Frimpong, Joseph Magnus and Oteng-Abayie, Eric Fosu (2006): Bounds testing approach: an examination of foreign direct investment, trade, and growth relationships. Forthcoming in: American Journal of Applied Sciences
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Purpose: This paper examines the long-run impact of foreign direct investment and trade on economic growth in Ghana. Methodology: Using an augmented aggregate production function (APF) growth model, we apply the bounds testing (ARDL) approach to cointegration which is more appropriate for estimation in small sample studies. The data span for the study is from 1970 to 2002. Findings: The results indicated the impact of FDI on growth to be negative which is consistent with other past studies. Trade however was found to have significant impact on growth.
|Item Type:||MPRA Paper|
|Original Title:||Bounds testing approach: an examination of foreign direct investment, trade, and growth relationships|
|Keywords:||Ghana; ARDL cointegration; unit roots; equilibrium-correction; FDI; Trade|
|Subjects:||F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade
C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C32 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes ; State Space Models
F - International Economics > F3 - International Finance > F39 - Other
|Depositing User:||Eric Fosu Oteng-Abayie|
|Date Deposited:||10. Oct 2006|
|Last Modified:||13. Mar 2015 19:50|
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