“An econometric analysis of the factors influencing long-run economic growth in Ghana since independence was undertaken using a variant of neo-classical
growth model based on available data from 1966 to 2000. The dependent variable of this long-run growth model was the annual growth of real gross domestic product (GDP). Annual growth of total exports, annual growth of total labour, total investment-GDP ratio, government size, measured as the ratio of total government expenditures to GDP, and the square of government size, were the independent variables. The other independent variables were a dummy variable for world oil market price shock of the mid-1970s and early 1980s and a dummy variable for political instability, defined as years when there was a military coup or extreme political upheaval sometimes related to major
droughts. The short run error correction model, based on the long-run
cointegration function, was also estimated.”
