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REAL EXCHANGE RATE BEHAVIOUR IN TANZANIA
(University of Dar es Salaam, 2004-10-06) PANTALEO, INNOCENT M.
In this study the behaviour of Tanzania’s real exchange rate for the period 1966 to 2001 is examined through investigating the determinants of real exchange rate and its misalignment. The period was chosen to cover the years in which the Bank of Tanzania has been under operation. The study has employed econometric techniques of time series, with exchange rate misalignment analyzed using two approaches, the first one being use of the difference between actual real exchange rate and equilibrium real exchange rate and the second one using exchange rate premium as a proxy of misalignment. The results show that the long run determinants of real exchange rate in Tanzania include debt servicing, openness, terms of trade and reforms. The main hypothesis that periods of major external imbalance, foreign exchange control and fixed exchange rate regime are characterized with exchange rate misalignment which tend to disappear during the period of floating exchange rate regime was not rejected. Hence the conclusion that the period of major external imbalance, foreign exchange control and fixed exchange rate regime in Tanzania was characterized by exchange rate misalignment, which is disappearing during the period under which the economic reforms are being implemented. In addition, the results show that in the absence of other interventions, actual real exchange rate converge very slowly towards the long run equilibrium level. Hence, the study recommends the use of the nominal devaluation, in the short run as a powerful tool for reestablishing real exchange rate equilibrium.
ECONOMIC VALUATION OF NGORONGORO CONSERVATION AREA: A Travel Cost Approach
(UNIVERSITY OF DAR ES SALAAM, 2009-09-01) Mwankemwa, Lusajo
The purpose of this study is to estimate the recreational value of Ngorongoro Conservation Area (NCA) in Tanzania. To be able to give an estimate of the recreational value an economic valuation technique -the Travel Cost Method (TCM) is applied. The method will give rise to a demand function which can be applied in a regression model to estimate the relationship between the number of visits and the variables like travel cost, individual Income and educational level. This made it possible to derive the consumer surplus which is the value used to represent the recreational value of the NCA. The data used in the study is based on a sample of 240 visitors to the NCA. The study found the annual consumer surplus for NCA in 2008 to be about 507 229 USD (2008 prices) for the whole sample collected from the survey. However, the recreational value of NCA has been estimated to about 169.1 USD per visit. It is also important to note that the estimated value only represents one part of total economic value (recreational use value); the other values of the site’s total economic value have not been estimated in this study.
EDUCATION-MALARIA CONTROL NEXUS: THE CASE OF GHANA
(University of Ghana , Legon, 2011-06-06) ADJEI, DAVID SEFA
Malaria is a global public health issue as well as a national one in Ghana. It is the number one cause of under-five mortality in Ghana. Several attempts have been made to curb the negative effects of this disease which include the use of Insecticide-Treated Nets (ITNs), anti-malarial drugs, indoor-residual spraying, etc. In Ghana, major stakeholders have ensured the provision of ITNs at highly subsidized rates and even in some cases, distributed free of charge. Alongside these interventions, there has been information, education and communication of activities to help Ghanaians understand the malaria burden and its various means of control. Despite these efforts, there has been marginal decline in malaria cases and mortality rates. Usage of ITNs still falls below the 80% coverage of the vulnerable population as recommended by the WHO. Thus, this study sought to investigate the role and extent to which education influences the ownership of ITNs by households and the usage of ITNs by under-five children. Using a Probit Model and a Negative Binomial Distribution Model, the study examined the role of formal and informal education on the usage of ITNs by under-five children and number of ITNs owned by households in Ghana using data gathered from the Ghana Demographic and Health Survey (GDHS, 2008). The study revealed that household heads with higher education had a positive effect on the use of ITNs by under-five children as well as the number of ITNs owned by households. Health workers and community volunteers also played a positive role in the ownership and usage of ITNs by households and under-five children respectively. Results from the study implied that much attention should be paid to the training of health workers and community volunteers to aid them to effectively disseminate information regarding malaria and its means of control. Efforts should also be directed at ensuring high enrolment and completion of basic education which serves as a foundation for attainment of higher education in Ghana. Formal education aids in comprehension of the malaria burden and its means of control.
ENERGY DEMAND IN GHANA: A CASE STUDY OF THE ELECTRICITY SUBSECTOR
(University of Ghana , Legon, 2011-06-06) ADOM, PHILIP KOFI
In spite of the policy relevance associated with identifying the factors that affect electricity demand and quantifying their effects, there is still a dearth of research analysing aggregate electricity demand in developing countries. Even with the few studies that exist in the literature, the focal countries have been in Asia and the Middle East leaving a gap for Sub-Saharan Africa and Ghana in particular. In Ghana, efforts have been made (see Constantine et al, 1999 & Buskirk et al, 2006) to fill this gap. However, the focus of these studies has been on the household sector. The main focus of this work is, therefore, to forecast domestic electricity consumption specifically identifying what factors affect aggregate domestic consumption and assessing their impact using the ARDL Bounds Cointegration from 1975 to 2008. Also using data on Ghana I test the energy (electricity) conservation hypothesis using the Toda and Yomamoto Granger Causality test. The Bounds cointegration test shows evidence of a long-run equilibrium relationship implying that real per capita GDP, industrial efficiency, structural changes, and degree of urbanisation can be treated as the “longrun forcing variables” explaining total domestic electricity consumption. In the longrun, real per capita GDP, industrial efficiency, degree of urbanisation, and structural changes in the economy were found to be the main determinants of aggregate domestic electricity demand in Ghana while in the short-run all factors with the exception of structural changes in the economy were found to significantly impact on electricity demand. Aggregate domestic electricity demand is predicted to increase from 7,324 GWh in 2009 to 21,974 GWh in 2019 which represents an annual average growth rate of 11.8 percent. Based on the projected growth in electricity consumption, the total required plant capacity increase is projected to be 1,419 MW which represents an increase of 60% above the 2010 figure. This result implies that thermal generation as a percentage of total installed capacity is predicted to increase from the current 40% to 58% by 2019. Also I found evidence in support of the energy (electricity) conservation hypothesis for Ghana. The result shows that only industrial efficiency drives electricity consumption downwards. Based on this I suggest the development and intensification of the country‟s energy efficiency programs. Specifically proprietary electricity efficiency technologies and processes that have significant electricity-savings potential should be identified systematically. Also options should be provided to facilitate the deployment of such technologies in the industrial sector
DETERMINANTS OF DEFORESTATION IN GHANA
(University of Ghana , Legon, 2011-06-06) MINLAH, MICHAEL KAKU
Deforestation is one of the major environmental challenges facing Ghana. Today, the impacts of deforestation continue to impinge on livelihoods of rural and urban dwellers, disrupting important environmental functions and severely destroying forest ecosystems. Some studies have analyzed factors that influence deforestation in Ghana. However, none have placed emphasis on the occurrence of the Environmental Kuznets Curve for deforestation in Ghana. This study employs the Auto Regressive Distributed Lag (ARDL) Bounds Testing approach to cointegration to empirically investigate the factors that cause deforestation in the long and short run as well as investigating the occurrence of the Environmental Kuznets Curve (EKC) for deforestation using time series data from 1970 and 2009. The long run estimation results indicate that variables such as urbanization, rural population pressure, globalization, Structural Adjustment Program (SAP), and agricultural technology affect deforestation in Ghana positively, while agricultural production index, forest exports value as a percentage of GDP, enforcement of property right and forest protection and exchange rate influence deforestation negatively. The impact of total external debt on deforestation Ghana was positive but not significant implying a weak confirmation of the Debt Resource Hypothesis in Ghana. Analysis of the EKC for deforestation in Ghana indicate that the phenomenon is real in Ghana with the per capita income turning point being at $ US 364.99 (in constant 2000 $ US) which will occur in 2011 at a deforestation rate of 1.5%. General and specific recommendations aimed at reducing deforestation are provided.
ACCESS TO FINANCE AND FINANCING PATTERNS OF FIRMS IN GHANA
(University of Ghana, Legon, 2011-06-22) AMAKYE, KWAKU
Access to external sources of financing for firms has been and continues to be an obstacle to the operations and growth of firms. Firms have used diverse means to finance their operations, especially internally generated funds. The purpose of the study was to investigate the determinants of the key external sources of financing working capital and new fixed investments by firms in Ghana. The main source of data for this study is the World Bank Enterprise Survey on Ghana; a firm level survey conducted in the year 2007. The Tobit estimation technique was used to investigate the determinants of the external sources of financing whiles analysis of variance was used to determine the variability in sources of finance according to firm size. The results of the study show that access to finance is perceived by firms as the second most serious obstacle to their operations. Secondly firms tend to rely more on internal sources of financing than external sources of financing. In the use of external sources of financing working capital, trade credit is more important than bank financing. However, firms finance a higher proportion of their new fixed investments from banks as compared to other sources of financing. The factors which influence the use of external sources of financing are firm size, audited financial statements, sector, educational level of the manager, ownership and location. The study recommends that firms, especially small firms, keep quality financial information on their operations. As firms put in place measures to improve on the needed financial information to external finance providers, financial intermediaries should also be encouraged to introduce more relationship lending products, if they are to meet the financing needs of Small and Medium Enterprises.
MIGRATION-EDUCATION LINKAGES: THE CASE OF GHANA
(University of Ghana , Legon, 2011-06-22) AMUAKWA-MENSAH, FRANKLIN
Education and migration are very essential in development outcomes since education improves the capability of the individual. Despite studies on migration in Ghana, the link between migration and education in the Ghanaian economy is unclear. This study therefore presents an empirical examination of the linkages between migration and education in Ghana. While GLSS 4 and GLSS 5 datasets were used for the descriptive analysis, the GLSS 5 dataset was used for the econometric estimations. Heckman‟s two stage method was used in examining the impact of education on migration; however the Ordinary Least Squares (OLS) estimation was used to find the impact of migrant remittances on education expenditure. The relationship between migration and education was also examined by using the chi-square test. The empirical results revealed that a greater proportion of internal migration in Ghana is rural-rural and urban-rural. Also, an individual‟s educational attainment positively affects his/her decision to migrate. Further, it was seen that other socio-economic variables significantly affect an individual‟s migration decision. Though education affects the migration decision in both urban and rural areas, its significance varies for the different stages of educational attainment. Moreover, it was found that migrant remittances positively affect educational expenditure. Based on the findings of the study it is recommended that the education system should be improved in the entire country by providing qualified teachers and studying materials, and the rural areas should be upgraded close to the standard of the urban area in order to reduce inequality in educational infrastructure. Also, a smooth functioning credit market should be created in the country to provide financial support to households which do not receive remittances to finance their educational expenditure.
INFLATION AND ECONOMIC GROWTH IN SIERRA LEONE
(UNIVERSITY OF CAPE COAST, 2011-08-03) SWARAY, SAIDU
The study examined the relationship between inflation and economic growth in Sierra Leone using annual data for the period 1979 to 2008. Employing autoregressive distributed lag (ARDL) approach to cointegration, the study found a cointegrating relationship among the variables when real GDP was used as the dependent variable and no cointegrating relationship among the variables when inflation was used as the dependent variable. The bounds test results revealed that inflation exerted a negative and statistically significant effect on economic growth both in the short-run and long-run suggesting that higher rates of inflation is inimical to economic growth in Sierra Leone. Also, investment as a share of GDP and government expenditure exerted a positive and statistically significant impact on economic growth both in the short-run and long-run suggesting that government expenditure and investment are critical in enhancing sustained economic growth and development. The Granger causality test result revealed a unidirectional causality between inflation and economic growth and ran from economic growth to inflation. Thus, the study concluded that government expenditure in the form of investment is an important channel through which the economy can achieve economic growth. Hence, the study recommended that government should embark on judicious investment especially in infrastructure to achieve sustained economic growth.
COMPETITION AND EMPLOYMENT IN THE TELECOMMUNICATIONS INDUSTRY IN TANZANIA
(University of Dar es Salaam, 2011-09-22) Mtingele, Achilana Mkunga
This dissertation examines the impact of competition on employment in the telecommunications industry in Tanzania. Specifically, it addresses the question “Does competition in telecommunications industry in Tanzania have any significant impact on employment?” Furthermore, the competitive pressure existed in the industry after liberalization in the 1990s is what induced the study. The panel data available for this dissertation over the period of seventeen years, allows estimation of competition and levels of employment that control for firm fixed effects. The model estimated relies on employment equation that uses competition variable measured by Herfindhal-Hirschman Index as one of the regressors. The findings based on OLS estimates indicate that 1 per cent increase in competition increases employment by 1.02 per cent but the coefficient estimate is not significant, partly suggesting biasness of OLS. When firm fixed effects are controlled for, the model demonstrates robust positive correlation between competition and employment; 1 per cent increase in competition increases employment by 0.66 percent; these results are highly significant at 5 per cent. Such results suggest that OLS estimates are indeed biased. The dissertation concludes significant positive correlation between employment and competition hence recommends for more efforts to support employment creating competition.
THE IMPACT OF IMMIGRATION ON UNEMPLOYMENT AND ECONOMIC GROWTH IN KENYA
(University of Mauritius, 2012-02-20) MULATIA, Charles Maingi
This paper employs the annual time series data spanning 1980 to 2010 to analyze the impact of immigration on unemployment and economic growth in Kenya. This is followed by the recent attacks from the Somali’s insurgent group; al shabaab. The militias’ invasion of Kenya’s territory coupled with the fear that immigrants rob natives their jobs has raised eye brows among Kenyans. This paper seeks to allay such fears and dig on the real impact of immigrants on Kenya’s economic performance via the product and hence the labour market. In the analysis, the study makes use of instrumental variable (IV), a special case of GMM, due to the problem of data limitation and endogeneity amongst the variables. The results indicate that on obtainable evidence, fear of large gloomy employment and economic growth are not justified. The perception that immigrants steal jobs away from existing population, thus contributing to large increases in unemployment do not find verification in the analysis of data.
The Role of Food Price Inflation in Lesotho
(University of Mauritius, 2012-03-06) Thamae, Retselisitsoe Isaiah
This dissertation analyses the role of food price movements in inflation within the Lesotho’s economy. The empirical results from this analysis reveal that food price inflation in Lesotho has generally not only been more volatile and higher than nonfood inflation, but also more persistent than the inflation of nonfood products. Furthermore, the persistent movements in food prices have appeared to be the major source of increasing inflation persistence in Lesotho, which was found to be low but rising over time. Food price movements are also discovered to have significant impact on core inflation, thereby giving evidence that food prices contain some useful information about the underlying inflation trends in Lesotho. On the other hand, the results have shown the presence of strong second-round price effects between food and nonfood inflation. These findings, therefore, implies that the setting and communication of monetary policy in Lesotho should be based on developments in underlying inflation rather than overall inflation However, any attempt to capture the underlying inflation using measures that excludes food items only on the basis of their high volatility would be unjustified.
THE INCIDENCE AND DYNAMICS OF INTRA-INDUSTRY TRADE BETWEEN GHANA AND ECOWAS
(University of Ghana , Legon, 2012-06-06) OFFEI, EMMANUEL LARBI
Since intra-industry trade (IIT) was first noticed in the 1960s, theoretical and empirical studies on this type of trade have being growing rapidly. Very few studies however, have investigated IIT in the Economic Community of West African States (ECOWAS) region. This current study attempts to bridge the literature gap by examining the incidence and determinants of IIT between Ghana and its ECOWAS trading partners using empirical trade data from 2004 to 2010. The results show evidence of IIT between Ghana and ECOWAS although it is low as compared to other regions. Sectors found to exhibit high incidence of IIT are transportation, animal products and chemicals industries. At the country level, Cote d’Ivoire has the highest IIT incidence with Cape Verde and Guinea Bissau having no IIT with Ghana. The determinants of IIT are estimated using the gravity model and the results indicate that per capita income, dissimilarity in per capita income, foreign direct investment, and common language affect IIT positively while gross domestic product and geographic distance influence IIT negatively. The main hypothesis guiding this study is that similarity in per capita income between Ghana and the ECOWAS trading partners stimulates IIT. This hypothesis is however rejected because the study finds a positive correlation between dissimilarity in per capita income and intraindustry trade instead of the a priori expectation of negative sign. The study recommends that policies should be introduced to encourage the expansion of the manufacturing sector in member countries. Exchange rate variability and bottlenecks in the level of traffic flow along interstate corridors must be removed to enhance intra-industry trade within the subregion.
TESTING PECKING ORDER THEORY ON DIVIDEND PAYOUT RATIO IN GHANA
(University of Ghana , Legon, 2012-07-10) DOKU, ISAAC
The Pecking Order Theory (POT) suggests that firms prefer internal over external sources of financing investment. For external sources of finance, firms prefer the use of debt before equity to finance investment. However, the POT did not show how the capital structure decision of firms influences their dividend decision. POT can be combined with Lintner’s dividend model to generate some predictions for financial leverage. This leads to the conclusion that when firms are faced with earnings shortage, firms will borrow to pay dividend at the expense of profitable investment. This means there will be a positive interaction between financial leverage and dividend payout ratio, and a negative interaction between financial leverage and investment. The theory further predicts that as firms make more profit, they would demand less debt representing a reduction in financial leverage. The predictions of the POT where made based on data from developing countries. However, due to differences in accounting and auditing practices between developed and developing countries, these predictions might not hold in developing economies. A cross sectional analysis was implemented on 33 out of the 34 listed firms on the GSE for the period 2004-2009, employing both the 3SLS and OLS technique to test the predictions in Ghana. The findings indicate that there is a positive significant interaction between financial leverage and dividend payout ratio among listed firms in Ghana. The results further indicate that profitability has the predicted negative influence on financial leverage, indicating that the POT explains dividend payout ratio in Ghana. The results did not show any significant interrelationship between financial leverage and investment, and between investment and dividend payout ratio among listed Ghanaian firms. The results also show that dividend payout ratio in Ghana is very low, therefore, policymakers should strengthen and enforce laws on dividend payment in Ghana
DETERMINANTS OF EMPLOYEE TENURE IN THE BANKING SECTOR OF GHANA
(University of Ghana , Legon, 2012-07-12) AGYEMANG, AMOS SARFO-
The Ghanaian economy has witnessed an influx of banks in the past two decades. This phenomenon however, brings to the fore issues of employee turnover as the banks compete for efficient workers. A Bank of Ghana research for the period 2001 to 2007 discovered a year-onyear increase in the employee turnover costs incurred in the banking industry. In another research, out of the 14 sampled countries in Sub Saharan Africa, the Bank of Ghana identified Ghana to be the leading nation in terms of costs involved in the hiring and firing of employees. Studies on employee tenure in the banking sector remains scarce in the Ghanaian context and most available ones worldwide are single sided in their analysis; thus they seek to examine employee tenure in relation to either individual or firm characteristics. The objective of the study is to examine how both firm and individual characteristics influence employee tenure in the banking sector of Ghana. Multinomial logit regressions results from the study which employed primary data of randomly sampled 138 employees across the commercial banks in Ghana revealed that current job tenure is significantly influenced by individual characteristics such as level of education, age and experience. Co-workers’ relations, workload and wages were found to be the firm characteristics that significantly explained their current tenure. Job offer received was also proven to be significant. Results from the logistic regression (binary logit) also suggested that gender, wages, incentives and the years spent on the job were important determinants of the intent of tenure. In line with the findings, it is recommended that banks should ensure satisfactory levels of wages and incentives given to their employees. They should again embark on family-friendly policies for their employees and also be circumspect in their recruitment activities.
CHILD LABOUR, SCHOOLING AND POVERTY: AN ANALYSIS OF GHANA’S RECENT EXPERIENCE
(University of Ghana , Legon, 2012-07-21) EGYEI, RICHMOND KINGSLEY
In spite of the major efforts by governments in addressing the issue of children‟s participation in the labour market, much remains to be learnt about the determinants of child labour and schooling in Ghana. This study sought to explore the link between child labour, schooling and poverty using data from the 2005/06 Ghana Living Standards Survey. From a premise that child labour conflicts with the human capital accumulation of the child, an attempt is made using a logistic model to identify the determinants of child labour and schooling in Ghana. The findings from the regression results established a gender gap in schooling – in favour of girls. Child labour is found to be more of a rural phenomenon. Fathers with relatively high levels of education were found to have a significant influence on reducing the likelihood of child labour. Household ownership of productive assets (land and livestock), and other household characteristics also has a significant role to play. The result also established that children from poor households are more likely to participate in the labour market. The corresponding relationship with schooling shows that poverty reduces the likelihood of a child being in school. The result thus lends strong support to the view that poverty has a big impact on child labour. General and specific recommendations aimed at increasing school attendance and reducing child labour have been made.
THE EFFICIENCY OF UGANDA’S STOCK MARKET
(Makerere University, 2012-09-22) SSEMUYAGA, EMMANUEL
This study explored the efficiency of Uganda’s stock market and under this; the study focused on determining the degree of efficiency and estimation of the liquidity level and derived implications towards market efficiency. This was due to high volatility and puzzle in the debate of efficient market hypothesis. Finding the nature of stock market efficiency is important for investors who seek to find out whether they can get an opportunity of making excess returns from the market. The study used the GARCH model to determine the randomness of the distribution of the stock returns with a combination of tools that were used to analyze the results. Secondary data were obtained from Uganda securities exchange and Uganda bureau of statistics from the year 2006 to 2010. For determination of the degree of efficiency, the study used daily observations and for liquidity the study used annual data. Among the tools that were used for analysis include the Auto correlation test, Runs test, Kolmogrov – Smirnov (K – S) goodness of fit test and JarqueBera test. The results from the GARCH Model rejected the randomness of the distribution and indicated high volatility in the expected returns and this was again confirmed by low levels of liquidity. These indicated inefficiency of the market at weak form. This was also again confirmed by other tests mentioned above. Much as ALSI and NIC results were randomly distributed, the USE was still inefficient at weak form and thus the EMH was rejected. It was noted that New Vision printing company limited was weak form efficient. This study calls for use of modern technology like instant sending of SMS to market participants, increasing trading sessions and general awareness to improve on the flow of information.
EFFICIENCY OF BOTSWANA MEAT COMMISSION
(University of Dar es Salaam, 2012-09-22) Nkombeledzi, Geraldine
Over the years BMC has been characterised by a series of fluctuations in its throughput and also the inability to operate at full capacity. An interesting detail is that, demand for beef and beef products has risen as evidenced by a rise in domestic consumption. BEDIA (2008) reports that, the number of cattle supplied to BMC over the years has declined, while on the other hand, domestic consumption has increased and local butcheries have attracted an increasing number of cattle made available for slaughter: as a result throughput at BMC abattoirs has declined leading to excess capacity. Given that, Botswana has higher potential of meat production than it actually produces, there is therefore a need to determine BMC level of efficiency and identify possible causes of inefficiency so as to reduce existing excess capacity and improve its performance. This study employed Stochastic Frontier Analysis to assess technical efficiency of Botswana Meat Commission. The results indicate that BMC is not technically efficient. The study also used Ordered Logit to assess factors having an influence on efficiency. Factors that were found to have influence include material input, producer prices and exchange rate. In consideration of the potential that the sector possesses such as diversification of the economy and export earnings among others, strategies that can enhance BMC performance must be fully explored. Options that can be explored include; opening up of the market so that producer prices are competitively set and further processing of by products which can be outsourced so that the commission concentrates on efficient production of beef and beef products
Household Choice of Diarrhea Treatments for Children under the Age of Five in Kenya
(University of Nairobi, 2012-11-06) MURIITHI, GRACE NJERI
Childhood diarrhea is one of the leading causes of under-5 deaths in developing countries, including Kenya. Although it is one of the most easily prevented and managed childhood illnesses, it is the third leading cause of under-5 mortality and kills about 86 children in Kenya every day. The World Health Organization recommends the use of oral rehydration therapy (ORT) to manage diarrhea once it occurs as well as the use of zinc supplements to reduce the severity and future recurrence of the illness. This study investigated the factors that influence the household choice of treatments for children suffering from diarrhea across the country using a multinomial logit approach. A sample of 771 under-5 children was drawn from the 2008/2009 Kenya Demographic and Health Survey. It was found that 29.86 percent of the children were not administered with any sort of treatment for their diarrhea. Besides ORT and zinc, other treatments such as antibiotic drugs, antimotility drugs, and herbal medicines were used to manage childhood diarrhea. It was surprising to note that only 4 of the affected children were given zinc supplements. The study also found that prior knowledge/experience of oral rehydration salts, mother’s education level, and place of residence were key determining factors of the use of recommended treatments to manage diarrhea. Factors such as household wealth, mother’s age at birth and number of births in a span of five years were equally important for other treatments. Given the inadequate and low usage of ORT and zinc respectively, the study recommends strengthening awareness on childhood diarrhea and the recommended treatments that can be used to manage it as well as increasing the availability and accessibility of zinc supplements.
ECONOMIC ANALYSIS OF TRANSBOUNDARY ANIMAL DISEASE CONTROL IN NTUNGAMO AND RAKAI DISTRICTS, UGANDA. A CASE OF FOOT AND MOUTH DISEASE AND EAST COAST FEVER
(Makerere University, 2013-10-21) BAYIYANA IRENE, BAYIYANA
Transboundary animal diseases (TADs) are a major threat to livestock keepers affecting growth and productivity. This study was therefore conducted specifically to: characterise agropastoralists in Ntungamo and Rakai districts; evaluate the farm level benefits and costs associated with the control of TADs; and determine the factors influencing farmers’ willingness to pay for TADs control. A sample of 176 farmers from Rakai and Ntungamo districts was used to generate responses. Data were collected using pretested questionnaires and analysed using SPSS and STATA software. Analytical tools used included descriptive statistics, Cost Benefit Analysis and Logit models. The study revealed that 60% of the farmers were willing to pay for TADs control. Spraying and vaccination were the most commonly used methods of TADs control costing UGX 8,867 and UGX 500 per animal per year respectively. Total annual avoided losses per animal were 64% higher if TADs were controlled than if they were not controlled. The Benefits of TADS Control outweighed Costs with BC ratio of 4.4. Training in disease control, farmer’s annual income, herd size and household size were key factors influencing farmers’ WTP. Richer farmers had a higher probability of paying for TADs control compared to low income farmers. In order to ensure effective TADs control, Vaccination should be provided at a lower cost to encourage farmers’ WTP for TADs control. Farmers need to be trained in disease control and sensitized on the importance of their payment towards TADs control as this boosts their incomes & livelihoods
THE EFFECT OF FINANCIAL INNOVATION ON MONEY DEMAND IN UGANDA: AN EXAMINATION OF NEW PAYMENT TECHNOLOGIES ON DEMAND FOR NARROW MONEY
(Makerere University, 2014-03-06) NAKAMYA, MIRIA
Since the liberalization of Uganda’s financial sector in the early 1990s, both foreign and local investors have been attracted to the sector. Competition and development; particularly technological development resulted in the introduction of new payment technologies such as ATM cards, Electronic Funds Transfers (EFTs), Real Time Gross Settlement (RTGS), Internet Banking, use of visa and debit cards and now mobile money transfers. These would ordinarily lead to either an increase of decrease in demand for money. Their effect on demand for money in Uganda has not been studied. In this regard, it is imperative to investigate the effect that these payment technologies have on demand for narrow money. In particular, this study assesses the effect of the number of automated teller machines (ATMs) and the volume of Electronic Funds Transfer (EFTs) on demand for narrow money (M1). Monthly aggregated data from June 2003 to March 2011 was used and a Johansen Juselius approach to cointegration was applied. In the longrun model, it is established that income has a positive effect on demand for narrow money. The opportunity cost variables of interest rate on the 90-days Treasury bill and expected inflation indicated a negative effect on demand for money. The Treasury bill rate, however, had a very smaller coefficient suggesting that the interest rate channel is still a weak monetary transmission channel. Proxy variables for payment technology innovations, that is, ATMs and EFTs have positive and significant effects on demand for M1. This emphasizes the need to take into account the effect of financial innovation in money demand estimation and when formulating monetary policies in the economy. The model was well specified basing on the results from the Ramsey Reset test, and the CUSUM and CUSUMSQ did not reveal any sign of model instability. It is recommended that for sound monetary policies, the monetary authority should consider the effect of financial innovation on demand for money.

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