Bivariate causality analysis between FDI inflows and economic growth in Ghana

Joseph Frimpong () and Eric Oteng-Abayie

MPRA Paper from University Library of Munich, Germany

Abstract: The main objective for this paper is to study the causal link between FDI and GDP growth for Ghana for the pre- and post-SAP periods. We also study the direction of causality between the two variables, based on the more robust Toda-Yamamoto (1995) Granger no-causality test which allows the Granger test in an integrated system. Annual time-series data covering the period 1970-2002 was used. The study finds no causality between FDI and growth for the total sample period and the pre-SAP period. FDI however caused GDP growth during the post-SAP period.

Keywords: Ghana; FDI; seemingly unrelated regression; Granger causality; cointegration (search for similar items in EconPapers)
JEL-codes: C32 F39 O49 (search for similar items in EconPapers)
Date: 2006-08-26, Revised 2006-10-09
New Economics Papers: this item is included in nep-afr and nep-fdg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (38)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:351

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