Abdallah Abdul-Mumuni, Kwaku Amakye, Abdul-Lateef Abukari and Michael Insaidoo
While several existing panel studies have focused on the linear specifications of the nexus between trade openness and unemployment, nonlinear panel studies on this subject remain…
Abstract
Purpose
While several existing panel studies have focused on the linear specifications of the nexus between trade openness and unemployment, nonlinear panel studies on this subject remain less explored. This paper examines the asymmetric nexus between trade openness and unemployment in 34 selected sub-Saharan Africa (SSA) countries for the period spanning from 1991 to 2020.
Design/methodology/approach
The Pedroni and Westerlund panel cointegration tests were conducted to ascertain a long run relationship among the studied variables, while the panel nonlinear autoregressive distributed lag approach was applied to account for asymmetries.
Findings
The study revealed among other things that trade openness asymmetrically influences unemployment in the selected panel of SSA countries. In the long run, the positive shock in trade openness on unemployment is greater as compared to the negative shock.
Research limitations/implications
The implications of this study include the need to (1) ensure the effective monitoring and supervision of trade flows in the sub-region so that their full benefits are maximized in terms of job creation and (2) ensure that a positive trade balance is maintained in the selected SSA countries.
Originality/value
The positive and negative shocks in trade openness are examined to determine their asymmetric effects on unemployment.
Details
Keywords
Michael Insaidoo, Mark Edem Kunawotor and Godson Ahiabor
The persistent occurrence of extreme weather events redirects both public and private resources, constrains economic expansion, employment opportunities and threatens the…
Abstract
Purpose
The persistent occurrence of extreme weather events redirects both public and private resources, constrains economic expansion, employment opportunities and threatens the well-being of Africans. To provide an empirical econometric update, this study examines the unconditional effects of extreme weather events on economic growth. Also, it disaggregates weather events into floods and droughts to determine which is more consequential to economic growth. The paper further examines the distribution of economic growth at which extreme weather events may be more consequential.
Design/methodology/approach
The study deploys the system generalized method of moments estimation strategy, in addition to the method of moment quantile regression.
Findings
The results show that extreme weather event is detrimental to economic growth. Among the types of weather events, the incidence of drought has a consequential impact on economic growth while floods do not.
Practical implications
The gross implication of these findings is that policy makers and governments in Africa need to be proactive at least in devising robust adaptive capacities to combat extreme weather events. Also, more efforts need to be invested in understanding the adverse effects of extreme weather events on economic growth.
Originality/value
This study provides novel econometric evidence on the effects of extreme weather events on economic growth and disaggregates weather events into floods and droughts. In addition, the study examines the distributions of economic growth at which extreme weather events may be more consequential.
Details
Keywords
Michael Insaidoo, Lilian Arthur, Samuel Amoako and Francis Kwaw Andoh
The purpose of this study is to assess the extent to which the Ghana stock market performance has been impacted by the novel COVID-19 pandemic.
Abstract
Purpose
The purpose of this study is to assess the extent to which the Ghana stock market performance has been impacted by the novel COVID-19 pandemic.
Design/methodology/approach
The study used the exponential generalized autoregressive conditional heteroscedasticity (EGARCH) model, by using daily time series data from 2 January 2015 to 13 October 2020. Both pre-estimation (Augmented Dickey-Fuller and Phillips-Perron) and post-estimation tests (Jarque-Bera) were conducted to validate the results.
Findings
While the study shows a statistically insignificant negative relationship between the COVID-19 pandemic and the Ghana stock returns, the results confirm that the COVID-19 pandemic has occasioned an increase in the Ghana stock returns volatility by 8.23%. Furthermore, the study confirmed the presence of volatility clustering and asymmetric effect, with the latter implying that worthy news tends to affect volatility more than unwelcome news of equal size.
Practical implications
To dampen uncertainties that trigger stock market volatility, the government should surgically target worse affected COVID-19 pandemic businesses and households to check the drop in profits and demand. Rigidities associated with stock market operations must be addressed to make it attractive to investors even in the midst of a pandemic.
Originality/value
This paper is a pioneer attempt at assessing the extent to which a developing economy stock market has been impacted by the novel COVID-19 pandemic using the EGARCH model.