The Effect of Foreign Direct Investment on Economic Growth in Ghana
Journal of Business and Economic Development
Volume 2, Issue 4, November 2017, Pages: 227-232
Received: May 17, 2017; Accepted: Jun. 12, 2017; Published: Jul. 25, 2017
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Authors
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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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.
Keywords
Foreign Direct Investment, Time Series Analysis, Macroeconomic Variables, Least Squares, Economic Growth
To cite this article
Isaac Nketsiah, Matthew Quaidoo, The Effect of Foreign Direct Investment on Economic Growth in Ghana, Journal of Business and Economic Development. Vol. 2, No. 4, 2017, pp. 227-232. doi: 10.11648/j.jbed.20170204.14
Copyright
Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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