Economic Growth In Ghana Research Articles

The impact of mining foreign direct investment on economic growth in Ghana

The impact of mining foreign direct investment on economic growth in Ghana

Economic Growth Implications of Inflation Targeting and Inflation Volatility: An Emerging Economy’s Perspective

Purpose: The purpose of this study was to comparatively examine the extent to which inflation targeting and inflation volatility impact on economic growth from an emerging economy’s perspective.
 Methodology: Annual data from the World Development Indicator (WDI) and the Bank of Ghana (BoG) from 1985 to 2014 were used for the study. The data was interpolated into quarterly series using E-views. The stationarity characteristics of the variables were tested using the Augmented Dickey-Fuller and the Phillip-Perron unit root tests. The GARCH (1 1) and ARDL models were employed for the analysis.
 Findings: The study found that inflation targeting had a positive significant effect on economic growth in Ghana. Also, despite the volatile nature of inflation in Ghana, inflation volatility had no significant effect on economic growth.
 Implications: This scholarly work would aid policy makers in policy formulation pertaining to inflation targeting and inflation volatility on economic growth. It will also open up the circles of knowledge regarding inflation targeting monetary policy’s regime in empirical literature, institutions of higher learning and the understanding of the general public. The study recommends that the Bank of Ghana maintains its current monetary policy framework - Inflation Targeting, but should strengthen the preconditions and subsequent requirements of the monetary policy in order to maximize the gains to economic growth.

The impact of remittances on economic growth in Ghana: An ARDL bound test approach

The impact of remittances on economic growth in Ghana: An ARDL bound test approach

COMPARATIVE ANALYSIS OF THE IMPACT OF DOMESTIC DEBT ON ECONOMIC GROWTH IN NIGERIA AND GHANA

The study compared Nigeria and Ghana's domestic debt (DM) and economic growth (EG) from 2000 to 2021.World Development Indicators, CBN Statistical Bulletin, Ghana Ministry of Finance Annual Debt Statistics, and CBN Annual Report provided secondary data (Time Series) for the study. The study examined Treasury Bills (TBL), Treasury Certificates (TCF), Treasury Bonds (TBD), Development Stock (DST), and Promissory Note (PNT) with one control variable, Interest Rate (INTR), in relation to EG proxied with Real Gross Domestic Product (RGDP) in Nigeria and Ghana. Descriptive statistics, correlation analysis, and multiple regression analysis were performed using E-VIEW version 9.0. The findings indicated The p-value of TBL is 0.4523 for Nigeria and 0.0039 for Ghana, which means that TBL has no effect on RGDP in Nigeria but a substantial effect in Ghana. TCF's p-values of 0.3003 and 0.0700 for Nigeria and Ghana, respectively, are more than 0.05, indicating that TCF has no significant effect on RGDP in Nigeria and Ghana. TBD's p-values for Nigeria and Ghana are 0.0000 and 0.5921, respectively, which is less than 0.05 for Nigeria but higher than 0.005 for Ghana, indicating that TBD has a substantial effect on RGDP in Nigeria but not in Ghana. DST has a substantial effect on RGDP in Nigeria but not in Ghana. Nigeria's p-value is 0.002, which is less than the specified value of 0.05, whereas Ghana's is 0.8106, which is greater than 0.005. Nigeria's p-value of 0.1622 is higher than the set value of 0.05, whereas Ghana's is less than 0.005, indicating that PNT has a substantial effect on RGDP in Ghana but not in Nigeria. INTR's p-values for Nigeria and Ghana are 0.5667 and 0.0371, respectively, which are more than 0.05 for Nigeria but less than 0.005 for Ghana, indicating that INTR has no effect on RGDP in Nigeria but a significant effect in Ghana. Finally, the study finds inconsistent effects of domestic factors on EG in Ghana and Nigeria. The government (GOVT) should borrow mostly from FGN bonds. The outcome shows that FGN bonds greatly benefit EG in Nigeria and Ghana.
 Keywords: Debts, Domestic, Economic, Growth and Bonds.

The resource curse paradox: The role of financial inclusion in mitigating the adverse effect of natural resource rent on economic growth in Ghana

Over the last decades, “the resource curse paradox” has received ample attention in the literature. Many studies in the literature have demonstrated that developing countries rich in abundant natural resources have experienced a slower rate of economic growth. However, none of the existing studies, to the best of our knowledge, explore whether financial inclusion can help to resolve this paradox. In this study, we attempt to do this using Ghana as a case study. We applied the fully modified ordinary least square (FM-OLS) to historical data for Ghana covering the period of 1970–2020. Our results show that financial inclusion does help in averting the “resource curse paradox” in Ghana. Our results highlight that increased financial knowledge, availability, and usage of financial services can help to thwart “the resource curse paradox” in resource-rich developing countries. Therefore, policymakers should pay attention to these factors when devising policies to avert the “resource curse paradox” in developing countries rich in abundant resources.

Uncovering the forgotten story of the impact of Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome on economic growth in Ghana: A gender analysis.

Aside from being a health issue, Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome (HIV/AIDS) has an economic impact on Africa and Ghana in particular. Despite this, fewer empirical studies have examined the effect of the disease on economic growth from a gender point of view. This study aims to investigate the impact of the HIV/AIDS epidemic on economic growth in Ghana. The paper uses time series data spanning 1990-2018 to estimate the impact of HIV/AIDS from a gender perspective. The Cobb-Douglas aggregate function and the Granger Causality test were used to examine the determinant of growth and the direction of causality, respectively. The study's finding shows a unidirectional feedback causality running from HIV/AIDS to economic growth. Controlling for varieties of factors, the study found that HIV/AIDS has a negative significant impact on economic growth in both the short and long-run periods in Ghana. From the gender perspective, the impact of HIV/AIDS on growth was higher in the case of males when compared to females.

Does technological innovation matter in the nexus between supply chain resilience and performance of manufacturing firms in a developing economy?

PurposeDespite the economic growth in Ghana, the manufacturing industry faces numerous challenges in their supply chains. The study aims to investigate the mediated-moderated role of supply chain technological innovation (SCTI) in the relationship between supply chain resilience (SCR) and supply chain performance (SCP) of manufacturing firms. By exploring this relationship, the study seeks to provide insights that can help manufacturing firms overcome the challenges they face and improve their overall supply chain performance.Design/methodology/approachThe quantitative research approach and explanatory research design were utilised. A sample of 345 manufacturing firms was drawn from a population of 2495 manufacturing firms in the Accra metropolis. Analysis of this study was performed using the Partial Least Squares Structural Equation Modelling (PLS-SEM).FindingsIt was revealed that SCTI positively mediates the nexus between SCR and SCP. However, we document that SCTI negatively moderates the nexus. It is instructive to advocate that a mere presence of a more enhanced SCTI is not enough to improve upon SCP of manufacturing firms, but should be a channel through which SCR can improve SCP.Practical implicationsThis study highlights the need for managers of firms to prioritise investment in technological innovation as a means of enhancing SCR and ultimately improving supply chain performance. By understanding the SCTI mediated-moderated relationship between SCR and SCP, supply chain managers, logistics managers, operation managers, as well as procurement managers can develop more effective strategies to optimise their operations. This study provides valuable insights for managers and policymakers in developing and implementing supply chain resilience strategies that take into account the important role of SCTI.Originality/valueThe originality of the study lies in exploring the mediated-moderated effect of technological innovation on the nexus between resilience and performance of supply chains in developing economies, where firms often face unique challenges such as infrastructure limitations, political instability and economic uncertainty. By investigating the interplay of SCTI between SCR and SCP, researchers can develop new insights and strategies to help navigate these challenges and achieve success.

Kisan Seva Kendra a Web-based Application

Abstract: All humans mainly rely on cultivation for food. Agriculture acts as a backbone for many countries’ economies One of the key factors of economic growth in Ghana is agriculture. It is believed that the agriculture sector forms a vital part of building a resilient economy. Food is an essential component of our daily existence and a significant portion of it is supplied by farms. The hard work of farmers who grow and cultivate crops sustains countless lives across the country and provides them with a source of income. Unfortunately, due to intermediaries involved in the selling of their final products, farmers often struggle to make a profit and are forced to live in poverty. Through this project, we will be able to connect farmers directly to the customer so that direct dealing of products can be accomplished. This will end in a big decrease in the prices of the products currently available within the market because the profit will directly reach the farmers pocket. It will also provide personalized views for farmers, suppliers, and admin by their different logins by that handling of the webpage will be comfortable.

Foreign direct investment, remittances, real exchange rate, imports, and economic growth in Ghana: An ARDL approach

The main objective of this quantitative study is to ascertain the effect of foreign direct investment, real exchange rate, remittances, and import on economic growth in Ghana. Secondary data on gross domestic product, foreign direct investment, real exchange rate, remittances, import, and gross capital formation from 1980 to 2018 were analyzed. The study employed Autoregressive Distributed Lag for the econometrics analysis. The study found that foreign direct investment, real exchange rate, remittances, import, and gross capital formation cointegrates with economic growth. The main findings are that foreign direct investment, real exchange rate, import, and remittances matter from growth perspective. Remittances have a positive and significant effect on economic growth in Ghana both for the short run and the long run. The study also revealed that foreign direct investment, real exchange rate, and imports have a negative and significant effect on the growth process of Ghana’s economy for both the short run and the long run. The study recommends that the Ministry of Finance, Ghana, financial analysts and other policy makers should undertake steps to reduce imports and attract more remittances inflows to attain long-run economic growth. In addition, the economy must concentrate on viable exchange rate policies such as undervaluation of currency to stimulate sustainable economic growth.

Exploring the Relationship Existing between Innovative Activities and the Economic Growth of Ghana

Exploring the Relationship Existing between Innovative Activities and the Economic Growth of Ghana

Impact of rural and urban electricity access and economic growth in Ghana: Does line transmission losses matter?

This paper aimed to estimate the impact of rural and urban electricity access on Ghana’s economic growth between 1993 and 2018 by controlling for electricity transmission losses as a percentage of total electricity transmitted. The study used Stock-Watson Dynamic Ordinary Least Square (DOLS) to estimate the impact of electricity access and transmission losses on Ghana’s economic growth. The Engle-Granger, Phillips-Ouliaris, Park’s added variables and Hansen parameter instability cointegration methods were applied to test the long-run cointegration of the studied variables The results show that a 1% increase in electricity access was associated with a 0.073% decrease in economic growth. Additionally, a percentage increase in the rural electricity access rate was associated with a 0.527% increase in national income per capita. In contrast, urban population electricity access had no statistically significant association with economic growth in Ghana. The study suggests that improving population access to electricity infrastructure services while reducing power wastage through electricity transmission loss minimization is crucial to achieving the long-term impact of electric power on socio-economic development and environmental sustainability in Ghana, subject to other equally essential conditions.

Do trade openness and domestic credit to the private sector stimulate economic growth in Ghana A bound test approach

Do trade openness and domestic credit to the private sector stimulate economic growth in Ghana A bound test approach

The causal link between electricity transmission, distributional losses and economic growth in Ghana

AbstractDespite the growing literature on the causal association between electricity supply and economic growth, little is known about the causal linkage between electricity transmission and distributional losses and economic growth, particularly in Ghana. The paper studies the causal association between electricity transmission, distributional losses and economic growth in Ghana. Further, we interacted ETDL with electricity price to examine their combined impact on Ghana's gross domestic product. We utilised time series data from the period 1971 to 2014. Given that our data span is relatively shorter, we utilised the Toda and Yamamoto and Autoregressive distributed lag model (ARDL) methods. This is so because these time series approaches can produce efficient, reliable and eliminate spurious regression estimates even if the sample size is relatively short. Our ARDL estimates suggest that ETDL exert an adverse impact on economic growth while the Toda and Yamamoto estimates suggest that economic growth has a strong influence on ETDL and not the other way round, supporting the growth‐led energy hypothesis. Also, the interactive effect of ETDL and electricity prices on economic growth was negative and statistically significant.

The influence of government expenditure on economic growth in Ghana: An Ardl approach

The influence of government expenditure on economic growth in Ghana: An Ardl approach

The Impact of E-Commerce on National Trade of Ghana

The importance of ecommerce to an economy and businesses cannot be overemphasized. It is recognized that ecommerce to businesses could trigger an innovative way that marketing and necessitate international trade. In effect, the study sought to investigate the effect of E- commerce on the national trade in Ghana. The study sought to analyze the factors that influence the adoption of ecommerce in Ghana. It also determined the effect of ecommerce to the economy of Ghana. The study adopted quantitative approach through the use of primary and secondary data. Research analysis used for this study were the frequency and the generalized method of moment (GMM). With respect to the primary data estimation, the findings of the study showed that ICT, skills and cost in ecommerce are factors influencing ecommerce among businesses in Ghana. On the part of the estimation of the secondary data, the result of study indicated that at one percent level of significant, ecommerce has positive significant effect on economic growth of Ghana. Per the outcome of the study, it was recommended that long term policy should be put in place to ensure the growth of ecommerce in Ghana. Keywords: Ecommerce, International Trade, Economic growth, Small and Medium Enterprise and Information Communication Technology DOI: 10.7176/JESD/13-24-07 Publication date: December 31 st 2022

The Effect of External Debt, Unemployment Rate, and Inflation on Economic Growth in Ghana

Inflation and unemployment rates are part of the macroeconomic factors affecting growth within Ghana's economy over the years. The continued rise in the country's gross domestic product and a high dependency on external debt for development projects have sparked a lot of controversies. This study investigates whether external debt, inflation, and unemployment rate stimulate economic development, intending to determine the causal relationship between the variables to serve as an important factor for policymakers. The econometrics methods include the stationarity test, Johansen cointegration test, and regression (ordinary least squares). The data used was from the World Bank from 1991-2021. The stationarity test showed that external debt, GDP, and unemployment were non-stationarity and integrated at the first-order difference, whereas inflation was stationary at the level. The Johansen cointegration test found a long-run relationship between selected variables, but only external debt positively impacted economic growth in the long term. In contrast, inflation and unemployment had a negative impact. The regression results found external debt to be positively correlated to growth in Ghana, but inflation and unemployment harm it with GDP as the explained variable. The findings also indicate that external debt increased inflation, whereas GDP reduced inflation, but unemployment did not influence inflation. The outcome further proves that external debt positively impacted the unemployment rate, and GDP negatively influenced it.

IMPACT OF GOVERNMENT INVESTMENT EXPENDITURE ON ECONOMIC GROWTH IN GHANA

The paper investigated the impact of government investment expenditure on economic growth in Ghana using secondary data spanning from 1975 to 2018. The Autoregressive Distributed Lag (ARDL) and the Granger Causality test were adopted to examine the objectives. The results showed that government investment expenditure related positively to economic growth in the long run, but has no statistically significant effect on growth in the short run. Other variables such as foreign direct investment, labour force, gross capital formation, debt service, interest rate, inflation rate, and foreign aid influenced growth positively or negatively. A unidirectional causal relationship ran from Government investment expenditure to growth. The study, therefore, recommends that to attain sustainable future economic growth, the government should pay more attention to its investment expenditure; by providing the necessary resources and the enabling environment for education, health and technology. Keywords: Government Investment Expenditure, Growth, ARDL, Granger Causality, Human capital

Government Stability in the Remittance-Economic Growth Link in Ghana

Several studies have revealed that many factors affect economic growth. Remittances and government stability have been identified as two of these factors. Over the years, remittances have become a major source of financial inflows, especially in Ghana. This study examines the role of government stability in the remittance-economic growth relationship in Ghana. Annual time series data from 1984 to 2020 was extracted from the World Development Indicators (WDI) and the International Country Risk Guide (ICRG). An ARDL model with a level structural break was estimated. The results show, first, that a cointegration relationship exists among the variables in the presence of structural breaks. Secondly, remittances and government stability have a significant, positive long-run impact on economic growth, while no significant impact of GDPPC and government stability on remittances was found. Thirdly, in the short run, remittances and government stability are not significantly associated with growth. The role of remittances in the economic growth of Ghana is important. When remittances increase, economic growth will likewise increase. Government policy-making should create an enabling environment to channel remittances into productive uses, including entrepreneurial ventures. Remittances must be received through proper channels for easy accountability, and government stability should be complemented by good governance to further foster economic growth.

Exploring the asymmetric effect of lending rate on economic growth in Ghana: Evidence from nonlinear autoregressive distributed lag model

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Tax Revenue and Economic Growth Nexus in Ghana: Co-integration and Granger causality Test

Abstract The paper sought to assess the taxes and economic growth nexus in Ghana. The study used annual time-series data collected from 1972 to 2019. The study used the Johansen Co-integration technique, vector error correction model, and Granger causality test to assess the causal relationship between tax revenue and economic growth in Ghana. The Co-integration test was used to establish the long-run relationship. In contrast, the Granger Causality test was used to establish the short-run relationship between the variables used in the model. The study revealed that the model has a speed of adjustment of 61.4% to restore the short-run relationship to the long-run equilibrium path. Furthermore, the study found a unidirectional relationship between tax revenue variables and economic growth. Again, the study found support for a positive and significant nexus between direct tax revenue and economic growth and a significant and negative nexus between indirect tax revenue and economic growth. Based on the results, the study recommends that the government tax policy move gradually from indirect tax revenue concentration to direct tax revenue to finance development programs to sustain economic growth. Keywords: Direct tax; Economic growth; Granger Causality; Indirect tax.