Growth In Ghana Research Articles

Economic growth and environmental sustainability: The role of foreign direct investment and technological innovation on carbon emissions in Ghana

Debates on foreign direct investment, technological innovation and carbon emission seem unsettling in the literature. We contribute to the literature by investigating the relationships between foreign direct investment, technological innovation, and carbon emissions in Ghana. Using the Autoregressive Distributive Lag (ARDL) method, the analysis reveals that foreign direct investment contributes to reduced emissions in the short run but significantly increases carbon emissions in the long run, aligning with the pollution haven hypothesis. This indicates that Ghana may have a robust environmental regulation that ensures eco-friendly foreign direct investments in the short run, with weak enforcement of regulations resulting in high emissions in the long term. Technological innovation in the Ghanaian context contributes to increased CO2 emissions. However, the interaction effect of foreign direct investments and technological innovation reduces carbon emissions, emphasizing the importance of aligning foreign investments with sustainable technological advancements in Ghana. The study also identifies the Environmental Kuznets Curve (EKC) effect, where emissions rise with economic growth but decelerate at higher GDP levels. The findings underscore the need for stronger environmental regulations and a shift towards sustainable, cleaner energy and technological development to mitigate the environmental impacts of economic growth in Ghana and similar developing countries.

Hierarchical Bayesian Modelling of Macroeconomic Variables in Ghana

Abstract This study analyzed the impact of macroeconomic variables (manufacturing, real exchange rate, government expenditure, and gross fixed capital formation) on GDP growth in Ghana. Utilizing secondary data from the World Development Indicators of the World Bank (1991–2021), we employed a hierarchical Bayesian linear model with interaction effects to assess these relationships. The results indicate that the real exchange rate, manufacturing, and government expenditure have a positive influence on GDP growth, while gross fixed capital formation exhibits a moderately negative effect. To enhance economic growth, it is crucial to optimize capital investments, bolster export competitiveness through targeted policies, and invest in manufacturing innovation. These findings offer actionable insights for policymakers aiming to stimulate economic growth in Ghana.

Revisiting the effect of information and communication technologies on employment growth in Ghana: The role of enterprise formality

The employment effect of information and communication technologies (ICT) on firm performance remains a critical topic for policy and academic research. However, our understanding of the ICT-employment growth relationship in both informal and formal sectors in developing countries remains limited. Based on repeated cross-sectional data collected in 2013 and 2015 on 483 Ghanaian manufacturing enterprises and estimating a Feasible Generalised Least Squares (FGLS) regression model, the findings show that access to the internet leads to employment growth in enterprises, while the adoption of mobile phone technologies reduces the number of workers in enterprises. The positive effect of internet access on employment growth tends to be greater in enterprises with a higher degree of formality, while informal enterprises appear to remain small in terms of employment by using internet technology. We discuss these findings and their implications for digital technology policy in developing countries.

In vitro antiproliferative activities of some Ghanaian medicinal plants

BackgroundCancer continues to pose a significant threat to human well-being due to the overwhelming rate of morbidity and mortality associated with it. Hence, the quest for newer, effective and safer anticancer agents has become more crucial. Over the years, some medicinal plants have been used to treat abnormal tissue growths (tumours) in Ghana. Even though sufficient literature points out that people found some relief in their use, there is limited scientific evidence of their antiproliferative activities.MethodEthanolic extracts of nine medicinal plant materials from seven plant species, including the stem bark of Terminalia superba, Talbotiella gentii and Ceiba pentandra and the leaves of Morinda lucida, Dracaena arborea, Dioscorea dumetorum, Thaumatococcus danielli, Ceiba pentandra and Talbotiella gentii, were evaluated for antiproliferative activities against four human cancer cell lines (hepatocellular carcinoma, colorectal adenocarcinoma, cervical carcinoma, and mammary adenocarcinoma) using an MTT-based assay.ResultsThe extract of C. pentandra leaves, exhibited generally higher antiproliferative activity, which was particularly substantial against human hepatocellular carcinoma (HepG2) cells (IC50 = 16.3 µg/mL) and human colorectal adenocarcinoma (RKO) cells (IC50 = 18.7 µg/mL). All the other plant materials demonstrated weak (IC50: 201–500 µg/mL) to moderate (IC50: 21–200 µg/mL) antiproliferative activities against the four cancer cell lines.ConclusionThe extracts of the plant materials demonstrated varied antiproliferative activities. Extract of C. pentandra leaves exhibited the highest antiproliferative activity. The IC50 values of C. pentandra leaves met the benchmark to be considered effective against HepG2 and RKO cancer cell lines in particular. Therefore, there is the need to further undertake fractionation work on C. pentandra leaves. The antiproliferative effect of extract of C. pentandra leaves against other cancer cell lines and normal cell line could also be explored in the future to ascertain the anticancer potential of this plant material. Generally, findings from this work support the indigenous use of these plant materials in treating abnormal tissue growth in Ghana.

Public and private investments and economic growth in Ghana and Kenya

Public and private investments and economic growth in Ghana and Kenya

Effect of Foreign Direct Investment on Economic Growth in Ghana

Effect of Foreign Direct Investment on Economic Growth in Ghana

Effect of financial development on agricultural output growth in Ghana

Effect of financial development on agricultural output growth in Ghana

Harnessing the potential of tiger nut (Cyperus esculentus L.) for food and nutritional security, good health, and economic development of Ghana or Africa. A review

Tiger nuts (Cyperus esculentus L.) offer significant benefits for food security, health, and economic growth, particularly in Ghana and Africa. As a nutritious food source, they are rich in dietary fiber, vitamins, and minerals such as iron, potassium, and magnesium. Additionally, they contain healthy unsaturated fats and phytochemicals like flavonoids, phenolic acids, and tannins, which combat inflammation, cancer, and act as antioxidants. Beyond their health benefits, tiger nuts have economic potential. They can be processed into value-added products like milk, flour, oil, and snacks. These products find markets both locally and internationally, aiding the economies of tiger nut-producing countries. They offer an alternative sweetener and dairy substitute, beneficial for those with lactose intolerance. Tiger nuts also contribute to agricultural sustainability. Their ability to fix atmospheric nitrogen improves soil fertility and crop productivity, benefiting small-scale farmers in developing countries. This can help reduce poverty and enhance food security. Despite these advantages, further research and investment are necessary to fully understand their health impacts and optimize cultivation and processing methods. Such efforts can promote tiger nut production and consumption, particularly in poorer nations, leading to sustainable development and improved livelihoods for farmers and communities. This review aims to highlight how tiger nuts (Cyperus esculentus L.) can enhance food security, health, and economic growth in Ghana and Africa. Tiger nuts are a valuable food source with untapped potential. This review examines the nutrition, health benefits, and economic impact of tiger nuts, especially for small-scale farmers and food availability. This paper underscores the importance of further research and investment in promoting tiger nuts as a valuable resource for Ghana, Africa, and the world.

Evaluating the impact of a 24-hour economy on Ghana's economic landscape: A computable general equilibrium approach

The National Democratic Congress (NDC), Ghana's leading opposition political party, has unveiled an ambitious ‘24-hour economy’ policy proposal ahead of the country's forthcoming general elections in 2024. The policy aims to revitalise the nation's economic landscape by fostering round-the-clock operations in key sectors. This paper employs a dynamic Computable General Equilibrium (CGE) model framework, underpinned by the 2015 Ghana Social Accounting Matrix (SAM) and the 2021 Ghana Population and Housing Census (PHC) data, to evaluate the potential impact of the policy on Ghana's economy.Results indicate that under the proposed ‘24-hour economy’ policy, Ghana's real GDP growth (not to be confused with GDP growth rate) in ten years would be 31.71 % higher than it would have been under a ‘business-as-usual’ scenario in the same timeframe. This indicates substantial augmentations in economic output within the Ghanaian economy under a ‘24-hour economy’ setting. Further, the policy would generate more than 3 million jobs within five years of its implementation, with manufacturing, agriculture, wholesale and retail trade, services, construction and transport sectors experiencing substantial employment gains.The policy's transformative effects are driven by its ability to stimulate capital investment and capital formation, boost productivity and increase household incomes.The paper concludes that the NDC's proposed ‘24-hour economy’ policy holds substantial potential for transformative economic growth in Ghana. However, there are potential challenges associated with the implementation of the policy, which then necessitates a holistic approach to policy formulation, focusing on inclusive growth and sustainable development strategies.

Collaboration and Management Techniques for The Expansion of Small and Medium-sized Enterprises (SME) Contractors in Cape Coast Metropolis, Ghana

The construction industry, spearheaded by small and medium-sized enterprises (SMEs), plays a vital role in economic development and poverty alleviation. Yet, numerous SME contractors need help to expand, hindering their potential contribution. To address this critical gap, this study explored the factors influencing building contractors' growth in Ghana's Cape Coast Metropolis. A targeted questionnaire survey of one hundred and twenty-one (121) building and civil engineering contractors was employed to examine the interplay between two (2) key determinants of growth: building stable teamwork and implementing proper management systems. The analysis revealed six (6) crucial factors, three (3) within each category, that demonstrably drive contractor expansion in the Cape Coast Metropolis. These factors encompass fostering team cohesion through training, recognition, effective collaboration, strategic project differentiation, prioritising project management, and proactive risk mitigation. The study's findings underscore the critical importance of internal (teamwork) and external (management systems) factors in propelling SME contractor growth within this context. Equipping policymakers and stakeholders with this actionable knowledge will pave the way for targeted interventions and policy initiatives. These initiatives can empower building contractors with the necessary skills and support systems to overcome growth barriers, unlock their full potential, and contribute more significantly to the economic prosperity of Cape Coast Metropolis and beyond.

Investigating institutional and expenditure patterns on debt and economic growth in Ghana

AbstractThis study investigates the influence of government expenditure and institutions on public debt accumulation and economic growth in Ghana between 1990 and 2019. The paper examines how public debt is utilized for government spending on capital and recurrent expenditure, and the role bureaucratic quality plays in improving economic growth. The employed estimation technique is structural equation modelling because it effectively assesses complex situations and allows the modelling of complex systems by utilizing simultaneous equations, mediator analysis and modification indices to improve the goodness of fit of a model. The study indicates that public debt negatively affects GDP growth, whereas trade openness positively influences GDP growth and public debt accumulation. Bureaucratic quality impacts GDP growth positively and capital expenditure negatively. Recurrent expenditure positively predicts GDP growth and capital expenditure. Capital expenditure's effect on GDP growth is negative but statistically insignificant. The right checks and balances should be implemented to mitigate rent‐seeking and corrupt activities associated with bureaucracy. Tax revenue mobilization should be improved to reduce budget deficits and borrowing, whereas exports should be promoted through improving local industries. Finally, all infrastructural projects must be completed to serve their purpose.

Navigating prosperity: the impact of seaport efficiency on economic growth in Ghana’s maritime landscape

PurposeThis study aims to investigate the impact of seaport efficiency on economic growth in Ghana over the period 2006–2020.Design/methodology/approachComprehensive methodology, diverse data analysis techniques, including Augmented Dickey–Fuller tests, autoregressive distributed lag (ARDL) modeling and Granger Causality, were applied to explore the intricate relationship between Seaport Efficiency and Economic Growth.FindingsThe findings reveal a statistically significant and positive association between seaport efficiency and GDP, underscoring the crucial role of efficient seaport operations in actively stimulating economic growth. Beyond seaport efficiency, influential factors such as capital, human capital, knowledge spillover and productive capacities were identified, contributing to the dynamics of economic growth.Research limitations/implicationsThe Granger Causality Test solidifies seaport efficiency as a robust predictor of GDP fluctuations, emphasizing its significance in economic forecasting. Notably, this study contributes to the existing body of knowledge with its nuanced exploration of the intricate relationship between seaport efficiency and economic growth in the specific context of Ghana.Practical implicationsThis study’s implications extend beyond academia, offering invaluable guidance for policymakers and planners. It serves as a comprehensive roadmap for informed decision-making, emphasizing the pivotal role of efficient seaports in charting a trajectory for enduring and resilient economic progress in the nation.Originality/valueWhile the broader theme has been explored in existing literature, the uniqueness of this study lies in its specific application to the Ghanaian context. The choice of Ghana, a nation where maritime transport handles over 90% of trade, underscores the significance of understanding seaport efficiency in this regional and economic setting. The study’s originality is reinforced by incorporating diverse economic variables, aligning with recommendations for a comprehensive analysis of factors influencing port performance.

The relationship between external debt and agriculture GDP growth in Ghana: an ARDL cointegrating bound testing approach

The relationship between external debt and agriculture GDP growth in Ghana: an ARDL cointegrating bound testing approach

Unraveling Ghana’s Resource Curse Hypothesis: Analyzing Natural Resources and Economic Growth with a Focus on Oil Exploration

This study examines the intricate relationship between natural resource abundance, with a specific focus on oil production, and its impact on economic growth in Ghana. Through the application of the robust Fully Modified OLS methodology and using data spanned from 1960–2021 the research underscores the essential inclusion of oil as a significant variable in comprehending economic growth dynamics. Contrary to traditional resource curse theories, the study unveils a positive nexus between oil production and economic growth, particularly within a comprehensive variable framework. This finding challenges simplistic resource curse notions and underscores the need for a holistic economic perspective. Overall, the results show that the impact of oil production on economic growth is sensitive to the inclusion or exclusion of other variables in the model. In Model 1, where all variables are included, oil production has a significant positive (0.0112**) impact on growth. Ghana’s success in avoiding the resource curse is attributed to a multifaceted strategy encompassing diversified economic approaches, transparent governance, and responsible oil revenue management. Importantly, the inclusion of oil as a pivotal variable is well-justified by its tangible contributions to economic growth. The observed positive impacts emphasize the benefits of harnessing oil resources while maintaining a holistic view of the broader economic context. Looking ahead, the insights inform policymakers in resource-rich nations, illustrating how strategic resource management—illustrated by oil—can drive resilient and comprehensive economic growth. Ghana’s experience serves as a compelling template for informed policy decisions, offering valuable lessons for achieving sustainable prosperity.

The Threshold Effect in the Relationship Between Inflation and Economic Growth in Ghana

Sustainable growth of the economy and ensuring a stable price market are two major macroeconomic policy objectives of Ghana’s economy, although policy makers find it tough in meeting these targets simultaneously. This is because high rate of inflation has adverse effect on economic growth, despite the fact that, a steady fall of the general price level for a continuous time period may be detrimental to the economy. Thus, the study sought to investigate the threshold effects of inflation on economic growth in Ghana. Annual time series data from 1980-2019 was used. The study found 10.70% as the inflation threshold value for Ghana. The results show that, anytime inflation is less than 10.70%, its negative effect on the economy is much less than when it increases beyond the threshold value of 10.70%. At the end, suggestions based on these findings are proffered to the relevant agencies, organizations, institutions, and stakeholders for necessary action.

Unlocking Opportunities in Agro-Industrialization and Agro-Processing for Inclusive Growth in Ghana

Unlocking Opportunities in Agro-Industrialization and Agro-Processing for Inclusive Growth in Ghana

GOVERNMENTEXPENDITUREONECONOMICGROWTH:EMPIRICAL EVIDENCE FROM GHANA

In free market finance, the government plays an essential role. The government really does a lot for an economy. When markets can't solve problems on their own, governments must step in to offer public goods, address externalities, and enforce competition. The issue for every economy that wants its government to fulfill its function is finding the right size of government (total expenditures by the government as a percentage of GDP) to promote long-term prosperity. Government spending in Ghana has increased over the previous two decades, according to data on fiscal behavior, but GDP growth has lagged behind. Using a time series data analysis, this study aimed to shed new empirical light on the connection between government size and economic growth in Ghana, as well as identify the optimal threshold level at which government final consumption may contribute to rapid development. The research found that higher levels of government spending contributed directly to economic expansion. The analysis concluded that a threshold of 0.114% for government spending was optimal for promoting growth in the economy. Therefore, the study urges fiscal discipline and control to maintain the optimal level of government spending, which would have a multiplier effect on other parts of the economy and prevent crowding out.

Electricity Transmission Losses, Electricity Consumption, and Economic Growth in Ghana

An unsustainable power supply has dire consequences for every economy. Extant studies focused on the nexus of electricity consumption and economic growth to the neglect of electricity transmission losses (ETL). This paper argued that quantifying the effect of ETL on electricity consumption and understanding its implications on growth will incite actions to improve the electricity transmission system in Ghana. Using yearly data from 2000 to 2020 in an Autoregressive Distributed Lag (ARDL) model, the study concludes that ETL reduce the total amount of electric power consumed in Ghana by 34%. Again, a reduction in electricity consumption due to ETL reduces national income and Ghana’s growth at large. Factors including electricity price, exchange rate, and inflation also influenced electricity consumption and economic growth in Ghana. The study suggests massive improvement in its electricity transmission system to reduce electricity losses, increase electricity consumption, and enhance economic growth.

Electricity consumption and economic growth in Ghana: how significant are electricity transmission losses?

PurposeThe purpose of this study is to analyze the nonlinear relationship between electricity consumption (EC) and electricity transmission losses (ETL) in Ghana. Also, we examined how ETL moderate the effect of EC on economic growth in Ghana from 1980 to 2021.Design/methodology/approachWe used timeseries data from 1980 to 2021 within an autoregressive distributed lag framework to analyze the links among ETL, EC and economic growth in Ghana.FindingsFindings show the existence of an asymmetric long-run relationship between EC and ETL. Also, the negative effects of ETL on EC are bigger in the long run. In addition, ETL and EC combine to reduce economic growth, in the long run, providing evidence for the energy-led growth theory in Ghana. Population and inflation were also found to have a significant effect on economic growth in Ghana.Originality/valueWe examined the nonlinear nexus of EC and ETL, which extant studies have ignored in discussing the link between EC and economic growth. Again, we showed that ETL reduces EC causing a reduction in economic growth.

Statistical Analysis of Population and Economic Growth in Ghana.

Purpose: The relationship between population and economic growth has been a subject of extensive research and debate for decades. Population of a country is driven by factors such as fertility rate, mortality rate and migration. Rapid population growth can strain resources, infrastructure, and social services, potentially hampering economic development. However, it can also create a demographic dividend when the working age population surpasses dependent age group, leading to increased productivity and economic growth.
 Methodology: The researchers performed statistical analysis on population and economic growth using Time Series. The study revealed that Ghana’s age profile is much concentrated at the youthful age, which is also the most fertile part of the age distribution.
 Findings: The Percentage Change of Population (PCPOP), Per Capita Gross Domestic Product (PCGDP) and Exchange Rate (EXCR) are statistically significant. Also Population and the economic growth in Ghana are inversely proportional to each other.
 Unique contributor to theory, policy and practice: Furthermore, the future values of the population of the country is relatively high for the next ten years and there is a negative correlation between the population and economic growth hence the future population is likely to face poverty. Stakeholders and policy makers are to ensure that future policies are directed towards Entrepreneurship and Skills Training to enable income generation in the Country.