Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/215857 
Year of Publication: 
2019
Citation: 
[Journal:] Academic Journal of Economic Studies [ISSN:] 2457-5836 [Volume:] 5 [Issue:] 1 [Publisher:] Editura Universitară [Place:] Bucharest [Year:] 2019 [Pages:] 51-62
Publisher: 
Editura Universitară, Bucharest
Abstract: 
The objective of the study was to examine the determinants of Foreign Direct Investment (FDI) from 1985 to 2015 in an emerging economy, Ghana. The study used a robust OLS regression and a Granger Causality Test to test for causal effects on a longitudinal data of thirty years. The study found, using a robust OLS regression model that, Natural Resource Endowment, Government expenditure, External debt and Infrastructure has significant predictive effects on FDI although the effect were more profound for natural resources and government expenditure. Using a granger causality approach, interest rate, Natural Resource endowment, Government expenditure, inflation, Infrastructure and international reserves were observed to granger cause FDI. The study recommends that policyholders and the government should also put in place measures that would maintain natural resources and spend on improving infrastructure and development as these attract foreign investments into the country.
Subjects: 
FDI
Granger causality
Co-integration
Error correction model
JEL: 
E43
E44
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)
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