Effect of Energy Prices on Economic Growth in the ECOWAS Sub-Region: Investigating the Channels Using Panel Data

The article empirically examines the effect of energy prices on economic growth within the Economic Community of West African States sub-region by acknowledging that the effect of energy prices on growth is quintessentially indirect and hence can be tracked through some channels. Exploiting the System Generalized Methods of Moments estimation technique for the period spanning 2002–2015, the results indicate that the overall effect of energy prices on economic growth is significantly negative. This effect propagates mainly through government consumption expenditure and investment, albeit its effect through real interest rate is positive. However, its negative effects on government consumption, investment, and exchange rate significantly overwhelm the positive effect from real interest rate.     

EXPLAINING THE MARKET POWER OF GHANAIAN BANKS1

A competitive banking system helps lower transaction costs and risks. It also helps make financial markets more efficient. In Ghana however, observers believe that the banking industry is not competitive and point to the huge spread between bank lending and borrowing rates as evidence. The Ghanaian banking industry is analysed for evidence of market power by computing the Lerner Index of banks using quarterly data from 2001 to 2006. The evidence is that Ghanaian banks possess market power. Factors that significantly explain the market power of Ghanaian banks are: bank size, efficiency of banks with respect to staff costs, the macroeconomic environment and time.     

Pattern of road traffic injuries in Ghana: Implications for control

Road traffic injuries and fatalities are increasing in Ghana. Police-collected crash and injury data for the period 1994-1998 were aggregated and analyzed using the MAAP5 accident analysis package developed by the Transport Research Laboratory, U.K. Published results of recent transport-related epidemiological and other surveys provided an additional data source. According to the 1994-1998 police data, road traffic crashes were a leading cause of death and injuries in Ghana. The other leading causes of death and injuries are occupational injuries which involve nonmechanized farming and tribal conflicts. The majority of road traffic fatalities (61.2%) and injuries (52.3%) occurred on roads in rural areas. About 58% more people died on roads in the rural areas than in urban areas, and generally more severe crashes occurred on rural roads compared with urban areas. Pedestrians accounted for 46.2% of all road traffic fatalities. The majority of these (66.8%) occurred in urban areas. The second leading population of road users affected was riders in passenger-ferrying buses, minibuses and trucks. The majority of these (42.8%) were killed on roads that pass through rural areas. Pedestrian casualties were overrepresented (nearly 90%) in five regions located in the southern half of the country. Efforts to tackle pedestrian safety should focus on the five regions of the country where most pedestrian fatalities occur in urban areas. Policies are also needed to protect passengers in commercially operated passenger-ferrying buses, minibuses and trucks because these vehicles carry a higher risk of being involved in fatal crashes.     

Explaining Interest Rate Spreads in Ghana*

Abstract: The question of the optimal spread between bank lending rates and rates that banks pay on deposits, which is fair to bankers, depositors and borrowers, has dogged economies for some time. In Ghana, there is widespread perception that the spread is too wide. Bankers, on the other hand justify the spread on the basis of economic variables that affect them. This paper contributes to the literature by identifying, in the case of Ghana, the short‐run response of the net interest margin of banks to changes in bank‐specific, industry‐specific and macroeconomic variables within the broad framework of Ho and Saunders (1981) . We find that increases in the following factors significantly increase net interest margin — bank market power (or concentration), bank size, staff costs, administrative costs, extent of bank risk aversion and the rate of inflation. On the other hand, increases in the following variables decrease net interest margin significantly — bank excess cash reserves, the central bank lending rate, management efficiency and the passage of time. To help reduce interest rate margins, we recommend that banks should not get too big, the central bank should consider lowering the capital adequacy ratio and banks should be required to pass on to borrowers the full extent of reductions or increases in the central bank lending rate. Continued efforts at keeping inflation at bay will also help.     

Operationalization of Ghana’s civil service code of conduct

ABSTRACT

This paper examines the internal and external challenges to the implementation of the code of conduct in the Ghana’s civil service using the Controller and Accountant Generals’ Department (CAGD) as a case study. The main internal challenges to the implementation of the civil service code of conduct at CAGD were found to be: the categories of staff affected by the code of conduct; ‘immunity’ from sanctions, nepotism; and limited checks on enforcement mechanisms. The key external challenges to the implementation of the civil service code of conduct at the CAGD are discussed in the paper and the authors make five important policy suggestions to enhance effectiveness of the implementation process. The suggestions will have value in countries with developing administrative systems.     

Labour reserves and surplus populations: Northern Ghana and the Eastern Cape of South Africa

This article is focused on the political economy of two of Africa's “labour reserve” regions, northern Ghana and the Eastern Cape of South Africa. The majority of residents in these regions are taken as paradigmatic examples of “surplus populations.” They exemplify a main feature that has been used to theorize the concept of surplus populations today, namely, that their labour is surplus to the needs of capital accumulation. We follow the method of Arrighi and Piselli, tracing the political economic transformations of these regions from the turn of the 20th century until the present in order to ground the concept of surplus population in a specific historical context. We argue that it is limiting to think about these populations' utility or uselessness only in relation to capital. To understand the political implications of “surplus populations,” we must think about the interrelation between the political and economic roles that they play and how these developed within specific historical contexts.     

International Integration,Trade, and the Great Recession

In the wake of the Great Recession, almost all countries suffered a severe and synchronized trade collapse unlike any seen since the Great Depression. To the extent that economic integration fosters trade among countries, this paper examines the role that international integration played in moderating the negative shock caused by the Great Recession on trade. The methodology adopted is a modified gravity model in which we control for the Great Recession, different forms of integration, as well as the interaction between integration and the recession. Measuring integration in three different ways, the findings show that countries that were more integrated fared better in trade – the extent of trade collapse was milder – than less integrated countries. Specifically, Regional Trade Agreement, as a form of trade integration, had a positive and robust effect on trade during the Great Recession. This positive effect is also robust across regions and countries around the world. In a nutshell, countries that are into some form of trade agreements are better-positioned to absorb negative demand-side shocks caused by economic recessions than similar countries without such agreements.     

Job demand stressors and employees’ creativity: a within-person approach to dealing with hindrance and challenge stressors at the airport environment

Given the competitiveness of twenty-first-century airport landscape, catalyzed by airports’ evolution toward multi-service, and market-driven firms, a thorough investigation into employees’ creativity and its antecedents at the airport environment is warranted. Adopting the two-dimensional job demand stressors – outcome relationships framework and the cognitive-relational theory of stress, the current study interrogated the challenge (i.e. workload and time pressure)/ hindrance (i.e. role conflict and role ambiguity) stressors – creativity curvilinear relationships, and the buffering effects of within-person resources – dispositional mindfulness, and core self-evaluation. Using multi-sourced, cross-sectional data from employees in three airports in Ghana, the research findings showed creativity to have a U-shaped relationship with role ambiguity and role conflict, but with time pressure the relationship was an inverted U-shape. Employees’ workload showed a near-linear relationship with creativity, flattening at high levels of workload. Core self-evaluation displayed itself as an effective buffering component on role ambiguity – and time pressure – creativity relations but not role conflict and workload. Dispositional mindfulness interacted with role ambiguity, role conflict and time pressure – creativity relations, but not workload. To optimize employees’ creative performance, the study findings make a strong case for attending to individual-level factors necessary for stressors management. Further implications and recommendations are discussed.