A Quantitative and Theoretical Analysis of Ghana’s Internal Migration, Economic Growth and poverty Reduction: A Disaggregated Approach, from 1980 to 2012*

Abstract

The study here was meant to examine the consequence of Ghana’s government spending on economic growth, internal migration and poverty reduction in Ghana using a disaggregated approach. It reveals that intensifying government outflow has not yielded any meaningful development in Ghana. Many researches had been conducted on the actual link connecting government expenditure, internal migration, economic growth and poverty reduction. Many of the studies until today have used the aggregate approach which has not yielded the desired results hence there is the need to vary the methodology.

This study made use of the data for the period (1980 - 2012). The findings from the study shows that Government total capital expenses (GTE), total recurrent outflows (GOF), Government cost on education (GCE) and power (POW) on the contrary, impacts negatively on economic growth and was significant. On the other hand, increasing Government spending on transport and communication (GCTC), and health (GDH) leads to an increase in economic growth. From the results above, the authors advised that there should be public private participation in critical sectors of the Ghanaian economy in the areas of power and transport in order to accelerate the rate of development in Ghana. In addition to this recommendation, government should be more transparent and accountable in her spending.