This study estimates the impact of public financial management on economic growth of an African developing country Ghana. In financial management particularly government expenditures, government revenue and exchange rate are under investigation to link with DGP growth. For this purpose, time series data of given variables is taken from the period of 2000 to 2019. OLS technique is applied to estimate and check the impact of independent variables government expenditures, government revenues and exchange rate on dependent GDP growth. Furthermore, in regression analysis the results from the ADF unit root test provide evidence to show that both the public financial management and the economic development proxies are integrated of order one and require first differencing to achieve stationarity. The estimation shows that there is a significant positive relation of government expenditures, government revenues and exchange rate on GDP growth in Ghana. The study recommends role of government and its institutes should play their role because it will be affecting the economy of Ghana positively.
Keywords: OLS: Ordinary Least Square, ADF: Augmented Dicky Fuller; GDP; Financial Management.
Related Post