External debt and the impact on economic growth: Case study Ghana

Abstract

Debt plays a vital role in economic development, especially in the least developed countries. As everything has a positive side there is also a negative side. If these debts are not used for the projects in which they were taken for or not put into projects that generate revenue it has its consequences.The main issue that will occur is high debt financing because all projects that do notgenerate revenue can not fininace any part of the debt.So its important to use internally generated revenue for projects that do no not generate revenue and use external debts for projects that generate revenue.