The Impact of Economic Growth of Middle -Income on Individuals Level of Savings in Ghana

Abstract

The ultimate target of any economic policy of a country is to have a positive socio-economic impact on the individual citizen of that country. The research investigated the relationship that exists between the Middle-Income staus of Ghana and level of savings of individuals.  The research was an exploration in nature.  Yet, the research has   also adopted the mixed method approach in making an empirical investigation appropriate into Economic Growth and its impact on Middle Income of Individuals in Ghana. Integration both qualitative and quantitative in the analysis for the research results. By the use of quantitative research approach, statistical analysis of content analysis of findings were applied, since it helped in assessing the associations amongst   Economic Growth variables and Middle Income of Individual Ghanaians.  Additionally, a qualitative approach, using semi-structured interviews and follow-up interviews, were applied to examine the topic under instigations. The quantitative framework in the research adopted a longitudinal study approach to collect 25 years macroeconomic variables data on Ghana from 1990 to 2015 and in the case of the qualitative framework a stratified sample method selected for the research study, since it required equal stratum and avoids selection bias towards determining sample sizes.The results established that, the large number of Ghanaian saved some level of their income, with a high consumption level. In order to maintain this level of savings and encourage more savings in future amongst citizen, it is recommended that, there should be a provision of the basic needs that will facilitate businesses and community activities and make life pleasant.  Again, such basics social services such as water, electricity, good transportation systems should be provided for the citizens in subsidized rate since citizens use lot of their incomes in paying that. Such incomes could be channeled into further savings.

Keyword: FDI – Foreign Domestic Investment, GDP – Gross Domestic Product, GDS- Gross Domestic Savings, GSS –Ghana Statistic Service, LMI – Lower Middle Income, PCI – Per Capita Income, EG – Economic Growth

DOI: 10.7176/EJBM/15-1-01

Publication date: January 31^st 2023