Determinants Of Import Demand For Ghana Essay - 2185 Words

DETERMINANTS OF IMPORT DEMAND IN GHANA Abstract The paper investigates the determinants of import demand for Ghana using a time series data from 1980 to 2013. An imperfect substitute approach was used in modelling the import demand function for Ghana. Amongst the key results it is found that Ghana’s import demand is positively and significantly affected by the level of exports, government spending and gross fixed capital formation. These three variables are the major determinants of Ghana’s imports. Relative prices and inflation showed a negative insignificant relationship. The study concluded that increasing the share of those components for which import demand elasticity is low and by reducing the share of those components for which import demand elasticity is high will help improve balance of payments.. For instance, monetary policy promoting saving and investment and fiscal policy providing incentives for domestic resource-based and export oriented industries will be useful. Exports of finished goods instead of p rimary or semi-finished commodities should be encouraged. Keywords: Import demand, import substitution, Ghana Introduction The importance of international trade in the development process has been of interest to development economists. In the recent years, because of the popularity of globalization, the interdependence among countries at the world level has increased. Every country wants to achieve rapid pace of economic development through getting theShow MoreRelatedEffects of Human Capital on Maize Production in Ghana Essay1555 Words   |  7 Pagesto 21.5% in 2013, it still remains a significant player in the economy of the country (Ghana Statistical Service 2008; ISSER 2011; CIA 2013). The agricultural sector employs about 60% of the workforce in Ghana and can therefore be regarded as the backbone of the Ghanaian economy (ISSER, 2011). Maize is the most important cereal crop produced in Ghana and it is also the most widely consumed staple food in Ghana (Morris et al., 1999). Maize accounts for 55% of grain output in the country. Maize isRead MoreQuestions On International Trade Theory1332 Words   |  6 Pagesdecades to trade with other nations. Furthermore, international trade theories were developed to explain the benefit nations can get from utilizing free trade pattern and participating in the multilateral trade with opening up strategy by eliminating import control, export support and other types of anti-trade approach (Geiersbach, 2012). In this essay, two major parts of the evolution of international trade theory were compared and contrasted, which are traditional international trade theory and newRead MoreAlpha Is The Largest And Most Internationalised Nigerian5097 Words   |  21 Pageswell as offering import subsidies geared towards intermediary input products. This policy approach by the government re sulted in a temporary increase in manufacturing output with a peak at 7.8% contribution to the total economy in the 1980s’, especially in the assemblage sub-sector. Again, 1987 saw an enactment of Structural Adjustment Programs (SAPs) as advised by the World Bank. Whereby the Nigerian government placed an embargo on the importation of raw materials to encourage import substitution toRead MoreDeterminants of International Trade Essay22457 Words   |  90 PagesUNDERSTANDING THE DETERMINANTS OF INTERNATIONAL TRADE IN AFRICAN COUNTRIES: AN EMPIRICAL ANALYSIS FOR GHANA AND SOUTH AFRICA    LAURA Mà RQUEZ-RAMOS Universitat Jaume I Instituto de Economà ­a Internacional ABSTRACT There are clear economic differences between developed and developing countries that lead to a different behaviour among them in the determinants of bilateral trade flows. Although a number of authors have focused on the determinants of the trade patterns, further researchRead MoreAgri Markets7792 Words   |  32 PagesSCIENCEDOMAIN international www.sciencedomain.org Market Information and Extent of Agricultural Commercialization: Empirical Evidence from Smallholder Farmers in Effutu Municipality of Ghana Edward Martey1* 1 Savanna Agricultural Research Institute of the Council for Scientific and Industrial Research, P. O. Box TL 52, Tamale, Ghana. Author’s contribution This whole work was carried out by author EM. th Original Research Article Received 26 March 2014 th Accepted 14 May 2014 th Published 29 July 2014 Read MoreIndividual Case Analysis And Presentation Essay9535 Words   |  39 Pagesas offering import subsidies gear towards intermediary input products. This policy approach by the government resulted in a temporary increase in manufacturing output with a peak of 7.8% contribution to the total economy in the 1980s’, especially in the assemblage sub-sector. Again, 1987 saw an enactment of Structural Adjustment Programs (SAPs) as advised by the World Bank, whereby the Nigerian government placed a ban on the importation of raw materials into Nigeria to encourage import substitutionRead MoreImport And Local Production Of Cement Importation9782 Words   |  40 Pagesother inputs in the manufacturing and distribution process. Also, the easy access and low cost of acquiring an import license in comparison with difficulty in import license acquisition for manufacturing equipment spare parts also discouraged local manufacturing (Mojekwu, Idowu, Sode, 2013). See table below for th e import and local manufacturing trend over time Table 3: Cement imports and local production 1986-2011 As seen from the above table 2, between 1999 and 2008 the importation of cementRead MoreIca Gh Syslabus26672 Words   |  107 PagesObjectives and Expected Performance Outcome of each part THE INSTITUTE OF CHARTERED ACCOUNTANTS (GHANA) Syllabus for ICAG Qualifying Examinations ACCRA 2009 Institute of Chartered Accountants, Ghana 1 Proposed Sylabus for ICAG Qualifying Examinations Contents Introduction Features and Inovations of the New Scheme Objectives and Expected Performance Outcomes of Each Part PART 1 1.1 1.2 1.3 1.4 Financial Accounting Fundermentals Business Management Economics Management InformationRead MoreFactors Influencing The International Expansion Of Nigerian Banks6650 Words   |  27 PagesInterSwitch, Computer Warehouse group, Globalcom and several banks. Specifically, research on the motivation and patterns of the internationalisation of SSA firms, will bring understanding to heterogeneous characteristics of these multinationals and the determinant factors of their internationalisation.. 5. Methodology Due to the relatively under-explored research topic and contemporary nature of the phenomenon under investigation of the internationalisation process of SSA firms from Nigeria a case studyRead MoreFormal and Informal Institutions21073 Words   |  85 Pagesincreasingly difficult for informal credit sources to satisfy, yet they still remain too small for the formal lenders (Aryeetey, 1996a). Studies on financial markets in Africa have shown that credit markets are segmented and unable to satisfy the existing demand for credit in rural areas. Whereas for informal markets it is the limited resources that bring the constraint, for the formal sector it is the difficulty in loan administration that is the problem. A relevant issue for empirical investigation is therefore