Foreign Direct Investment, Trade Openness and Economic Growth in Ghana: An Empirical Investigation

Daniel Sakyi, Richmond Commodore, Eric Evans Osei Opoku

Research output: Journal PublicationArticlepeer-review

37 Citations (Scopus)

Abstract

Abstract: This paper investigates the long-run impact of foreign direct investment and trade openness on economic growth in Ghana (1970–2011) within the framework of the endogenous growth literature. Adopting the autoregressive distributed lag bounds testing approach to cointegration the results suggest that the interaction of foreign direct investment and exports has been crucial in fostering growth, thus validating the famous Bhagwati hypothesis. From a policy oriented point of view, the study recommends the channeling of foreign direct investment to export-oriented sectors and the promotion of export-led growth strategies in long-term development plans.

Original languageEnglish
Pages (from-to)1-15
Number of pages15
JournalJournal of African Business
Volume16
Issue number1-2
DOIs
Publication statusPublished - 4 May 2015
Externally publishedYes

Keywords

  • Cointegration
  • economic growth
  • FDI
  • Ghana
  • trade openness

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

Fingerprint

Dive into the research topics of 'Foreign Direct Investment, Trade Openness and Economic Growth in Ghana: An Empirical Investigation'. Together they form a unique fingerprint.

Cite this