Ghana: Will it Be Gifted or Will it Be Cursed?
May 1, 2011
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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.
Subject: Environment, Fiscal policy, Fiscal stance, International trade, National accounts, Natural resources, Personal income, Poverty, Terms of trade
Keywords: Africa, coefficient estimate, Fiscal stance, Ghana, Global, growth, Middle East, Natural resources, oil wealth, panel data, panel estimation method, per capita income, Personal income, poverty trap, resource curse, resource-rich, Terms of trade, WP
Pages:
41
Volume:
2011
DOI:
Issue:
104
Series:
Working Paper No. 2011/104
Stock No:
WPIEA2011104
ISBN:
9781455260393
ISSN:
1018-5941
