The effect of exchange rate on human development: the case of Ghana

No Thumbnail Available
Journal Title
Journal ISSN
Volume Title
The overall objective of the study is to examine the interaction relationship between exchange rate, foreign direct investment and economic growth. To achieve the objective of the study, the quantitative research design was adopted in addition to the explanatory research method. The study used a sample of 2 African countries across a period of 22 years from 2000 to 2021. The study further used the random effect regression analysis to estimate the relationship between the variables in the study. From the analysis and findings obtained, it can be concluded that the inflows of foreign direct investment and exchange rate performances in Africa can help to boost their economic growth. Furthermore, by maintaining good performing exchange rate, African countries can attract more foreign investors due to the potential of making benefits from a good performing exchange rate which can subsequently lead to improving economic growth in Africa. Based on the findings, the study among other factors recommended that governments should work to create an environment that is conducive to investment, which can help to attract FDI to the country. This could include measures such as simplifying business registration processes, reducing red tape, and improving infrastructure. Governments can work to promote the country's strengths and investment opportunities to foreign investors through marketing campaigns, trade missions, and other outreach efforts. The study also recommend that future research should consider other robust estimation strategies such as the GMM estimations in order to ascertain if the findings of this study could be confirmed or rejected by their findings.
A thesis submitted to the department of accounting and finance college of humanities and social sciences in partial fulfilment of the requirements for the degree of master of business administration (finance)