International Debts and Implications on Ghana’s GDP Growth. Annual time series data (1980-2014)

Development projects are at the heart of government borrowing, with goal transforming economy. However, excessive borrowing has resulted in a massive debt for Ghana. As result, this research aims to examine, using annual time series data, trends and effects Ghana's external service on GDP growth from 1980 2014. Aside GDP, variables that were analyzed included gross domestic investment, population, foreign direct openness trade, ratios percentage used debt. Exogenous Solow models examine burden separately those standard model. Two different being used, one look what is causing an increase country's how will affect other servicing growth. OLS estimation method was backed by Bruesch-Godfrey test, Koenker-Basset (KB) test statistics, Cobb Douglass function, STATA statistical package (version 2012) regression analysis. Tests autocorrelation heteroscedasticity passed models. For both models, R2 value F-statistic (Prob>F 0.000 less than 0.05) indicate independent account approximately 99.51 percent variation. sake comparison, we can see all but parameter statistically significant (the population coefficient second model). According Simon (1987), Todaro Smith (1990), others, (POP) have positive relationship, as do investment (INV) (2012). Foreign (FDI), ratio (EXD), positive, predicted priori; however, four these negative. Despite this, higher An 1 results 0.2285 reduction whereas costs 0.069669 GDP. This means should be constantly monitored government, not allowed exceed maximum limit order avoid overhanging The must properly monitor funds ensure they only intended purpose. step, Ghana concentrate strategic economic areas. Because their high multiplier effect, investments infrastructure, agriculture, sectors prioritized. total amount owed reduced. Finally, economy can't solely rely its external, or foreign, debts, which always drag To determine whether need additional financing, compare economy's health fiscal discipline, governs policy.