Ghana's Bui Dam financing boosts GDP and household income significantly
Large energy infrastructure projects like the Bui Dam in Ghana can have significant impacts on the economy. A study looked at how the financing of such projects affects the country's overall economic performance. By using a special model, researchers found that the way the project is financed can greatly influence its economic benefits. For example, in the case of the Bui Dam, a loan agreement involving cocoa exports to China boosted the project's positive impact on Ghana's GDP and household incomes. This study shows that considering indirect effects of financing is crucial for accurately assessing the economic impacts of large infrastructure projects in developing countries.