Abstract
International trade is a cross-border exchange of goods and services. It is the commonest form of international trade activity, which has been instrumental in modifying world history. The overall objective of this study is to identify and quantify the impacts of exports and imports on Ghana's economic growth from 1998 to 2018. Through the unit root and cointegration test, through the first-order difference cointegration variable stability and long-term equilibrium relationship. There is no significant causal relationship between imports in international trade and Ghana’s GDP growth. Exports have a significant causal relationship with Ghana’s GDP growth, such as cocoa. The exchange rate and inflation rate are not Granger causal causes of GDP. Conversely, GDP is indeed the Granger causal cause of exchange rate and inflation rate. Keywords ：Impact; Export; Import; Economic growth; Ghana. DOI: 10.7176/EJBM/12-21-15 Publication date: July 31 st 2020
Highlights
International trade is a cross-border exchange of goods and services
In order to further explore the possible causal relationship between the two, we use Granger causality test to empirically analyze the causal relationship between Ghana's economic growth and international trade
The first is calculating the percentage of economic growth adjustment as a result of export changes
Summary
International trade is a cross-border exchange of goods and services. It is the commonest form of international trade activity; it has played an important role in modifying history of the world. This is the first form of foreign business activity that most businesses conduct, since importing or exporting requires the least effort and risk to the resources of the organization. Countries are considering reducing imports through programmes such as the import substitution strategy, in order to promote locally produced goods. To which Ghana is no exception, have adopted this strategy for import substitution but, it has not been as expected for them. Ghana adopted policies aimed at industrialization and the replacement of imports by domestic production, resulting in problems with the balance of payments
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