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Inflation, public debt and unemployment nexus in Ghana. An ARDL analysis

Authors :
Mohammed Ridwan Saani
Abdul-Malik Abdulai
Mubarik Salifu
Source :
Cogent Economics & Finance, Vol 12, Iss 1 (2024)
Publication Year :
2024
Publisher :
Taylor & Francis Group, 2024.

Abstract

AbstractIn recent years Ghana is challenged with rising debt, surging inflation, and unfavorable unemployment rates. To mitigate their impact on economic prosperity the country requires strategic policy interventions. Using data from 1990 to 2022, this study attempts to analyze the relationship between inflation, public debt, and unemployment in Ghana. The ARDL framework was used to estimate the variables. A long-run relationship between public debt and inflation was established. Notably, inflation correlates negatively with public debt in both short and long -run. Whiles public debt demonstrated a positive correlation with unemployment in both short and long-run, remittances displayed a negative long-run correlation with unemployment. The study suggests that prioritizing domestic debts over foreign debts could be strategic to hedge against inflationary risk. Moreover, we recommend a targeted investment in infrastructure projects and the promotion of agriculture. These initiatives will spur economic growth, engender sustainable development and ultimately create more job opportunities.

Details

Language :
English
ISSN :
23322039
Volume :
12
Issue :
1
Database :
Directory of Open Access Journals
Journal :
Cogent Economics & Finance
Publication Type :
Academic Journal
Accession number :
edsdoj.439bc6d65a964781ad63cd7aeb6ed51c
Document Type :
article
Full Text :
https://doi.org/10.1080/23322039.2024.2345296