International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
Open Access | Fully Refereed | Peer Reviewed

ISSN: 2319-7064


Downloads: 153

Research Paper | Finance | China | Volume 8 Issue 1, January 2019


Foreign Direct Investment (FDI) Inflows in Ghana: Sectorial Impact on Economic Growth (GDP)

David Prah


Abstract: Using a multiple regression analysis that includes FDI sector contribution and other macroeconomic variables, this paper explores the impact of FDI on economic growth in Ghana from sector perspective. From the analysis (the pair wise correlation), this studys findings indicate that FDI inflow into the tertiary sector, which involves Export trading, Service, Tourism, Liaison, General trading and Export trading, correlates and for that matter contributes to economic growth more than the secondary and the primary sectors. It is the case that for every unit increases in FDI inflow into the tertiary sector, GDP grows by as large about 85 %. The second highest FDI sector contributor to GDP growth is the secondary sector, which comprises mainly the manufacturing and building & construction. This sector has about 67 % multiplier effect on economic growth. Last but not least, FDI inflows into the primary sector also influence economic growth by about 57 %. Both inflation and interest however has a deleterious impact on economic growth (GDP). As a matter of policy, this study recommends that policymakers and governments should put in much attention and resource in attracting FDI into the tertiary sector as well as reducing inflation and interest rate.


Keywords: FDI, Economic growth, Primary, GDP, Secondary and Tertiary Sector


Edition: Volume 8 Issue 1, January 2019,


Pages: 949 - 955


How to Cite this Article?

David Prah, "Foreign Direct Investment (FDI) Inflows in Ghana: Sectorial Impact on Economic Growth (GDP)", International Journal of Science and Research (IJSR), https://www.ijsr.net/get_abstract.php?paper_id=ART20194150, Volume 8 Issue 1, January 2019, 949 - 955

How to Share this Article?

Enter Your Email Address


Similar Articles with Keyword 'FDI'

Downloads: 129

Case Studies, Finance, Morocco, Volume 8 Issue 6, June 2019

Pages: 2158 - 2163

Foreign Direct Investment in Morocco: Attempt to Model its Behaviour through Different Economic Indicators

Qamqam Meriam, El Haddad Mohamed Yassine

Share this Article

Downloads: 131

Research Paper, Finance, India, Volume 6 Issue 3, March 2017

Pages: 1486 - 1491

Impact of FDI on Indian Economy - An Analytical Study

Smitha B Nair, Dr. Minimol M.C

Share this Article

Similar Articles with Keyword 'Economic growth'

Downloads: 125 | Weekly Hits: ⮙2 | Monthly Hits: ⮙3

Research Paper, Finance, China, Volume 9 Issue 7, July 2020

Pages: 1331 - 1344

Impact of Age Population Structure on Transport Infrastructure Investments

Michael Kwabena Ofori

Share this Article

Downloads: 3 | Weekly Hits: ⮙1 | Monthly Hits: ⮙1

Research Paper, Finance, Nigeria, Volume 10 Issue 7, July 2021

Pages: 1302 - 1313

The Relationship between Stock, Bond Markets and Economic Growth in Nigeria

Ogbebor Peter I., Ajibade Ayodeji T., Onoja Donatus

Share this Article

Similar Articles with Keyword 'Primary'

Downloads: 1 | Monthly Hits: ⮙1

Doctoral Thesis, Finance, Kenya, Volume 10 Issue 10, October 2021

Pages: 1251 - 1256

Board and Senior Management Oversight Guideline Compliance and Its Effect on Financial Performance of Commercial Banks in Kenya

Magadi Stephene Oloo, Waweru Gabriel, Tanui John Kipkorir

Share this Article

Downloads: 54

Masters Thesis, Finance, Kenya, Volume 10 Issue 1, January 2021

Pages: 992 - 998

Effect of Pesalink and Mvisa on Financial Deepening among Tier 1 Commercial Banks in Kenya

Daniel Mitau Serah, Dr. Gladys Bunyasi

Share this Article

Similar Articles with Keyword 'GDP'

Downloads: 125 | Weekly Hits: ⮙2 | Monthly Hits: ⮙3

Research Paper, Finance, China, Volume 9 Issue 7, July 2020

Pages: 1331 - 1344

Impact of Age Population Structure on Transport Infrastructure Investments

Michael Kwabena Ofori

Share this Article

Downloads: 98

Research Paper, Finance, China, Volume 7 Issue 6, June 2018

Pages: 1079 - 1082

Vietnams Economic Growth Influenced by Export-Oriented Economy

Shang Yuan

Share this Article
Top