Economic Growth in Ghana : Determinants and Prospect
This paper employs a simple cross-country panel framework to assess the determinants of growth in Ghana's gross domestic product over the past four decades. A set of standard covariates is used to explain growth rates. Natural resource variabl...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/01/18832579/economic-growth-ghana-determinants-prospect http://hdl.handle.net/10986/16828 |
| Summary: | This paper employs a simple
cross-country panel framework to assess the determinants of
growth in Ghana's gross domestic product over the past
four decades. A set of standard covariates is used to
explain growth rates. Natural resource variables are
included because the effects of natural resource rents in
gross domestic products are of particular interest for
Ghana. Using the preferred specification, Ghana's
growth potential is predicted for the upcoming decades under
different scenarios. The results indicate that under the
most pessimistic scenario of no improvements in the
determinants of growth compared with the period 2005-09,
Ghana's gross domestic product per capita growth rates
will stagnate at approximately 4.5 percent during the next
decade and decrease thereafter. If the policy measures and
country characteristics improve in the way they did in the
past three decades, average per capita growth rates of
roughly 5.5 percent could be reached during 2015-34. Taking
into account the expected oil production until 2034 adds 0.6
percentage points to projected gross domestic product growth
rates on average. |
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