The Impact of Foreign Direct Investment and Trade Openness on The Ghanaian Economy

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F24%3A43925086" target="_blank" >RIV/62156489:43110/24:43925086 - isvavai.cz</a>

Výsledek na webu

<a href="https://doi.org/10.17059/ekon.reg.2024-1-22" target="_blank" >https://doi.org/10.17059/ekon.reg.2024-1-22</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.17059/ekon.reg.2024-1-22" target="_blank" >10.17059/ekon.reg.2024-1-22</a>

Jazyk výsledku

angličtina

Název v původním jazyce

The Impact of Foreign Direct Investment and Trade Openness on The Ghanaian Economy

Popis výsledku v původním jazyce

Foreign direct investment (FDI) and trade openness serve as macroeconomic indicators that support economic growth. Numerous studies conducted in recent years have empirically demonstrated the significance of FDI and trade liberalisation. Historical data illustrates that Ghana operates as a net importer, posing several challenges for domestic firms due to the comparative advantage of multinational enterprises and economies of scale. However, the full extent of the theories surrounding FDI and trade openness remains incompletely understood across all economies. This study aims to uncover the impact of FDI and foreign trade on economic growth in Ghana. The study utilised time series data sourced from the World Bank spanning from 1985 to 2021, on an annual frequency. The econometric methods employed include a unit root test (ADF), Engle-Granger cointegration test, and multiple regression analysis (Ordinary Least Squares). The ADF unit root test indicated that the variables were non-stationary and integrated at first-order difference. The Engle-Granger cointegration test revealed that the variables are cointegrated. Regression analysis results demonstrated that both FDI and trade openness exert a positive influence on economic enhancement in Ghana, with GDP serving as a proxy for growth. Furthermore, the analysis showed that FDI has a positive impact on GDP per capita, whereas trade openness negatively affects it, utilising GDP per capita as the explained variable. Based on these findings, the study recommends that policymakers implement sound FDI and trade policies to foster economic growth in the country.

Název v anglickém jazyce

The Impact of Foreign Direct Investment and Trade Openness on The Ghanaian Economy

Popis výsledku anglicky

Foreign direct investment (FDI) and trade openness serve as macroeconomic indicators that support economic growth. Numerous studies conducted in recent years have empirically demonstrated the significance of FDI and trade liberalisation. Historical data illustrates that Ghana operates as a net importer, posing several challenges for domestic firms due to the comparative advantage of multinational enterprises and economies of scale. However, the full extent of the theories surrounding FDI and trade openness remains incompletely understood across all economies. This study aims to uncover the impact of FDI and foreign trade on economic growth in Ghana. The study utilised time series data sourced from the World Bank spanning from 1985 to 2021, on an annual frequency. The econometric methods employed include a unit root test (ADF), Engle-Granger cointegration test, and multiple regression analysis (Ordinary Least Squares). The ADF unit root test indicated that the variables were non-stationary and integrated at first-order difference. The Engle-Granger cointegration test revealed that the variables are cointegrated. Regression analysis results demonstrated that both FDI and trade openness exert a positive influence on economic enhancement in Ghana, with GDP serving as a proxy for growth. Furthermore, the analysis showed that FDI has a positive impact on GDP per capita, whereas trade openness negatively affects it, utilising GDP per capita as the explained variable. Based on these findings, the study recommends that policymakers implement sound FDI and trade policies to foster economic growth in the country.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2024

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Ekonomika regiona

ISSN

2072-6414

e-ISSN

2411-1406

Svazek periodika

20

Číslo periodika v rámci svazku

1

Stát vydavatele periodika

RU - Ruská federace

Počet stran výsledku

15

Strana od-do

321-335

Kód UT WoS článku

001195867100013

EID výsledku v databázi Scopus

2-s2.0-85190159800