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Accelerated growth and structural transformation: Assessing Ghana’s options to reach middle-income status

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  • Breisinger, Clemens
  • Diao, Xinshen
  • Thurlow, James
  • Yu, Bingxin
  • Kolavalli, Shashi L.

Abstract

Ghana has made considerable progress over the last 20 years in sustaining economic growth and reducing poverty. The Government of Ghana has declared its new development goal of reaching middle-income status by 2015. Achieving this goal will require Ghana to double its per capita income over the next decade. In this paper we explore the growth experiences of other developing countries that have successfully transformed their economies from situations similar to Ghana’s today. Based on the past experiences of these fast growing countries, and using a dynamic general equilibrium model developed for Ghana, we evaluate sources of accelerated growth and their contributions to overall growth and transformation... The authors conclude that, for Ghana to reach middle-income status it will require careful coordination between increasingly complex macroeconomic, industrial and financial market policies, which also require the improvement of institutional capacity of the government to implement such complex policies.

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series GSSP working papers with number 7.

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Date of creation: 2007
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Handle: RePEc:fpr:gsspwp:7

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Related research

Keywords: Growth; income growth; Manufacturing industries; Service industries; agricultural sector; Public investment; Policy reforms; exports; structural change; Developing countries; General equilibrium model;

References

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  1. Diao, Xinshen & Rattso, Jorn & Stokke, Hildegunn E., 2006. "Learning by exporting and structural change: A Ramsey growth model of Thailand," Journal of Policy Modeling, Elsevier, vol. 28(3), pages 293-306, April.
  2. Thomas Hertel & David Hummels & Maros Ivanic & Roman Keeney, 2004. "How Confident Can We Be in CGE-Based Assessments of Free Trade Agreements?," NBER Working Papers 10477, National Bureau of Economic Research, Inc.
  3. Shoven, John B & Whalley, John, 1984. "Applied General-Equilibrium Models of Taxation and International Trade: An Introduction and Survey," Journal of Economic Literature, American Economic Association, vol. 22(3), pages 1007-51, September.
  4. Xavier Irz & Terry Roe, 2005. "Seeds of growth? Agricultural productivity and the transitional dynamics of the Ramsey model," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(2), pages 143-165, June.
  5. Echevarria, Cristina, 1997. "Changes in Sectoral Composition Associated with Economic Growth," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(2), pages 431-52, May.
  6. Ute Pieper, 2003. "Sectoral regularities of productivity growth in developing countries--a Kaldorian interpretation," Cambridge Journal of Economics, Oxford University Press, vol. 27(6), pages 831-850, November.
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