Acta Univ. Agric. Silvic. Mendelianae Brun. 2015, 63(6), 2035-2041 | DOI: 10.11118/actaun201563062035

The New Oil Sector and the Dutch Disease: the Case of Ghana

Dennis Nchor1, Pavel Kolman1, Lubo¹ Støelec1, Samuel Antwi Darkwah2
1 Department of Economics, Faculty of Business and Economics, Mendel University in Brno, Zemìdìlská 1, 613 00 Brno, Czech Republic
2 Department of Territorial Studies, Faculty of Regional Development, Mendel University in Brno, Zemìdìlská 1, 613 00 Brno, Czech Republic

This paper investigates the impact of the new oil sector on the economic performance of major traditional sectors of the Ghanaian economy. The discovery of resource booming sectors in most countries often comes with several opportunities as well as challenges. Ghana discovered oil in 2007 and started subsequent commercial production and export in 2010. The results from the study show that, there is no clear case of declining performance of sectors in terms of output, growth and export earnings as a result of the oil production. The study could also not establish a sustained appreciation in the real effective exchange rate since commercial oil production commenced which is an indicator of the presence of the Dutch Disease phenomenon. The real effective exchange rate was also found to be highly influenced by oil production, oil prices, total exports and remittances. The study applied an autoregressive distributed lag model due to differences in the level of integration of variables. The data was obtained from the Bank of Ghana, the Ministry of Finance in Ghana and the Energy Information Administration.

Keywords: oil sector, dutch disease, real effective exchange rate, resource curse, agriculture, manufacturing, spending effect

Prepublished online: December 26, 2015; Published: January 1, 2016  Show citation

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Nchor, D., Kolman, P., Støelec, L., & Darkwah, S.A. (2015). The New Oil Sector and the Dutch Disease: the Case of Ghana. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 63(6), 2035-2041. doi: 10.11118/actaun201563062035
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