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Browsing CMAP by Subject "Autoregressive distributed lags"

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    THE EFFECT OF FINANCIAL DEVELOPMENT AND MONETARY POLICY ON ECONOMIC GROWTH IN GHANA
    (University of Cape Coast, 2018-11-12) SENA, PRINCE MIKE
    The link between financial development and monetary policy has received considerable attention in many African Countries such as Ghana. This, notwithstanding, empirical evidence on the link have been mixed. The study, therefore, applied the Autoregressive Distributed Lag (ARDL) approach to investigating whether financial development influences monetary policy effectiveness on economic growth in Ghana for the period 1980 to 2016. The results revealed that monetary policy’s impacts on economic growth via financial development is positive and statistically significant suggesting that financial development strengthens the effects of monetary policy on economic growth in Ghana. Further, financial development, monetary policy, foreign direct investment, remittances, capital and labour supply exerted positive and statistically significant impact on economic growth both in the short-run and the long-run. Signifying that these variables are critical in enhancing sustained economic growth and development in Ghana. However, inflation proved to be detrimental to economic growth both in the long-run and short-run. The conduct of the Granger causality test also revealed a unidirectional causality running from economic growth to financial development. It is therefore recommended that Bank of Ghana should strengthen monetary policy transmission via deliberate efforts to deepen financial sector development and improve the competitiveness of financial markets. Bank of Ghana should also build strong and resilient institutional frameworks to foster the development of financial markets so as to deepen the influence of monetary policy on market interest rates in the financial sector.
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    EFFECTS OF REMITTANCES AND INFRASTRUCTURE ON PRIVATE INVESTMENT: EVIDENCE FROM GHANA
    (UNIVERSITY OF CAPE COAST, 2018-11-01) MENSAH, Samuel
    This thesis examined the effects of remittances and infrastructure on private investment in Ghana. Specifically, the study investigated the combined effects of remittances and infrastructure on private investment as well as the causal relationship between remittances and private investment and between infrastructure and private investment. The Autoregressive Distributed Lag (ARDL) approach to cointegration was used with annual data from WDI, IMF, BOG and ISSER for the period of 1984 to 2017. The research finds that remittances alone does not influence private investment in Ghana. However, given the existence of infrastructure, remittances can simulate private investment in Ghana. The results indicate that existence of infrastructure might be a significant channel through which remittances affect private investment in Ghana. Thus, the net effect of remittances and infrastructure on private investment is empirically higher in promoting private investment in Ghana. The Granger Causality test reveals that there is bidirectional causality between remittances and private investment but unidirectional causality between infrastructure and private investment. Based on the findings, it is recommended that the Ministry of Finance should allocate more funds to the Ministry of Roads and Ministry of Power and Energy to boost infrastructural development such as road construction and electricity generation. This will create and ensure favorable investment climate for remittances to be invested.