RELATIONSHIPS BETWEEN ECONOMIC GROWTH, FOREIGN DIRECT INVESTMENT AND INFLATION: ARDL MODELS APPROACH FOR THE CASE OF GHANA

Authors : Orhan COBAN, Abdulrazak YUSSIF

Pages : 7-23

View : 24 | Download : 11

Publication Date : 2019-07-31

Article Type : Research Paper

Abstract :The study applies Autoregressive Distributed Lags models and the Toda  and Yamamoto insert ignore into journalissuearticles values(1995); causality test to analyze the relationships as well as  the causality properties among various pairs of Ghana’s inflow of Foreign  Direct Investment insert ignore into journalissuearticles values(FDI);, Inflation and Economic growth for the period 1980 to 2017. The study finds that Inflation relates inversely with both  Economic growth and inflows of Foreign Direct Investment. However,  Ghana’s Economic growth and its inflows of FDI are positively related.  Finally, the study finds a bidirectional causal effect between inflation and  FDI. In addition, a unidirectional causal effect moving from Economic  growth to Inflation was established and the causal effect is non-existent  between Economic growth and inflow of FDI.
Keywords : ardl, economic growth, causality test, fdi, ghana