Ghana : Will it Be Gifted or Will it Be Cursed?

Author/Editor: Burcu Aydin
Publication Date: May 01, 2011
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: Will Ghana’s oil production from 2011 accelerate progress toward middle-income status, or will it retard gains in living standards through a possible "resource curse"? This paper examines the likelihood of "resource curse" effects, drawing on a dataset of 150 low and middle income countries from 1973 to 2008 using static and dynamic panel estimation techniques. Results confirm that resource rich countries in Ghana’s income range do experience slower growth than their more diversified peers, an effect that appears to be related to weaker governance. Provided that Ghana can preserve and improve its economic governance and also strengthen fiscal management, prospects look good for converting its oil wealth into sustained strong economic growth.
Series: Working Paper No. 11/104
Subject(s): Economic growth | Economic models | Natural resources | Oil exporting countries | Oil production

Author's Keyword(s): Ghana | growth | resource-rich | panel data
Publication Date: May 01, 2011
ISBN/ISSN: 9781455260393/1018-5941 Format: Paper
Stock No: WPIEA2011104 Pages: 41
US$18.00 (Academic Rate:
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