Spatial Planning in Ghana: Exploring the Contradictions

The purpose of this research is twofold: to explore the complexity of spatial plan preparation and implementation in Ghana using Kumasi as a case study; and second, to examine the contradictions of spatial plans and ‘actual development’ occurring in Kumasi. Using social science research methods (semi-structured interviews) and physical survey (land use plans), findings indicate that spatial planning in Kumasi is a bureaucratic process hijacked by urban planning agencies with limited involvement of urban residents. As a result, urban development is considerably influenced by spontaneous informal development patterns (i.e. self-organization). This phenomenon of self-organization is expressed in a context of uncertainty created by weak spatial planning system which encourages haphazard development. Regrettably, in Kumasi, self-organization is often overlooked by spatial planning agencies as they focused on rigid and exclusionary spatial plans. This paper advocates consideration and integration of self-organization processes in spatial planning efforts to respond adequately to the urban development challenges confronting Kumasi.     

Remittances,Institutions and Growth in Africa

Remittances have become an important source of external finance in many developing countries. This article examines the relationship between remittances, institutions and economic growth in a panel of 26 African countries over the period 1980–2014. We apply the fixed effects (FE) and the two‐step system generalized method‐of‐moments (GMM) estimation methods. Our results show that there is a positive relationship between remittances and growth. We also find that institutions are an important determinant of economic growth. The interaction terms have a positive and statistically significant effect on economic growth. Thus, the growth effect of remittances is enhanced in the presence of strong institutions. Strong institutions are therefore germane in attracting greater remittance inflows to African countries. A clearer understanding of the channels through which remittance flows will enhance growth in African economies may assist policymakers to craft appropriate policies. In particular, a policy environment that promotes strong institutions would serve to attract more remittances.     

Testing for Common Conditionally Heteroskedastic Factors

This paper proposes a test for common conditionally heteroskedastic (CH) features in asset returns. Following Engle and Kozicki (1993), the common CH features property is expressed in terms of testable overidentifying moment restrictions. However, as we show, these moment conditions have a degenerate Jacobian matrix at the true parameter value and therefore the standard asymptotic results of Hansen (1982) do not apply. We show in this context that Hansen's (1982) J‐test statistic is asymptotically distributed as the minimum of the limit of a certain random process with a markedly nonstandard distribution. If two assets are considered, this asymptotic distribution is a fifty–fifty mixture of χ²_H−1 and χ²_H, where H is the number of moment conditions, as opposed to a χ²_H−1. With more than two assets, this distribution lies between the χ²_H−p and χ²_H (p denotes the number of parameters). These results show that ignoring the lack of first‐order identification of the moment condition model leads to oversized tests with a possibly increasing overrejection rate with the number of assets. A Monte Carlo study illustrates these findings.