The impact of foreign aid on national income in Ghana: a test for long-run equilibrium

Kwablah, Edmund; Amoah, Anthony; Panin, A.

doi:10.1504/ajesd.2014.065021

Cited by 10 publications

(8 citation statements)

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“…Our paper contributes to the debate on aid effectiveness by demonstrating that the political party in power attracts foreign aid to meet their political philosophy. This paper complements earlier works on Ghana and generates novel results with regard to political philosophy and aid effectiveness, which has not been considered in prior studies (Appiah-Konadu et al, 2016;Kwablah et al, 2014). Furthermore, this paper updates the work of Boone (1996), who opines that foreign aid does not vary with respect to whether the recipient government is liberal democratic or highly repressive.…”

Section: Political Regimessupporting

confidence: 68%

“…Therefore, the distribution of aid benefits is less effective when it is on co-ethnic and/or co-partisan bases. Kwablah et al (2014) found different results of aid effectiveness for two sub-periods (pre-structural and post-structural breaks) in Ghana. The authors observe that aid has a positive and significant relation with national income during the pre-structural period but insignificant relationship in the post-structural break period.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 85%

“…The post-independence political history of Ghana has been characterized by democratic elections, coups and counter coups. Since independence, there have been five civilian administrations and four military regimes (Kwablah et al, 2014).…”

Section: Snapshot Of Political Regimes In Ghanamentioning

confidence: 99%

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Political regimes and foreign aid effectiveness in Ghana

Tawiah

Barnes

Acheampong

et al. 2019

IJDI

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Purpose This paper has examined the effectiveness of foreign aid on Ghanaian economy under different political regimes. Design/methodology/approach Using vector error correction and co-integration models on the annual data set over a period of 35 years, the authors demonstrate that foreign aid has had varied impacts on economic growth depending on the political ideology of the government in power. Findings With capitalist political philosophy, foreign aid improves private sector growth through infrastructural development. On the other hand, a government with socialist philosophy applies most of its foreign aid in direct social interventions with the view of improving human capital. Thus, each political party is likely to seek foreign aid/grant that will support its political agenda. Overall, the results show that foreign aid has a positive impact on the growth of the Ghanaian economy when there is good macroeconomic environment. Practical implications This implies that the country experiences economic growth when there are sound economic policies to apply foreign aid. Originality/value The practical implication of the findings of this paper is that donor countries and agencies should consider the philosophy of the government in power while granting aid to recipient countries, especially in Africa. The results are robust to different proxies and models.

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Section: Political Regimessupporting

confidence: 68%

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 85%

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Political regimes and foreign aid effectiveness in Ghana

Tawiah

Barnes

Acheampong

et al. 2019

IJDI

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“…Unlike the OLS, in small samples, FMOLS provides consistent estimates. Also, FMOLS is free of large size distortions in the presence of endogeneity in the regressors and heterogeneous dynamics [38].…”

Section: Econometric Strategymentioning

confidence: 99%

Renewable energy consumption in Africa: the role of economic well-being and economic freedom

et al. 2020

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This study investigates the role of economic well-being and economic freedom as drivers of renewable energy consumption using the share of renewables in total energy consumption in Africa. To achieve this, the study employs a panel data of 32 African countries over the period 1996-2017. To deal with identification challenges associated with panel time-series data, we use the Dynamic Ordinary Least Squares econometric technique. As part of our findings, first, we have evidence that increasing economic well-being in Africa increases the share of renewables in total energy consumption to a point after which it turns negative (inverted U shape). Second, the disaggregated measures of economic freedom show that both property rights and tax burden decrease the share of renewables in total energy consumption. On the contrary, an increase in trade freedom and business freedom measures increases the share of renewables in total energy consumption. Toward the goal of promoting access to affordable, reliable, sustainable, and modern energy for all by 2030, governments in Africa should actively encourage trade freedom and business freedom to enhance the share of renewable energy consumption. Similarly, reducing the tax burden will promote the share of renewable energy consumption. Likewise, we call for further investigation into our evidence of a negative relationship between property rights and the share of renewables in total energy consumption.

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“…The method modifies least squares to account for serial correlation effects and endogeneity in the regressors, as a result of a cointegrating relationship. Kwablah et al (2014), Asiama and Amoah (2018), and Ahiabor and Amoah (2019)have argued that FM-OLS is an added improvement to the OLS estimator.…”

Section: Tests and Models Usedmentioning

confidence: 99%

Drivers of Stock Market Returns in Sub-Saharan Africa: Evidence from Selected Countries

Tetteh

Amoah

Adenutsi

2019

Asian Development Policy Review

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This study investigates the drivers of stock market returns in selected Sub-Saharan African (SSA) economies. Secondary monthly data from January 2000 to December 2016 were collected and analyzed using the dynamic ordinary least square methods (DOLS) and fully modified ordinary least squares (FM-OLS) models to identify endogeneity and serial correlation and check for robustness. In accordance with a priori expectations, this study has proved the key driver of stock market returns across the selected countries is its lag. Although considerable literature exists on the principal determinants of stock market returns in SSA, there is an absence of empirical comparative studies of SSA countries that examine other salient internal and external variables. This study recommends that stockbrokers do not underestimate the importance of previous market performance, as it can potentially inform stock market predictions.Contribution/Originality: This study is one of only a few that have investigated the comparative effect of both internal and external macroeconomic factors on stock market returns in Sub-Saharan Africa. INTRODUCTIONSome economies in Sub-Saharan Africa (SSA) have interconnected with other developing and developed economies to a greater extent as a result of globalization and international trade and investment. However, the openness of the SSA economies to the global economy has led their stock markets to become more susceptible to changes in external macroeconomic variables, such as exchange rates, crude oil prices, and international stock market indices (Adjasi et al., 2008).Studies have reasserted this and established that such external macroeconomic factors as stock market indices, especially those of developed economies, exert an influence on stock markets in emerging and/or developing economies. This influence usually presents as co-movement between developed and emerging stock markets

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The impact of foreign aid on national income in Ghana: a test for long-run equilibrium

Cited by 10 publications

References 0 publications

Political regimes and foreign aid effectiveness in Ghana

Political regimes and foreign aid effectiveness in Ghana

Renewable energy consumption in Africa: the role of economic well-being and economic freedom

Drivers of Stock Market Returns in Sub-Saharan Africa: Evidence from Selected Countries

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