Impact of Import and Export on the Economic Growth of Ghana

Abstract

This study investigates the impact of import and export on the economic growth of Ghana by using a multiple linear regression model. The variables of interest for these models were the gross domestic product representing the economic growth as the dependent variable. Import, export, foreign direct investment, and population were the independent variables used in determining the relationship they have with economic growth. Secondary data on GDP, import, export, population, and FDI were accessed from the World Bank website to satisfy the model which was run through a regression software called STATA. The results from the study indicated that both import and export are tremendously important factors in effecting growth in the economy of Ghana. Population on the other hand shows a negative effect on the economy. This research then suggested that more exports must be encouraged to boost the growth of the economy.