Can oil-led growth and structural change go hand in hand in Ghana?

Clemens Breisinger (), Xinshen Diao () and Manfred Wiebelt ()

Journal of Policy Modeling, 2014, vol. 36, issue 3, 507-523

Abstract: Unlike in Asia, the manufacturing sector has not (yet) become a driver of structural change in Africa. One common explanation is that the natural resource-focus of many African economies leads to Dutch disease effects. To test this argument for the case of newly found oil in Ghana we develop a multi-sector intertemporal general equilibrium model with endogenous savings and investment behavior. Results show that in addition to the well-known short-term Dutch disease effects, long-term structural effects can indeed impede Asian-style economic transformation in Ghana (and other resource rich countries). We also demonstrate how oil wealth may go hand in hand with structural change in the future.

Keywords: Transformation; Growth; Structural change; Dutch disease; Ghana; Intertemporal general equilibrium (search for similar items in EconPapers)
JEL-codes: C68 D58 D90 F43 O11 O41 O55 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:36:y:2014:i:3:p:507-523

DOI: 10.1016/j.jpolmod.2014.03.002

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