Elections, Foreign Direct Investment, and Economic Growth in Ghana’s Fourth Republic: 1993 to 2016
Journal: International Journal of Economics and Financial Research (Vol.5, No. 1)Publication Date: 2019-01-15
Authors : Rebecca Larry; Ishmael K. Hlovor;
Page : 1-8
Keywords : FDI; Economic Growth; Inflation; Election; Saving.;
Abstract
Foreign Direct Investment (FDI) has been seen as an important factor influencing economic growth directly and indirectly in both developed and developing countries. This study assesses the impact of FDI on growth in Ghana since the return to constitutional rule in 1993. The study uses time series data from 1993 to 2016. Using the Autoregressive Distributed Lagged model (ARDL), the study finds a positive impact of FDI on growth both in the short-run and long-run. However, there is a lag period of two. The study equally finds that Gross Saving has a positive impact on growth. On the other hand inflation has a negative effect on growth both in the short and long run. The study also discovered that FDI granger causes growth but GDP does not granger cause FDI. Post-election years with incidence of political uncertainty slow down FDI inflow into Ghana. The study recommends the adoption of stringent fiscal and monetary policies to keep inflation low. It also recommends maintaining and improving the liberal market environment to attract investors, policies to encourage saving, and improving on political transitions to avoid uncertainties for investors.
Other Latest Articles
- Organizational and economic mechanism of management of higher educational institutions of Ukraine
- The Impact of Icts on Hospitality Sector of Tourism in Zambia
- Impact of FDI on Employment Generation: Nexus in Afghanistan
- Factors Influencing Jordanian Consumer’s Intention to Purchase Branded Product A Viewpoint of Yarmouk University student in Irbid City
- Prevalence of Malaria Parasites Amongst Pregnant Women in Calabar Cross River State Nigeria
Last modified: 2019-01-31 19:42:09