The dynamic interactions of economic growth, foreign direct investment, and exchange rates in Ghana

Arthur, Benedict; Addai, Bismark

doi:10.1080/23322039.2022.2148361

Cited by 5 publications

(5 citation statements)

References 39 publications

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“…The rise and fall of the Exchange Rate (EXC) have an impact on both global and local Economic Growth (GDP). As a result, domestic currency appreciation can have a positive or negative impact on economic growth (Arthur & Addai, 2022). In a study titled The Dynamic Interactions of Economic Growth, Foreign Direct Investment, and Exchange Rate in Ghana, the relationship between the Exchange Rate (EXC) and Economic Growth (GDP) in Nigeria and Ghana has been studied.…”

Section: Empirical Literaturementioning

confidence: 99%

“…In a study titled The Dynamic Interactions of Economic Growth, Foreign Direct Investment, and Exchange Rate in Ghana, the relationship between the Exchange Rate (EXC) and Economic Growth (GDP) in Nigeria and Ghana has been studied. The authors concluded that the exchange rate (EXC) has a positive and significant impact on economic growth (GDP) in the long and short term (Arthur & Addai, 2022).…”

Section: Empirical Literaturementioning

confidence: 99%

“…The authors conclude that the Exchange Rate (EXC) has a negative and statistically significant impact on Economic Growth (GDP) in the long run. Exchange Rate (EXC) can have a positive or negative impact on Economic Growth (GDP) (Arthur & Addai, 2022). Trade Openness (TRADE) has a similar result to Stock Market Development (SMD) on Economic Growth (GDP).…”

Section: Long Run Coefficientmentioning

confidence: 99%

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The Impact of Stock Market Development on Economic Growth a Case of Malaysia

KHAIRUNNISA ZULKIFLI,

Safian,

MOHD RADZIL

et al. 2024

IMBR

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The stock market is important among many financial markets. Stock Market Development is one of the enabling factors for Economic Growth. The recession crisis occurred a few times and badly affected Malaysia's Economic Growth (GDP) and Stock Market Development (SMD). Also, during the recent pandemic of COVID-19, there was a different reaction by investors and individuals overall towards the economy in Malaysia. There were inconsistent trends when the global recession in 2008 happened and COVID-19 started to spread in Malaysia for both SMD and GDP. This study aims to determine the relationship between SMD and GDP in Malaysia. Using Market Capitalization (MCAP) (as a proxy to (SMD)), Exchange Rate (EXC) and Trade Openness (TRADE) as independent variables and GDP as the dependent variable. Data from 1981 to 2020 is analyzed using Granger causality, and the ARDL method along with applying the Endogenous Growth theory. The findings of the ARDL long-run test suggested that SMD and TRADE have a positive and statistically insignificant relationship with GDP. EXC has a negative and statistically significant relationship with GDP. Granger causality test suggested a bidirectional relationship between EXC and TRADE with GDP. There is a unidirectional causality between SMD and GDP where GDP Granger causes SMD. To improve market regulation, The government should ensure the stock market is well-regulated and transparent, boost investor confidence, and increase market investment. Encouraging trade openness and exports can also help increase exchange rates and boost ringgit's demand.

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Section: Empirical Literaturementioning

confidence: 99%

Section: Empirical Literaturementioning

confidence: 99%

Section: Long Run Coefficientmentioning

confidence: 99%

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The Impact of Stock Market Development on Economic Growth a Case of Malaysia

KHAIRUNNISA ZULKIFLI,

Safian,

MOHD RADZIL

et al. 2024

IMBR

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“…FDI has the potential to stimulate socio-economic progress by augmenting domestic capital, job creation, and income generation [ [11] , [12] , [13] , [14] ]. Moreover, it can contribute to environmental quality improvement by facilitating the transfer and adoption of green technology and innovation [ [15] , [16] , [17] ].…”

Section: Introductionmentioning

confidence: 99%

Unlocking Africa's potential: The transformative power of foreign direct investment for sustainable development

Arthur,

Saha,

Sarpong

et al. 2024

Heliyon

Self Cite

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“…Remittances may cause Dutch disease [Acosta et al, 2009], diminished work incentive and moral hazard [Ngoma, Ismail, 2013], and environmental pollution [Islam, 2022]. Remittances contribute to the valuation of the native currency by augmenting the availability of for eign cur rencies, so diminishing the competitiveness of the traded goods industry has resulted in a state of economic stagnation [Mawutor et al, 2023;Javaid, 2017].…”

Section: Introductionmentioning

confidence: 99%

Impact of Remittances on Inflation in Nigeria

Atoyebi,

Ogede,

Adegboyega

et al. 2023

Vestn. Volgogr. gos. univ. Econom.

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International remittances have emerged as an indispensable financial resource for development. However, despite remittances’ growing relevance in overall foreign financial flows in Nigeria, the consumptionoriented nature of the economy of the country presents an intriguing opportunity to consider the connection between foreign remittances and inflation within the country. This study investigates the influence of foreign remittances on inflation in Nigeria from 1990 to 2021. The autoregressive distributed lag technique was employed to scrutinize the long-term behavior of inflation and remittances. The empirical findings indicate that foreign remittances exhibit a negative and statistically insignificant correlation with inflation in Nigeria. The money supply has a satisfactory impact on inflation and is statistically substantial. According to statistical analysis, the exchange rate and economic growth have a negative correlation with inflation, while the exchange rate of the national currency remains stable. Additionally, economic growth has a significant impact on inflation, whereas no correlation has been found between remittances and inflation in the short run. The study argues that in order to ensure price stability, it is important to establish and maintain a mechanism that effectively controls the growth of the money supply and aligns it with economic development goals. This mechanism should promote interaction between financial and fiscal authorities to establish a coherent structure that adjusts monetary policy based on government spending, stimulates sustainable economic growth to reduce inflation, and encourages the creation of jobs and production zones to accelerate economic growth. This may lower inflation by increasing the supply of goods and services. It is necessary to support these efforts by regularly monitoring exchange rate changes and their implications for inflation. Nigeria can maintain economic stability and low inflation by balancing domestic and foreign financial flows.

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The dynamic interactions of economic growth, foreign direct investment, and exchange rates in Ghana

Cited by 5 publications

References 39 publications

The Impact of Stock Market Development on Economic Growth a Case of Malaysia

The Impact of Stock Market Development on Economic Growth a Case of Malaysia

Unlocking Africa's potential: The transformative power of foreign direct investment for sustainable development

Impact of Remittances on Inflation in Nigeria

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