An Empirical Examination of FDI, International Trade, and Remittance Relationship on Ghana Economic Growth ABSTRACT The goal of the study is to analyze the relationship between FDI,international trade, inflows of remittances, and economic growth in Ghana from 1990 to 2018. The study uses yearly time series data and employs Ordinary Least Square estimation techniques.The Empirical result reveals that FDI and Remittance inflows are statistically significant and have a positive influence on Gross Domestic Product growth in Ghana. Net export has an insignificant negative effect on economic growth.To boost the economic growth impact of FDI, remittances, and foreign trade,the Government of Ghana should: (1) select investors with a focus on quality,high technology, and efficiency: (2) continue to implement export-oriented policies; (3) add value to the export products and control certain types of imported goods; (4) channel remittance inflow into economic development and reduce transaction cost involved. Keywords: Remittances, FDI, International Trade, GDP Growth, Ghana TABLE OF CONTENTS CONTENTS PAGES ABSTRACT v TABLE OF CONTENTS vi CHAPTER ONE viii 1.1 Background of the Study 1 1.2 Motivation 3 1.3 Research Questions 3 1.4 Scope of the Study 3 1.5 Findings 3 1.6 Significance of the Findings 4 1.7 Organization of the Study 4 CHAPTER TWO 5 LITERATURE REVIEW 5 2.1 Introduction 5 2.2 Theoretical Review 5 2.2.1 Economic Growth Theory 5 2.2.2 The Heckscher-Ohlin (H-O) International Trade Theory 6 2.3 Empirical Review 6 2.3.1 Foreign Direct Investment and International Trade 7 2.3.2 Remittances 9 CHAPTER THREE 13 DATA AND METHODOLOGY 13 3.1.Data 13 3.1.1 Data Description 13 3.2 Model Specification 18 CHAPTER FOUR 20 EMPIRICAL RESULTS, ANALYSIS, AND DISCUSSION 20 4.1 Introduction 20 4.2 Regression Results 20 CHAPTER FIVE 25 SUMMARY OF FINDINGS, CONCLUSION, AND RECOMMENDATIONS 25 5.1 Summary of Findings 25 5.2 Policy Implications and Recommendation 25 5.3 Limitation and Further Study 27 5.4 Conclusion 27 REFERENCE 28 APPENDIX 34 ACKNOWLEDGEMENT 36 |
An Empirical Examination of FDI, International Trade, and Remittance Relationship on Ghana Economic Growth
更新时间:2022-06-12