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Does Informality and Trade Openness Impact Long Run Growth? Empirical Evidence from Ghana

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  • Charles K. Mawusi

    (University of Bordeaux)

Abstract

Using an Autoregressive Distributed Lag (ARDL) technique, and the Granger causality test, this paper examines the dynamic relationship between economic growth, the size of the informal economy, and trade openness in Ghana. Our results provide evidence of a positive and bidirectional causality between the size of the informal economy and economic growth. Moreover, we find that openness to trade has a significant causal effect on the prevalence of informal activities and economic growth.

Suggested Citation

  • Charles K. Mawusi, 2021. "Does Informality and Trade Openness Impact Long Run Growth? Empirical Evidence from Ghana," Economics Bulletin, AccessEcon, vol. 41(1), pages 28-40.
    • Handle: RePEc:ebl:ecbull:eb-20-00025
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Informality; Economic growth; Trade; Autoregressive Distributed Lag (ARDL); Cointegration;
    All these keywords.

    JEL classification:

    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • A1 - General Economics and Teaching - - General Economics

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