CHINA’S PARTNERSHIP WITH GHANA IN MEASURING AID FOR TRADE AND ITS SOCIO-ECONOMIC IMPACTS: GHANA BEYOND AID

Year 2020, Volume: 2 Issue: 2, 42 - 71, 28.12.2020

Frank Okai Larbı Eric Osei Addo Ma Zaomıng

Abstract

The role of Aid remains a relevant concept in deciding the direction and content of development assistance. This paper argues that while there is a continuing strategic interest in aid, there has been growing anxiety with the performance of aid for trade as a development resource. The study employs ARDL cointegration technique to examine the extent to which China’s Aid-for Trade impact on Ghana’s Per Capita growth during the transition period “Ghana beyond Aid” using data ranging from 1961 to 2019. Based on the data, it is found that China’s Aid-for-Trade in Ghana has a positive and statistically significant impact on its Per Capita Growth as well as other controlling variables such as trade openness and business regulatory policy in both the short-run and the long-run. Furthermore, the Granger Causality test showed a unidirectional causal relationship that goes from Aid-for-Trade to Per Capita growth and also, a positive significant causal relationship between Per Capita Growth and other controlling variables. From a policy-oriented point of view, the study concludes by citing appropriate measures to help streamline the roadmap towards a Ghana beyond Aid policy in sustaining a stronger national development towards a workforce of industrial expansion.

Keywords

Çin, Gana, Ticaret Yardımı, Kişi Başına Büyüme, Bağımlılık Teorisi, Sosyo-Ekonomik., Sino, Ghana, Aid for Trade, Per Capita Growth, Dependency Theory, Socio-Economic.