Is a Lecturer with GIMPA assigned to Takoradi Campus. Emmanuel is interested in development and finance, international economics and applied econometrics Phone: +233547274196 Address: Ghana Institute of Management and Public Administration SOLASS, Department of Economics Takoradi Campus Windy Ridge Takoradi
This study examines the effect of oil prices on domestic investment in Ghana using quarterly time... more This study examines the effect of oil prices on domestic investment in Ghana using quarterly time series data from 1984 to 2012. Dynamic Ordinary Least Squares (DOLS) technique was used to estimate the effect of oil price on domestic investment in Ghana. The analysis revealed that there is long run relationship between domestic private investment, oil price shocks, exchange rate, inflation, income and credit to private sector. The study found negative effect of oil price shocks on investment. This indicate that shock in oil prices leads to a reduction in investment. It is therefore recommended that mechanisms be put in place to check or cushion the economy against oil price shocks and variability. This could be done through providing domestic credit to the private sector to boast investment.
This study examines the effect of oil prices on domestic investment in Ghana using
quarte... more This study examines the effect of oil prices on domestic investment in Ghana using quarterly time series data from 1984 to 2012. Dynamic Ordinary Least Squares (DOLS) technique was used to estimate the effect of oil price on domestic investment in Ghana. The analysis revealed that there is long run relationship between domestic private investment, oil price shocks, exchange rate, inflation, income and credit to private sector. The study found negative effect of oil price shocks on investment. This indicate that shock in oil prices leads to a reduction in investment. It is therefore recommended that mechanisms be put in place to check or cushion the economy against oil price shocks and variability. This could be done through providing domestic credit to the private sector to boast investment.
This study contributes to the explanation to growing informality by proposing and testing a simp... more This study contributes to the explanation to growing informality by proposing and testing a simple framework that link income insecurity to the proliferation of informal enterprise through job insecurity in selected SSA countries. The study adopted a quantitative approach and used ANOVA analysis to analyze a uniform firm level data on informal enterprises in Ghana, Kenya and the DRC. The analyses suggested that income insecurity exist in the form of significant seasonal variations in sales returns. Enterprises that employ more than one worker, on the average, cut employment significantly during the slowest months as compared to employment in the busiest months. Thus a link is established between income insecurity and job insecurity which deters the informal enterprises from increasing permanent employment and hence remains small overtime. Instead firms resort to casual workers and unpaid workers to facilitate production. The insecurity in the informal sector paid employment drive paid employees into self-employment after learning the employer’s trade and hence multiply the number of enterprises in a locality which in turn keep returns fairly normal in the sector. The major recommendation of that study is that owners of informal enterprises must be regulated in their current jobs and assisted to build capacity to deal with sales variations and other employment uncertainty after which the demand for formality and growth in decent employment shall be a natural course of action to the firms.
Poverty and exclusion are two interrelated concepts and each one reinforces the other. Theoretica... more Poverty and exclusion are two interrelated concepts and each one reinforces the other. Theoretically, it is postulated that there is a connection between social exclusion and poverty. In other words, exclusion affects poverty through several channels but this link has not been tested econometrically in Ghana. Therefore, this study examines the link between poverty and social exclusion using the Probit and 2SLS estimation technique with the view to isolating the relevant social exclusion factors that significantly account for poverty for policy purposes. The data used for the study is GLSS 5 data. The study reveals that education plays a major role in poverty reduction. Poverty is associated with age and household size in a non linear fashion. In other words, the effect of age on poverty follows a certain pattern. Individuals who are excluded from employment are more likely to be poor. The policy implications are that: government should take human capital development seriously, promote investment in order to provide employment for the unemployed and to control population in order to minimize poverty.
The paper examined the impact of Foreign Direct Investment (FDI) on stock market development... more The paper examined the impact of Foreign Direct Investment (FDI) on stock market development. In this regard, the paper examined the complementary hypothesis vis -à-vis the substitutability hypothesis. Using ARDL model and quarterly time series data from International Financial Statistics and Bank of Ghana from 1990 to 2010, it was found that the complementary hypothesis was vindicated. FDI had positive impact on stock market development and this supported the complementary hypothesis in the short run. In addition, Inflation and Exchange rate had positive impact on stock market development. Also there was a bi-causality between FDI and stock market development. The policy implications are that government could maintenance of prudent macroeconomic policies and continue to create legal and congenial environment to stimulate the flow of foreign direct investment and encourage the re-investment of surpluses so that stock market development and economic growth could be enhanced. In other to attract FDI on sustainable bases, stock market development needs to be enhanced.
In contrast to previous studies on the relationship between trade openness and FDI
inflows, this... more In contrast to previous studies on the relationship between trade openness and FDI inflows, this study develops a new measure of trade openness. Principal component analysis was employed to generate an index to capture trade policy openness. The study used cost of exporting and importing as well as the number of days and the number of documentation it takes to complete a trade transaction (both import and export) in the doing business indicators dataset to create an index for trade policy openness. This provides a better measure of trade openness compared with the traditional measure of trade openness which takes into the volume of trade. The traditional measure of trade openness may be affected by more than ordinary trade policy of an economy. Other factors such as access to foreign markets, the size of the internal market and the size of the an ecnomy can probably affect the trade to GDP ratio. However trade policy openness is free of these problems. The study employed both static and dynamic pannel estimation technique to analyse the relationship between trade policy openness and FDI inflow for 29 sub Saharan African countries. The result from the study indicates that, policy openness affect FDI inflows positively. The study recommends that, more efforts should be targeted at reducing cost of trade and also increases the ease of cross boarder trading activities. This would ensure the flow of required level of FDI to the region for economic transformation.
This study examines the effect of oil prices on domestic investment in Ghana using quarterly time... more This study examines the effect of oil prices on domestic investment in Ghana using quarterly time series data from 1984 to 2012. Dynamic Ordinary Least Squares (DOLS) technique was used to estimate the effect of oil price on domestic investment in Ghana. The analysis revealed that there is long run relationship between domestic private investment, oil price shocks, exchange rate, inflation, income and credit to private sector. The study found negative effect of oil price shocks on investment. This indicate that shock in oil prices leads to a reduction in investment. It is therefore recommended that mechanisms be put in place to check or cushion the economy against oil price shocks and variability. This could be done through providing domestic credit to the private sector to boast investment.
This study examines the effect of oil prices on domestic investment in Ghana using
quarte... more This study examines the effect of oil prices on domestic investment in Ghana using quarterly time series data from 1984 to 2012. Dynamic Ordinary Least Squares (DOLS) technique was used to estimate the effect of oil price on domestic investment in Ghana. The analysis revealed that there is long run relationship between domestic private investment, oil price shocks, exchange rate, inflation, income and credit to private sector. The study found negative effect of oil price shocks on investment. This indicate that shock in oil prices leads to a reduction in investment. It is therefore recommended that mechanisms be put in place to check or cushion the economy against oil price shocks and variability. This could be done through providing domestic credit to the private sector to boast investment.
This study contributes to the explanation to growing informality by proposing and testing a simp... more This study contributes to the explanation to growing informality by proposing and testing a simple framework that link income insecurity to the proliferation of informal enterprise through job insecurity in selected SSA countries. The study adopted a quantitative approach and used ANOVA analysis to analyze a uniform firm level data on informal enterprises in Ghana, Kenya and the DRC. The analyses suggested that income insecurity exist in the form of significant seasonal variations in sales returns. Enterprises that employ more than one worker, on the average, cut employment significantly during the slowest months as compared to employment in the busiest months. Thus a link is established between income insecurity and job insecurity which deters the informal enterprises from increasing permanent employment and hence remains small overtime. Instead firms resort to casual workers and unpaid workers to facilitate production. The insecurity in the informal sector paid employment drive paid employees into self-employment after learning the employer’s trade and hence multiply the number of enterprises in a locality which in turn keep returns fairly normal in the sector. The major recommendation of that study is that owners of informal enterprises must be regulated in their current jobs and assisted to build capacity to deal with sales variations and other employment uncertainty after which the demand for formality and growth in decent employment shall be a natural course of action to the firms.
Poverty and exclusion are two interrelated concepts and each one reinforces the other. Theoretica... more Poverty and exclusion are two interrelated concepts and each one reinforces the other. Theoretically, it is postulated that there is a connection between social exclusion and poverty. In other words, exclusion affects poverty through several channels but this link has not been tested econometrically in Ghana. Therefore, this study examines the link between poverty and social exclusion using the Probit and 2SLS estimation technique with the view to isolating the relevant social exclusion factors that significantly account for poverty for policy purposes. The data used for the study is GLSS 5 data. The study reveals that education plays a major role in poverty reduction. Poverty is associated with age and household size in a non linear fashion. In other words, the effect of age on poverty follows a certain pattern. Individuals who are excluded from employment are more likely to be poor. The policy implications are that: government should take human capital development seriously, promote investment in order to provide employment for the unemployed and to control population in order to minimize poverty.
The paper examined the impact of Foreign Direct Investment (FDI) on stock market development... more The paper examined the impact of Foreign Direct Investment (FDI) on stock market development. In this regard, the paper examined the complementary hypothesis vis -à-vis the substitutability hypothesis. Using ARDL model and quarterly time series data from International Financial Statistics and Bank of Ghana from 1990 to 2010, it was found that the complementary hypothesis was vindicated. FDI had positive impact on stock market development and this supported the complementary hypothesis in the short run. In addition, Inflation and Exchange rate had positive impact on stock market development. Also there was a bi-causality between FDI and stock market development. The policy implications are that government could maintenance of prudent macroeconomic policies and continue to create legal and congenial environment to stimulate the flow of foreign direct investment and encourage the re-investment of surpluses so that stock market development and economic growth could be enhanced. In other to attract FDI on sustainable bases, stock market development needs to be enhanced.
In contrast to previous studies on the relationship between trade openness and FDI
inflows, this... more In contrast to previous studies on the relationship between trade openness and FDI inflows, this study develops a new measure of trade openness. Principal component analysis was employed to generate an index to capture trade policy openness. The study used cost of exporting and importing as well as the number of days and the number of documentation it takes to complete a trade transaction (both import and export) in the doing business indicators dataset to create an index for trade policy openness. This provides a better measure of trade openness compared with the traditional measure of trade openness which takes into the volume of trade. The traditional measure of trade openness may be affected by more than ordinary trade policy of an economy. Other factors such as access to foreign markets, the size of the internal market and the size of the an ecnomy can probably affect the trade to GDP ratio. However trade policy openness is free of these problems. The study employed both static and dynamic pannel estimation technique to analyse the relationship between trade policy openness and FDI inflow for 29 sub Saharan African countries. The result from the study indicates that, policy openness affect FDI inflows positively. The study recommends that, more efforts should be targeted at reducing cost of trade and also increases the ease of cross boarder trading activities. This would ensure the flow of required level of FDI to the region for economic transformation.
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Papers by Emmanuel A Wiafe
quarterly time series data from 1984 to 2012. Dynamic Ordinary Least Squares
(DOLS) technique was used to estimate the effect of oil price on domestic investment
in Ghana. The analysis revealed that there is long run relationship between domestic
private investment, oil price shocks, exchange rate, inflation, income and credit to
private sector. The study found negative effect of oil price shocks on investment. This
indicate that shock in oil prices leads to a reduction in investment. It is therefore
recommended that mechanisms be put in place to check or cushion the economy
against oil price shocks and variability. This could be done through providing
domestic credit to the private sector to boast investment.
Inflation and Exchange rate had positive impact on stock market development. Also there was a bi-causality between FDI and stock market development. The policy implications are that government could maintenance of prudent macroeconomic policies and continue to create legal and congenial environment to stimulate the flow of foreign direct investment and encourage the re-investment of surpluses so that stock market development and economic growth could be enhanced. In other to attract FDI on sustainable bases, stock market development needs to be enhanced.
inflows, this study develops a new measure of trade openness. Principal component analysis
was employed to generate an index to capture trade policy openness. The study used cost of
exporting and importing as well as the number of days and the number of documentation it
takes to complete a trade transaction (both import and export) in the doing business indicators
dataset to create an index for trade policy openness. This provides a better measure of trade
openness compared with the traditional measure of trade openness which takes into the
volume of trade. The traditional measure of trade openness may be affected by more than
ordinary trade policy of an economy. Other factors such as access to foreign markets, the size
of the internal market and the size of the an ecnomy can probably affect the trade to GDP
ratio. However trade policy openness is free of these problems. The study employed both
static and dynamic pannel estimation technique to analyse the relationship between trade
policy openness and FDI inflow for 29 sub Saharan African countries. The result from the
study indicates that, policy openness affect FDI inflows positively. The study recommends
that, more efforts should be targeted at reducing cost of trade and also increases the ease of
cross boarder trading activities. This would ensure the flow of required level of FDI to the
region for economic transformation.
quarterly time series data from 1984 to 2012. Dynamic Ordinary Least Squares
(DOLS) technique was used to estimate the effect of oil price on domestic investment
in Ghana. The analysis revealed that there is long run relationship between domestic
private investment, oil price shocks, exchange rate, inflation, income and credit to
private sector. The study found negative effect of oil price shocks on investment. This
indicate that shock in oil prices leads to a reduction in investment. It is therefore
recommended that mechanisms be put in place to check or cushion the economy
against oil price shocks and variability. This could be done through providing
domestic credit to the private sector to boast investment.
Inflation and Exchange rate had positive impact on stock market development. Also there was a bi-causality between FDI and stock market development. The policy implications are that government could maintenance of prudent macroeconomic policies and continue to create legal and congenial environment to stimulate the flow of foreign direct investment and encourage the re-investment of surpluses so that stock market development and economic growth could be enhanced. In other to attract FDI on sustainable bases, stock market development needs to be enhanced.
inflows, this study develops a new measure of trade openness. Principal component analysis
was employed to generate an index to capture trade policy openness. The study used cost of
exporting and importing as well as the number of days and the number of documentation it
takes to complete a trade transaction (both import and export) in the doing business indicators
dataset to create an index for trade policy openness. This provides a better measure of trade
openness compared with the traditional measure of trade openness which takes into the
volume of trade. The traditional measure of trade openness may be affected by more than
ordinary trade policy of an economy. Other factors such as access to foreign markets, the size
of the internal market and the size of the an ecnomy can probably affect the trade to GDP
ratio. However trade policy openness is free of these problems. The study employed both
static and dynamic pannel estimation technique to analyse the relationship between trade
policy openness and FDI inflow for 29 sub Saharan African countries. The result from the
study indicates that, policy openness affect FDI inflows positively. The study recommends
that, more efforts should be targeted at reducing cost of trade and also increases the ease of
cross boarder trading activities. This would ensure the flow of required level of FDI to the
region for economic transformation.