Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022)

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The Effects of Financial Dollarization on Foreign Direct Investment in Ghana

Authors
Kennedy Acheampong1, *, Disman1, Edi Suryadi1, Hari Mulyadi1, Muhamad Arief Ramdhany1
1Faculty of Business and Economic Education, Universitas Pendidikan, Bandung, Indonesia
*Corresponding author. Email: kacheampong@upi.edu
Corresponding Author
Kennedy Acheampong
Available Online 29 September 2023.
DOI
10.2991/978-94-6463-234-7_25How to use a DOI?
Keywords
ARDL; financial dollarization; foreign direct investment; trade openness
Abstract

The impact of financial dollarization on foreign direct investment was examined in this article. Augmented Dickey-Fuller (ADF) tests were used to verify the series’ unit root. Unit root test results showed that all variables were stationary at a 5% significant level in I(0) or I(1) difference. Consequently, the analysis employed the Dynamic Ordinary Least Square regression model. Data from quarterly time series covering the years 2000 to 2021 were used in this article. According to the results, financial dollarization has a negative long- and short-term impact on foreign direct investment in Ghana. To reverse Ghana’s trend of financial dollarization and draw in much foreign direct investment, it is advised that government policies concentrate on re-establishing trust, and confidence in the national currency. Also, monetary authorities should ensure that the is a more robust macroeconomic stability such as an institution to enforce risk hedging instruments domestically.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
29 September 2023
ISBN
978-94-6463-234-7
ISSN
2352-5428
DOI
10.2991/978-94-6463-234-7_25How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Kennedy Acheampong
AU  - Disman
AU  - Edi Suryadi
AU  - Hari Mulyadi
AU  - Muhamad Arief Ramdhany
PY  - 2023
DA  - 2023/09/29
TI  - The Effects of Financial Dollarization on Foreign Direct Investment in Ghana
BT  - Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022)
PB  - Atlantis Press
SP  - 264
EP  - 273
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-234-7_25
DO  - 10.2991/978-94-6463-234-7_25
ID  - Acheampong2023
ER  -