to its economic importance, but its overall flow to these countries has also significantly increased in both relative and absolute terms. However, only a few sub‐Saharan African countries have been successful in attracting significant FDI flows. This article examines Ghana's experience in attracting FDI. Thus, the main thrust of this article is threefold. First, it evaluates the main economic policy adopted by the government from 1981 to 2002 to reverse the post‐independence economic decline. Second, it examines how the policies facilitated the attraction of FDI inflows to Ghana. Finally, it reviews some of the problems that impede the attraction of value‐added FDI inflows to Ghana. Qualitative analysis of available evidence reveals that the implementation of the Structural Adjustment Program (SAP), the main economic reform policy, has led to an increase in the number of multinationals investing in Ghana. This article argues that Ghana's SAP has had some degree of success in many areas, including the lowering of inflation; promotion of an environment of financial stability; elimination of the licensing requirement; the opening of previously closed sectors; removal of tariff barriers that prohibit FDI inflows; abolishing exchange controls; and reducing opportunities for the foreign exchange black market. In spite of the developments, there are still serious challenges that hamper the attraction of FDI inflows into the country. This article contends that there is the need for urgent action to tackle these challenges. © 2004 Wiley Periodicals, Inc.     

Influence of women’s workload on their nutritional status in selected communities in Ghana

Abstract: A study was undertaken to assess the impact of women’s work on their health and nutritional status in Ghana. Using a combination of purposive sampling and cluster sampling techniques, 80 women were selected from Madina (suburban) and Boi (rural) communities in the Greater Accra Region of Ghana. Structured questionnaire and 24-h dietary recall methods were used to collect the information on the nature of the women’s work, the amount of time used for the activities, health problems and food intakes. Nutritional anthropometry (weight, height) was used to assess the nutritional status using body mass index (BMI) as an indicator. The results revealed that the women were involved in multiple activities and worked between 12 and 17.5 h daily. In an attempt to fulfil their multiple roles, the women suffered many physiological problems, with general weakness and tiredness, body pains, dizziness, headaches, arthritis and malaria being the most common ailments. For food intake and nutrition, it was observed that 70% of the women had only two meals in a day. The reasons attributed to this include lack of time, the need to leave home early and too much involvement in work. The diet of the rural residents were low in almost all the nutrients calculated, whereas that of the urban residents was slightly deficient in protein, energy, iron and calcium. Using BMI as a measure of nutritional status, 31% of the women were found to be at nutritional risk.     

On the Adequacy of Monetary Arrangements in Sub‐Saharan Africa

We examine the economic rationale for monetary union(s) in Sub‐Saharan Africa through the use of cluster analysis on a sample of 17 countries. The variables used stem from the theory of optimum currency areas and from the fear‐of‐floating literature. It is found that the existing CFA franc zone cannot be viewed as an optimum currency area: CEMAC and UEMOA countries do not belong to the same clusters, and a ‘core’ of the UEMOA can be defined on economic grounds. The results support the inclusion of the Gambia, Ghana and Sierra Leone in an extended UEMOA arrangement, or the creation of a separate monetary union with the ‘core’ of the UEMOA and the Gambia, rather than the creation of a monetary union around Nigeria. Finally, the creation of the West African Monetary Zone (WAMZ) around Nigeria is not supported by the data.     

An Empirical Analysis of the Determinants of Interest Rates in Ghana

ABSTRACT

This paper provides an empirical analysis of the determinants of the bank lending rate in Ghana using annual time series data from 1970 to 2013. We found evidence of a long-run equilibrium relationship between the average lending rate charged by commercial banks and its determining factors. In the long run, bank lending rates in Ghana are positively influenced by nominal exchange rates and Bank of Ghana’s monetary policy rate but negatively with fiscal deficit, real GDP and inflation. We also find positive dependence of the bank lending rate on exchange rates, and the monetary policy rate both in the short and long run. Specifically, our findings reveal that the Bank of Ghana’s monetary policy rate and the exchange rate, by far, show strong contemporaneous effects on the average bank lending rate in Ghana.     

Corporate political activity in less developed countries: The Volta River Project in Ghana, 1958–66

The article expands existing categorisations of political and economic governance by including literature on less developed countries (LDCs). In four consecutive negotiations between the US multinational Kaisers and the US and Ghana governments in the early 1960s, it is argued that the company reached levels of influence that are at odds with existing explanations. In order to understand corporate political activities in LDCs, analysis needs to go beyond static factors (political risk) and include dynamic factors such as diplomatic relations and ‘arenas of power’, and consider the role of the investor's home country relative to the host economy.     

Globalization vs. localization: global food challenges and local solutions

The objective of this study was to examine the effect of global–local interactions on food production and consumption in Ghana, and identify possible local solutions. Primary data were collected using a combination of quantitative‐qualitative methods, which included focus group discussions and one‐on‐one interviews. Approximately 450 household heads were randomly selected and interviewed between August 2007 and August 2008 in Eastern, Central, Upper East and Northern Regions of Ghana. Findings revealed increasing consumption of foreign rice as opposed to decreasing consumption of local rice and other staples like millet, sorghum and yam because of global–local interactions. However, opportunities exist to re‐localize production‐consumption patterns through the use of ‘glocal foods’ like improved ‘koose and waakye’. Referencing the situation in Ghana, the study recommends improved production and processing practices backed with appropriate technologies that reflect changing consumption dynamics in order to take full advantage of opportunities created as a result of global–local interactions.     

The Determinants of Net Interest Margin in the Ghanaian Banking Industry

Abstract

This study investigates the determinants of net interest margin and the role of the financial crisis in explaining net interest margin (NIM) in the banking industry in Ghana. Further, we assess the sensitivity of our results to the measure of credit risk. We observe a sharp drop in NIM and an increase in bad debt growth during the 2007–2009 financial crisis in Ghana’s banking sector. Depending on the definition of credit risk, we observe marginal differences in the magnitude and significance of the determinants of NIM. Generally, NIM is explained by bank-specific, industry and macroeconomic factors. We find risk aversion, operating cost, inflation rate and previous year’s GDP growth to be robust drivers of NIM.     

Understanding gay consumers’ clothing involvement and fashion consciousness

This study’s primary objective was to provide a better understanding of gay consumers’ clothing involvement and fashion consciousness. Personal in‐depth interviews were conducted with 13 gay professionals in Canada. One hundred and forty‐five usable survey questionnaires were also collected from gay consumers. The Fashion Involvement Index Scale (FII scale) was adapted for this study. Interview participants indicated that, in general, gay men tend to be more fashion conscious than heterosexual men. Survey results also indicated two dimensions, fashion interest and fashion awareness that were found to be stronger for this group of gay consumers than for heterosexual men. The FII value for the survey participants also resulted in a sum score mean value of 11.2, a medium level of fashion involvement that is a slightly higher level than has been found for heterosexual consumers. Interestingly, this study does not provide strong evidence of gay consumers’ involvement in cutting‐edge fashion trends.     

Under-reporting of road traffic crash data in Ghana

Having reliable estimates of the shortfalls in road traffic crash data is an important prerequisite for setting more realistic targets for crash/casualty reduction programmes and for a better appreciation of the socio-economic significance of road traffic crashes. This study was carried out to establish realistic estimates of the overall shortfall (under-reporting) in the official crash statistics in Ghana over an eight-year period (1997–2004). Surveys were conducted at hospitals and among drivers to generate relevant alternative data which were then matched against records in police crash data files and the official database. Overall shortfalls came from two sources, namely, ‘non-reporting’ and ‘under-recording’. The results show that the level of non-reporting varied significantly with the severity of the crash from about 57% for property damage crashes through 8% for serious injury crashes to 0% for fatal crashes. Crashes involving cyclists and motorcyclists were also substantially non-reported. Under-recording on the other hand declined significantly over the period from an average of 37% in 1997–1998 to 27% in 2003–2004. Thus, the official statistics of road traffic crashes in Ghana are subject to significant shortfalls that need to be accounted for. Correction factors have therefore been suggested for adjusting the official data.     

Understanding fashion communication between Korean middle‐aged mothers and daughters

Daughters can be considered important social role models for middle‐aged mothers in fashion communication such as the clothing purchase or conformity. This study explores antecedents (trust in daughters as fashion informants and internalized social pressure for appearance management) and outcomes (solidarity between mother and daughter, psychological well‐being of mother) of fashion communication (mother–daughter shopping, clothing conformity) between middle‐aged mothers and daughters. The data were collected using a self‐administered online survey of 307 middle‐aged Korean women between ages of 45 and 65. The result shows that mothers’ trust in daughters as fashion informants and internalized social pressure for appearance positively influence mother–daughter shopping and mothers’ clothing conformity to daughters. Next, mother–daughter shopping and mothers’ clothing conformity have a positive influence on the solidarity of mothers and daughters. When solidarity becomes stronger, the degree of the mothers’ psychological well‐being increases.     

Luxury fashion consumption in China: Factors affecting attitude and purchase intent

This study examined influencing factors that affect Chinese consumers’ attitude towards purchasing luxury fashion goods and purchase intent. Data was collected in three major cities in China (i.e., Beijing, Shanghai and Guangzhou). A total of 161 respondents were included. Using regression analyses, the results indicated that brand consciousness, social comparison and fashion innovativeness have significant impact on attitude towards purchasing luxury fashion goods among Chinese consumers. In addition, Chinese consumers’ purchasing intention for luxury fashion goods was affected by their attitude towards buying luxury fashion goods. Practical and managerial implications are further discussed.     

Old habits die hard: A tale of two failed companies and unwanted inheritance

This article examines whether state-owned enterprises inherit the problems and stigmas resulting from the actions and inactions of their predecessor firms. In this direction, we advance two main theories of inherited background: the “wanted inheritance” and “sins of the father” perspective. We shed light on this issue using the cautionary tale of two failed companies: Ghana Airways (GA) and Ghana International Airlines (GIA). Our data indicate that GIA acquired some wanted inheritance such as former employees and their expertise, but this was accompanied by unwanted inheritance such as tainted ‘image’ and years of dissatisfaction of their customers from Ghana Airways, which affected its operations and precipitated its untimely demise. We conclude by outlining the implications of our findings for management and governments.     

R&D,Human Capital and Export Behavior of Manufacturing and Service Firms in Ghana

ABSTRACT

The paper carries out a detailed analysis of the effects of R&D and human capital as well as their interactions with innovation on export behavior of manufacturing and service firms in Ghana using a dataset of 720 firms that merges the Enterprise, Innovative Capability and the Innovation Follow-up Surveys respectively for Ghana. Using a bivariate probit regression, the results show that R&D and human capital (employees’ education, slack time and formal training) are positive and significantly related to the propensity for firms to export in Ghana. The cross derivatives (differences) for the interaction terms (R&D and innovation, and education and innovation) also showed that these interaction terms have positive effects on the likelihood for firms to export but are significant only for a negligibly small fraction of the sample. Thus, there is no much statistically significant evidence in support of the mediation role of innovation in the relationship between R&D/education and the export behavior.     

Total Quality Management in Ghana: Critical Success Factors and Model for Implementation of a Quality Revolution

In this study, the authors aim to identify the critical success factors and challenges of total quality management (TQM) implementation and propose a model for the successful implementation of a quality revolution in Ghana. The approach in this study was to review existing literature followed by case studies of 15 firms. Three employees (quality manager/director and any two “ordinary employees”) were interviewed to identify the critical success factors that would be appropriate for the implementation of a quality revolution in Ghana as well as the main challenges of quality management they face. Findings revealed that top management commitment, empowerment and involvement of employees, resource availability, competition and increased customer awareness, and a well-functioning quality network are the major factors that are critical and essential if any TQM program is to be successful. Three main problems—management resistance, employee resistance, and resource paucity—were identified as principal impediments to TQM programs.     

Sustainable fashion consumption and the fast fashion conundrum: fashionable consumers and attitudes to sustainability in clothing choice

The fashion industry has recently heeded the call for sustainability and ethically sound production. There has been, however, a reluctant uptake of these products with many consumers and a seeming conflict with existing ‘fast fashion’ desires in this area. This study explores the attitudes of fashion consumers toward sustainable products, ethical fashion purchasing and their subsequent behaviour. The research applies the developmental theory model to a fashion context, finding fashion consumers can be categorized into one of three groups: ‘Self’ consumers, concerned with hedonistic needs, ‘Social’ consumers, concerned with social image and ‘Sacrifice’ consumers who strive to reduce their impact on the world. These different groups view fast fashion in conflicting ways and subsequent implications for marketing sustainably produced fashion products to each group are, thus, significantly different.     

Dollarization,Inflation Targeting,and Inflationary Dynamics in Ghana

ABSTRACT

The impact of dollarization on domestic economic performance, and the welfare implications of high inflation in an inflation targeting environment, have remained a matter of much concern for policymakers in recent years. This study investigates the effects of dollarization on inflation and inflation uncertainty in Ghana for the period January 1990 to December 2017. We apply the exponential Generalized Autoregressive Conditional Heteroskedasticity model together with impulse response and Granger causality tests to explore how dollarization affects the behavior of inflation for the pre-inflation targeting period (January 1990 – May 2007) and post-inflation targeting period (June 2007 – December 2017). The results indicate that dollarization has not played a significant role in the volatility of inflation in Ghana. Also, inflation Granger causes dollarization in both the pre- and post-inflation targeting regimes. Finally, there is a bidirectional causal relationship between inflation and inflation uncertainty following the adoption of inflation targeting monetary policy. We conclude that, although inflation targeting has not presented a significant impact on inflation volatility, it has affected the relationship between inflation and inflation uncertainty in Ghana. The dynamics of inflation volatility and asymmetries present crucial implications which are discussed to guide policymaking.     

The role of product history in consumer response to online second-hand clothing retail service based on circular fashion

The circular fashion system (CFS) posits that clothes not only need to be designed and produced sustainably but also need to circulate among consumers for as long as possible to minimize waste. Fashion industry experts believe that circular fashion will be the dominating future trend of the industry, and many brands and start-ups have launched platforms following the CFS where consumers can exchange or donate their used clothes. However, circular fashion still needs to overcome the negative images associated with second-hand clothes, such as contamination. What can decrease consumers' concerns with used clothes as well as promote circular fashion effectively among consumers? Based on the narrative competence theory, this study examines the effects of providing the product history of clothes on enhancing consumers' trust, perceived benefits, attitude, and usage intentions toward circular fashion service. An online experiment was conducted with 238 U.S. consumers. Results revealed that providing product history enhances consumers' trust toward the service and the perceived hedonic, social, and economic benefits of the service. Greater trust and hedonic benefits of the service enhance consumers’ attitude toward the service, which consequently increase their intentions to use the service. Implications and suggestions for future research are discussed in this paper.     

Why Forward Viral Fashion Messages? The Moderating Roles of Consumers’ Fashion Traits and Message Orientation

Businesses are now using social media as platforms for viral marketing. However, little is known about the motivations, attitudes, and behaviors of fashion consumers who engage with this marketing instrument. This study examines the factors that influence consumers’ use of social media and their behavioral intentions to forward viral fashion messages. An attitudinal model was proposed through the integration of uses and gratification theory and the elaboration likelihood model. Individuals’ fashion trait and message orientations were specified as moderating factors. An online survey was administered to collect data, and 381 college students participated in the study. Hypotheses were tested using structural equation modeling. Findings showed that individuals’ intention to forward a message was affected by favorable functional and expressive attitudes towards the message, while motivations of using social media had only slight effects on individuals’ attitudes. Group comparisons showed significant moderating effects from identified individuals’ fashion trait and message orientation.