This study investigates the determinants of trade balance in post-liberalization Ghana, covering the period 1984–2015. Specifically, we test the validity of the Marshall-Lerner condition and the J-curve effect, and further assess the effect of other macroeconomic variables including household consumption expenditure, government consumption expenditure, foreign income, money supply and domestic prices on trade balance. The bounds testing approach to cointegration and the error correction model within a symmetric and asymmetric autoregressive distributed lag (ARDL) framework is used for the estimation. Additionally, to analyse the dynamic interactions of the variables included in the estimated model, variance decomposition is applied. The results from both symmetric and asymmetric specifications show the absence of the Marshall-Lerner condition and the J-curve effect. Further, the study finds that household consumption expenditure, government consumption expenditure and domestic prices are negative and significant in the long and short run, whereas foreign income and money supply are positive and significant in the short run. Results from the variance decomposition show that innovations in household consumption expenditure highly contribute to the forecast error variance of the trade balance compared with other explanatory variables. A key finding of the study suggests that depreciation of the Ghana cedi is not an appropriate step to help in improving the country’s trade balance position. JEL Codes: C22, F10, F31, F32

Policies aimed at enhancing domestic savings mobilisation to facilitate economic growth have been implemented in both developed and developing countries; yet the level of savings remains low, especially in most of the developing world, due to the predominant use of informal savings methods. Several individuals’ characteristics have been identified as factors that influence individuals’ decision to use formal ways of saving with virtually no emphasis on the role of trust, which is envisaged as essential in making economic decisions. This paper investigates the effect of trust on individuals’ decision to save at financial institutions. We use primary data and employ binary probit regression for our analysis. The results show among others that boosting individuals’ trust is key to formal ways of saving. Based on the findings, we provide vital policy implications that seek to restore individuals’ trust in financial institutions.

The paper examines the effect of democracy and globalization on private investment in Ghana for the period 1980-2012, using the Autoregressive Distributed Lag (ARDL) bounds test for cointegration and the Error Correction Model (ECM). Two models are used. In Model 1, democracy is proxy by an index for institutional quality (Polity2) while Model 2 uses an index for civil liberties as proxy for democracy. The results for model 1 shows globalization and public investment increase private investment while exchange rate volatility and trade openness decrease private investment in both the long-and short-run. In addition, economic growth and interest rate reduce private investment in the short-run. In the case of model 2, credit to the private sector and public investment increase private investment while exchange rate volatility and trade openness decrease private investment in both the long-and short-run. Finally, economic growth and interest rate reduce private investment in the short-run. The findings and policy recommendations of the paper provide vital information for policy implementation in Ghana.Keywords: democracy, globalization, private investment, ARDL, ECM 1 Corresponding Author: Department of Economics, Kwame Nkrumah University of Science and Technology (KNUST), Kumasi, Ghana, Email: sammyatom2007@yahoo.com Tel. +233 (0) 246 219421 2 Department of Economics, Kwame Nkrumah University of Science and Technology (KNUST), Kumasi, Ghana, Email: akotol@ymail.com 3 Records and Archives Department, National Investment Bank (N.I.B.) Ltd., P.O. Box GP 3726, Accra. Email: feliciaacquah88@yahoo.com IntroductionPrivate investment is considered the engine of economic growth (Frimpong and Marbuah, 2010). This is because the private sector is deemed relatively more efficient in allocating resources compared to the public sector. In addition, there is less wastage in the private sector. Also, due to constant monitoring and evaluation, productivity in the private sector is assured. Finally, competition arises from the desire to maximize profits which eventually leads to increased consumer welfare (see Nickell, 1996;Porter, 1998Porter, , 2000Rodrik, D, 2006). It is therefore not surprising that most notable industrializations in history have been led by the private sector (McDade and Spring, 2005).Private investment is mostly viewed to be determined by factors such as interest rates, exchange rate volatility, economic growth, public investment, inflation, trade openness, among others. Recently, however, democracy and globalization are becoming important determinants of private investment. Interestingly, it is easier to assume and argue a positive effect of democracy on private investment even though this is more likely to be a desired outcome which may differ from evidence provided by an empirical investigation of the relationship between democracy and private investment. However, the effect of globalization on private investment largely remains unclear as it can be positive or negative (see Mamman et al., 2009). It ...

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Improving financial inclusion of informal sector workers is a major concern for economic development. The emergence of mobile banking and its increasing acceptability and use do present an opportunity to improve banking behaviour among informal sector workers. This study estimates the effect of mobile banking service on the banking behaviour of informal sector workers in Accra, Ghana. A probit regression model was fitted to a survey data of 296 respondents. The result indicates that although the introduction of mobile banking service has a positive effect on mobile banking, less than half of the respondents have changed their banking behaviour as a result of the introduction of mobile banking service. The respondents also perceived that the introduction of mobile money service has not led to a significant change in ineffective saving methods. Other factors that significantly influenced the banking behaviour were sex, age and income of the respondents. It is concluded therefore that, mobile banking service can improve financial inclusion among informal sector workers. However, an effective remedy should be established to address the emerging risks associated with the use of mobile banking service and to improve its security features.Contribution/ Originality: This study contributes to existing literature by providing a quantitative estimation of the role of mobile banking in influencing banking behaviour among informal sector workers in Ghana. INTRODUCTIONThe understanding of the nexus between economic growth or economic development and a sound financial management system, has been established for decades now. This is not only limited to the developed economies but also to the developing countries like Ghana. However, there are a wide range of persons that are excluded from financial services due to unfavorable regulations and types of service. Financial inclusion has become a major consideration as the international community adopts the Sustainable Development Goals (SDGs). As defined by Kim (2016) financial inclusion as a situation where all working age persons have access to credit, savings, payments, and insurance from formal financial service providers. This means that financial exclusion arises when some persons do not have access to formal financial services. Financial inclusion is important for sustaining development and economic growth (Osikena & Uğur, 2016).According to Kim (2016) the objective of ensuring a financially inclusive society is to ensure that financial services