Abstract:
The study seeks to examine the trade openness-private investment nexus in
Ghana. It adopted Autoregressive Distributed Lag (ARDL) Bound testing
cointegration technique to examine the correlation between trade openness and
private investment in Ghana. The findings of the study are as follows: there is
a long- run correlation between trade openness and private investment in
Ghana, there is short- run correlation between trade openness and private
investment in Ghana. And there is unicausality running from private
investment to trade openness in Ghana. The study therefore recommends that
the policies in Ghana should be directed towards strengthen trade openness in
Ghana such as easiness in commencement and running of business, taxes
should be minimal, labour law should favour investors as well as lower duties
on import and export in order to increase private investment in Ghana
