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Political Economy Analysis of the Macroeconomic Impact of National Elections in Ghana During the Fourth Republican Era, 1992 to 2016

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  • Kwabena Asomanin Anaman
  • Gbensuglo Alidu Bukari

Abstract

The study dealt with the analysis of macroeconomic impact of national presidential elections in Ghana during the Fourth Republican period from 1992 to 2016 based on effects of these elections on economic growth, government budget deficits, inflation and interest rates. Using annual data covering the period, 1992 to 2016, the analysis indicated that national elections did not lead to significant increase in annual economic growth as measured by the changes in real gross domestic product (GDP). However, the increase in government budget deficits during election years was established. Further, based on quarterly data covering 100 periods from 1992 to 2016, we showed that elections produced significantly higher levels of inflation and interest rates. Our study confirmed anecdotal evidence of worsening macroeconomic performance of the economy of Ghana as a result of national presidential elections which hurt ordinary Ghanaians especially those living on fixed incomes such as pensioners due to higher inflation, and also adversely affected small and medium scale businessmen as a result of increased borrowing costs from higher interest rates.

Suggested Citation

  • Kwabena Asomanin Anaman & Gbensuglo Alidu Bukari, 2019. "Political Economy Analysis of the Macroeconomic Impact of National Elections in Ghana During the Fourth Republican Era, 1992 to 2016," Applied Economics and Finance, Redfame publishing, vol. 6(3), pages 28-44, May.
    • Handle: RePEc:rfa:aefjnl:v:6:y:2019:i:3:p:28-44
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    References listed on IDEAS

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    Cited by:

    1. Kwabena Asomanin Anaman & Gbensuglo Alidu Bukari, 2019. "Political Economy Analysis of Voter Participation and Choices in National Elections in Ghana¡¯s Fourth Republican Era," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 174-198, December.

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    More about this item

    Keywords

    Africa; democracy; Ghana; macroeconomics; political business cycles; political economy of elections;
    All these keywords.

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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