Abstract
As foreign direct investment provides a new way for many countries to improve their economies with Ghana not being an exemption. The source of FDI countries looks on to give Ghana a new way of advancement. This study provides a general overview on the inflow of foreign direct investment to Ghana. By considering FDI component values, local currency values, the overall number of projects registered and employment creation to investigate their significance in Ghana’s economy. This study makes use of the descriptive statistical method that promote data analysis in a quantitative way. The results revealed that, FDI component contributes heavily to the total foreign direct investment values in Ghana. The outcome also shows that, of the whole number of registered projects, about 72.10% were wholly-foreign owned but in the aspect of the aggregate cost of these projects, the value of joint ventures (between Ghanaians and their foreign counterparts) weigh higher than that of wholly-foreign owned businesses. The result further indicates that, on the account of employment creation, Ghanaians enjoyed about 85% of the total jobs to be created. It is suggested that the government of Ghana should encourage its citizen to contribute more to investment.
Highlights
Investment is essential for multinational companies, individual, governments and nations
This study provides a general overview on the inflow of foreign direct investment to Ghana
The results revealed that, Foreign Direct Investment (FDI) component contributes heavily to the total foreign direct investment values in Ghana
Summary
Investment is essential for multinational companies, individual, governments and nations. The African continent continues to attract a meaningful share of foreign direct investment inflow across the globe as a result of institutional and structural reforms, and implementation of sound investment policies. This is because of the ongoing globalization and the redistribution or allocation of capital and wealth among nations with the idea of global competition (Joseph, 2015). Foreign Direct Investment (FDI) is a cross-border investment made by a country A direct investor with the intention of creating a lasting interest in a country B incorporated undertaking (IMF, 1993).The position and value of FDI was at the center of a debate about which public policies are best suited to turn the former socialist world's emaciated state-owned economies into competitive market systems (Romer, 1986)
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