IDEAS home Printed from https://ideas.repec.org/a/ids/ijsuse/v7y2015i2p100-117.html
   My bibliography  Save this article

The nexus between output fluctuations and fiscal deficits: empirical evidence on Ghana

Author

Listed:
  • Rosemond Mahu Augustt
  • George Adu
  • Prince Boakye Frimpong

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.

Suggested Citation

  • Rosemond Mahu Augustt & George Adu & Prince Boakye Frimpong, 2015. "The nexus between output fluctuations and fiscal deficits: empirical evidence on Ghana," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 7(2), pages 100-117.
    • Handle: RePEc:ids:ijsuse:v:7:y:2015:i:2:p:100-117
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=68676
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijsuse:v:7:y:2015:i:2:p:100-117. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=301 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.