Effect of foreign direct investment (fdi) on economic growth in ghana.
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Date
2023
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KNUST
Abstract
The study's primary objective was to determine the effect Foreign Direct Investment (FDI) on economic growth in Ghana. The study focuses on analysing the trends in foreign direct investment and economic growth in Ghana, determine the relationship between foreign direct investment and economic growth in Ghana and examine if any other factors influence economic growth in Ghana. The study adopted a quantitative research design. Indicators of world development were used to gather data for the variables under investigation. Additionally, secondary data from yearly reports on different amounts of FDI for the time span 1990–2022 is used. Due to the availability of data for the selected variables, this time was chosen, and it will be sufficient for the study. The study determined the trend in the data and pearson pairwise correlation was used to establish the relationship between the variables of the study. Again, the study adopted linear regression to determine the effect of FDI on economic growth. R-console was used to analyse the data. The study concluded that the relationship between FDI and economic growth is deterministic and that there has been an inconsistent rise or amount of FDI inflows into Ghana between 1990 and 2022. The study also demonstrates that Foreign Direct Investment (FDI) has a favourable impact on Ghana's economic expansion. The study found that capital and government expenditure all have an impact on economic growth. The study recommended that, since FDI has a positive impact on economic growth, policies and regulations to redirect resources to sectors and institution that will lead to a positive impact on economic growth. Also, in order to attract foreign direct investment, the Ghanaian government should spend money on the most important sectors of the economy.
Description
A thesis submitted to the department of accounting and finance college of humanities and social sciences in partial fulfillment of the requirements for the degree of msc. Accounting and finance