Unemployment and remittances nexus in Ghana: The gender perspective

Figures & data

Table 1. Results of unit root test (ADF and PP)

Level Form					First Differenced
	ADF		PP		ADF		PP
Variable	Intercept	Prob	Intercept	Prob	Intercept	Prob	Intercept	Prob
LNUNEMPT	−2.0953	0.2479	−2.2778	0.1854	−3.2016	0.0305**	−3.225	0.0290**
REMIT	2.1919	0.9907	−1.4982	0.5203	−1.8505	0.0623*	−14.4189	0.0000***
LNINF	−3.6170	0.0116**	−3.617	0.0116**	−5.4588	0.0002***	−11.0497	0.0000***
FDI	−1.8374	0.3558	−1.8929	0.3308	−4.3769	0.0019***	−4.3385	0.0020***
LNEXP	−2.6676	0.0918*	−2.6323	0.0982*	−4.9018	0.0005***	−4.9018	0.0005***
LNGCF	−2.6824	0.0892*	−2.7575	0.0769*	−5.3556	0.0002***	−5.3742	0.0001***
GDP	−3.0107	0.0457**	−3.0016	0.0465**	−5.9739	0.0000***	−7.2593	0.0000***

Source: Authors construct, 2022.

Table 2. Results of bounds test for cointegration

F-bounds TestHo: No long-run relationship
Test Statistic	Value	Sig	I(0)	I(1)
F-Stat	9.1618	10%	2.03	3.13
K	7	5%	2.32	3.5
		2.50%	2.6	3.84
		1%	2.96	4.26
Female Category
F-statistic	5.224928	10%	2.12	3.23
k	6	5%	2.45	3.61
		2.50%	2.75	3.99
		1%	3.15	4.43
Male Category
F-statistic	5.010688	10%	2.12	3.23
k	6	5%	2.45	3.61
		2.50%	2.75	3.99
		1%	3.15	4.43

Source: Authors’ construct, 2022.

Table 3. Results of long-run effect of remittances on unemployment rate

Levels Equation
Case 3: No Trend and Unrestricted Constant
Variable	Female Coefficient	Male Coefficient	Pooled Coefficient
REMIT	0.0943**	0.3301	0.1452***
	(−0.0364)	(−0.2207)	(0.0390)
LNINF	0.1534**	0.502	0.1460*
	(0.0690)	(−0.3979)	(0.0744)
FDI	0.0818***	0.1798	0.1081***
	(−0.0245)	(0.1124)	(0.0263)
LNEXP	1.7357***	3.4959*	1.9868***
	(−0.2344)	(1.6155)	(0.2676)
LNGCF	0.8735***	0.7344	0.8724***
	(−0.1897)	(0.5780)	(0.2019)
LNGDP_REMIT	−0.3509***	−0.8097	−0.4762***
	(−0.0998)	(0.4837)	(0.0989)

Notes: Numbers in parenthesis represent standard errors.

Table 4. Short-run effects of remittances on unemployment in Ghana

Levels Equation
Case 3: No Trend and Unrestricted Constant
Variable	Female Coefficient	Male Coefficient	Pooled Coefficient
C	4.0917***	3.1053***	4.5652***
	(0.5367)	(0.4219)	(0.5200)
D(LNMEMPT(−1))	−0.3459**	0.5282***
	(0.1459)	(0.1150)
D(REMIT)	−0.0083	−0.0075	−0.0139*
	(0.0067)	(0.0074)	(0.0076)
D(REMIT(−1))	0.0299***	0.0212**	0.0348***
	(0.0082)	(0.0088)	(0.0082)
D(FDI)	−0.0312***		−0.0444***
	(0.0091)		(0.0105)
D(FDI(−1))	0.0186**		0.0215**
	(0.0071)		(0.0079)
D(LNEXP)	0.0756	0.0727	0.0372
	(0.0673)	(0.0735)	(0.0683)
D(LNEXP(−1))	0.5609***	0.3941***	0.6108***
	(0.1065)	(0.1017)	(0.1000)
D(LNGCF)	−0.2955***	−0.1099*	−0.3732***
	(0.0572)	(0.0518)	(0.0716)
D(LNGCF(−1))		−0.1250**
		(0.0462)
D(LNGDP_REMIT)	−0.0208	−0.0092	0.0095
	(0.0158)	(0.0175)	(0.0193)
D(LNGDP_REMIT(−1))	−0.1359***	−0.0533**	−0.1270***
	(0.0273)	(0.0234)	(0.0211)
CointEq(−1)*	−0.5718***	−0.2208***	−0.5659***
	(0.0748)	(0.0300)	(0.0644)
Observation	30	30	30
R-squared	0.8883	0.9040	0.8775
S.E. of regression	0.0451	0.0496	0.0504
Prob(F-statistic)	0.0000***	0.0000***	0.0000***

Source: Author’s construct, 2022.

Table 5. Residual and stability tests results

Method	F-Statistic	Prob
Serial correlation	0.612552	F(2, 9) = .5631
Heteroscedasticity	1.239134	F(16, 11) = .366
Normality (Jarque-Bera)	1.46895	0.479757, Normal
CUSUM	Within 5% critical region	Stable
CUSUMSQ	Within 5% critical region	Stable

Source: Author’s construct, 2022.

Figure 1. CUSUM and CUSUMSQ plots for the pooled category.

Figure 2. CUSUM and CUSUMSQ plots for the female category.

Figure 3. CUSUM and CUSUMSQ plots for the male category.