Democracy, Globalization and Private Investment in Ghana

Obeng, Samuel Kwabena, Akoto, Linda and Acquah, Felicia (2018) Democracy, Globalization and Private Investment in Ghana. Global Business Review, 19 (1). pp. 1-20. ISSN 0972-1509

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    Abstract

    The article examines the effects of democracy and globalization on private investment in Ghana for the period 1980–2012, using the autoregressive distributed lag (ARDL) bounds test for cointegration and the error correction model (ECM). Two models are used. In Model 1, democracy is proxy by an index for institutional quality (Polity 2), while Model 2 uses an index for civil liberties as proxy for democracy. The results for Model 1 show globalization and public investment increase private investment, while exchange rate volatility and trade openness decrease private investment in both the long and short run. In addition, national income and interest rate reduce private investment in the short run. In the case of Model 2, credit to the private sector and public investment increase private investment, while exchange rate volatility and trade openness decrease private investment in both the long and short run. Finally, national income and interest rate reduce private investment in the short run. The findings and policy recommendations of the article provide vital information for policy implementation in Ghana.

    Item Type: Article
    Uncontrolled Keywords: democracy,globalization,private investment,ardl,ecm
    Faculty \ School: Faculty of Social Sciences > School of Economics
    Related URLs:
    Depositing User: Pure Connector
    Date Deposited: 23 Nov 2017 06:06
    Last Modified: 06 Nov 2018 15:46
    URI: https://ueaeprints.uea.ac.uk/id/eprint/65551
    DOI: 10.1177/0972150917713288

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