The Akwatia Diamond Mine has been responsible for most of the diamond-\nrelated activities in Ghana. This study analyses the factors responsible\nfor the recent lack of investments inflows into the Mine and also assesses diamond\nexport performance in Ghana using the annual time series data from\n1987 to 2018. The Gravity Model, a well-known model for trade flow analyses\nis employed into the study to assess the relationship between diamond exports\nand foreign direct investments as well measure its impact on gross domestic\nproduct, diamond price, real effective exchange rate and inflation rate.\nThe study found a positive but insignificant impact of foreign direct investments\non diamond export over the period under study in the long run and\nalso reports little or no direct impact on diamond exports in the short run.\nThe study recommends that the Government of Ghana should introduce punitive\nlaws and regulations to guide the next Akwatia Diamond Mine divestiture\nto avoid a repeat of the past divestiture failures. Additionally, the study\nrecommends that the Government of Ghana should reconsider lifting the ban\non artisanal diamond mining and rather formulate and adopt policies to\nmanage and supervise their activities to boost diamond production, exports\nand revenue.
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