Bounds Testing Approach to Cointegration: An Examination of Foreign Direct Investment Trade and Growth Relationships| Science Publications

American Journal of Applied Sciences

Frimpong J. Magnus¹  Oteng A.E. Fosu¹ 

关键词: Ghana;    FDI;    ARDL cointegration;    unit roots;    equilibrium-correction;    trade;   

DOI  :  10.3844/ajassp.2006.2079.2085

学科分类：自然科学（综合）

来源: Science Publications

【 摘 要 】

This study examines the long-run impact of foreign direct investment and trade on economic growth in Ghana. 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. We found cointegration relations between growth and its determinants in the APF model. 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 positive impact on growth.

【 授权许可】

Unknown