The nexus between output fluctuations and fiscal deficits: empirical evidence on Ghana
by Rosemond Mahu Augustt; George Adu; Prince Boakye Frimpong
International Journal of Sustainable Economy (IJSE), Vol. 7, No. 2, 2015

Abstract: Ghana is presently confronted with persistent budget deficits and burgeoning public debt in excess of 52% of GDP and frequent fluctuations in total output below its long-run trend. This is of great concern which has issues for the country's long term growth and debt sustainability. Though the persistent deficit is a common knowledge, the driving force behind the deficit has remained quite elusive. The paper sets out to find the causal relationship between the recurrent budget deficit and output fluctuations in Ghana. With cyclical component of annual real GDP and fiscal deficit to GDP ratio time series data from 1960-2012, and subject to various econometric techniques and three estimation methods (OLS, SUR and VAR), the paper finds a bi-directional causal relationship between fluctuations in output and fiscal deficits to GDP ratio.

Online publication date: Wed, 08-Apr-2015

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Sustainable Economy (IJSE):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com