ANALYSIS OF THE EFFECT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH: THE CASE OF GHANA
Özet
This paper analyzes the effect of foreign direct investment in a typical developing economy: Ghana, for the period 1980-2015. The Vector Error Correction Model (VECM) results show that foreign direct investment has a negative and statistically significant effect on economic growth. The result seem to support the argument that foreign direct investment into the industrial sector might not be growth enhancing. In addition the results showed that trade openness had a negative and statisticlly significant effect on economic growth. Gross Domestic Investment and the human capital proxy were found to have a positive, though, statistically insignificant effect on growth. Gross Fixed Capital formation was also found to have a negative and statistically insignificant effect on economic growth. To investigate the long run equilibrium relationship, Johansen and Juselius co-integration approach is used, while the speed of adjustment in the short run is analyzed through the use of Vector Error Correction Method (VECM) method. In order to check for the direction of causality between the two variables, the Toda Yamamoto Granger causality test is applied. The results indicate that foreign direct investment has a negative effect on economic growth in Ghana in the long run.
İndir
Yayınlanmış
Nasıl Atıf Yapılır
Sayı
Bölüm
Lisans
The Author(s) must make formal transfer of copyright for each article prior to publication in the International Journal of Contemporary Economics and Administrative Sciences. Such transfer enables the Journal to defend itself against plagiarism and other forms of copyright infringement. Your cooperation is appreciated. You agree that copyright of your article to be published in the International Journal of Contemporary Economics and Administrative Sciences is hereby transferred, throughout the World and for the full term and all extensions and renewals thereof, to International Journal of Contemporary Economics and Administrative Sciences.
The Author(s) reserve(s): (a) the trademark rights and patent rights, if any, and (b) the right to use all or part of the information contained in this article in future, non-commercial works of the Author's own, or, if the article is a "work-for-hire" and made within the scope of the Author's employment, the employer may use all or part of the information contained in this article for intra-company use, provided the usual acknowledgements are given regarding copyright notice and reference to the original publication.
The Author(s) warrant(s) that the article is Author's original work, and has not been published before. If excerpts from copyrighted works are included, the Author will obtain written permission from the copyright owners and shall credit the sources in the article. The author also warrants that the article contains no libelous or unlawful statements, and does not infringe on the rights of others. If the article was prepared jointly with other Author(s), the Author agrees to inform the co-Author(s) of the terms of the copyright transfer and to sign on their behalf; or in the case of a "work-for-hire" the employer or an authorized representative of the employer.
The journal is registered with the ISSN : 1925-4423.
IJCEAS is licensed under a Creative Commons Attribution 4.0 International License.
This license lets others distribute, remix, tweak, and build upon your work, even commercially, as long as they credit you for the original creation. This is the most accommodating of licenses offered. Recommended for maximum dissemination and use of licensed materials.
