[Research] A Study on the Foreign Direct Investment and its Impact on the Ghanaian Economy2018-09-18Hit:709
- Writer김지혜
포토갤러리
In
this section, we cover research papers that are well-written by our alumni or
current students. The following is a brief introduction to a research paper
written by James Dawson Amoah (FMBA 2016/Ghana). Please click the link at the bottom to
read full version of the paper.
<Foreign Direct Investment and
its Impact on the Ghanaian Economy>
Ghana has been implementing policies to attract and retain foreign
direct investments into the country since the 1980s. These investments usually
come along with the transfer of technology from which local industries may
benefit. This research established that foreign direct investment inflow from
1980 to 2016 has had a positive and significant impact on economic growth of
Ghana.
This paper evaluates the
impact of foreign direct investments (FDI) on the Ghanaian economy using
empirical data from 1980 to 2016. The research employed the autoregressive
distributed lag (ARDL) methodology devised by Pesaran et al (2001) to establish
the cointegration relationships among the variables. The stationarity of the
variables was tested using the Augmented Dickey-Fuller (ADF) test and the
Phillips-Perron (PP) test. The model was
estimated using the Eviews statistical package.
Ghana has been implementing
policies to attract and retain FDI since the 1980s. These investments usually
come along with the transfer of technology from which local industries may
benefit. This research established that FDI along with other variables (low and
stable inflation, increased exports and improved real effective exchange) has
had a positive and significant impact on economic growth of Ghana.
Unfortunately, the findings also established that government expenditure has
not had a significant impact on economic growth. This is mainly attributable to
corruption and misappropriation of government expenditure.
It is therefore essential
that Ghana continues to undertake market-oriented and business friendly reforms
to make it the investment destination of choice in Sub-Saharan Africa.
Upon
James Dawson Amoah’s return to Ghana, he is working as the Head of Finance at
the Ghana Investment Promotion Centre. KGSF wishes all the best in his position
and for a continual success in his career.
◇ Subject: Foreign Direct Investment and
its Impact on the Ghanaian Economy
◇ Written by: James Dawson Amoah (FMBA 2016, Ghana Investment
Promotion Centre)
◇ Advisor: Professor Jisoo Kim