The influence of government expenditure on economic growth in Ghana: An Ardl approach

Figures & data

Table 1. Descriptive statistics

Variable	Mean	Std. Dev	Minimum	Maximum
GDPG	3.036	4.570	−12.432	9.723
FDI	0.962	1.186	−0.660	4.280
GFCF	14.913	7.579	3.378	29.002
POP	2.617	0.413	1.603	3.482
GEXP	12.004	3.569	5.561	20.888

Notes: GDPG = Annual GDP growth rate, FDI = Foreign Direct Investment, GFCF = Gross Fixed Capital Formation, POP = Population, GEXP = Government Expenditure.

Source: Author’s compilation (2022)

Table 2. Stationarity results

Variable		ADF Test			Philips–Perron Test		Order of Integration
Constant			Constant and Trend		Constant	Constant and Trend
PANEL A: LEVELS
GDPG		−4.488***	−5.496***		−4.483***	−5.728***	-
FDI		−0.740	−2.288		−0.597	−2.303	-
GFCF		−1.375	−3.085		−1.143	−3.085	-
POP		−1.525	−0.898		−2.533	−2.573	-
GEXP		0.554	−0.756		−1.410	−3.018	-
PANEL B: FIRST DIFFERENCE
∆FDI		−7.024***	−7.051***		−7.234***	−7.910***	I(1)
∆GFCF		−6.813***	−6.676***		−7.974***	−7.895***	I(1)
∆POP		−13.131***	−13.258***		−3.114***	−3.065***	I(1)
∆GEXP		−5.037***	−5208***		−6.538***	−6.457***	I(1)

Note: ***, **, * indicates significance at 1%, 5%, and 10%, respectively

Source: Author’s Construct (2022)

Table 3. Results of bounds test cointegration

	Critical Values
F-Statistics	Significance	Lower Bound	Upper Bound
	10%	2.45	3.52
6.035***	5%	2.86	4.01
	1%	3.74	5.06

Note: ***, **, * indicates significance at 1%, 5%, and 10%, respectively

Source: Author’s Construct (2022)

Table 4. Estimated long-run results

Variable	Coefficient	Std. Error	t-Statistic
FDI	1.204**	0.554	2.171
GFCF	0.443***	0.102	4.347
POP	−5.561***	1.861	2.988
GEXP	0.145	0.172	0.845

Note: ***, **, * indicates significance at 1%, 5%, and 10%, respectively

Source: Author’s Construct (2022)

Table 5. Estimated short-run results

Variable	Coefficient	Std. Error	t-Statistic
D(FDI)	0.387**	0.177	2.183
D(GFCF)	0.379*	0.194	1.950
D(POP)	27.545**	12.475	2.208
D(GEXP)	0.764**	0.368	2.076

Note: ***, **, * indicates significance at 1%, 5%, and 10%, respectively

Source: Author’s Construct (2022)

Table 6. Diagnostic and stability test results

Test	F-Statistic	Prob. Value
Autocorrelation	0.984	0.390
Heteroscedasticity	0.471	0.846
Normality	0.303	0.860
CUSUMQ	Stable	-

Source: Author’s Construct (2022)