Does foreign direct investment in Ghana promote welfare?
Beyond the economic indicators of development is the welfare of citizens. This paper assessed the effect of foreign direct investment on welfare (human development) in Ghana. Unlike other studies on the subject that did not account for the unit interval property of the human development index (betwe...
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| Format: | Article |
| Language: | English |
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Elsevier
2023-01-01
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| Series: | Social Sciences and Humanities Open |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S259029112300150X |
| _version_ | 1797374146089320448 |
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| author | Ferguson K. Gidiglo Akua Agyeiwaa Afrane Kofi A.A-O. Agyei-Henaku Charlotte Badu-Prah Francis Srofenyoh Justice G. Djokoto |
| author_facet | Ferguson K. Gidiglo Akua Agyeiwaa Afrane Kofi A.A-O. Agyei-Henaku Charlotte Badu-Prah Francis Srofenyoh Justice G. Djokoto |
| author_sort | Ferguson K. Gidiglo |
| collection | DOAJ |
| description | Beyond the economic indicators of development is the welfare of citizens. This paper assessed the effect of foreign direct investment on welfare (human development) in Ghana. Unlike other studies on the subject that did not account for the unit interval property of the human development index (between 0 and 1 inclusive), we departed from existing studies on the welfare effects of foreign direct investment by accounting for the unit interval property (between 0 and 1, inclusive) of the human development index. Unlike country-specific studies on the subject that used time-series data with the associated time series modelling, we employed an unbalanced panel data of 41 countries in Africa over the period 1990 to 2019. We relied on the elasticities of the generalised estimation equations and isolated the effect of Ghana. Following the elasticities of the generalised estimation equations, the partial effect of foreign direct investment on welfare in Ghana was not statistically significant. The total effect of foreign direct investment on welfare in Ghana was also found to be statistically insignificant. Further, the total effect of foreign direct investment on welfare in other African countries was found to be statistically insignificant. Ghana and other African countries should re-assess their foreign direct investment policies vis-à-vis their effect on welfare. The interaction of policy could produce different results and can be researched subsequently. |
| first_indexed | 2024-03-08T19:00:39Z |
| format | Article |
| id | doaj.art-33298a78840a4110a2b9b6bf2aabae9c |
| institution | Directory Open Access Journal |
| issn | 2590-2911 |
| language | English |
| last_indexed | 2024-03-08T19:00:39Z |
| publishDate | 2023-01-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Social Sciences and Humanities Open |
| spelling | doaj.art-33298a78840a4110a2b9b6bf2aabae9c2023-12-28T05:18:53ZengElsevierSocial Sciences and Humanities Open2590-29112023-01-0181100545Does foreign direct investment in Ghana promote welfare?Ferguson K. Gidiglo0Akua Agyeiwaa Afrane1Kofi A.A-O. Agyei-Henaku2Charlotte Badu-Prah3Francis Srofenyoh4Justice G. Djokoto5Central University, GhanaCentral University, GhanaCentral University, GhanaCentral University, GhanaCentral University, GhanaCorresponding author.; Central University, GhanaBeyond the economic indicators of development is the welfare of citizens. This paper assessed the effect of foreign direct investment on welfare (human development) in Ghana. Unlike other studies on the subject that did not account for the unit interval property of the human development index (between 0 and 1 inclusive), we departed from existing studies on the welfare effects of foreign direct investment by accounting for the unit interval property (between 0 and 1, inclusive) of the human development index. Unlike country-specific studies on the subject that used time-series data with the associated time series modelling, we employed an unbalanced panel data of 41 countries in Africa over the period 1990 to 2019. We relied on the elasticities of the generalised estimation equations and isolated the effect of Ghana. Following the elasticities of the generalised estimation equations, the partial effect of foreign direct investment on welfare in Ghana was not statistically significant. The total effect of foreign direct investment on welfare in Ghana was also found to be statistically insignificant. Further, the total effect of foreign direct investment on welfare in other African countries was found to be statistically insignificant. Ghana and other African countries should re-assess their foreign direct investment policies vis-à-vis their effect on welfare. The interaction of policy could produce different results and can be researched subsequently.http://www.sciencedirect.com/science/article/pii/S259029112300150XAfricaForeign direct investmentGhanaPanel dataHuman development |
| spellingShingle | Ferguson K. Gidiglo Akua Agyeiwaa Afrane Kofi A.A-O. Agyei-Henaku Charlotte Badu-Prah Francis Srofenyoh Justice G. Djokoto Does foreign direct investment in Ghana promote welfare? Social Sciences and Humanities Open Africa Foreign direct investment Ghana Panel data Human development |
| title | Does foreign direct investment in Ghana promote welfare? |
| title_full | Does foreign direct investment in Ghana promote welfare? |
| title_fullStr | Does foreign direct investment in Ghana promote welfare? |
| title_full_unstemmed | Does foreign direct investment in Ghana promote welfare? |
| title_short | Does foreign direct investment in Ghana promote welfare? |
| title_sort | does foreign direct investment in ghana promote welfare |
| topic | Africa Foreign direct investment Ghana Panel data Human development |
| url | http://www.sciencedirect.com/science/article/pii/S259029112300150X |
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