IDEAS home Printed from https://ideas.repec.org/a/taf/oaefxx/v11y2023i2p2251800.html
   My bibliography  Save this article

The impact of mining foreign direct investment on economic growth in Ghana

Author

Listed:
  • Anthony Ennin
  • Emmanuel A. Wiafe

Abstract

This paper investigates the impact of mining foreign direct investment on economic growth in Ghana using quarterly time series data from 1996–2015. The study employs the Autoregressive Distributed Lag bounds testing approach to cointegration and the error correction model to investigate the existence of a long-run and short-run equilibrium relationship between foreign direct investment into the mining sector and economic growth. The study established that foreign direct investment into the mining sector hurts economic growth in Ghana in the long run but a positive in the short run. The study also finds that private sector credit, capital stock, government spending, and labour participation rate have a statistically significant positive relationship with economic growth in the long run. Trade openness exhibited a statistically significant negative long-run relationship with economic growth, while inflation had a positive but insignificant impact on economic growth for the study period. The study recommends that government should encourage research and development in the mining sector and align mining and other environmental policies to ensure sustainable growth. It is further recommended that government tactfully provide investment incentives to ensure the development of other sectors to avoid the Dutch disease.

Suggested Citation

  • Anthony Ennin & Emmanuel A. Wiafe, 2023. "The impact of mining foreign direct investment on economic growth in Ghana," Cogent Economics & Finance, Taylor & Francis Journals, vol. 11(2), pages 2251800-225, October.
    • Handle: RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2251800
    DOI: 10.1080/23322039.2023.2251800
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23322039.2023.2251800
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/23322039.2023.2251800?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    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:taf:oaefxx:v:11:y:2023:i:2:p:2251800. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/OAEF20 .

    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.