FDI, Economic Growth and Service Sector Value Additions in Ghana

Abstract

Empirical literature on the impact of FDI on economic growth has been mixed. However some researchers are of the opinion that the inconclusiveness could be attributed to how FDI affects the various sectors of the Economy and not Growth as a whole. Therefore given that governments of developing economies including Ghana have been putting in place measures in order to attract FDI to stimulate economic growth, this study investigated the impact of FDI on economic growth and service sector value additions in Ghana. By employing the Johansen Cointegration technique, the study revealed FDI to have a positive significant impact on economic growth both in the long-run and short run and rather only a positive significant impact on the service sector in the short run.

An empirical analysis of the effect of foreign direct investment on population health in Ghana

“…Empirically, notwithstanding the possible effect of FDI on population health, most of the studies focused on the income or economic growth effect of FDI (see, e.g., Liu et al 2009;Herzer 2010;Varamini and Kalash, 2010;Adeniyi et al 2012;Othman et al 2014;Abbes et al 2015;Iddrisu et al 2015;Immurana et al 2015;Sakyi et al 2015;Iamsiraroj 2016;Mahmoodi and Mahmoodi 2016;Abdouli and Hammami 2017;Nketsiah and Quaidoo 2017;Sothan 2017;Carbonell and Werner 2018;Ho and Iyke 2018;Awunyo-Vitor and Sackey 2018;Sinha et al 2019) with relatively few devoted to the population health effect of FDI (see Herzer and Nunnenkamp 2012;Nagel et al 2015;Alam et al 2016;Burns et al 2017;Golkhandan 2017;Immurana 2020a;Salahuddin et al, 2020). Moreover, among the studies that focused on population health, apart from those of Alam et al (2016) and Salahuddin et al (2020) that were conducted on Pakistan and South Africa, respectively, as single-country studies, all the remaining studies used panel data involving a number of countries (cross-country analysis).…”

“…2015; Immurana et al. 2015; Sakyi et al. 2015; Iamsiraroj 2016; Mahmoodi and Mahmoodi 2016; Abdouli and Hammami 2017; Nketsiah and Quaidoo 2017; Sothan 2017; Carbonell and Werner 2018; Ho and Iyke 2018; Awunyo‐Vitor and Sackey 2018; Sinha et al.…”