The Impact of Structural Adjustment Programs on Foreign Direct Investments Attraction and Gold Exports in Ghana

Abstract

Gold is the most important mineral exported in Ghana. The structural adjustment programs (SAPs) introduced in Ghana in 1986 have contributed to increased foreign direct investment attraction in Ghana. The main purpose of this study is to use cointegration approach to determine the impact of the SAPs on gold exports in Ghana. The results show real exchange rate to be significant in the long run and all of the variables to be insignificant in the short run. The study concludes that these variables have not had any significant impact on gold exports from Ghana for the period under study. The study recommends that the Government of Ghana should restructure mining sector reforms and policies that can further liberalize the investment climate to attract more foreign direct investment and also increase domestic gold sector participation in the global economy.