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Fiscal Policy in the Rising Oil Economy of Ghana

 

Research Institutions:

International Food Policy Research Institute (IFPRI), Washington DC, USA, University of Accra, Accra, Ghana, Institute of Development Studies (IDS), University of Sussex, Brighton, UK and Kiel Institute, Kiel,  Germany


Summary:

Ghana will soon enter a new era of macroeconomic management and growth, driven by oil revenues that begin to come on stream in 2010. This new environment will have several implications at the macroeconomic, sectoral and household level.

This project investigates the risks of a 'resource curse', and provides policy options for making oil resources an opportunity to spur pro-poor growth and competitiveness. More specifically, it analyzes in a computable general equlibrium setting:

  • The potential impact of oil exports in a business as usual scenario as well as the potential investments necessary to maintain and improve competitiveness in the tradable sectors
  • The transfers necessary to reduce poverty and rual-urban inequality
  • The instruments necessary to avoid or minimize Dutch-dissease effects and to enhance the effectiveness and efficiency of increased public expenditures

 

Download research results:

IFPRI Discussion Paper 00893 (08/2009)

Kiel Working Paper 1518 (05/2009)

 

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