Abstract:
The study examined the effect of crude oil production, quality
institutions and capital accumulation on economic growth in Ghana
spanning from January 2011 to December 2018 using the Nonlinear
Autoregressive Distributed Lag (NARDL) approach to cointegration. The
empirical findings revealed that the expected positive economic multiplier
effects of commercial crude oil production in the form of more local
employment with high incomes as well as more substantial local business
participation has not yet been actualized and hence the resource curse effect
is pronounced valid in Ghana. Also, the required capital accumulation and
institutional capacity is at a level insufficient to complement the production
of crude oil to cause economic expansion and reverse the resource curse.
Based on these findings, it is therefore recommended that the institutions of
state that oversee crude oil production and other expediencies related to
crude oil production should be resourced to ensure efficient capital
accumulation and to allow for sustainable economic growth
