Showing papers in "Journal of economics and sustainable development in 2012"

Corporate Social Responsibility and Financial Performance in Developing Economies: The Nigerian Experience

Abstract: Corporate social responsibility (CSR) has the potential to make positive contributions to the development of society and businesses. Organisations are beginning to see the benefits from setting up strategic CSR agendas. The increasing attention to CSR is based on its capability to influence firms' performance. The CSR movement is spreading over the world and in recent years a large number of methods and frameworks have been developed, the majority being developed in the West. This study focuses on developing economies and on Nigeria specifically. Using a sample of forty audited financial statements of quoted companies in Nigeria, this study examines the impact of CSR activities on financial performance measured with Return on Equity (ROE) and Return on Assets (ROA). The results show that CSR has a positive and significant relationship with the financial performance measures. These results reinforce the accumulating body of empirical support for the positive impact of CSR on financial performance. Keywords: Corporate Social Responsibility, Financial Performance, Developing Economies-Nigeria

Effect of External Debt on Economic Growth of Nigeria

Abstract: The study examines the effect of external debt on the economic growth of Nigeria. The model built for the study proxy gross domestic product as the endogenous variable measuring economic growth as a function of external debt, ratio of external debt to export, inflation, and exchange rate proxy as the exogenous variables. Annual time series data was gathered from the Central Bank of Nigeria Statistical bulletin and Debt Management Office from 1970 to 2010. The econometric techniques of Ordinary Least Square(OLS), Augmented Dickey-Fuller (ADF) Unit Root test, Johansen Co-integration test and Error Correction Method (ECM) are employed in the empirical analysis. The co-integration test shows that long-run equilibrium relationship exist among the variables. The findings from the error correction method show that external debt has contributed positively to the Nigerian economy. The study recommends that government should ensure economic and political stability and external debt should be acquired largely for economic reasons rather than social or political reasons. Keywords : External Debt, Economic Growth, Gross Domestic Product, Error Correction Method.

Climate Change Adaptation Strategies of Smallholder Farmers: The Case of Babilie District, East Harerghe Zone of Oromia Regional State of Ethiopia

Abstract: Climate change is a global phenomenon. Its impact on agricultural activities in the developing countries has been increasing. Higher temperature and decreasing precipitation levels caused by climate change depresses crop yields. This is particularly true in low-income countries where adaptive capacities are perceived to be low. The vulnerability of poor countries could be due to weak institutional capacity, limited engagement in environmental and adaptation issues, and lack of validation of local knowledge. A better understanding of the local dimensions of vulnerability is therefore essential to develop appropriate adaptation measures that can mitigate these adverse consequences. The main aim of this study was to identify the determinants of farmer’s choice of adaptation strategies to climate change in the Babilie district of Eastern Ethiopia. Both primary and secondary data sources were used for this study. Primary data were collected from a randomly selected 160 sample households interviewed through a semi-structured questionnaire, key informants interview and focus group discussion. Multinomial logistic regression analysis was estimated to analyze the factors influencing households’ choice of adaptation strategies to climate change. The result from the multinomial logit analysis showed that sex of the household head, age of the household head and education of the household head, family size, livestock ownership, household farm income, non/off farm income, access to credit, distance to the market center, access to farmer-to-farmer extension, agro ecological zones, access to climate information, and extension contact have a significant impact on climate change adaptation strategies. Therefore, future policy should focus on awareness creation on climate change through different sources such as mass media and extension, encouraging informal social net-works, facilitating the availability of credit, enhancing research on use of new crop varieties that are more suited to drier conditions and different agro ecological zones. Key words : Climate change, Babilie district of Eastern Ethiopia, Adaptation to climate change, Multinomial logit

Monetary Policy and Economic Growth of Nigeria

Abstract: This paper examines the impact of monetary policy on the Nigerian economy. In doing this, the Ordinary Least Squares Method (OLS) is used to analyse data between 1981 and 2008. The result of the analysis shows that monetary policy presented by money supply exerts a positive impact on GDP growth and Balance of Payment but negative impact on rate of inflation. The recommendations are that monetary policy should facilitate a favourable investment climate through appropriate interest rates, exchange rate and liquidity management mechanism and the money market should provide more financial instruments that satisfy the requirement of the ever-growing sophistication of operators. Keywords : Monetary policy, economic growth, transmission mechanism and liquidity.

The Development of Sustainable Manufacturing Practices and Sustainable Performance in Malaysian Automotive Industry

Abstract: This paper shows a model to conduct an empirical study in Malaysian automotive industry in order to improve their sustainable performance The problems of sustainability are becoming a global concern by many manufacturing companies especially in automotive industry The sustainability research in this study targets the measures and studies at the three basic elemental levels involved; environmental, economic and social The presented review categorizes the literature into three main research areas; sustainable manufacturing practices, sustaining lean improvements, and sustainable performance Also, the text

Ecological and Economic Dimensions of the Paradoxical Invasive Species- Prosopis juliflora and Policy Challenges in Ethiopia

Abstract: Prosopis juliflora , a dry land tree or shrub, introduced in Ethiopia in the 1970’s for land reclamation and windbreak has become a serious policy challenge The species has replaced large areas of pasture lands and has grown to be a noxious weed in Ethiopia It has had serious repercussions on the biodiversity of the area, and livelihood of pastoralists and agro-pastoralists Despite the potential of the species for various uses, in Ethiopia Prosopis juliflora is only utilized for animal feed, fencing and charcoal at smaller scale The conventional control methods are expensive and it could be argued that the utilization of the species is the best option to control the invasion for many invaded areas There is an urgent need for identification and implementation of optimal strategies in Ethiopia which, however, seems very difficult given the absence of clear national policies and strategies in the management of invasive species Keywords: invasive species, Prosopis juliflora, pasture, pastoral, biodiversity

Education Expenditure and Economic Growth: A Causal Analysis for Malaysia

Abstract: This paper focuses on the long-run relationship and causality between government expenditure in education and economic growth in Malaysian economy. Time series data is used for the period 1970 to 2010 obtained from authorized sources. In order to achieve the objective, an estimation of Vector Auto Regression (VAR) method is applied. Findings from the study show that economic growth (GDP) positively cointegrated with selected variables namely fixed capital formation (CAP), labor force participation (LAB) and government expenditure on education (EDU). With regard to the Granger causality relationship, it is found that the economic growth is a short term Granger cause for education variable and vice versa. Furthermore, this study has proves that human capital such as education variable plays an important role in influencing economic growth in Malaysia. Keywords: Malaysian, expenditure on education, economic growth, vector error correction model.

Modelling the Long Run Determinants of Foreign Portfolio Investment in Nigeria

Abstract: This study tries to ascertain the long run determinants of foreign portfolio investment (FPI) in Nigeria such thatappropriate policies will be pursued to attract same in the long run. FPI has grown recently in proportion relative toother types of capital inflows to Nigeria before the wake of global financial crisis. Incidentally, there is no empiricalregularity regarding the determinants of FPI. This study tries to add to the stock of knowledge by modelling thelong-run determinants of FPI in Nigeria over the period of 1981-2010 converted into quarterly series. The variablesconsidered are, market capitalization, real exchange rate, real interest rate, real gross domestic product and tradeopenness. The study applies time series analysis specifically the finite distributed lag model and discovers that FPIhas a positive long-run relationship with market capitalization, and trade openness in Nigeria. Ongoing effortstherefore to sanitize the capital market should be vigorously pursued. Keywords : Nigeria, Foreign Portfolio Investment, macroeconomic variables.

Factors Affecting Financial Sustainability of Microfinance Institutions

Abstract: Millions of people in developing countries have been given access to formal financial services through microfinance programs. Nevertheless, millions of potential clients still remain un-served and the demand for financial services far exceeds the currently available supply. Given significant capital constraints, expansion of microfinance programs remains a formidable challenge facing the microfinance industry. Moreover, it is observed that microfinance organizations have had various degrees of sustainability. One such sustainability is the financial sustainability. Financial sustainability has been defined by various researchers differently. As such there is no clear cut definition of the word financial sustainability. The MIX Market and various other agencies like ACCION, Women’s World Banking etc. have attempted to define the term financial sustainability in their own limited way. Therefore this paper attempts to find out the factors which affect the financial sustainability and thereafter propose a more comprehensive and representative model for financial sustainability and create an index to observe the financial performance of microfinance sector. The financial data of microfinance institutions from India and Bangladesh suggests that the capital/ asset ratio, operating expenses/loan portfolio and portfolio at risk> 30 days are the main factors which affect the sustainability of microfinance institutions. Keywords: Microfinance, Financial Sustainability, Portfolio at Risk>30 days, Capital to Asset ratio, Operating expenses to Loan portfolio

The Critical Review on the Malaysian Construction Industry

Abstract: The construction industry is a very important part of Malaysian economy. The government’s aim is to make the industry more productive, efficient and safe. However reports and researchers on Malaysian construction industry showed little evidence of success on the efforts to improve productivity of the industry. This paper sought to provide an understanding on the characteristics of the Malaysian construction industry and further understand the issues/problems related to the industry. The paper is based on critical literature synthesis on the Malaysian construction industry. It is identified that the characteristics and current practices in the Malaysian construction industry has led to serious problem. Malaysian construction industry is identified as being fragmented, having high dependency on unskilled foreign labour, poor application of technology and problems on the implementation of policy. The issues identified by this literature synthesis will form a basis for future research on the Malaysian construction industry. Keywords: Construction industry, Malaysia

Technical Efficiency in Smallholder Paddy Farms in Ghana: an Analysis Based on Different Farming Systems and Gender

Abstract: One way of achieving sustained increase in food production in developing countries is to ensure efficient utilisation of scarce agricultural resources. The present study examined farm-specific technical efficiency of smallholder rice farmers in the Upper East region of Ghana. Data were collected from a random sample of 440 smallholder rice farmers (220 irrigators and 220 non-irrigators), which comprised of 306 male farmers and 134 female rice farmers. Farm-specific technical efficiency was calculated using a transcendental logarithmic (translog) stochastic production frontier function and estimated by the maximum likelihood estimation method. The results showed that smallholder rice farmers are technically inefficient because they produce, on average, at 34% below maximum output. There is significant difference between mean technical efficiency for irrigators (48%) and non-irrigators (45%) as well as male (58%) and female (34%) farmers. Credit availability, family size and non-farm employment significantly determine technical efficiency of smallholders. A programme to accelerate provision of education and credit is needed in order to improve technical efficiency of rice farmers. The right kind, quantity and timely provision of credit should be emphasized. Lastly, the maintenance of existing irrigation projects and the provision of community-managed smallholder irrigation projects and rural infrastructure should be emphasized. Key words: Technical efficiency, smallholder farms, gender, Upper East Region of Ghana.

Financial Sector Deepening and Economic Growth in Ghana

Abstract: The purpose of this paper is to examine the effects of Financial Sector Development on Economic Growth in Ghana using the Johansen Co-integration analysis. The paper examines empirically the causal link between financial sector development and economic growth in Ghana. The Johansen Co-integration techniques within a bi-variate vector auto-regressive framework were used for the regression. Using a quarterly time series set of data on Ghana over a ten year period (2000 – 2009), the result of the study shows that, there is a statistically significant positive relationship between the Financial Sector Development and Economic Growth in Ghana. This outcome is in line with the results found for most of the literature reviewed. It is recommended that Government should encourage competition in the financial sector and micro finance development as these will improve and increase outreach and access to credit at a lower cost. This will boost private sector development and investments which is the engine of growth and development. This study will help policy makers in decision making as well as serve as a source of reference for further studies. Further studies are recommended to increase the frontiers of this study. Further research on the role of financial sector developments – following Hasan et al. (2006) – is warranted in order to gain a more conclusive understanding of the finance-growth nexus in a transitional country like Ghana. Keywords: Financial liberalization Financial market Financial instruments Economic growth Johansen co-integration Unit roots

Does Access to Market Information Determine the Choice of Marketing Channel among Smallholder Yam Farmers in the Brong Ahafo Region of Ghana? A Multinomial Logit Regression Analysis

Abstract: Asymmetric or missing information is likely to cause market failure and greater access of farmers to knowledge about markets and prices, is a key element in the efforts of breaking the cycle of poverty. This study describes the yam marketing distribution channel in Brong-Ahafo region. It also quantifies the magnitude and direction of the effect of market information access on the choice of yam marketing channel using the Multinomial Logit regression analysis. The study is cross sectional in designs. A total of 250 smallholder yam farmers participated in the survey. Data collected was analyzed using StataSE 11. Results indicate that there are six main channels of yam distribution comprising of producers, assemblers, wholesalers and retailers. The study observes, inter alia, that age of household head, access to cell phone, farm size and output price determine the choice of rural market relative to urban market whilst gender of household head, number of years of formal education and distance to tarred road significantly influences the choice of cooperative market relative to urban market. Access to cell phone and the interactive term (cell phone access*location of household head) are the most influential determinants of rural market and market cooperative choice both statistically and numerically respectively. These results have implications for agricultural policy in Ghana. Key words: Multinomial Logit, Brong-Ahafo, Market channel, Cell Phone, Market information

Foreign Direct Investments and Economic Growth in Nigeria: A Disaggregated Sector Analysis

Abstract: This paper attempts to investigate the impact of Foreign Direct Investment (FDI) on economic growth in Nigeria. The research developed a structural macroeconometric model consisting of four blocks made up of supply, private demand, government and external sectors. The model deploys 18 simultaneous equations and 100 variables to capture the required proxies. The research adopted a three-stage least squares (3SLS) technique and macroeconometric model of simultaneous equations to capture the disaggregated impact of FDI on the different sectors of the economy and the inter-linkages amongst the sectors in order to give better insight into the variations inherent therein. The finding shows that FDI has a significant impact on output of the economy but that the growth effects of FDI differ across sectors. The paper recommends sector-specific policies, enhanced trade openness, import substitution development strategy incentives to existing investors, and potential overseas investors so as to enhance the development of the country. Keywords: Foreign Direct Investment, Economic Growth, Simultaneous Equation, Macroeconometric Model

Foreign Direct Investment and Economic Growth in Ghana

Abstract: The relationship between Foreign Direct Investment (FDI) and Economic Growth has been a topical issue for several decades. Policymakers in a large number of countries are engaged in creating all kinds of incentives to attract FDI, because it is assumed to positively affect economic growth. This paper investigates the effect of FDI on economic growth in Ghana. The paper, test for the presence of the long run linear relationship between FDI inflows and Economic Growth (GDP) for Ghana. The study employs various econometrics tools such as Dickey Fuller (DF) and Augmented Dickey Fuller (ADF) tests, Vector Auto Regression (VAR) and Johansen Co-integration test on time series data from the first quarter of 2001 to the fourth quarter of 2010. The results reveal that a long run relationship exists between the variables, and that FDI is positively related to economic growth in Ghana. Ghana should therefore continue to reform its economic and foreign policy to attract more investors which can help boost its economy. Keywords: Foreign Direct Investment, Economic Growth, Vector Auto Regression (VAR), Co- Integration, and Unit Roots

Testing the Relationship between Energy Consumption and Economic Growth: Evidence from Nigeria and South Africa

Abstract: Energy demand, supply and pricing impact on socio-economic development, living standards and the overall quality of life of people. The role of energy in the industrial sector activities underscores its link with economic development. For more than three decades, economists and policymakers have been preoccupied with the classic debate on energy consumption and economic growth nexus. This Paper examines the causal relationship between energy consumption disaggregated into coal, hydro and oil, and economic growth in Nigeria and South Africa. Several studies have adopted the standard Granger causality method which places some minimum restriction on the stationarity property of data. Thus, the Hsiao’s Granger causality version was applied to correct these restrictions for the comparative analysis. The estimated results reveal that economic growth causes total energy consumption in South Africa while energy consumption causes economic expansion in Nigeria. The economic implication of this finding is that sub-optimal utilization of energy resources through energy conservative policy may not lead to significant positive effect on economic growth in Nigeria. However, energy enhancement policy could engender economic growth in South Africa. Key words: Energy Consumption, Economic Growth and Energy policy.

Analysis of the impact of financial development on Foreign Direct Investment: A Data Mining Approach

Abstract: Several empirical studies have tried to examine the links between Foreign Direct Investment, financial development and economic growth. However, little work has been done to examine the direct relationship between FDI and financial development. Thus, through this study we aim to examine if a well-functioning financial system has an impact on the FDI inflows and outflows of a country using the data mining techniques of attribute analysis, association and classification. We have used data related to 78 countries over a period of 1980 to 2009 for our analysis. The analysis suggests that FDI is not directed into countries that are financially weak and is dependent on both the stock market variables and the banking sector variables. The development of the financial system of the recipient country is an important precondition for FDI to have a positive impact on economic growth. Keywords: Foreign Direct Investment, FDI, Financial Development, Data Mining

Five Decades of Development Aid to Nigeria: The Impact on Human Development

Abstract: The purpose of this study is to provide a long-term perspective on development aid and human development in Nigeria. This study employs two-stage least squares estimation to analyzing data from 1960 to 2010, the result shows that there is a negative relationship between development aid and human development, implying that aid tends to worsen human development in Nigeria. As such Nigerian government should put in place an appropriate policy measures that would monitor the maximum and effective utilization of foreign aid. Government should sustain the current reforms in the various sectors of the economy to encourage the inflow of foreign aid. Donors should provide information on future aid disbursements in order to reduce the uncertainty associated with aid flows and improve fiscal planning. Key words: Development aid, ODA, Human Development

Revenue Implications of Nigeria'S Tax System

Abstract: This is a study of the properties of the Nigeria’s tax system particularly the bases of the company income tax, valueadded tax and personal income tax. The results indicate that their bases are not stable (not persistent and volatile).However, while the bases of the company income tax and personal income tax are more sensitive to cyclical swings(current state of the economy over time), that of the value added tax (VAT) is not. The policy implications of thesefindings support the recent government tax policy reform of a shift in focus in the tax system from direct taxation toindirect taxation. With the tax base of VAT being insensitive to the current state of the economy, the revenuetherefrom will not drop sharply when the economy slows down. It will also shield the government from budgetaryshortfalls as it will likely cushion against sharp declines in aggregate tax revenues. Keywords : Tax System, Company Income Tax, Value Added Tax, Personal Income, Tax Policy, Nigeria.

Determinants of Food Insecurity in Addis Ababa City, Ethiopia

Abstract: Urban areas are faced with the problem of increasing population and consequently inadequate supply of food items The present study attempts to examine the food insecurity situation and identify the determinants of food insecurity in Addis Ababa city at household level The primary data source for this work was the Addis Ababa urban household socio-economic data collected by undertaking a survey on 140 households Three stage cluster random sampling was used The main tools of analysis for this study include descriptive statistics and Tobit regression model The Tobit model result revealed six out of eleven variables included in the model as significant (p<005) Household size, household income, household head age , household head education, ownership of bank account and income from remittance and gift were found to be significant determinants of food insecurity in the study area Key words: Food insecurity, Urban Households, Determinant, Tobit model and Addis Ababa

Price trend and integration of wholesale markets for onion in metro cities of India

Abstract: Availability of market intelligence on various aspects like the potential markets, quantity arrived and prevailing and expected prices in different regions during different months of the year are important in mitigating many of market related problems. Study reveals that there was high variability in the arrival of onion in the month of March and April in selected markets. Among the markets, the coefficient of variation in both arrivals and prices were found to be higher in Ahmedabad and Kolkata. The zero order correlation matrix between two markets average wholesale prices of onion indicated the high integration among the selected markets except Ahmedabad with Mumbai market. This might be due to the movement of produce from one market area to another depending upon price prevailed in the markets. The competitive conditions prevailing in the selected markets might have influenced the movement of prices in the same direction. The magnitude of regression coefficient revealed that an increase in market arrivals by a MT in a month led to an increase in prices by Rs.6.00/MT and Rs. 0.40/MT in Bangalore and Delhi markets respectively. On the contrary, prices of onion decreased in Ahmedabad (Rs. 6.00), Mumbai (Rs. 10.00) and Kolkata (Rs. 2.00) markets with increase in arrivals by one MT in a month. Key words : Instability, Market integration, Price behavior

Willingness to Pay for Improved Rural Water Supply in Goro-Gutu District of Eastern Ethiopia: An Application of Contingent Valuation

Abstract: This study employs a contingent valuation method to estimate willingness to pay for improved rural water supply.It provides information on the demand for improved services and the potential for them to be sustainable. Theanalysis was based on data collected from 132 households using rural water utilities for at least three years. Bothbinary and ordered probit models were used to examine the determinants of willingness to pay. The estimatedmean and median willingness to pay was found to be Birr 6.83 and 5.87 per household per month. Resultsindicate that households using water purification methods earn better annual income, participated during theearly phase of project implementation and are spending more time in collecting water and hence are more likelyto pay. Whereas those households with large family members, which use reliable water sources from convenientwater points and got higher starting bid values are less likely to pay. This implies the need to take the specificcharacteristics of rural households and their service level demand into account in planning rural water supplyprojects, which may contribute to set sound cost recovery system that can sustain the service delivery. Key Words : Cost-recovery; Valuation; Water supply; Willingness to pay

Determinants of Inflation in Bangladesh: An Empirical Investigation

Abstract: The study analyzed the major determinants of inflation in Bangladesh using data for the period from 1978 to 2010. The study employed Johansen-Juselius cointegration methodology to test for the existence of a long run relationship between the variables. The cointegrating regression considers only the long-run property of the model, and does not deal with the short-run dynamics explicitly. For this, the error correction from the long run determinants of inflation is then used as a dynamic model to estimate the short run determinants of inflation. The study concluded that the GDP, broad money, government expenditure and import have a positive effect on the inflation in long run. On the other hand, government revenue and export have a negative effect. The government expenditure coefficient is 0.466 and the money supply coefficient is 0.337, implying a one percent increase in government expenditure and one percent increase in money supply elicit 0.466% and 0.337% increase in inflation respectively. In the short-run money supply has been found to be major factor influencing inflation in the country. Key words: cointegration, error correction model, broad money.

Exchange Rate and Macroeconomic Aggregates in Nigeria

Abstract: This study analyses the impact of exchange rate on macroeconomic aggregates in Nigeria. Based on the annual time series data for the period 1970 to 2009, the research examines the possible direct and indirect relationship between the real exchange rates and GDP growth. The relationship is derived in two ways using a simultaneous equations model within a fully specified (but small) macroeconomic model, and a vector-autoregressive model. The estimation results show that there is no evidence of a strong direct relationship between changes in the exchange rate and GDP growth. Rather, Nigeria's economic growth has been directly affected by fiscal and monetary policies and other economic variables particularly the growth of exports (oil). These factors have tended to sustain a pattern of real exchange rate over-valuation, which has been unfavourable for growth. The conclusion is that improvements in exchange rate management are necessary but not adequate to revive the Nigerian economy. A broad program of economic reform is required, which includes among others, a complementary restrictive monetary policy. On the whole, the results are informative. Keywords: Exchange rate, Macro-economy, Simultaneous equations, Nigeria.

The Impact of Foreign Aid on Economic Growth of East African Countries

Abstract: In this paper, we employ panel data methods, namely Pooled OLS, Random Effects, and Fixed Effects, to examine the impact of foreign aid on economic growth of East African countries over the period of 1985 to 2010. The results suggest that foreign aid has significant negative influence on economic growth for these countries. This calls for further studies to investigate the possible channels through which foreign aid can have positive influence on growth. Keywords: EAC countries, Foreign aid, Panel data approach

The Impact of National Security on Foreign Direct Investment in Nigeria: An Empirical Analysis

Abstract: Kidnappings, killings, and corruption seem to be the political cum economic trinity bedeviling Nigeria today. The current state of insecurity and bombings especially in the Northern part of Nigeria has posed serious challenges to the peace and stability of Nigeria macroeconomic environment. The Nation has not only suffered colossal loss in terms of infrastructure, properties and viable human lives but also economic sabotage which leads to the displacement of foreign direct investment. Given the key role which foreign direct investment plays in most developing economies especially as a catalyst for economic growth, it was therefore imperative to examine the relationship between FDI and National security. Thus, this paper investigates the impact of National security on foreign direct investment covering the period of 1980 to 2009 employing Least Squares technique. Defense and Security Vote (DSV) was used as a proxy for National security. The findings reveal a negative nexus between FDI and National security. It was recommended that strong policy stance most be taken to address the state of insecurity in Nigeria (and other developing countries) so as to attract more foreign direct investment essential for economic growth and development. Keywords: National Security, FDI, and GDP

The Central Bank of Nigeria's Cashless Policy in Nigeria: Benefits and Challenges.

Abstract: The paper examines the cashless policy of the Central Bank of Nigeria (CBN) introduced in 2011, and on April 1,2012 it commenced operation in Lagos as a pilot project. The policy aims at shifting the Nigerian economy froma cash-based economy to a cashless one, with a view to among others, achieving the requirements of Nigeria’svision 20:20 20 development agenda; reducing the cost of banking services; and improving the effectiveness ofmonetary policy in managing inflation and driving economic growth. Given the policy’s objectives, the paperx-rays the associated benefits of the policy as well as the attendant challenges that may encumber the successfulachievement of the policy’s objectives. The paper therefore makes some suggestions that will make the policysucceed. They include: periodic review of the policy by the CBN to iron out grey areas; embarking on intensiveawareness campaign and sensitization of the citizenry by the CBN; putting adequate security mechanisms inplace to forestall fraudulent practices; making the public power supply work efficiently; and exempting cashlodgments and public holidays from cash management charges. Keywords : Cashless Policy, Central Bank of Nigeria, Vision 20:20 20, Benefits, Challenges.

Structure, Conduct and Performance of Tomato Marketing in Ghana

Abstract: Marketing of agricultural products especially tomato has been a vocation for most women in Ghana, but little attention has been given to the marketing efficiency of tomato. The study analysed the efficiency of marketing system of tomatoes in Pwalugu in the Upper East Region of Ghana. The study depended mainly on primary data collected through a semi-structured interview with sixty-four respondents involved in the tomato marketing chain. Deconstructed Marketing Margins, Gini Coefficient, Returns on Capital Employed and the marketing efficiency criterion were used in assessing the efficiency of the marketing system of tomatoes. An average profit margin of Gh?21,888.68, Gh?110,060.70 and Gh?1,169.03 for farmers, wholesalers and retailers per year respectively was realized. Also, farmers realized a return on capital employed of 1,127.6%, 237.6% for wholesalers and 66.0% for retailers. Our finding of a highly profitable tomato marketing industry in Pwalugu is contradictory to the views portrayed in the Ghanaian media. We advocate for a module to be developed for tomato marketing and processing under the National Youth Employment Programme (NYEP). Keywords: Efficiency, deconstructed market margins, tomato, marketing system, return on assets

A Time Series Analysis of Determinants of Private Investment in Ghana (1960-2010)

Abstract: In recent time, Ghana has embarked on policies that aim to rebalance the role of public and private sector in the economy and thus emphasize private sector development. This paradigm shift is to encourage private investment and ultimately make private sector the engine of growth. The study is a time series analysis of private investment in Ghana covering annual data set from 1960-2010. The study employed the techniques of co-integration and error correction modeling, which provided mechanisms to deal with the problems of unit root faced in time series data. In all, the study provides evidence that inflation, exchange rate, public investment, GDP, trade openness, aid, credit and external debt both in a short run and long run significantly affect the level of private investment. Also applying the general to specific approach to error correction model, statistical results suggested the existence of stable long run co-integrating relationships between macroeconomic and other variables and private investment. Key words : Ghana, Inflation, Private Investment, Exchange Rate, Aid, Credit, External Debt

Does The Composition of Public Expenditure matter to Economic Growth for Kenya

Abstract: There is often controversy and debate on the most appropriate way of allocating public funds in Kenya, necessitating the need to investigate the effect of the composition of public expenditure on economic growth. This study investigated the impact of public spending on education, health, economic affairs, defense, agriculture, transport and communication on economic growth with data spanning from 1972 to 2008. The data was differenced to make it stationary then linearized for estimation using ordinary least squares. The findings showed that expenditure on education was a highly significant determinant of economic growth while expenditure on economic affairs, transport and communication were also significant albeit weakly. In contrast, expenditure on agriculture was found to have a significant though negative impact on economic growth. Outlays on health and defence were all found to be insignificant determinants of economic growth. The findings did not conform to apriori expectations. Keywords: Economic Growth, Public Expenditure,