The study sought to discover the determinants of long term economic growth in ghana. There is a growing literature on the determinants of economic growth in cross countries and country specific with. The determinants of economic growth in ghana munich personal. A multivariate regression approach was employed to estimate augmented growth.
Determinants of economic growth in subsaharan africa. This volume is a collection of selected empirical studies on determinants of economic growth in africa. Making use of the markov chain monte carlo model composition mc3 for model selections, the results of the empirical analysis show the importance of variables such as current account balance. International journal of asian social science, 2014, 412. Determinants of capital market development in ghana. This paper deals with an investigation into the determinants of economic growth in ghana over the period 1975 to 2014. World oil price shocks also influence economic growth by. Pdf determinants of economic growth in ghana researchgate. The strong economic performance of subsaharan africas resourcerich countries since the start of the 21st century has been celebrated as a return to more buoyant growth and renewed convergence with the advanced economies. In particular, we investigated the impact of physical capital, human capital, labour, government expenditure, inflation, foreign aid, foreign direct investment, financial development, globalization and debt servicing on economic performance within an augmented solow. The dependent variable of this longrun growth model was the annual growth of real gross domestic product gdp. The main objective of this study is to examine the major macroeconomic determinants of economic.
Determinants and effects of foreign direct investment in. It is hoped that the findings of the study will help the managers of the economy, policymakers, and market managers to propose policies or strategies and advice on ways to make the capital market impact positively on ghana s economic growth. This paper provides an empirical analysis of the factors accounting for inflation dynamics in ghana using the bounds test and other econometric approaches. Gyasi overseas development institute university of ghana. Economic growth can be defined as an increase in the capacity of an economy to produce goods and services within a specific period of time. Consequently, neg is mainly concerned with the loca. This alarming rate of business failure or, better still, the stagnation of smes growth gives the ghanaian economy reason for concern. The author identifies political stability as one of the major factors influencing longrun economic growth. An econometric analysis of the factors influencing longrun economic growth in ghana since independence was undertaken using a variant of neoclassical growth model based on available data from 1966 to 2000. In spite of these benefits, amadou 2011 acknowledged the increased risks of. Determinants of economic growth in nigeria kazeem b. The paper presents evidence to suggest that employment growth in ghana continues to trail economic growth due to high growth of low employment generating sectors against sluggish growth of high labour absorption sectors.
Ajide1 this paper investigates the role of frazer economic freedom index on fdi growth relationship over the period spanning 1980 through 2010 using annual time series data. Determinants of economic growth in a panel of countries. Determinants of foreign direct investment in ghana g. This article deals with an investigation into the determinants of economic growth in ghana over the period from 1975 to 2014. Despite the recent progress in improving living standards and reducing poverty, achieving high and sustainable growth continues to be the main challenge for policymakers. Most economic analyses adopt a multiperiod model in which investment by adults in children and other items is driven by expected returns in the same and later periods e. Whereas existing studies on private savings have identified several determinants, the role of financial literacy in saving decisions has not been explored. These determinants have been categorized into internal factors which are bankspecific characteristics and external factors which can further be divided into macroeconomic. Ghana s economy through its effect on agricultural exports, firm productivity, industrial output, stock market and. Over the last few decades the macroeconomic policies and economic growth relationship became the hot issue amongst the government, policy makers and researchers. The method of analysis that was used is the bound testing procedure.
The determinants of longterm economic growth in ghana from 1960. This study examines the determinants of bank profitability in ghana. Pdf on dec 1, 2006, kwabena anaman and others published determinants of economic growth in ghana find, read and cite all the. Determinants of economic growth in ghana are analysed using restricted vector autoregressive var model for the period 197520. Rpmacroeconomic determinants of crude oil demand in ghana. We find that real output, nominal exchange rate, broad money supply, nominal interest rate and fiscal deficit play a dominant role in the inflationary process in ghana. A time series approach to convergence and growth determinants baa. The growth of small to medium enterprises smes is a critical ingredient in the sustainable development of developing economies. The main objective of this paper was to identify the key determinants of inflation in ghana using the most recent monthly data from january 2000 to december 2014 data period of 180 months. The main objective of this study is to examine the major macroeconomic determinants of economic growth in ghana between the periods 1970 and. It was also found that, in the short run, government expenditure and foreign aid have a positive influence on economic growth, while labour. Determinants of loan repayment performance of small and. Economic growth in ghana over the period 1975 to 2015.
The main objective of this study is to examine the major macroeconomic determinants of economic growth in ghana between the periods 1970 and 2011. Determinants and consequences of high fertility a synopsis of the evidence a straightforward causal effect of fertility. Impact of macroeconomic factors on economic growth in ghana. The study is on macroeconomic determinants of economic growth in ghana using cointegration approach. Macroeconomic determinants of economic growth in ghana 1970. In economics, economic growth refers to a longterm expansion in the productive potential of the economy to satisfy the wants. Pdf the study is on macroeconomic determinants of economic growth in ghana using cointegration approach. The reason for these variations is a central issue for economic policy, and crosscountry empirical work on this topic has been popular since the.
This paper assesses the determinants of economic growth in ghana during the period 19702012 by making use of the bayesian model averaging bma in order to address the issue of model uncertainty. The combination of demand and supply factors in a cross. Financial institutions play the role of financial intermediation. Macroeconomic determinants of economic growth in nigeria. Determinants of unemployment in ghana william baah. T his paper focuses on the key deter minants of gro wth in ghana. Annals of economics and finance 4, 231274 2003 determinants of economic growth in a panel of countries robert j. In particular, we investigated the impact of physical capital, human capital. In particular, we investigated the impact of physical capital, human capital, labour, government expenditure, inflation, foreign aid, foreign direct investment, financial development, globalisation and debt servicing on economic performance within an augmented solow growth model. Macroeconomic determinants of crude oil demand in ghana otengabayie, eric fosu and ayimbila, prosper awuni and eshun, maame esi department of economics, kwame nkrumah university of science technology, ghana. Economic growth is the most powerful instrument for reducing poverty and improving. Unemployment is often cited as a measure of the low employment content of ghana s strong growth performance over the past three decades. Applying discrete time waiting model, a competing risks and augmented to incorporate. Ghana s economic growth picked up in the early 2000s and has been exceptionally strong over the past few years, with price booms of its main commodity exports, gold and cocoa, and the initiation of commercial oil production in 2011.
Epol this report serves as a background study for the world bankspolicy note on long run growth in. They found out that labour, capital investment and trade are important in explaining ghana s economic growth in the. Grouped into three parts, chapters examine the influence of financial sources and economic growth. Economic growth, natural resources, oil production, panel growth models, ghana, subsaharan africa. An empirical examination of the determinants of economic growth in ghana samuel yeboah asuamah phd candidate at business school, accra institute of technology ait, accra, ghana, and a senior lecturer at the business school, sunyani polytechnic. Inflation and economic growth, bank of england quarterly bulletin, 166176. Several studies have empirically shown that export and economic growth are positively correlated. Domestic savings remain low in ghana despite several attempts to improve this situation. Determinants of economic growth panel data approach. Determinants of economic growth panel data approach edwin dewan shajehan hussein working paper 0104 may 2001 economics department reserve bank of fiji suva fiji the views expressed herein are those of the authors and do not necessarily reflect those of the reserve bank of fiji. Determinants of economic growth in africa springerlink. Barro growth rates vary enormously across countries over long periods of time.
Munich personal repec archive ghana s economic growth in perspective. Abstractwe examine the role of a typical set of determinants of loan repayment performance of smes in the context of a rural banks setting in ghana. Our analysis using survey data suggests that, while higher application cost, loan size and interest rate exert significantly negative influence on loan repayment, higher educational background of the sme operators is associated with. In the long run, physical capital, labour force, foreign direct investment, foreign aid, consumer price index, government expenditure and military rule are the. Impact of macroeconomic factors on economic growth in. The empirical results reveal that gdp per capita in longrun is driven by export, oil and mineral rents while government consumption retard economic growth. An empirical perspective of smes in the cape coast metropolis, ghana moses ahomka yeboah, cape coast polytechnic, ghana article pdf available january 2015 with.
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