Theoretical and Applied Economics
No. 3 / 2025 (644), Autumn
Unemployment in Ghana: analyzing the asymmetric effects of export processing zones in dealing with the problem
University of Ghana Business School, Legon
Abstract. Across the developing world, many countries are championing the establishment of export processing zones (EPZs) due to the perceived economic benefits associated with them. The reduction in the issue of unemployment is one main reason for the full embrace of the EPZ policy but as to whether this dream is being achieved is unclear. Relying on aggregated data for the period 1998Q1-2024Q4 from Ghana’s free zones, this study quantitatively analyses the impact of EPZs measured by their investment and export activities on the country’s unemployment rate by considering the issue of asymmetries through the use of the nonlinear autoregressive distributed lag technique. The empirical results point to the crucial role of the zones in Ghana in reducing unemployment in both the short and long-terms. Aside the selected variables being cointegrated, there is also the presence of long-run asymmetric effects of both EPZ investment and export on the unemployment rate. It is therefore suggested that government should streamline and enhance the EPZ subsidies to attract more firms that particularly engage in higher grade production to employ more people while helping them to acquire more skills.
Contents
Development and implementation of an Activity-Based Costing (ABC) model in private Higher Education Institutions (HEI)
Capital, coal, and change: modelling India's energy substitutability with a translog production framework
Unemployment in Ghana: analyzing the asymmetric effects of export processing zones in dealing with the problem
A PRISMA-based systematic literature review on the mismatches between the Romanian higher education system and the labor market needs
Transition effect from deposit and policy interest rates to credit interest rates in Türkiye: detecting asymmetry
The effect of fiscal decentralization and monetary policy on economic resilience in Indonesia: a panel data
The implications of demographic changes on economic performance – a comparative analysis of RO vs EU 27
Pensions under pressure: economic and demographic drivers of Romania’s public retirement system
Productivity shocks, exchange rate and migration: a new open economy macroeconomics approach
Energy vulnerabilities among Europeans in the Ukrainian war context
Empirical analysis of the relationship between FDI and economic growth in Morocco
Climate-driven monetary policy: a new Keynesian DSGE analysis for Ghana
Monitoring the implementation of the Sustainable Development Goals in Romania
Insurance and sustainable structural transformation: Does renewable energy matter?
Natural resources and the price of freedom. A concise analysis of Ukraine’s natural resources and who wins more from their direct exploitation?
Assessing the macroeconomic impact of fiscal deficit in India: evidence from ARDL approach
Non-linearity and market behavior in the Romanian capital market: a rescaled range analysis of BET index
From adversity to triumph: Türkiye's economic resilience and adaptation strategies amidst disasters
Trust at first reply and how AI-language systems alter human trust calibration
The economic value of data. From data to decisions in the public sector