Revisiting the Government Spending and Growth analysis in Ghana: A disaggregated Analysis
Frank Adu and
MPRA Paper from University Library of Munich, Germany
Government’s desire to raise economic growth in Ghana has led to a sharp rise in government spending in Ghana without any significant impact on economic growth. This study set out to investigate the relationship between economic growth and government spending at the disaggregated level with the ARDL model with annual data spanning from 1970 to 2010 to advice policy makers on the dynamics of growth. The study found out that, in both the long run and short run, government capital expenditure has a significant negative impact on economic growth but recurrent expenditure has a positive effect on economic growth in both the long run and the short run though it was not significant in the short run. The study therefore advocates for fiscal discipline and efficiency in the disbursement of capital expenditure to trigger positive benefits in the future
Keywords: economic growth; government expenditure; Capital expenditure; recurrent expenditure (search for similar items in EconPapers)
JEL-codes: B22 B26 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:65043
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