Exportation of Made in Ghana Goods as a Tool for Development and Development of the Economy

Date
2022-05
Authors
Owusu-Asare, Reginald
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Abstract
Using yearly data from 1987 to 2021, the research looked at the influence of exporting Made in Ghana goods, thus the finished goods, on Ghana's economic development. The research investigates long-run and short-run correlations between exportation of domestically produced goods and gross domestic product using prominent time series econometric approaches such as cointegration and vector error correction approximations (GDP). In Ghana, the Johansen’s cointegration test indicated that real GDP, exported goods and domestically produced goods had long-run correlations. Using the regression method, there was also an indication of bi-directional causation linking exported goods and GDP development. According to the research, substantial gross capital creation has favorable effects on real GDP in both the short and long run. In the long run, domestically produced goods had an optimistic impact on GDP, but it had a favorable impact on real GDP development in the previous year in the short run. All factors were statistically significant at the 7% significance level in the long run. The alteration rate to the long-run equilibrium implied that the correction is relatively quick. The research concludes that policymakers should focus on maintaining an open that focuses more on the finished goods and export-oriented policy to secure economic development and effectively stimulate economic development for export expansion.
Description
Undergraduate thesis submitted to the Department of Business Administration, Ashesi University, in partial fulfillment of Bachelor of Science degree in Business Administration / Computer Science / Management Information Systems, May 2022.
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Citation
Owusu-Asare, R. (2022). Exportation of Made in Ghana Goods as a Tool for Development and Development of the Economy. Ashesi University, Berekuso.52pgs.