The Impact of Export and Import to Economic Growth of Ghana

Abstract

International trade is a cross-border exchange of goods and services. It is the commonest form of international trade activity, which has been instrumental in modifying world history. The overall objective of this study is to identify and quantify the impacts of exports and imports on Ghana's economic growth from 1998 to 2018. Through the unit root and cointegration test, through the first-order difference cointegration variable stability and long-term equilibrium relationship. There is no significant causal relationship between imports in international trade and Ghana’s GDP growth. Exports have a significant causal relationship with Ghana’s GDP growth, such as cocoa. The exchange rate and inflation rate are not Granger causal causes of GDP. Conversely, GDP is indeed the Granger causal cause of exchange rate and inflation rate.

Keywords：Impact; Export; Import; Economic growth; Ghana.

DOI: 10.7176/EJBM/12-21-15

Publication date:July 31^st 2020