Foreign direct investment, remittances, real exchange rate, imports, and economic growth in Ghana: An ARDL approach

Figures & data

Table 1. Variable, measurement and sources of data

Variables	Measurement	Sources
GDP	Gross domestic product	World development indicators
FDI	FDI, net inflow as a percentage of GDP	World development indicators
EXC	The value of the Ghana cedis to the US dollar	World development indicators
RM	Foreign remittances as a percentage of GDP	World development indicators
GCFM	Gross capital formation as a percentage of GDP	World development indicators
IMPR	Total goods and services imported as a percentage of GDP	World development indicators

Note: Authors Estimation, 2022

Table 2. Descriptive statistics table

	GDP	FDI	EXC	RM	GCFM	IMPRT
Mean	0.06	0.24	−1.91	−1.03	17.63	36.25
Maximum	2.42	2.25	1.52	2.31	30.08	67.24
Minimum	−9.54	−2.99	−8.19	−4.61	2.34	2.98
Std. dev.	2.46	1.61	2.83	1.87	7.93	16.94

Note: Source: Authors Estimates

Table 3. Correlation matrix

Variables	GDP	FDI	EXC	RM	GCFM	IMPR
GDP	1
	-
FDI	0.61	1
	0.00	-
EXC	0.61	0.81	1
	0.00	0.00	-
RM	0.49	0.81	0.88	1
	0.00	0.00	0.00	-
GCFM	0.30	0.63	0.79	0.71	1
	0.00	0.00	0.00	0.00	-
IMPR	0.49	0.66	0.81	0.66	0.78	0.30
	0.00	0.00	0.00	0.00	0.00	0.06

Note: Source: Authors Estimates, 2022

Table 4. Unit root test result

ADF@5%	Levels	First difference	Order of integration	Lag length
GDP	−2.568046	−6.005040	I(1)	1
FDI	−1.156824	−5.533392	I(1)	1
EXC	−3.546980	−3.576145	I(0)	1
RM GCFM	−5.249487 −2.57168	−5.200218 −4.762539	I(0) I(1)	1 1
IMPR	−1.818978	−6.459364	I(1)	2
PP@5%
GDP	−2.734715	−6.288894	I(1)	1
FDI	−1.120197	−5.527727	I(1)	1
EXC	−5.609366	−3.574467	I(0)	1
RM GCFM	−5.239568 −2.215237	−12.53762 −4.127978	I(0) I(1)	1 1
IMPR	−1.748059	−6.293769	1(1)	2

Note: Source: Authors’ Estimates, 2022

Table 5. Cointegration test result

F-statistics	Lower bound	Upper bound	K (n-1)	Sig. level	Remarks
	1.85	3.15	5	10%	Cointegration
3.83	2.11	3.42		5%
	2.62	3.77		1%

Note: Source: Authors’ Estimates, 2022

Table 6. Results of estimated long-run coefficients

Variable	Coefficient	Std. Error	T-Statistic	Prov.
C	13.93	2.31	6.03	0.00
FDI	−1.16	0.42	−2.73	0.01
EXC	−0.88	0.47	−1.88	0.06
RM	2.46	0.38	6.41	0.00
GCFM	0.01	0.04	0.305	0.76
IMPR	−0.31	0.08	−3.60	0.00

Note: Source: Authors Estimates, 2022

Table 7. Results of estimated short-run coefficient

Variable	Coefficient	Std. Error	T-Statistic	Prob.
C	−0.19	0.52	−0.37	0.71
D(GDP)	0.07	0.16	0.10	0.92
D(FDI)	−0.9	0.47	−1.98	0.05
D(EXH)	−1.46	0.64	−2.29	0.03
D(RM)	3.55	1.51	2.35	0.02
D(GCFM)	0.06	0.05	1.17	0.25
D(IMPR)	0.03	0.05	0.64	0.52
D(IMPR(−1))	−0.33	0.11	−0.34	0.05
ECM(−1)	−0.91	0.21	−4.18	0.00
R-squared	0.89
Adjusted R-squared	0.81
F-statistic	7.03
Prob(F-statistic)	0.00
Durbin–Wastson stat	1.90

Note: Source: Authors Estimations, 2022

Table 8. Serial correlation and heteroskedasticity test results

Breusch–Godfred Serial Correlation LM Test
F-statistics	0.590	Prob. F(1, 23)	0.450
Obs*R-squared	0.951	Prob. Chi-Square	0.329
Heteroskedasticity Test: Breusch–Pagan–Godfred
F-statistics	1.2000	Prob. F(13, 24)	0.336
Obs*Squared	14.965	Prob. Chi-Square(13)	0.309

Note: Sources: Authors Estimates, 2022

Table 9. Heteroskedasticity test Breusch–Pagan–Godfrey (functional form)

Heteroskedasticity Test: Breusch–Pagan–Godfred
F-statistic	1.156297	Prob. F(8,25)	0.3628
Obs*R-squared	9.182756	Prob. Chi-Square	0.3271

Note: Source: Authors Estimates, 2022

Figure A1: CUSUM Test Figure.

Figure A2: CUSUMSQ Test.

Figure A3: Normality Test Result.