Determinants of economic growth in Ghana: parametric and nonparametric investigations

George Adu

Journal of Developing Areas, 2013, vol. 47, issue 2, 277-301

Abstract: This paper’s goal was to look for robust evidence on the determinants of economic growth by complementing the usual parametric time series analysis with nonparametric local linear kernel regression. The evidence from the two seemingly competing approaches (parametric versus nonparametric), complemented each other in this paper. However, the nonparametric model provided further evidence on the non-linearity of the relationship between real GDP on the one hand and labor force and terms of trade on the other. In sum we have robust evidence that the labor force, investment rate, financial development, terms of trade and trade openness are key drivers of growth in Ghana. Inflation has been found not to be a robust determinant of long run economic growth in Ghana. With the exception of inflation and trade openness, all the other regressors have positive impact on growth from both the parametric and nonparametric models.

Keywords: Bandwidth Economic Growth; Ghana; Local Linear Kernel Regression; Parametric; Nonparametric (search for similar items in EconPapers)
JEL-codes: C13 C14 C22 O40 O55 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://muse.jhu.edu/journals/journal_of_developing_areas/v047/47.2.adu.html

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jda:journl:vol.47:year:2013:issue2:pp:277-301

Access Statistics for this article

More articles in Journal of Developing Areas from Tennessee State University, College of Business Contact information at EDIRC.
Bibliographic data for series maintained by Abu N.M. Wahid ().