Economic Effects of Oil and Gas Production and Management on the Ghanaian Economy

This paper offers a systematic analysis of the likely economic effects of oil and gas production and management on the Ghanaian economy. The paper has been motivated by the fact that some empirical literature report that natural resource endowment has not necessarily led to economic development in many countries. It is with this apprehension of a possible natural resource curse in Ghana, having discovered oil in commercial quantities that the economic effects of oil and gas production and management on the Ghanaian economy are worth considering. The paper provides a basic descriptive analysis of the issues under consideration. It concludes that oil and gas production in Ghana does not provide a magic wand to transforming the economy of Ghana overnight, but the efficient management and application of the revenues from the sale of the resources will provide keys to the economic development of Ghana. Again, to ensure efficient use of the revenues from the resources, the revenues must be spent on specific projects of urgent national importance that could generate more revenue in the end and stand the test of time to help posterity to have a better judgment of the use of the resources found.

This paper offers a systematic analysis of the likely economic effects of oil and gas production and management on the Ghanaian economy. The paper has been motivated by the fact that some empirical literature report that natural resource endowment has not necessarily led to economic development in many countries. It is with this apprehension of a possible natural resource curse in Ghana, having discovered oil in commercial quantities that the economic effects of oil and gas production and management on the Ghanaian economy are worth considering. The paper provides a basic descriptive analysis of the issues under consideration. It concludes that oil and gas production in Ghana does not provide a magic wand to transforming the economy of Ghana overnight, but the efficient management and application of the revenues from the sale of the resources will provide keys to the economic development of Ghana. Again, to ensure efficient use of the revenues from the resources, the revenues must be spent on specific projects of urgent national importance that could generate more revenue in the end and stand the test of time to help posterity to have a better judgment of the use of the resources found.