FDI Inflows and Outflows in Ghana and Its Export and Import

Abstract

This paper studies the effect of FDI inflows and outflows, export and import from the perspective of their influence on GDP and economic growth of the Ghanaian economy. We evaluate how the values of inward and outward FDI have become a major source of revenue and strategic economic development with less attention being focused on outward FDI. By considering the total values of foreign direct inflows and outflow, general export and imports it was revealed, that there is a direct relationship between export and import of the gross domestic product(GDP) and the overall growth rate. However, it was further indicated that, imports have been increasing rapidly between 2012 and 2016 whereas export have been declining. It is recommended that, the government should reduce import and also encourages outward FDI.

Keywords: FDI, Inflows, Outflows, Export, Import