The Effect of Foreign Direct Investment on Economic Growth in Ghana

Isaac Nketsiah; Matthew Quaidoo

doi:doi:10.11648/j.jbed.20170204.14

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The Effect of Foreign Direct Investment on Economic Growth in Ghana

Isaac Nketsiah, Matthew Quaidoo

Published in Journal of Business and Economic Development (Volume 2, Issue 4)

Received: 17 May 2017 Accepted: 12 June 2017 Published: 25 July 2017

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Abstract

This study examines the relationship between Foreign Direct Investment and Economic Growth as well as some selected macroeconomic variables such as inflation, gross fixed capital formation, trade openness and government spending in Ghana for the period 1983 to 2012 by means of time series analysis. This study employs Least Squares to examine the possible effects among the investigated series. The results suggest that, the impact of foreign direct investment on economic growth in Ghana is significantly positive. These findings will be useful for making appropriate policies by policy makers, investors and the government. Hence, there should be economic as well as foreign policy reforms aimed at attracting more investors to boost the Ghanaian economy.

Published in	Journal of Business and Economic Development (Volume 2, Issue 4)
DOI	10.11648/j.jbed.20170204.14
Page(s)	227-232
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Foreign Direct Investment, Time Series Analysis, Macroeconomic Variables, Least Squares, Economic Growth

References

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[4]	Demirsel, M. T., Adem, Ã., Mucuk, M., & others. (2014). The Effect Of Foreign Direct Investment On Economic Growth: The Case Of Turkey. In Proceedings of International Academic Conferences. International Institute of Social and Economic Sciences. Retrieved from https://ideas.repec.org/p/sek/iacpro/0702081.html.
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[6]	Duce, M. (2003). Definitions of foreign direct investment (FDI): A methodological note. Banco de Espana. Retrieved from https://pdfs.semanticscholar.org/909c/6a2602ca411cda488df5241750cd3dc881aa.pdf.
[7]	Eduardo. F (1998) “How Does Foreign Direct Investment Affect Growth?” Journal of International Economics, Vol. 45, pp. 115-35.
[8]	Feder, G. (1983). On exports and economic growth. Journal of Development Economics, 12 (1–2), 59–73.
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Isaac Nketsiah, Matthew Quaidoo. (2017). The Effect of Foreign Direct Investment on Economic Growth in Ghana. Journal of Business and Economic Development, 2(4), 227-232. https://doi.org/10.11648/j.jbed.20170204.14

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Isaac Nketsiah; Matthew Quaidoo. The Effect of Foreign Direct Investment on Economic Growth in Ghana. J. Bus. Econ. Dev. 2017, 2(4), 227-232. doi: 10.11648/j.jbed.20170204.14

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Isaac Nketsiah, Matthew Quaidoo. The Effect of Foreign Direct Investment on Economic Growth in Ghana. J Bus Econ Dev. 2017;2(4):227-232. doi: 10.11648/j.jbed.20170204.14

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@article{10.11648/j.jbed.20170204.14,
  author = {Isaac Nketsiah and Matthew Quaidoo},
  title = {The Effect of Foreign Direct Investment on Economic Growth in Ghana},
  journal = {Journal of Business and Economic Development},
  volume = {2},
  number = {4},
  pages = {227-232},
  doi = {10.11648/j.jbed.20170204.14},
  url = {https://doi.org/10.11648/j.jbed.20170204.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20170204.14},
  abstract = {This study examines the relationship between Foreign Direct Investment and Economic Growth as well as some selected macroeconomic variables such as inflation, gross fixed capital formation, trade openness and government spending in Ghana for the period 1983 to 2012 by means of time series analysis. This study employs Least Squares to examine the possible effects among the investigated series. The results suggest that, the impact of foreign direct investment on economic growth in Ghana is significantly positive. These findings will be useful for making appropriate policies by policy makers, investors and the government. Hence, there should be economic as well as foreign policy reforms aimed at attracting more investors to boost the Ghanaian economy.},
 year = {2017}
}

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TY  - JOUR
T1  - The Effect of Foreign Direct Investment on Economic Growth in Ghana
AU  - Isaac Nketsiah
AU  - Matthew Quaidoo
Y1  - 2017/07/25
PY  - 2017
N1  - https://doi.org/10.11648/j.jbed.20170204.14
DO  - 10.11648/j.jbed.20170204.14
T2  - Journal of Business and Economic Development
JF  - Journal of Business and Economic Development
JO  - Journal of Business and Economic Development
SP  - 227
EP  - 232
PB  - Science Publishing Group
SN  - 2637-3874
UR  - https://doi.org/10.11648/j.jbed.20170204.14
AB  - This study examines the relationship between Foreign Direct Investment and Economic Growth as well as some selected macroeconomic variables such as inflation, gross fixed capital formation, trade openness and government spending in Ghana for the period 1983 to 2012 by means of time series analysis. This study employs Least Squares to examine the possible effects among the investigated series. The results suggest that, the impact of foreign direct investment on economic growth in Ghana is significantly positive. These findings will be useful for making appropriate policies by policy makers, investors and the government. Hence, there should be economic as well as foreign policy reforms aimed at attracting more investors to boost the Ghanaian economy.
VL  - 2
IS  - 4
ER  -

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Author Information

Isaac Nketsiah

Directorate of Research, Innovation and Consultancy, University of Cape Coast, Cape Coast, Ghana
Matthew Quaidoo

Department of Economics, University of Cape Coast, Cape Coast, Ghana

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Isaac Nketsiah, Matthew Quaidoo. (2017). The Effect of Foreign Direct Investment on Economic Growth in Ghana. Journal of Business and Economic Development, 2(4), 227-232. https://doi.org/10.11648/j.jbed.20170204.14

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ACS Style

Isaac Nketsiah; Matthew Quaidoo. The Effect of Foreign Direct Investment on Economic Growth in Ghana. J. Bus. Econ. Dev. 2017, 2(4), 227-232. doi: 10.11648/j.jbed.20170204.14

Copy | Download

AMA Style

Isaac Nketsiah, Matthew Quaidoo. The Effect of Foreign Direct Investment on Economic Growth in Ghana. J Bus Econ Dev. 2017;2(4):227-232. doi: 10.11648/j.jbed.20170204.14

Copy | Download

@article{10.11648/j.jbed.20170204.14,
  author = {Isaac Nketsiah and Matthew Quaidoo},
  title = {The Effect of Foreign Direct Investment on Economic Growth in Ghana},
  journal = {Journal of Business and Economic Development},
  volume = {2},
  number = {4},
  pages = {227-232},
  doi = {10.11648/j.jbed.20170204.14},
  url = {https://doi.org/10.11648/j.jbed.20170204.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20170204.14},
  abstract = {This study examines the relationship between Foreign Direct Investment and Economic Growth as well as some selected macroeconomic variables such as inflation, gross fixed capital formation, trade openness and government spending in Ghana for the period 1983 to 2012 by means of time series analysis. This study employs Least Squares to examine the possible effects among the investigated series. The results suggest that, the impact of foreign direct investment on economic growth in Ghana is significantly positive. These findings will be useful for making appropriate policies by policy makers, investors and the government. Hence, there should be economic as well as foreign policy reforms aimed at attracting more investors to boost the Ghanaian economy.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - The Effect of Foreign Direct Investment on Economic Growth in Ghana
AU  - Isaac Nketsiah
AU  - Matthew Quaidoo
Y1  - 2017/07/25
PY  - 2017
N1  - https://doi.org/10.11648/j.jbed.20170204.14
DO  - 10.11648/j.jbed.20170204.14
T2  - Journal of Business and Economic Development
JF  - Journal of Business and Economic Development
JO  - Journal of Business and Economic Development
SP  - 227
EP  - 232
PB  - Science Publishing Group
SN  - 2637-3874
UR  - https://doi.org/10.11648/j.jbed.20170204.14
AB  - This study examines the relationship between Foreign Direct Investment and Economic Growth as well as some selected macroeconomic variables such as inflation, gross fixed capital formation, trade openness and government spending in Ghana for the period 1983 to 2012 by means of time series analysis. This study employs Least Squares to examine the possible effects among the investigated series. The results suggest that, the impact of foreign direct investment on economic growth in Ghana is significantly positive. These findings will be useful for making appropriate policies by policy makers, investors and the government. Hence, there should be economic as well as foreign policy reforms aimed at attracting more investors to boost the Ghanaian economy.
VL  - 2
IS  - 4
ER  -

Copy | Download