Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245152 
Year of Publication: 
2018
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 6 [Issue:] 1 [Publisher:] Taylor & Francis [Place:] Abingdon [Year:] 2018 [Pages:] 1-23
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
The contentious effect of foreign aid on real exchange rate in developing countries leading to Dutch disease necessitates further research since its impact can only be determined empirically. Using annual data gathered from the World Bank Development Index database with reference period of 1980 to 2016, we test the Dutch disease hypothesis by empirically examining the effect of foreign aid on real exchange rate in Ghana. Contrary to the findings of studies which establish non-existence of Dutch disease in Ghana, the empirical results of this study reveal otherwise, both in the short-run and long-run. To mitigate Dutch disease menace in Ghana, it is important that the country utilize its ideal productive capacity to cushion its aid-induced increased demand.
Subjects: 
Dutch disease
foreign aid
Ghana
real exchange rate
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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