Impact of Trade Liberalisation on Economic Growth in Ghana

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Figure 1: Trends of GDP Growth and Trade Openness 1984 - 2011

120.00

GDP growth

Trade Openness 100.00

60.00

40.00

20.00

It can also be deduced from Figure 1 that, the more the trade is liberalised the higher the GDP growth rate and for that matter economic growth. For instance, in 1984 when trade regime was liberalised by 10.3%, real GDP growth was 2.6% and real GDP growth was enhanced with trade regime. As trade regime declined the real GDP growth declined in 1989 and 1990. However, 1993 had seen a green light as real GDP growth increase by 4.97% from 3.9% in 1992 when trade regime increased by 43.9% from 40.3% of GDP in 1992. In 2006, trade regime became 51.6% of GDP leading to a real GDP growth of 6.4% and when trade regime intensified in 2008 to 69.8% of GDP, real GDP growth intensified leading to economic growth rate of 7.2%.

46

2011;

2010;

2009;

2008;

2007;

2006;

2005;

2004;

2003;

2002;

Years 1984 - 2011

2001;

2000;

1999;

1998;

1997;

1996;

1995;

1994;

1993;

1992;

1991;

1990;

1989;

1988;

1987;

1986;

1985;

0.00 1984;

Percentage

80.00


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