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Determinants of Economic Growth in Ghana

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  • Darko, Christian Kwasi

Abstract

Determinants of economic growth in Ghana are analysed using restricted vector autoregressive (VAR) model for the period 1975-2013. The empirical results reveal that GDP per capita in long-run is driven by export, oil and mineral rents while government consumption retard economic growth. Therefore the dynamic relationship between these variables on economic growth should not be underestimated by policymakers. However, Ghana’s economic growth is subject to uncertainty associated with expected risks of price volatility of primary commodities which make a great proportion of the export and the so-called Dutch disease which may hinder economic growth in the long-run.

Suggested Citation

  • Darko, Christian Kwasi, 2015. "Determinants of Economic Growth in Ghana," EconStor Preprints 123098, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:123098
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    References listed on IDEAS

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    Cited by:

    1. Alnaa, Samuel Erasmus & Matey, Juabin, 2022. "Macroeconomic Policy Formulation: The Driver of Economic Welfare in Ghana," MPRA Paper 113041, University Library of Munich, Germany, revised 11 Apr 2022.

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    More about this item

    Keywords

    economic growth; export; error correction model; weak exogeneity;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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