IDEAS home Printed from https://ideas.repec.org/a/lrc/larijb/v4y2014i4p65-82.html
   My bibliography  Save this article

Multiple Regression and Structural Analysis of Foreign Direct Investment (FDI) in Ghana (1994-2010)

Author

Listed:
  • Samuel Lartey

    (Controller and Accountant General’s Department, Regional Directorate - Payroll Office, Koforidua Eastern Region, Ghana.)

  • Buckman Akuffo

    (School of Applied Science and Technology, Department of Applied Mathematics, Koforidua Polytechnic – Ghana)

  • Enock Mintah Ampaw

    (School of Applied Science and Technology, Department of Applied Mathematics, Koforidua Polytechnic – Ghana)

  • Seth Opoku Larbi

    (Department of Planning and Quality Assurance Unit, Koforidua Polytechnic, Ghana.)

Abstract

Foreign Direct Investment (FDI) has been one of the topical issues in international economics, especially, from the past decade. Empirical research on FDI in developing countries, such as Ghana, has been relatively scarce even though there has been a lot of work on the trends in FDI. This study attempts to examine the trend of Foreign Direct Investment (FDI) in Ghana and its relationship with some selected economic indicators such as exchange rate, inflation, interest rates, Gross Domestic Product (GDP) as well as employment and the structural stability of FDIs with respect to the variables. Yearly data on FDI was used for the study spanning from 1994 to 2010. Results from the study indicated that FDI inflows into the country had experienced an increasing trend and undergone structural changes over the period under study. Furthermore, exchange rates and GDP growth played a significant role in attracting FDI into the country.

Suggested Citation

  • Samuel Lartey & Buckman Akuffo & Enock Mintah Ampaw & Seth Opoku Larbi, 2014. "Multiple Regression and Structural Analysis of Foreign Direct Investment (FDI) in Ghana (1994-2010)," International Journal of Business and Social Research, LAR Center Press, vol. 4(4), pages 65-82, April.
    • Handle: RePEc:lrc:larijb:v:4:y:2014:i:4:p:65-82
    as

    Download full text from publisher

    File URL: http://thejournalofbusiness.org/index.php/site/article/view/387/375
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kenneth A. Froot & Jeremy C. Stein, 1991. "Exchange Rates and Foreign Direct Investment: An Imperfect Capital Markets Approach," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1191-1217.
    2. Theodore H. Moran & Edward M. Graham & Magnus Blomstrom, 2005. "Does Foreign Direct Investment Promote Development?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 3810, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fernando Mistura & Caroline Roulet, 2019. "The determinants of Foreign Direct Investment: Do statutory restrictions matter?," OECD Working Papers on International Investment 2019/01, OECD Publishing.
    2. Shiba Shankar PATTAYAT, 2016. "Examining the determinants of FDI inflows in India," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(607), S), pages 225-238, Summer.
    3. Samuel Lartey & Buckman Akuffo & Enock Mintah Ampaw & Seth Opoku Larbi, 2014. "Multiple Regression and Structural Analysis of Foreign Direct Investment (FDI) in Ghana (1994-2010)," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(4), pages 65-82, April.
    4. Jiangyan Yu & Mr. James P Walsh, 2010. "Determinants of Foreign Direct Investment: A Sectoral and Institutional Approach," IMF Working Papers 2010/187, International Monetary Fund.
    5. Bilgili, Faik & Tülüce, Nadide Sevil Halıcı & Doğan, İbrahim, 2012. "The determinants of FDI in Turkey: A Markov Regime-Switching approach," Economic Modelling, Elsevier, vol. 29(4), pages 1161-1169.
    6. Shiba Shankar PATTAYAT, 2016. "Examining the determinants of FDI inflows in India," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(607), S), pages 225-238, Summer.
    7. Matija Rejec & Slavica Penev, 2011. "Attractiveness of Western Balkan Countries for FDI," Book Chapters, in: Mirjana Radovic Markovic & Srdjan Redzepagic & João Sousa Andrade & Paulino Teixeira (ed.), Serbia and the European Union: Economic Lessons from the New Member States, edition 1, volume 1, chapter 2, pages 27-46, Institute of Economic Sciences.
    8. Aizenman, Joshua, 2003. "Volatility, employment and the patterns of FDI in emerging markets," Journal of Development Economics, Elsevier, vol. 72(2), pages 585-601, December.
    9. Razin, Assaf & Goldstein, Itay, 2003. "An Information-Based Trade-off Between Foreign Direct Investment and Foreign Portfolio Investment: Volatility, Transparency and," CEPR Discussion Papers 3747, C.E.P.R. Discussion Papers.
    10. Marc Goergen & Luc Renneboog, 2004. "Shareholder Wealth Effects of European Domestic and Cross‐border Takeover Bids," European Financial Management, European Financial Management Association, vol. 10(1), pages 9-45, March.
    11. Goldberg, Linda S & Kolstad, Charles D, 1995. "Foreign Direct Investment, Exchange Rate Variability and Demand Uncertainty," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(4), pages 855-873, November.
    12. Azzimonti, Marina, 2019. "Does partisan conflict deter FDI inflows to the US?," Journal of International Economics, Elsevier, vol. 120(C), pages 162-178.
    13. Faria, Andr & Mauro, Paolo, 2009. "Institutions and the external capital structure of countries," Journal of International Money and Finance, Elsevier, vol. 28(3), pages 367-391, April.
    14. Rajesh Chakrabarti & Barry Scholnick, 2002. "Exchange rate expectations and foreign direct investment flows," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(1), pages 1-21, March.
    15. Yang Feng & Yang Wang, 2021. "A Literature Review on the Location Determinants of FDI," International Business Research, Canadian Center of Science and Education, vol. 14(4), pages 126-126, April.
    16. Matthias Arnold, Jens & Javorcik, Beata S., 2009. "Gifted kids or pushy parents? Foreign direct investment and plant productivity in Indonesia," Journal of International Economics, Elsevier, vol. 79(1), pages 42-53, September.
    17. Ronald McKinnon & Gunther Schnabl, 2002. "Synchronized Business Cycles in East Asia: Fluctuations in the Yen/Dollar Exchange Rate and China’s Stabilizing Role," Working Papers 02010, Stanford University, Department of Economics.
    18. Jones, Jonathan & Wren, Colin, 2008. "Re-investment and the survival of foreign-owned plants," LSE Research Online Documents on Economics 33138, London School of Economics and Political Science, LSE Library.
    19. Shi, Jiao, 2019. "Vertical FDI and exchange rates over the business cycle: The welfare implications of openness to FDI," Journal of Development Economics, Elsevier, vol. 138(C), pages 274-293.
    20. Welfens, Paul J. J., 2009. "The Transatlantic Banking Crisis: Lessons and EU Reforms," IZA Policy Papers 2, Institute of Labor Economics (IZA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lrc:larijb:v:4:y:2014:i:4:p:65-82. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Al Hossain (email available below). General contact details of provider: http://www.thejournalofbusiness.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.