Abstract for: The Dynamics of Public Indebtedness in Ghana

Guided by economic models suggesting that growth can be stepped-up by increasing resources for investment, developing country governments have often resorted to borrowing to supplement revenue hence the accumulation of public debt. The purpose of this paper is twofold. First, it is to develop a dynamic model that identifies the fundamental structure of the public debt accumulation process. Second, it is to identify the mechanisms that generate public debt and their relative contribution to public debt accumulation