Abstract

This study delves into the intricate relationship between Foreign Direct Investment (FDI), economic growth, and service sector value addition in Ghana, aiming to provide insights into the dynamics shaping the country's economic landscape. Ghana has witnessed a surge in FDI inflows in recent years, particularly in the service sector, which has become a key driver of economic development. Through a comprehensive analysis of macroeconomic data and sector-specific trends, this research explores the impact of FDI on economic growth and the value addition within the service sector. Employing quantitative methods and econometric modeling, the study examines the causal relationships and dynamics among FDI, GDP growth, and service sector value addition. The findings shed light on the role of FDI in stimulating economic activity, fostering innovation, and enhancing productivity within the service sector, thereby contributing to overall economic growth and development in Ghana.

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