A vector autoregression (VAR) analysis of corruption, economic growth, and foreign direct investment in Ghana
The paper investigated the dynamic and causal relationship among corruption, foreign direct investment, and economic growth simultaneously, a largely overlooked area in empirical studies, using a dataset from Ghana. It is among the few studies that explore the confluence of these variables and there...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2022-12-01
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| Series: | Cogent Economics & Finance |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2022.2146631 |
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| author | Randolph Nsor-Ambala Ebenezer Bugri Anarfo |
| author_facet | Randolph Nsor-Ambala Ebenezer Bugri Anarfo |
| author_sort | Randolph Nsor-Ambala |
| collection | DOAJ |
| description | The paper investigated the dynamic and causal relationship among corruption, foreign direct investment, and economic growth simultaneously, a largely overlooked area in empirical studies, using a dataset from Ghana. It is among the few studies that explore the confluence of these variables and therefore contributes to understanding the contextual realities of the impact of FDI inflow, an often-prioritised policy choice, on widely used measures of social coherence and welfare. The study employed a vector autoregressive (VAR) estimation approach to empirically explore the relationships among corruption, foreign direct investment, and economic growth. The findings suggest that there is a reverse causality among corruption, foreign direct investment, and economic growth. This indicates that these variables are complementary rather than contradictory. These findings imply that central government and policymakers should not pursue any of these variables as a policy goal, but rather treat them as complements when modelling or formulating economic policies. This means that policies aimed at promoting foreign direct investment will not jeopardize or compromise the control of corruption and economic growth and vice versa. |
| format | Article |
| id | doaj-art-3ac5860b9ddc4f4bbb42a6e532c59ac1 |
| institution | OA Journals |
| issn | 2332-2039 |
| language | English |
| publishDate | 2022-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj-art-3ac5860b9ddc4f4bbb42a6e532c59ac12025-08-20T02:16:44ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2146631A vector autoregression (VAR) analysis of corruption, economic growth, and foreign direct investment in GhanaRandolph Nsor-Ambala0Ebenezer Bugri Anarfo1Department of Accounting and Finance, Ghana Institute of Management and Public Administration, Accra, GhanaDepartment of Accounting and Finance, Ghana Institute of Management and Public Administration, Accra, GhanaThe paper investigated the dynamic and causal relationship among corruption, foreign direct investment, and economic growth simultaneously, a largely overlooked area in empirical studies, using a dataset from Ghana. It is among the few studies that explore the confluence of these variables and therefore contributes to understanding the contextual realities of the impact of FDI inflow, an often-prioritised policy choice, on widely used measures of social coherence and welfare. The study employed a vector autoregressive (VAR) estimation approach to empirically explore the relationships among corruption, foreign direct investment, and economic growth. The findings suggest that there is a reverse causality among corruption, foreign direct investment, and economic growth. This indicates that these variables are complementary rather than contradictory. These findings imply that central government and policymakers should not pursue any of these variables as a policy goal, but rather treat them as complements when modelling or formulating economic policies. This means that policies aimed at promoting foreign direct investment will not jeopardize or compromise the control of corruption and economic growth and vice versa.https://www.tandfonline.com/doi/10.1080/23322039.2022.2146631Corruptionforeign direct investmenteconomic growthvector autoregression |
| spellingShingle | Randolph Nsor-Ambala Ebenezer Bugri Anarfo A vector autoregression (VAR) analysis of corruption, economic growth, and foreign direct investment in Ghana Cogent Economics & Finance Corruption foreign direct investment economic growth vector autoregression |
| title | A vector autoregression (VAR) analysis of corruption, economic growth, and foreign direct investment in Ghana |
| title_full | A vector autoregression (VAR) analysis of corruption, economic growth, and foreign direct investment in Ghana |
| title_fullStr | A vector autoregression (VAR) analysis of corruption, economic growth, and foreign direct investment in Ghana |
| title_full_unstemmed | A vector autoregression (VAR) analysis of corruption, economic growth, and foreign direct investment in Ghana |
| title_short | A vector autoregression (VAR) analysis of corruption, economic growth, and foreign direct investment in Ghana |
| title_sort | vector autoregression var analysis of corruption economic growth and foreign direct investment in ghana |
| topic | Corruption foreign direct investment economic growth vector autoregression |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2022.2146631 |
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