Determinants of Private Investment in Ghana
No Thumbnail Available
Date
1997-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
Despite efforts made by the government of Ghana to encourage
private investment, private investment ratios have remained very
low and unstable during and after the ERP. Yet for Ghana to have
high and sustained real per capita income growth, investment,
particularly private investment, will have to rise above current
levels. This thesis employs time series techniques to investigate
The determinants of private investment in Ghana. The findings are
that, in the long run, credit available to the private sector and
real GDP have positive influence on private investment, but real
lending rates and public investment negatively influence private
investment. In the short run real GDP was not significant, but
real per capita income growth rate was found to have a positive
impact on private investment. Stationary tests carried out with
the ADF and DF tests reveal that the Private Investment series
has a permanent memory.
Description
Keywords
Determinants of Private, Investment in Ghana