Sources of International Economic Spillovers to Ghana's Economic Growth
AbstractIn a world where policy co-ordination among countries is paramount, the growth of one depends on the behaviour of another in terms of policy instruments being pursued. One important question this study sought to answer was whether international economic spillovers emanating from all trading partners mattered for Ghana’s growth. The study therefore investigated the spillover effects emanating from three of the eight key trading partners of Ghana, namely, U.S.A., China and Nigeria. The study was conducted over the variables; technology diffusion; inflation rates and GDP growth of trading partners; labour; and capital, using annual data from 1980 to 2009. The methodology used involved estimating a growth equation for Ghana, capturing the effects and specific sources of spillovers from trading partners. An autoregressive distributed lag (ARDL) model and a vector autoregressive (VAR) model were used in arriving at various spillover effects from trading partners. The results showed that capital, inflation rates of U.S.A, and China’s GDP contributed significantly to Ghana’s GDP growth both in the long-run and the short-run. High spillover effects were observed to emanate from countries with high GDP growth. Another interesting result emphasized the fact that annual GDP growths are independent of each other. Finally, it was observed that spillover effects generally subsided after about fifteen years of persistent shocks.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 30455.
Date of creation: 01 Mar 2011
Date of revision:
ARDL; Economic Growth; Ghana; International Economic Spillovers; VAR;
Find related papers by JEL classification:
- F15 - International Economics - - Trade - - - Economic Integration
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bullard, James & Keating, John W., 1995. "The long-run relationship between inflation and output in postwar economies," Journal of Monetary Economics, Elsevier, vol. 36(3), pages 477-496, December.
- J. Bradford De Long & Lawrence H. Summers, 1990.
"Equipment Investment and Economic Growth,"
NBER Working Papers
3515, National Bureau of Economic Research, Inc.
- Clarida, Richard & Gali, Jordi, 1994.
"Sources of real exchange-rate fluctuations: How important are nominal shocks?,"
Carnegie-Rochester Conference Series on Public Policy,
Elsevier, vol. 41(1), pages 1-56, December.
- Richard Clarida & Jordi Gali, 1994. "Sources of real exchange rate fluctuations: how important are nominal shocks?," Proceedings, Federal Reserve Bank of Dallas, issue Apr.
- Clarida, Richard & Galí, Jordi, 1994. "Sources of Real Exchange Rate Fluctuations: How Important are Nominal Shocks?," CEPR Discussion Papers 951, C.E.P.R. Discussion Papers.
- Jordi Galí & Richard Clarida, 1993. "Sources of real exchage rate fluctuations: How important are nominal shocks?," Economics Working Papers 66, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 1994.
- Richard Clarida & Jordi Gali, 1994. "Sources of Real Exchange Rate Fluctuations: How Important are Nominal Shocks?," NBER Working Papers 4658, National Bureau of Economic Research, Inc.
- Clarida, R. & Gali, J., 1993. "Sources of Real Exchange Rate Fluctuations: How Important are Nominal Shocks?," Discussion Papers 1993_25, Columbia University, Department of Economics.
- Kwiatkowski, Denis & Phillips, Peter C. B. & Schmidt, Peter & Shin, Yongcheol, 1992.
"Testing the null hypothesis of stationarity against the alternative of a unit root : How sure are we that economic time series have a unit root?,"
Journal of Econometrics,
Elsevier, vol. 54(1-3), pages 159-178.
- Kwiatkowski, D. & Phillips, P.C.B. & Schmidt, P., 1990. "Testing the Null Hypothesis of Stationarity Against the Alternative of Unit Root : How Sure are we that Economic Time Series have a Unit Root?," Papers 8905, Michigan State - Econometrics and Economic Theory.
- Denis Kwiatkowski & Peter C.B. Phillips & Peter Schmidt, 1991. "Testing the Null Hypothesis of Stationarity Against the Alternative of a Unit Root: How Sure Are We That Economic Time Series Have a Unit Root?," Cowles Foundation Discussion Papers 979, Cowles Foundation for Research in Economics, Yale University.
- Raymond De Bondt & Irene Henriques, 1995. "Strategic Investment with Asymmetric Spillovers," Canadian Journal of Economics, Canadian Economics Association, vol. 28(3), pages 656-74, August.
- Rahman, Sajjadur & Serletis, Apostolos, 2011. "The Asymmetric Effects Of Oil Price Shocks," Macroeconomic Dynamics, Cambridge University Press, vol. 15(S3), pages 437-471, November.
- Fagerberg, Jan, 1994. "Technology and International Differences in Growth Rates," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1147-75, September.
- Beck, Thorsten & Levine, Ross & Loayza, Norman, 1999.
"Finance and the sources of growth,"
Policy Research Working Paper Series
2057, The World Bank.
- Vivek Arora & Athanasios Vamvakidis, 2005. "How Much Do Trading Partners Matter for Economic Growth?," IMF Staff Papers, Palgrave Macmillan, vol. 52(1), pages 24-40, April.
- Mark Funk, 2001. "Trade and International R&D Spillovers among OECD Countries," Southern Economic Journal, Southern Economic Association, vol. 67(3), pages 725-736, January.
- Jarita Duasa, 2007. "Determinants of Malaysian Trade Balance: An ARDL Bound Testing Approach," Global Economic Review, Taylor and Francis Journals, vol. 36(1), pages 89-102.
- De Bondt, Raymond & Henriques, I, 1995. "Strategic investment with asymmetric spillovers," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/101066, Katholieke Universiteit Leuven.
- Aten, Bettina, 1996. "Evidence of Spatial Autocorrelation in International Prices," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(2), pages 149-63, June.
- Kuznets, Simon, 1971.
"Modern Economic Growth: Findings and Reflections,"
Nobel Prize in Economics documents
1971-2, Nobel Prize Committee.
- Michael Bleaney & Liliana Castilleja-Vargas, 2007. "Regional growth patterns and growth contagion," Journal of Economic Studies, Emerald Group Publishing, vol. 34(1), pages 4-12, January.
- Ono, Y., 2001. "International Spillover of Economic Fluctuations:A Dynamic Optimization Approach," ISER Discussion Paper 0527, Institute of Social and Economic Research, Osaka University.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.