The Dynamism Between, Import, Foreign Direct Investment Inflow, Inflation and Covid-19 on Economic Growth: Evidence from Ghana
This research examines the long-term relationships between imports, inflation, and Foreign Direct Investment (FDI) influx in Ghana and their impact on productivity expansion. Using World Bank data from 1990 to 2019, the study applies statistical tests such as the ADF unit root test, Johansen cointe...
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| Format: | Article |
| Language: | English |
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Universitas Nahdlatul Ulama Surabaya
2023-03-01
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| Series: | Business and Finance Journal |
| Subjects: | |
| Online Access: | https://journal2.unusa.ac.id/index.php/BFJ/article/view/3540 |
| _version_ | 1797643360138166272 |
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| author | Alexander Amo Baffour Evans Yeboah |
| author_facet | Alexander Amo Baffour Evans Yeboah |
| author_sort | Alexander Amo Baffour |
| collection | DOAJ |
| description |
This research examines the long-term relationships between imports, inflation, and Foreign Direct Investment (FDI) influx in Ghana and their impact on productivity expansion. Using World Bank data from 1990 to 2019, the study applies statistical tests such as the ADF unit root test, Johansen cointegration test, vector error correction model, and Granger causality test. The results show that Ghana's economic growth is long-term dependent on imports and FDI influx. The Johansen tests reveal a long-term correlation between these factors, indicating a sustained relationship. Additionally, inflation negatively affects FDI, imports, and GDP. The Granger causality test identifies a short-run unidirectional effect between the variable. However, the vector error correction model (VECM) does not confirm a long-term relationship between imports and GDP as established by the Johansen test. The study suggests that FDI inflows are more effective than imports and inflation in the Ghanaian economy. Furthermore, the literature review highlights the significant impact of the COVID-19 pandemic on global trade, including agricultural exports to China. China’s early effective management of the pandemic and strategic actions have helped mitigate some of the negative effects on their total exports.
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| first_indexed | 2024-03-11T14:13:40Z |
| format | Article |
| id | doaj.art-de90c5947d984370ae279a30808b2d6d |
| institution | Directory Open Access Journal |
| issn | 2527-4872 2477-393X |
| language | English |
| last_indexed | 2024-03-11T14:13:40Z |
| publishDate | 2023-03-01 |
| publisher | Universitas Nahdlatul Ulama Surabaya |
| record_format | Article |
| series | Business and Finance Journal |
| spelling | doaj.art-de90c5947d984370ae279a30808b2d6d2023-11-01T15:02:45ZengUniversitas Nahdlatul Ulama SurabayaBusiness and Finance Journal2527-48722477-393X2023-03-018110.33086/bfj.v8i1.3540The Dynamism Between, Import, Foreign Direct Investment Inflow, Inflation and Covid-19 on Economic Growth: Evidence from GhanaAlexander Amo Baffour0Evans Yeboah1Pentecost UniversityMendel University in Brno This research examines the long-term relationships between imports, inflation, and Foreign Direct Investment (FDI) influx in Ghana and their impact on productivity expansion. Using World Bank data from 1990 to 2019, the study applies statistical tests such as the ADF unit root test, Johansen cointegration test, vector error correction model, and Granger causality test. The results show that Ghana's economic growth is long-term dependent on imports and FDI influx. The Johansen tests reveal a long-term correlation between these factors, indicating a sustained relationship. Additionally, inflation negatively affects FDI, imports, and GDP. The Granger causality test identifies a short-run unidirectional effect between the variable. However, the vector error correction model (VECM) does not confirm a long-term relationship between imports and GDP as established by the Johansen test. The study suggests that FDI inflows are more effective than imports and inflation in the Ghanaian economy. Furthermore, the literature review highlights the significant impact of the COVID-19 pandemic on global trade, including agricultural exports to China. China’s early effective management of the pandemic and strategic actions have helped mitigate some of the negative effects on their total exports. https://journal2.unusa.ac.id/index.php/BFJ/article/view/3540Johansen cointegration test;Vector error correction modelCovid Impact and Economic GrowthFDI inflowsEconomic growth: Export and ImportGross Domestic Product Ghana |
| spellingShingle | Alexander Amo Baffour Evans Yeboah The Dynamism Between, Import, Foreign Direct Investment Inflow, Inflation and Covid-19 on Economic Growth: Evidence from Ghana Business and Finance Journal Johansen cointegration test; Vector error correction model Covid Impact and Economic Growth FDI inflows Economic growth: Export and Import Gross Domestic Product Ghana |
| title | The Dynamism Between, Import, Foreign Direct Investment Inflow, Inflation and Covid-19 on Economic Growth: Evidence from Ghana |
| title_full | The Dynamism Between, Import, Foreign Direct Investment Inflow, Inflation and Covid-19 on Economic Growth: Evidence from Ghana |
| title_fullStr | The Dynamism Between, Import, Foreign Direct Investment Inflow, Inflation and Covid-19 on Economic Growth: Evidence from Ghana |
| title_full_unstemmed | The Dynamism Between, Import, Foreign Direct Investment Inflow, Inflation and Covid-19 on Economic Growth: Evidence from Ghana |
| title_short | The Dynamism Between, Import, Foreign Direct Investment Inflow, Inflation and Covid-19 on Economic Growth: Evidence from Ghana |
| title_sort | dynamism between import foreign direct investment inflow inflation and covid 19 on economic growth evidence from ghana |
| topic | Johansen cointegration test; Vector error correction model Covid Impact and Economic Growth FDI inflows Economic growth: Export and Import Gross Domestic Product Ghana |
| url | https://journal2.unusa.ac.id/index.php/BFJ/article/view/3540 |
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