IJSRSET calls volunteers interested to contribute towards the scientific development in the field of Science, Engineering and Technology

Home > IJSRSET1626106                                                     


A Co-Integration Analysis of the Effect of Foreign Direct Investment on Economic Growth

Authors(4):

Chen Lizhen, Stephany Abokzele Adongo, Hu Xuhua, Henry Asante Antwi
  • Abstract
  • Authors
  • Keywords
  • References
  • Details
It has been a major drive for successive governments in Ghana to attract more foreign direct investments as a means of generating growth in the economy. The growth of emerging markets has been attributed, in large part, to incoming foreign direct investments. Companies investing abroad can realise higher growth rates and diversify their income, which creates opportunities for investors. Using our augmented Co-Integration model, we note that foreign direct investment on GDP as the major indicator of economic growth in Ghana is significant. The subsequent analysis also shows that it FDI also has significant effect on other major indicators of economic growth such as Current Account Balance, Unemployment Rate, Technology and Innovation Index, Gini Co-Efficient (Inequality), Gender Inequality Index (GII), Urbanisation, Human Development Index, Per Capita Income, Openness to Trade, Carbon Footprint.FDI is thus constituted as equity capital, reinvested earnings and other capital. By establishing the effect impact of country risk on FDI inflows to Ghana, the study provides insight to policy makers in the country to formulate policies that are aimed at making Ghana a good investment destination for foreign investors.

Chen Lizhen, Stephany Abokzele Adongo, Hu Xuhua, Henry Asante Antwi

  1. Adams, K., Debrah, Y. A., Williams, K., & Mmieh, F. (2014). Causes of Financial FDI Inflows into Sub?Saharan Africa (SSA): Evidence from Ghana.Thunderbird International Business Review, 56(5), 439-459.
  2. Adams, K., Debrah, Y. A., Williams, K., & Mmieh, F. (2015). Why on earth should foreign banks invest in Africa's financial services sector? Evidence from financial multinationals in Ghana. Thunderbird International Business Review, 57(6), 445-462.
  3. Alagoa, H. E. (2015). Multinational Enterprise, Foreign Direct Investment (FDI), and Trade Flows; Africa (2008-2014). Foreign Direct Investment (FDI), and Trade Flows, 2008-2014.
  4. Anyanwu, J. C., & Yameogo, N. D. (2015). What Drives Foreign Direct Investments into West Africa? An Empirical Investigation. African Development Review, 27(3), 199-215.
  5. Asafu-Adjaye, J. (2005). What has been the impact of foreign direct investment in Ghana? (No. 9). Institute of Economic Affairs.
  6. Asongu, S. A., De Moor, L., & Tchamyou, V. S. (2015). Pre-and post-crisis dynamics of financial globalisation for financial development in Africa. African Governance and Development Institute WP/15/045.
  7. Baccini, L., & Dür, A. (2015). Investment discrimination and the proliferation of preferential trade agreements. Journal of Conflict Resolution, 59(4), 617-644.
  8. Dah, F. K., & Sulemana, M. (2010). The contribution of oil to the economic development of Ghana: The role of foreign direct investments (FDI) and government policies.
  9. Essel, S. A. (2015). Maximizing the benefits of technology in emerging economies: the prospects and challenges of technology transfer to local firms in Ghana. Journal of Advances in Science and Technology Research (JASTER), 2(1).
  10. Görg, H., & Seric, A. (2015). Linkages with multinationals and domestic firm performance: The role of assistance for local firms. European Journal of Development Research.
  11. Iddrisu, A. A., Immurana, M., & Halidu, B. O. (2015). The Impact of Foreign Direct Investment (FDI) on the performance of the Agricultural Sector in Ghana. International Journal of Academic Research in Business and Social Sciences, 5(7), 240-259.
  12. Iddrisu, A. A., Immurana, M., & Halidu, B. O. (2015). The Impact of Foreign Direct Investment (FDI) on the performance of the Agricultural Sector in Ghana. International Journal of Academic Research in Business and Social Sciences, 5(7), 240-259.
  13. Johnston, K. A., & Ramirez, M. D. (2015). Foreign Direct Investment and Economic Growth in Cote D’Ivoire: A Time Series Analysis. Business and Economic Research, 5(2), 35-47.
  14. Kariuki, C. (2015). The determinants of foreign direct investment in the African Union. Journal of Economics, Business and Management, 3(3), 346-351.
  15. Okafor, G. (2015). Locational determinants of us outward fdi into sub-saharan Africa. The Journal of Developing Areas, 49(1), 187-205.
  16. Otiso, K. M., & Owusu, G. (2008). Comparative urbanization in Ghana and Kenya in time and space. GeoJournal, 71(2-3), 143-157.
  17. Sakyi, D., Commodore, R., & Opoku, E. E. O. (2015). Foreign direct investment, trade openness and economic growth in Ghana: An empirical investigation. Journal of African Business, 16(1-2), 1-15.
  18. Salim, N. J., Mustaffa, R., & Hanafiah, N. J. A. (2015). FDI and Economic Growth Linkages in Malaysia. Mediterranean Journal of Social Sciences,6(4), 652.
  19. Shen, X. (2015). Private Chinese investment in Africa: myths and realities.Development Policy Review, 33(1), 83-106.
  20. Shok, I. A., Kamyshanchenko, E. N., & Isaan, J. (2015). Problems of Enhancement of Foreign Direct Investment to Ghana. In Modern Problems of Socio-Economic Systems in the Context of Globalization: a Collection of Scientific Papers prepared on the Basis of Materials of the VIII Intern. Scientific and Practical. Conf.(Belgorod (pp. 17-19).

Publication Details

Published in : Volume 2 | Issue 6 | November-December - 2016
Date of Publication Print ISSN Online ISSN
2016-12-30 2395-1990 2394-4099
Page(s) Manuscript Number   Publisher
405-416 IJSRSET1626106   Technoscience Academy

Cite This Article

Chen Lizhen, Stephany Abokzele Adongo, Hu Xuhua, Henry Asante Antwi, "A Co-Integration Analysis of the Effect of Foreign Direct Investment on Economic Growth", International Journal of Scientific Research in Science, Engineering and Technology(IJSRSET), Print ISSN : 2395-1990, Online ISSN : 2394-4099, Volume 2, Issue 6, pp.405-416, November-December-2016.
URL : http://ijsrset.com/IJSRSET1626106.php

IJSRSET Xplore

Subscribe

Conferences

National Conference on Advances in Mechanical Engineering 2017(NCAME 2017)

National Conference on Emerging Trends in Civil Engineering 2017( NCETCE 2017)