Definition of variables
| Variable | Definition |
|---|---|
| LNFDI | Foreign direct investment refers to direct investment equity flows in the reporting economy. It is the sum of equity capital, reinvestment of earnings, and other capital. This study used the net FDI inflow as a ratio of GDP |
| LNFINDEX | Financial sector reform index is an index constructed following Abiad et al. (2010) along seven different dimensions: credit controls and reserve requirements, interest rate controls, entry barriers, state ownership, policies on securities markets, banking regulations and restrictions on the financial account |
| LNGDP | The study used GDP per capita to measure economic growth. GDP per capita is measured by dividing the Gross Domestic Product (GDP) by the total population in the county |
| LNTO | This study used the total value of exports and imports as a ratio of GDP to measure trade openness |
| LNINF | Inflation rate is measured by the consumer price index annual percentage change in the cost to the average consumer of acquiring a basket of goods and services that may be fixed or changed at specified interval |
| LNEXE | Exchange rate is the rate at which a country’s currency is exchanged for another. It is the value of a country’s currency in relation to another currency. The value of the local currency (Ghana Cedi) against the United States Dollar (US) is used as a proxy of the exchange rate in this study |
| Variable | Definition |
|---|---|
| LNFDI | Foreign direct investment refers to direct investment equity flows in the reporting economy. It is the sum of equity capital, reinvestment of earnings, and other capital. This study used the net FDI inflow as a ratio of GDP |
| LNFINDEX | Financial sector reform index is an index constructed following |
| LNGDP | The study used GDP per capita to measure economic growth. GDP per capita is measured by dividing the Gross Domestic Product (GDP) by the total population in the county |
| LNTO | This study used the total value of exports and imports as a ratio of GDP to measure trade openness |
| LNINF | Inflation rate is measured by the consumer price index annual percentage change in the cost to the average consumer of acquiring a basket of goods and services that may be fixed or changed at specified interval |
| LNEXE | Exchange rate is the rate at which a country’s currency is exchanged for another. It is the value of a country’s currency in relation to another currency. The value of the local currency (Ghana Cedi) against the United States Dollar (US) is used as a proxy of the exchange rate in this study |
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