Abstract:
The use of natural resources for economic growth is one of the most
important goals for many countries. Despite the fact that there are
numerous factors that influence economic growth, the focus of this study is
solely on petroleum revenue and its effects on economic growth.
Explanatory design was employed in this study to explain the relationship
between petroleum revenue and economic growth in Ghana. The approach
used for this study was Quantitative using Time series ARDL model with
eleven (11) years quarterly data from 2011 to 2021 was used. The results
indicates that Annual Budget Funding Amount (ABFA), Stabilisation
Fund, and Petroleum Revenue had a positive and significant impact on
economic growth in a long run. However, only ABFA had a positive and
significant impact on economic growth in a short run. It can be concluded
that, the resilience of the macro economy can promote the desirable
implications of total petroleum revenues on economic growth. Hence,
inflation, exchange rate, labor, and provision of capital was found to be cointegrated
with petroleum revenues and economic growth. There is the
need for government revenue on capital spending from the ABFA to be
increased since ABFA contributed positively in the long run than the short
run.
