Title Page
ABSTRACT
Contents
CHAPTER ONE. INTRODUCTION 12
1.1. Background. 12
1.1. Economic and Governance Performance of Ghana. 17
1.2. History of Foreign Aid 20
1.2.1. Trends of Foreign Aid to Africa. 25
1.2.2. Trends of Foreign Aid to Ghana from 1960-1986 27
1.2.3. Trends of Foreign Aid to Ghana from 1987-2017. 28
1.2.4. Modalities and Volumes of Foreign Aid Flows to Ghana 31
1.2.5. Composition of Aid Flows to Ghana. 33
1.2.6. The Multi-Donor Budget Support 34
1.2.7. Ghana's Attainment of LMIC and Its Impact on Foreign Aid. 36
1.3. Poverty 38
1.3.1. Introduction 38
1.3.2. The Vicious Circle of Poverty. 42
1.3.3. Poverty in Ghana. 42
1.3.4. Measurement of Poverty 45
1.3.5. Method for Measuring Poverty in Ghana. 46
1.3.6. Trends of Poverty in Ghana. 47
1.3.7. Regional Distribution of Poverty. 50
1.3.8. Urban and Rural Poverty. 53
1.4. Problem Statement. 54
1.5. Objectives of the Study. 58
1.5.1. Research question. 59
1.5.2. Research hypothesis. 59
1.6. Relevance of the Study 59
1.7. Organisation of the Study. 60
CHAPTER TWO. LITERATURE REVIEW 61
2.0. Theoretical Framework. 61
2.1.1. The Harrod-Domar Growth Model. 61
2.1.2. The Solow Growth Model. 63
2.1.3. The Two Gap Model. 64
2.2. Foreign Aid and Poverty Reduction. 67
CHAPTER THREE. METHODOLOGY 72
3.0. Introduction. 72
3.1. Specification of Model 72
3.2. Description of Variables and Expected Result. Agriculture Value Added 73
3.3. Unit Root and Co-Integration Tests. 79
3.3.1. Unit Roots Test. 79
3.3.2. The Autoregressive Distributed Lag (ARDL) Co-Integration Method. 81
3.3.3. The Bounds Testing Procedure. 82
3.4. Data Type and Sources. 85
CHAPTER FOUR. EMPIRICAL RESULTS AND ANALYSIS. 86
4.0. Introduction. 86
4.1. Unit Root Test. 86
4.2. Bounds Test for Co-integration 92
4.3. Test Result of the Long-Run Relationship. 93
4.4. Results of the Short-Run Dynamic Model. 100
4.5. Model Diagnostic and Stability Test 102
CHAPTER FIVE. SUMMARY, CONCLUSION AND POLICY RECOMMENDATION. 106
5.0. Introduction 106
5.1. Summary of the Findings. 107
5.2. Conclusion 109
5.3. Policy Recommendations. 109
5.4. Limitations and Recommendations for Further Research. 112
REFERENCES 114
APPENDIX 126
요약 129
Table 4.1. Panel A: Unit Root Test At Levels. 88
Table 4.2. Panel B: Unit Root Test After First Difference. 90
Table 4.3. Bounds Test for the Existence of Co-Integration 92
Table 4.4. Estimated long-run coefficients using the ARDL Approach 93
Table 4.5. Estimated Short-Run Error Model Using the ARDL... 100
Table 4.6. Model Diagnostic and Goodness of Fit 102
Figure 1.1. Trend in growth of real GDP growth rate and GDP per... 18
Figure 1.2. Trend of Net ODA to Africa from 1970-2016-USD Million,... 26
Figure 1.3. Net ODA received by African countries from 1970-2016 27
Figure 1.4. Trend and Comparison between Net ODA in Constant 2015... 28
Figure 1.5. Trend in Net ODA Received Expressed As a Percentage of... 30
Figure 1.6. Net ODA Received Per Capita From 1987-2017 31
Figure 1.7. Top Ten Bilateral ODA To Ghana Between 1987 And 2017... 32
Figure 1.8. Trend in Global Poverty from 1981-2015(% of People... 40
Figure 1.9. Poverty Trend in Sub-Saharan African from 1981-2015(%... 41
Figure 1.10. Poverty Trend in Ghana from 1981-2015(% of People... 43
Figure 1.11. Incidence of Poverty From 1991/1992-2016/2017 48
Figure 1.12. Population of the Poor (Million) From 2005/2006-... 49
Figure 1.13. Regional Distribution of Poverty Incidence (Po) From... 51
Figure 1.14. Regional distribution of extremely poverty incidence with... 52
Figure 1.15. Relationship between Urban and Rural Poverty Incidence... 54
Figure 4.1. Line Graph of the Variables 87
Figure 4.2. Comparison between Concessional and External Debt from... 99
Figure 4.3. Plots of CUSUM and CUSUMQ 104