Recent research into enterprise performance has focussed on the importance of firm proximity to total productivity. Using spatial correlation of firm performance as a proxy for…
Abstract
Purpose
Recent research into enterprise performance has focussed on the importance of firm proximity to total productivity. Using spatial correlation of firm performance as a proxy for knowledge transfers and diffusion, the purpose of this paper is to examine the evidence for these spatial effects in non-farm enterprise performance in Uganda, across space and time.
Design/methodology/approach
The author uses data from the geo-referenced Uganda National Panel Survey from 2010 to 2012, and employs explicit spatial techniques in the analysis of rural non-farm enterprise performance. Spatial autocorrelation of firm performance are used as proxies for knowledge transfers and information flows among enterprises across space and over time.
Findings
The study finds evidence of spatial spillover effects across space and time in Uganda. This implies that, as existing studies of developed countries have found, social infrastructure and firm proximity contribute significantly to the performance of rural economies, through information exchange and knowledge transfers.
Practical implications
Given the communal nature of rural households in the African setting, knowledge exchange and transfers among neighbouring firms should be encouraged as studies have found they have strong effects on business performance. Additionally, business “leaders” could also be useful in disseminating useful new technologies and applications to neighbouring enterprises in order to boost performance and productivity.
Social implications
There should be better targeting of policy interventions to clusters of particularly needy enterprises.
Originality/value
To the best of the author’s knowledge, this is the first time that spatio-temporal effects of business performance have been explored. While spatial analyses of business performance have been carried out in developed countries, studies using explicit spatial techniques in the developing country setting have been conspicuously absent.
Details
Keywords
Samuel Ampaw, Edward Nketiah-Amponsah, Nkechi Srodah Owoo and Bernardin Senadza
Rural poverty remains high in many developing countries, Ghana inclusive. This has implications for healthcare affordability and utilization, and thus the attainment of universal…
Abstract
Purpose
Rural poverty remains high in many developing countries, Ghana inclusive. This has implications for healthcare affordability and utilization, and thus the attainment of universal health coverage. Nonfarm diversification is seen as a means by which rural farm households can increase incomes and smooth consumption including healthcare. The purpose of this paper is to investigate the impact of nonfarm enterprise participation on healthcare expenditure among farm households in rural Ghana.
Design/methodology/approach
Using nationally representative household data from the sixth round of the Ghana Living Standards Survey (GLSS 6), the paper employs endogenous switching regression and propensity score matching techniques to account for potential selectivity bias.
Findings
Results indicate that households that participate in nonfarm enterprises earn higher incomes and expend more on healthcare. Total household income and region of residence are significant determinants of healthcare expenditure among farm households in rural Ghana. In addition, while in nonfarm enterprise nonparticipating households the marital status of the head of household is important, for participating households the head having at least secondary education significantly influences healthcare expenditure.
Practical implications
Promoting nonfarm activities and hence raising the incomes of households in rural areas of Ghana has the potential of increasing health capital through increased investments in health. It will also positively impact access to and utilization of healthcare and ultimately contribute towards increased farm and non-farm productivity.
Originality/value
Previous studies have only examined the determinants of nonfarm enterprise participation or its impact on household welfare, poverty, inequality, food security and agricultural investments. While evidence abounds on the positive impact of rural nonfarm enterprise participation on household income, which in turn has implications for household health expenditure, the potential positive link between rural nonfarm enterprise participation and household healthcare expenditure remains unexamined.
Details
Keywords
Samuel Ampaw, Edward Nketiah-Amponsah and Nkechi Srodah Owoo
Against the background that Ghanaians seldom purchase insurance policies, the purpose of this paper is to investigate the determinants of life insurance uptake among male and…
Abstract
Purpose
Against the background that Ghanaians seldom purchase insurance policies, the purpose of this paper is to investigate the determinants of life insurance uptake among male and female household heads in Ghana.
Design/methodology/approach
The study employs data on 775 male and 233 female household heads from the sixth round of the Ghana Living Standards Survey. Adjusted Wald test statistics and logistic regressions are employed for the empirical estimations.
Findings
Results from the adjusted Wald test show that the sampled male household heads significantly differ from their female counterparts in terms of the selected socioeconomic and demographic characteristics. Though ill health status, higher wealth, being self-employed or in wage or salaried employment and residing in either of the three northern regions (upper east, upper west and northern regions) in Ghana broadly affect the demand for life insurance among both male and female heads, other factors are peculiar to either parties. Particularly, whereas female heads who are married and those with more dependants have a higher propensity of purchasing life insurance policies, their male counterparts with higher education are more likely to buy life insurance policies.
Research limitations/implications
The paper adds to the paucity of cross-sectional studies on life insurance demand in Africa.
Practical implications
Based on the explored determinants, insurers could better regulate the purchase of their products by taking into consideration the gender differences to maximize their sales and enhance economic growth and development.
Originality/value
This paper explores the gender dynamics in the determinants of life insurance demand in a developing country, Ghana. Besides, findings from related literature are reported to be mixed. Though the current paper is not wholly nationally representative, it utilizes data from across all the ten administrative regions of Ghana. To the best of the authors’ knowledge, no prior study has been conducted in this manner.
Details
Keywords
Monica Puoma Lambon-Quayefio and Nkechi Srodah Owoo
The prevalence of child labour continues to feature prominently on the agenda of many sub-Saharan African countries. The problem remains critical despite existing laws and other…
Abstract
Purpose
The prevalence of child labour continues to feature prominently on the agenda of many sub-Saharan African countries. The problem remains critical despite existing laws and other legislative instruments that have been put in place to address the situation. The purpose of this paper is to examine a critical consequence of child labour, that is, its effect on future earnings and occupational choice.
Design/methodology/approach
The most recent round of the Ghana Living Standards Survey is used for this purpose. In addition to the Heckman model, the study employs propensity score and nearest neighbour matching techniques to account for the possible self-selection in engaging in child labour activities. Also, the multinomial logit model was employed to determine the choice of occupations of people who were engaged in child labour.
Findings
Results indicate that early labour market entry significantly reduces future earnings, possibly due to lower human capital accumulation. These results remain robust with different estimators. Additionally, results from the second objective show that child labour increases the odds of choosing low-skilled occupations.
Originality/value
In Ghana, the negative consequences of child labour on educational attainment have been well documented. Less, if at all, studied are the long-term consequences of child labour, particularly on future economic status.