Exchange Rate Distortion And Economic Growth In Ghana

  • Kwabena Gyimah-Brempong
  • , Anthony O. Gyapong

Research output: Contribution to journalArticlepeer-review

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 constriction of international trade. The results imply that liberalized exchange rate policies will enhance the growth prospects of LDCs, especially those in Sub-Saharan Africa. [F 31, O 55].

Original languageEnglish (US)
Pages (from-to)59-74
Number of pages16
JournalInternational Economic Journal
Volume7
Issue number4
DOIs
StatePublished - Dec 1 1993

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 8 - Decent Work and Economic Growth
    SDG 8 Decent Work and Economic Growth

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

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