Browsing by Author "Ansah-Offei, Mickmas"

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    The effects of short- term foreign debt flows and debt servicing on economic growth in Ghana
    (MAY, 2016) Ansah-Offei, Mickmas
    The impact of external debt on economic growth is a contentious issue between economists and academicians- alike since the onset of the debt crisis in the 1980’s. This thesis examineswhethershort- term debt flows and debt servicing affects the economic growth of Ghana. This is carried out by using annual time series data from the period 1990 – 2012. Gross domestic product (GDP) was used as the dependent variable, while the independent variables used in the study were; Short Term External Debt Flow; Gross Fixed Capital Formation; and Labour Force Participation Rate. Two models were stated to examine the two objectives; Model 1 investigated the debt-flows-economic-growth relationship while Model 2 investigated the debt-servicing-economic-growth relationship. The ARDL bounds test technique was adopted to investigate cointegration in both models. The ARDL results showed cointegration among variables in Model 1 but no such evidence was obtained for variables in Model 2.The results indicate that GDP growth is influenced positively by short term flows and negatively by debt servicing.