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 Monetary Policy and Financial Sector Reform for Employment Creation and Poverty Reduction ...
48 Country Study nº 2 A negative coefficient on the public sector credit variable does make sense in the G hanaian context. During the period examined here, the majority of domestic credit financed public expenditures, not private investment. Banks held, and continue to hold, ex...
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48 Country Study nº 2 A negative coefficient on the public sector credit variable does make sense in the G hanaian context. During the period examined here, the majority of domestic credit financed public expenditures, not private investment. Banks held, and continue to hold, excess reserves of short-term government securities. This limits the role that the banking sector has played in financing real fixed investment. More credit to the public sector at a given level of government spending w ill
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http://www.undp-povertycentre.org/pub/IPCCountryStudy2.pdf#page=47
www.undp-povertycentre.org/pub/IPCCountryStudy2.pdf#page=47
(see Chirinko, 1993, for an overview ). W e used this kind of generic investment function as a starting place to investigate the determinants of investment <span class="highlight">in</span> the G hanaian economy: ),,,( XgarfI = <span class="highlight">in</span> w hich I represents gross investment, r represents the cost of capital, a the accelerator effect, g government spending, and X a matrix of other exogenous variables. Studies of investment <span class="highlight">in</span> G hana and sub-Saharan Africa suggest a number of additional explanatory variables: for example, the <span class="highlight">real</span> exchange
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http://www.undp-povertycentre.org/pub/IPCCountryStudy2.pdf#page=50
www.undp-povertycentre.org/pub/IPCCountryStudy2.pdf#page=50
48 Country Study nº 2 A negative coefficient <span class="highlight">on</span> the public sector credit variable does make sense <span class="highlight">in</span> the G hanaian context. During the period examined here, the majority of domestic credit financed public expenditures, not private investment. Banks held, and continue to hold, excess reserves of short-term government securities. This limits the role that the banking sector has played <span class="highlight">in</span> financing <span class="highlight">real</span> fixed investment. More credit to the public sector at a given level of government spending w ill
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