An Empirical Examination of The Determinants of Economic Growth in Ghana

The study investigate the long run and the short run determinants of economic growth in Ghana for the period 1970–2011 using autoregressive distributed lag model to contribute to the body of knowledge in the area of macroeconomic determinants of economic growth. The variables are unit root in levels but attained stationarity in first differencing. The results produce evidence of statistically stable long run relationship and short run adjustment among the variables in the estimated model. More importantly, the results suggest that Ghanaian economy has benefited from trade liberalisation policy, expansionary fiscal policy, increases in prices of goods and services but not from investment and financial development, proxied by gross capital formation and money supply respectively.