Browsing by Author "Pickson, Robert Becker"

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    The Interaction between Public Sector Wage, Inflation and Exchange Rate Volatility in Ghana
    (Scientific Research, 2017-03) Ofori-Abebrese, Grace; Pickson, Robert Becker; Azumah, George Kwesi Walanyo
    Continuous depreciation of the cedi has been in the orbit of concern of policy makers for time immemorial. This is because, in spite of many policy actions to restore the continuous depreciation of the cedi amidst wage hikes and inflation, the efforts of policy makers seem to thwart in vain. The ARDL method was empirically used to determine whether the rising public sector wage bill and inflation have any impact on the value of the cedi over the period 1986 to 2014. The study discovered that inflation, money supply, interest rate and public wage bill have significant impact on exchange rate in the Ghanaian economy. The outcome of this study postulated that exchange rate determination in Ghana is also a fiscal phenomenon in spite of the significant and domineering role played by monetary expansion. Based on this information, the paper proposed that equal attention must be accorded both fiscal and monetary policy in exchange rate stabilization. It, therefore, suggested that there must be a purely independent central bank; devoid of political appointments and interference to carry out its mandate with free hands. An independent non-political fiscal body like the monetary policy committee under Bank of Ghana must also be established under the same body independent of the Ministry of Finance to ensure wage sustainability through the negotiation of public sector wage adjustment subject to budgetary constraints.
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    Revisiting Domestic Savings and Economic Growth Analysis in Ghana
    (Scientific Research, 2017-08) Siaw, Anthony; Enning, Koduah Dawud; Pickson, Robert Becker
    This study set out to ascertain the relationship between domestic savings and economic growth in the midst of antecedent variables with yearly data during the period of 1970-2013. Using Johansen cointegration test and vector error correction model, the study found that, in the long-run, consumer price index, trade openness, foreign direct investment, and domestic savings have positive significant impacts on economic growth. With respect to the shortrun estimates, the lags in domestic savings have negative but insignificant effects on economic growth. It is, therefore, incumbent on the government to uphold, guard, and sustain the political stability so jealously since it can create a conducive financial atmosphere necessary to mobilise savings in order to improve the growth rate of the Ghanaian economy. It is also recommended that the central bank pays a particular attention to rural savings mobilisation through the regulation of mobile banking by allowing the telecommunication companies to also pay interest to savers on their mobile deposits and establishment of banking financial institutions at least in each district in Ghana.
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    Savings-Growth Nexus in Ghana: Cointegration and Causal Relationship Analyses
    (Scientific Research, 2017-02) Pickson, Robert Becker; Enning, Koduah Dawud; Siaw, Anthony
    The wide range of controversies surrounding the direction of causality between savings and economic growth necessitated this study. The study was intended to investigate the relationship between gross domestic savings and economic growth in Ghana; with the specific objective of finding whether there exists a long run relationship between them, and it was also intended to ascertain the direction of causality between the two running actors in the study over the period of 1972 to 2013. The study employed Johansen cointegration test to reveal no long run relationship between gross domestic savings and economic growth in Ghana. This necessitated the usage of the VAR technique to estimate the short run relationships. The finding was that there exists a unidirectional line of causation running from gross domestic savings to economic growth in Ghana. It is strongly recommended therefore that the Bank of Ghana will use the monetary policy instruments to influence and advise the commercial banks on the need to peg the deposit rate relatively higher at least equal or little above the existing interest rate. This is because the deposit rate is the opportunity cost of money demand for other purposes.