Investigating the impact of foreign direct investment on domestic investment in Ghana
| dc.contributor.author | Abdulai, Imoro | |
| dc.date.accessioned | 2025-05-07T13:02:12Z | |
| dc.date.available | 2025-05-07T13:02:12Z | |
| dc.date.issued | 2019-04 | |
| dc.description | A thesis submitted to the department of economics, Kumasi in partial fulfilment of the requirements for the Award Degree of Masters in Economics. | |
| dc.description.abstract | ABSTRACT This study examines the impact of Foreign Direct Investment on domestic investment in Ghana. It further investigated the trends of foreign direct investment and domestic investment in Ghana. The study utilized annual time series data of the variables covering the period 1985 to 2017. The study utilized ARDL bounds test. The result showed there exists a long run equilibrium relationship among the variables. In the long run, the study found that foreign direct investment (FDI) has a negative effect on domestic investment. This effect was statistically significant at the 5 percent level. Thus foreign direct investment plays a vital role in determining the amount of domestic investment. From the short run results, foreign direct investment has a negative effect on domestic investment in the short run. This effect was statistically insignificant at the 5 percent level. However, the first and second lag of foreign direct investment had a positive and high significant effect on domestic investment in the short run. Inflation had a positive effect on domestic investment in both long and short run whiles trade openness had a positive effect on domestic investment only in the short run. The study recommends that the way forward for Ghana is to target foreign direct investment into areas where she has a comparative advantage. In general, providing a good business environment, as well as removing bottlenecks and disincentives in the economy, will benefit both domestic and foreign investors and enhance economic growth. Thus, there should be a better policy option for both domestic and foreign investors rather than devising incentive packages for specific firms or projects. | |
| dc.description.sponsorship | KNUST | |
| dc.identifier.uri | https://ir.knust.edu.gh/handle/123456789/16817 | |
| dc.language.iso | en | |
| dc.publisher | KNUST | |
| dc.title | Investigating the impact of foreign direct investment on domestic investment in Ghana | |
| dc.type | Thesis |