Bounds testing approach: an examination of foreign direct investment, trade, and growth relationships
AbstractPurpose: 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 352.
Date of creation: 09 Aug 2006
Date of revision: 09 Oct 2006
Ghana; ARDL cointegration; unit roots; equilibrium-correction; FDI; Trade;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
- F39 - International Economics - - International Finance - - - Other
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