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Modelling Trade Liberalisation-Poverty Nexus for Ghana

Author

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  • James Nyarkoh, Bright

Abstract

The paper examines the effect of trade liberalisation on poverty incidence for Ghana for the period 1960-2013. The estimation methods are the Johansen test, Vector Error Correction (VECM) test, and the Ordinary Least Square (OLS). The findings of the study suggest that poverty incidence is negatively related to trade liberalisation in the long-run and short-run. The implication of the finding is that poverty incidence is reducing with trade liberalisation. Future studies should consider the current topic in a multivariate modelling.

Suggested Citation

  • James Nyarkoh, Bright, 2017. "Modelling Trade Liberalisation-Poverty Nexus for Ghana," MPRA Paper 76209, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:76209
    as

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    File URL: https://mpra.ub.uni-muenchen.de/76209/1/MPRA_paper_76209.pdf
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    References listed on IDEAS

    as
    1. A. P. Thirlwall & Penélope Pacheco-López, 2008. "Trade Liberalisation and The Poverty of Nations," Books, Edward Elgar Publishing, number 13089.
    2. Muhammad Shahbaz Akmal & Qazi Masood Ahmad & Mohsin Hussain Ahmad & Muhammad Sabihuddin Butt, 2007. "An Empirical Investigation of the Relationship between Trade Liberalization and Poverty Reduction: A Case for Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 12(1), pages 99-118, Jan-Jun.
    3. Paul Cashin & Catherine A Pattillo & Ratna Sahay & Paolo Mauro, 2001. "Macroeconomic Policies and Poverty Reduction; Stylized Facts and an Overview of Research," IMF Working Papers 01/135, International Monetary Fund.
    4. Calderon, Cesar & Chong, Alberto, 2001. "External sector and income inequality in interdependent economies using a dynamic panel data approach," Economics Letters, Elsevier, vol. 71(2), pages 225-231, May.
    5. repec:lje:journl:v:1:y:2007:i:1:p:99-118 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Poverty incidence; trade liberalisation; economic growth;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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