THE financial determinants of private investment in ghana

Maame Esi Eshun, George Adu and Emmanuel Buabeng

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the financial determinants of private investment in Ghana using annual time series data from 1970 to 2010. Based on the autoregressive distributed lag (ARDL) bounds testing procedure to cointegration, the paper finds existence of cointegration among the variables. The empirical results support the view that private investment declines in both the short run and long run if the real interest rate is high and investors face severe financing constraints when credit is made scarce to the sector. Recommended were policies that would eliminate the financing constraints to make credit easily accessible to private investors.

Keywords: private investment; bounds test; cointegration; Ghana (search for similar items in EconPapers)
JEL-codes: E2 E22 (search for similar items in EconPapers)
Date: 2014-07-21
New Economics Papers: this item is included in nep-afr and nep-mac
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: The Financial Determinants of Private Investment in Ghana (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:57570

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