The Role of Fiscal Policy on Economic Growth A Study of Ghana: An Empirical Literature

Author(s)

Benjamin Blandful Cobbinah , Francis Atta Sarpong , Larsey Naphtali Akwetteh , Chidiebube Emmanuel Obodo ,

Download Full PDF Pages: 01-14 | Views: 496 | Downloads: 143 | DOI: 10.5281/zenodo.5588222

Volume 10 - September 2021 (09)

Abstract

The effectiveness of fiscal policy on emerging country economic growth is a hot topic of discussion. While adjusting the levels of public spending and determining tax rates, policymakers in developing countries strive to address socioeconomic concerns such as poverty, unemployment, hunger, bad investment, and illiteracy. The impact of fiscal policy on Ghana's economic growth is examined in this study. The study looked into and reviewed a variety of journals in order to provide this report on the roles, effects, and impacts of fiscal policy on Ghana's economic growth. The discrepancies in conclusions of the effect of fiscal policy measures on economic growth can be seen in the research mentioned above. Some studies have found that it has a favorable effect, while others have found that it has a detrimental effect. A few researchers have found that it has no effect. They also illustrate that there are disparities in public spending and tax revenues between countries, with one having a good influence and the other having a negative impact, and one or both having an impact and being effective. In terms of monetary and fiscal policies, fiscal policy boosted economic growth in certain countries while having the reverse effect in others. When government expenditure was channeled to productive and investment sectors with sustainable productivity, fiscal policy achieved its targeted economic growth objectives. According to the findings, despite its important role in welfare advancements, government consumption spending has been detrimental to economic growth; policymakers must analyze its composition in order for it to improve growth. Government consumption expenditures should be reduced through targeted measures. Expenditures that are likely to stifle private investment should be scrutinized as well.

Keywords

Fiscal Policy, Tax, Government Spending, Economic Growth, World Bank

References

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Benjamin Blandful Cobbinah, The Role of Fiscal Policy on Economic Growth A Study of Ghana: An Empirical Literature, International Journal of Management Sciences and Business Research 09(2021):01-14 DOI: 10.5281/zenodo.5588222