Record Details

Foreign Direct Investment Inflows and Economic Growth in Ghana

International Journal of Economic Practices and Theories

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Field Value
 
Title Foreign Direct Investment Inflows and Economic Growth in Ghana
 
Creator Insah, Baba
 
Subject Macroeconomics
Dynamic ordinary least squares; error correction; leads and lags; inflation
F20, F21, O11
 
Description There exists mixed empirical evidence on the size of gains from Foreign Direct Investment (FDI) inflows for the economies of different countries. The paper thus investigated the relationship between economic growth and FDI inflows a dynamic framework. A study of this sort would inform policy on the role of lagged, coincident and leading effects of FDI on economic growth. An Engle-Granger two-step methodology for error correction was employed. The major empirical and methodological contribution of this study is the use of Dynamic Ordinary Least Squares (DOLS) technique. Dynamic OLS becomes better than OLS by coping with small sample sources of bias. The elasticity of economic growth with respect to FDI had a positive sign and also significant at the 1% level. However, the effect of a three (3) year lag of FDI on economic growth had a negative sign and significant at the 5% level. Policy makers should thus not concentrate on current macroeconomic inflows of FDI but consider effects of past FDI inflows on current levels of economic growth.
 
Publisher International Journal of Economic Practices and Theories
 
Contributor —
 
Date 2013-04-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.ijept.org/index.php/ijept%20/article/view/Foreign_Direct_Investment_Inflows_and_Economic_Growth_in_Ghana
 
Source International Journal of Economic Practices and Theories; Vol 3, No 2 (2013); 115-121
2247 – 7225
 
Language eng
 
Relation http://www.ijept.org/index.php/ijept%20/article/view/Foreign_Direct_Investment_Inflows_and_Economic_Growth_in_Ghana/pdf
http://www.ijept.org/index.php/ijept%20/article/downloadSuppFile/Foreign_Direct_Investment_Inflows_and_Economic_Growth_in_Ghana/13