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Title: |
Exchange Rate Distortion and Economic Growth in Ghana |
| Author: |
Gyimah-Brempong,
Kwabena; Gyapong, Anthony O. |
| Author
Affiliation: |
Wright State U;
PA State U, Ogontz |
| Source: |
International Economic Journal, Winter 1993, v. 7, no. 4, pp. 59-74 |
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Publication Date: |
Winter 1993 |
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Abstract: |
This paper investigates the effects of
exchange rate distortion on economic growth in a Less Developed Country
(LDC)--Ghana. Using time series data from Ghana and a five equation
simultaneous model, we find that exchange rate distortion, as measured
by the black market premium, has a deleterious effect on economic growth
rate. The negative effect is imparted through reduced investment and a
construction of international trade. The results imply that liberalized
exchange rate policies will enhance the growth prospects of LDCs,
especially those in Sub-Saharan Africa. |
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