A Co-Integration Analysis of Growth in Government Consumption Expenditure in Ghana
Date
2012-01
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Publisher
Journal of African Development
Abstract
Growth in government consumption expend iture in Ghana has been a concern to policy makers since independence. This pa per uses the co-integration technique to determine how inflation, real GDP, trade openness, population growth and relative price influence government consumption expenditure. The study revealed that increases in real GDP, tr ade openness and inflation cause a fall in government consumption expenditure as a share of GDP. Higher relative price levels and larger population size incr ease government consumption expenditure for the period 1977-2007. The study recommend measures to curb population growth, reduce the price of public goods, manage the ov er liberalization of the economy, among others.
Description
Article published in Journal of African Development, 2012
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Citation
Journal of African Development | Volume 14 # 1