The dynamic interactions of economic growth, foreign direct investment, and exchange rates in Ghana
This study examines the dynamic interactions among foreign direct investment (FDI), economic growth (GDPG), and real exchange rate (RER) in Ghana using time series data over the period 1996 to 2018, and two econometric models: a trivariate VAR and the ARDL bound test. The results reveal that no long...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2022-12-01
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| Series: | Cogent Economics & Finance |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2022.2148361 |
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| author | Benedict Arthur Bismark Addai |
| author_facet | Benedict Arthur Bismark Addai |
| author_sort | Benedict Arthur |
| collection | DOAJ |
| description | This study examines the dynamic interactions among foreign direct investment (FDI), economic growth (GDPG), and real exchange rate (RER) in Ghana using time series data over the period 1996 to 2018, and two econometric models: a trivariate VAR and the ARDL bound test. The results reveal that no long-run relationship exists among the variables. However, a positive causal shock flows from both FDI and RER to GDPG. Also, the response of FDI to the shock in RER is positive. Therefore, it is recommended that the government implements policies that will ensure optimal balance in this nexus since a close and inter-reliant link exists among the variables. |
| format | Article |
| id | doaj-art-dffda4dd88ae4e11b88ee2f7ed2a3c32 |
| institution | OA Journals |
| issn | 2332-2039 |
| language | English |
| publishDate | 2022-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj-art-dffda4dd88ae4e11b88ee2f7ed2a3c322025-08-20T02:16:44ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2148361The dynamic interactions of economic growth, foreign direct investment, and exchange rates in GhanaBenedict Arthur0Bismark Addai1School of Finance, Zhongnan University of Economics and Law, Wuhan, ChinaSchool of Economics and Management, Changsha University of Science and Technology, Changsha, P.R. ChinaThis study examines the dynamic interactions among foreign direct investment (FDI), economic growth (GDPG), and real exchange rate (RER) in Ghana using time series data over the period 1996 to 2018, and two econometric models: a trivariate VAR and the ARDL bound test. The results reveal that no long-run relationship exists among the variables. However, a positive causal shock flows from both FDI and RER to GDPG. Also, the response of FDI to the shock in RER is positive. Therefore, it is recommended that the government implements policies that will ensure optimal balance in this nexus since a close and inter-reliant link exists among the variables.https://www.tandfonline.com/doi/10.1080/23322039.2022.2148361Economic growthFDIexchange ratetrivariate VARARDL bound testE22 |
| spellingShingle | Benedict Arthur Bismark Addai The dynamic interactions of economic growth, foreign direct investment, and exchange rates in Ghana Cogent Economics & Finance Economic growth FDI exchange rate trivariate VAR ARDL bound test E22 |
| title | The dynamic interactions of economic growth, foreign direct investment, and exchange rates in Ghana |
| title_full | The dynamic interactions of economic growth, foreign direct investment, and exchange rates in Ghana |
| title_fullStr | The dynamic interactions of economic growth, foreign direct investment, and exchange rates in Ghana |
| title_full_unstemmed | The dynamic interactions of economic growth, foreign direct investment, and exchange rates in Ghana |
| title_short | The dynamic interactions of economic growth, foreign direct investment, and exchange rates in Ghana |
| title_sort | dynamic interactions of economic growth foreign direct investment and exchange rates in ghana |
| topic | Economic growth FDI exchange rate trivariate VAR ARDL bound test E22 |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2022.2148361 |
| work_keys_str_mv | AT benedictarthur thedynamicinteractionsofeconomicgrowthforeigndirectinvestmentandexchangeratesinghana AT bismarkaddai thedynamicinteractionsofeconomicgrowthforeigndirectinvestmentandexchangeratesinghana AT benedictarthur dynamicinteractionsofeconomicgrowthforeigndirectinvestmentandexchangeratesinghana AT bismarkaddai dynamicinteractionsofeconomicgrowthforeigndirectinvestmentandexchangeratesinghana |