This paper investigates the effects of exchange rate distortion on economic growth in a Less Developed Country (LDC) Ghana. Using lime series data from Ghana and a five equation simultaneous model, we find that exchange rate distortion, as measured by the black market premium, has a deleterious effect on economic growth rate. The negative effect is imparted through reduced investment and a constriction of international trade. The results imply that liberalized exchange rate policies will enhance the growth prospects of LDCs. especially those in Sub-Saharan Africa. [F 31, O 55]
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Volume (Year): 7 (1993) Issue (Month): 4 (December) Pages: 59-74 Download reference. The following formats are available: HTML
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