Table 1 Variable description,... | Emerald Publishing

Table 1

Variable description, measurement and expected sign

	Variable	Description	Measurement	Source
Explained variable	TB	Trade balance	Annual difference between trade export and import of goods and services	International Trade Commission
	FDI	Foreign direct investment	Annual net foreign inflows (% of GDP)	Word Development Indicators
	GEX	Government expenditure	Annual total amount of money spent by a government on goods and services, including public infrastructure, education, healthcare, defence, and social welfare programs (% of GDP)	World Development Indicators
Explanatory variables	REER	Exchange rate	A weighted average of the Ghanaian currency relative to a basket of other major currencies, adjusted for inflation	Bank of Ghana
	INF	Inflation rate	Annual average % increase in consumer prices	International Monetary Fund
	AGR	Agricultural growth	The annual net output of the agricultural sector after adding up all outputs and subtracting intermediate inputs (% of GDP)	World Development Indicators

	Variable	Description	Measurement	Source
Explained variable	TB	Trade balance	Annual difference between trade export and import of goods and services	International Trade Commission
	FDI	Foreign direct investment	Annual net foreign inflows (% of GDP)	Word Development Indicators
	GEX	Government expenditure	Annual total amount of money spent by a government on goods and services, including public infrastructure, education, healthcare, defence, and social welfare programs (% of GDP)	World Development Indicators
Explanatory variables	REER	Exchange rate	A weighted average of the Ghanaian currency relative to a basket of other major currencies, adjusted for inflation	Bank of Ghana
	INF	Inflation rate	Annual average % increase in consumer prices	International Monetary Fund
	AGR	Agricultural growth	The annual net output of the agricultural sector after adding up all outputs and subtracting intermediate inputs (% of GDP)	World Development Indicators

Note(s): An increasing REER indicates appreciation of the Ghanaian currency

Source(s): Authors’ construct, 2024