Economic Growth, Exchange Rate and FDI: A Comparative Analysis of Nigeria and Ghana Between the Year 1990 to 2000

Abstract

This study sets out to examine the “effect of economic growth and exchange rate on FDI, a comparative analysis of Nigeria and Ghana between the years 1990 to 2000”. Ghana and Nigeria were colonized by Britain and gained independence three years apart, that is, In March 6, 1957 Ghana gained her independence which makes her three years older than Nigeria, they are both members of the commonwealth. This note sets out to beam its search light on the comparative analysis of the effect of economic growth and exchange rate on FDI of both countries between 1990-2000 when both countries were thirty-three and thirty years old respectively. Coupled with the fact that both countries are developing economies. Data from World Development Indicators is used to run an ordinary least square or regression analysis. It was discovered that both economic growth and exchange rate are not a good predictor of foreign direct investment for both countries.