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The determinants of long-term economic growth in Ghana from 1960-2007| Abstract

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Journal of Research in Economics and International Finance

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The determinants of long-term economic growth in Ghana from 1960-2007

Abstract

Alhassan, H, Donkoh, SA and Asante, Y

The study sought to discover the determinants of long term economic growth in Ghana. Co integration and an Error-correction model were used to estimate the time series data from 1960 to 2007. The study found that, there was a long run relationship between growth and inflation, government consumption, export and human resource development. While, inflation and government consumption had negative effect on growth, export and human resource development influenced economic growth positively. Government must squarely address macroeconomic imbalances through cutting back on public spending and redefining spending priorities. In addition, inflation must be further reduced, monetary policies tightened and export diversification and value addition should been encouraged. Finally, there is the need to improve the human capital capacity through education and health.

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