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Title GOVERNMENT EXPENDITURE AND DEFICIT FINANCING: THE GHANAIAN POST-WAR EXPERIENCE
Full text http://dspace.knust.edu.gh/dspace/handle/123456789/733
Date 2000
Author(s) OHENE-MANU, J.
Abstract In this paper, the author has tested the Buchanan-Wegner hypothesis for Ghana rising post-war annual data, based on the traditional formulation by Niskanen (1978) as well as the Error-Correction model as used by Craigwell (1999) for Bardados. The results for Ghana rejected the hypothesis. In other words, the Ghanaian experience indicated that high deficits do not necessarily encourage increased government spending: so that the population tended to take full cognizance of its tax liabilities as entailed in debt servicing. This conclusion contrasted variously with the results in similar studies for Barbados, Pakistan and Greece; and therefore suggests that the applicability or otherwise of the Buchanan-Wagner hypothesis for developing economies may be mixed and country-specific. The result have also shown that productivity growth in the public sector in Ghana during the survey period exceeded that of the private sector but more important, there was the tendency for the high growth in the former to spill-over to the latter; but first, public to the sector activity, had to "crowd in" or complement activities in the private sector.
Publisher KNUST
Identifier 0855-0395
Repository Kumasi - Kwame Nkrumah University
Added to C-A: 2010-02-23;08:57:21