Richard Amoatey, Richard K. Ayisi and Eric Osei-Assibey
The purpose of this study is twofold. First, to estimate an optimal inflation rate for Ghana and second, to investigate factors that account for the differences between observed…
Abstract
Purpose
The purpose of this study is twofold. First, to estimate an optimal inflation rate for Ghana and second, to investigate factors that account for the differences between observed and target inflation.
Design/methodology/approach
The paper explored the questions within two econometric frameworks, the Autoregressive Distributed Lag (ARDL) and Threshold Regression Models using data spanning the period 1965–2019.
Findings
The study estimated a range of 5–7% optimal inflation for Ghana. While this confirms the single-digit inflation targeting by the Bank of Ghana, the range is lower than the central bank's band of 6–10%. The combined behaviours of the central bank, banks and external outlook influence inflation target misses.
Practical implications
The study urges the central bank to continue pursuing its single-digit inflation targeting. However, it implies that there is still room for the Bank to further lower the current inflation band to achieve an optimal outcome on growth and welfare. Again, the Bank should commit to increased transparency and accountability to enhance its credibility in attaining the targeted inflation.
Originality/value
The study is one of the first attempts in Africa in Ghana to estimate an optimal inflation target and investigate the underlying factors for deviation from the targets.
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High inflation levels remain a challenge in macroeconomic stabilization policies among developing economies. Oil price is identified as an important driver of inflation. In the…
Abstract
Purpose
High inflation levels remain a challenge in macroeconomic stabilization policies among developing economies. Oil price is identified as an important driver of inflation. In the wake of high and unstable international oil prices, the question regarding the relationship between inflation and crude oil prices, and its implication for economic welfare has become a fundamental empirical issue.
Design/methodology/approach
This question is explored by estimating a non-linear autoregressive distribution lags (NARDL) model of inflation-oil nexus that examined the asymmetric response of inflation to oil price changes. The study then derived the welfare implication of the asymmetric responses, with implications for the petroleum pricing regime in Ghana.
Findings
The study found that inflation responds asymmetrically to oil prices in the long-run but not in the short-run. The welfare cost associated with the asymmetric response increases with increasing rate.
Practical implications
The findings of this study have some implications for petroleum product pricing in Ghana. Recently, Ghana has moved from regulating petroleum prices to the automatic adjustment system. By this policy, petroleum prices change in tandem with the crude oil prices and exchange rates on the international market. Whiles this policy might be comparatively efficient, the evidence of asymmetric response of inflation to changes in oil prices raises some issues about the welfare effect of the policy.
Originality/value
The paper contributes to the literature on the inflation-oil price nexus by investigating critical questions that remain puzzling. These questions include; Does inflation respond asymmetrically to the positive and negative shock of equal magnitude in oil prices? Does inflation response to the asymmetry changes in oil prices have any implications for the welfare of the country? Is the effect of oil price changes pernicious?
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Abba Ya'u, Mohammed Abdullahi Umar, Nasiru Yunusa and Dhanuskodi Rengasamy
Most research on tax evasion focused on microeconomic variables revolving around perceptions and decisions of individual taxpayers. However, a new wave of research is now…
Abstract
Purpose
Most research on tax evasion focused on microeconomic variables revolving around perceptions and decisions of individual taxpayers. However, a new wave of research is now investigating the role of macroeconomic variables in inducing tax evasion. This study adds to the limited studies in this new direction of research. Previous studies found that inflation, low gross domestic product (GDP) growth and gross fixed capital formation causes recession, increases unemployment, raise interest rates, hurts both domestic and foreign direct investments. This study examined the relationship between these variables and estimated tax evasion in Sub-Saharan Africa.
Design/methodology/approach
The study adopts a correlation research design with 2,300 data points collected from 23 countries in Sub-Saharan Africa. Specifically, tax to GDP ratio, gross fixed capital formation per GDP and the GDP annual growth report from each country for the period 2011–2020 was retrieved. Generalised least square regression technique was employed to analyse the data due to the presence of heteroskedasticity in the model and random effect was utilized based on the Hausman test. To avoid misspecification and biased result; therefore, all relevant test was conducted including the multicollinearity test.
Findings
The results indicate that GDP annual growth and gross fixed capital formation have a significant negative impact on estimated tax evasion in Sub-Saharan Africa. The findings further indicate a negative but insignificant relationship between inflation and estimated tax evasion in Sub-Saharan Africa. The study concludes that both GDP annual growth rate and gross fixed capital formation negatively influence estimated tax evasion and the policy implications in the African continent were discussed.
Originality/value
The new findings on the effects of GDP annual growth, growth fixed capital formation and inflation on estimated tax evasion provide novel knowledge that is currently lacking in the current literature, specifically Sub-Saharan African continent.
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Oluwaseun Samuel Oduniyi and Sibongile Sylvia Tekana
It is globally accepted that climate change is presently the greatest threat to the sustainability of human livelihood and biodiversity. Most farmers in the study area are highly…
Abstract
Purpose
It is globally accepted that climate change is presently the greatest threat to the sustainability of human livelihood and biodiversity. Most farmers in the study area are highly aware of climate change and its consequences on the farming system; however, mitigation strategies are clearly lacking. Among the mitigation, mechanism to reduce the threat is achieved by increasing the amount of carbon sinks and reducing greenhouse gas emission through the adoption of agroforestry practices. The purpose of this study is to determine if awareness on climate change leads to the adoption of agroforestry practices, and to examine the determinants.
Design/methodology/approach
A total number of 117 questionnaires were administered to the farmers in the district using stratified random sampling technique. Data were captured and analysed using STATA and XLSTAT software. Descriptive statistics and Heckprobit sample selection model were used to determine the objectives of the study.
Findings
The result established that climate change awareness does not lead to the adoption of agroforestry in the study area in which information source and member’s association were statistically significant at (p < 0.1) and (p < 0.05), respectively, and determine the adoption of agroforestry practices, while farming experience (p < 0.1), age (p < 0.05), extension visit (p < 0.05) and education (p < 0.1), were the determining factors that influence the awareness of climate change in the study area.
Practical implications
Regular number of extensions visit, information and training on agroforestry should be provided to the farmers in the study area.
Social implications
Farmers’ association should be strengthened among the rural farmers.
Originality/value
The causal effect or relationship of climate change awareness on mitigation through the practice of agroforestry in South Africa, especially in the study area, has not been measured. This research set a pace in the area of climate change awareness leading to mitigation strategies through the use of agroforestry practices as an option to be used in the rural farming area of South Africa.
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Scott Lichtenstein, Edward Badu, De-Graft Owusu-Manu, David John Edwards and Gary D. Holt
The developed world increasingly expects corporations to support the community under the corporate social responsibility (CSR) banner. For developing countries, the situation…
Abstract
Purpose
The developed world increasingly expects corporations to support the community under the corporate social responsibility (CSR) banner. For developing countries, the situation differs and CSR has yet to be fully embraced. This study aims to examine the CSR in the Ghanaian construction industry (GCI).
Design/methodology/approach
A multi-stage methodology employs descriptive statistics, the t-test and χ2-test to analyse survey data.
Findings
Results highlight three broad classifications of CSR project typology: social; infrastructure; and environmental. Ghanaian firms are found more aligned to social/intangible CSR projects than tangible ones.
Research limitations/implications
The study is geographically focussed, but the findings hold relevance to all the developing countries. The findings hold implications for policy making and planning in terms of how Ghanaian communities might integrate corporations within their geographical catchments, to enhance sustainable, local development.
Originality/value
This is the first in a series of CSR research within the Ghanaian context. It holds value for others conducting similar work within the developing world.
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Coral Houtman, Maureen Thomas and Jennifer Barrett
The purpose of this paper is to address the advantages of education and training in creating the “Audiovisual/Digital Media Essay” (AV/DME), starting from visual and cinematic…
Abstract
Purpose
The purpose of this paper is to address the advantages of education and training in creating the “Audiovisual/Digital Media Essay” (AV/DME), starting from visual and cinematic thinking as a way of setting up, developing and concluding an argument.
Design/methodology/approach
Recognising the advantages to education and training of the “AV/DME” this paper explores ways of enabling visually disciplined students to work on film theory within their chosen medium, and to develop arguments incorporating audiovisual sources, using appropriate academic skills. It describes a hands-on BA/MA workshop held at Newport Film School (May 2011) and subsequent initial implementation of an examinable DME. The paper contextualises the issue in the light of practice-led and practice-based research and of parity with written dissertations. Drawing on analysis of in-depth interviews with students and tutors, it makes practical recommendations for how to resource, staff and support the implementation and continuation of the AV/DME and/or dissertation.
Findings
The paper feeds back from both students and staff on the running of an initial AV/DME workshop and finds that the Film School Newport is suited to running the AV/DME and suggests a framework for its support.
Research limitations/implications
The study needs to be followed up when the students complete their full dissertations.
Practical implications
The AV/DME needs sufficient technical and human resources to support student learning.
Originality/value
The paper provides a clear and original framework for teaching, supporting and assessing the AV/DME. This framework can be disseminated beyond the University of Wales Newport, and can be used to teach the AV/DME in further contexts and to wider groups of students.