Foreign Investment Research Articles

Impact Investing and Social Entrepreneurship in Southeast Asia post-COVID-19

Impact investing and social entrepreneurship have garnered increasing traction in Southeast Asia as means to drive inclusive growth aligned with Sustainable Development Goals. However, the COVID-19 pandemic has exacerbated inequalities and vulnerabilities across marginalized communities, creating pressing needs for market-based innovations catering to those left behind. This study undertakes an exploratory study to assess how the recovery trajectory is reshaping impact capital and social enterprise ecosystems to promote resilient, equitable development post-pandemic. Using a qualitative methodology, semi-structured interviews were conducted with 15 impact investors and social entrepreneurs operating across Indonesia, Vietnam, Thailand, Malaysia, Philippines and Singapore. Interview transcripts were coded through descriptive thematic analysis approach to map changing investor priorities, pivot in social enterprise models along with persistent and emerging barriers. Key trends identified include deepening digital divide driving focus on edtech and telemedicine enterprises, rising hunger and income precarity accelerating food security and livelihood-linked innovations. However, concerns remain around measuring real-world impact, human capital gaps and policy constraints regarding foreign investment and public procurement. The analysis informs recommendations including outcome-based blended finance vehicles, promotion of sustainable agriculture value chains, and streamlining cross-border investment flows for the ecosystem to drive recovery aligned with ASEAN sustainable development commitments.

Foreign Investments and Market Capitalization in Nigeria: A VECM Analysis

A healthy capital market promotes the overall economic wellbeing of a country. However, Nigeria’s capital market has witnessed both internal and external pressures leading to high rate of volatility. This study examines the impact of foreign investments on market capitalization in Nigeria’s capital market for the period 1981 to 2022. The study is anchored on the theoretical framework of capital movement across regions and seeks to explain why investors invest in foreign countries and the impacts of such investments on the host country’s capital market. We adopted a vector error correction model (VECM) as our analytical tool. The ontrol variables: exchange rate, infrastructure, interest rate, and the target variables: foreign direct investment (FDI) and foreign portfolio investment (FPI) were regressed on market capitalization. Results indicate that FDI and FPI had positive and significant impact on market capitalization in Nigeria’s capital market and that FDI and market capitalization are the major contributors to the variations in market capitalization in Nigeria’s capital market. We conclude that FDI and FPI play important roles in Nigeria’s capital market performance and recommend incentives such as tax reduction and fee waivers which are capable of encouraging foreign enterprises listing. These will make Nigeria’s capital market globally attractive to foreign investors and hence ensure a continuous and impactful inflow.

The Interaction Between Economic Development and Environmental Protection in Yunnan Province over the Past Two Decades

Over the past two decades, urbanization and industrialization in Yunnan Province have rapidly advanced, spurring economic growth but also leading to intensified environmental challenges, particularly in urban areas where issues like air pollution and declining vegetation cover have become increasingly prominent. Balancing economic development and environmental protection has thus emerged as a core priority for Yunnan. This study quantifies and analyzes the temporal and spatial changes, coupling coordination degree, and driving factors underlying key indicators of economic development and environmental protection in Yunnan’s urban areas from 2000 to 2019. The results indicate that: (1) Economic growth is evident across all four types of regions, though growth rates have decelerated. The first type of region shows a “U”-shaped trend in FVC, the second type of region a “W” trend, and the third and fourth type of region show a consistent upward trend. (2) Overall coupling between economic development and environmental protection remains low across Yunnan, with a strong correlation between the degree of coupling coordination and urban economic development levels: the first type of region has the highest coupling coordination degree, while the fourth type of region has the lowest coupling coordination degree. (3) Industrial structure is the most influential factor in coupling coordination between economic development and environmental protection across Yunnan (74.9%). Influencing factors differ by region: secondary industry predominates in the first type of region (24.4%), foreign investment leads in the second (24.1%), technological innovation significantly impacts the third (23.9%), and marketization drives the fourth type of region (25.8%).

Making sense of foreign investment screening through sectoral analysis

Making sense of foreign investment screening through sectoral analysis

Analysis of Factors Influencing the Economic Growth in West Java Province

This study aims to analyse the factors that influence the economic growth of West Java Province. These factors include foreign investment, domestic investment, health, education and infrastructure. This study uses panel data regression analysis on secondary data of 18 regencies and 9 cities in West Java Province in 2017-2022. The results showed that foreign investment, education and infrastructure tend to have an impact on increasing economic growth in West Java Province. Domestic investment and health have no effect on increasing economic growth in West Java Province. The implication of the findings in this study is that the West Java government needs to increase the attractiveness of foreign and domestic investment and allocate investment to strategic sectors that have great potential for economic growth. In addition, increasing economic growth can be achieved by improving the quality of health and education, as well as strengthening infrastructure, especially water infrastructure. Thus, it can encourage the acceleration of economic growth and improve the welfare of the people in West Java Province.

Evolutionary characteristics and influencing mechanisms of green development efficiency in Chinese urban agglomerations: Analysis of the Yangtze River Delta urban agglomeration.

Urban agglomerations are central to global economic growth and the shift towards green development, particularly in developing countries. This study examines regional comparisons and variations in green development mechanisms within urban agglomerations to better understand their spatiotemporal patterns. An input-output indicator system was developed, accounting for social benefits and carbon emissions. Using the Yangtze River Delta urban agglomeration (YRDUA) as a case, this study measured green development efficiency (GDE) from 2003 to 2022 with the SBM-Undesirable model. It also employed the coefficient of variation (CV) method and Markov chain model to analyze the spatiotemporal variability and dynamic transformation law of GDE. Additionally, a panel quantile regression model was used to identify the dynamic response of key controlling factors, based on the GDE stages of each city. The findings reveal: (1) Cities in the central YRDUA area have higher GDE levels compared to those in non-central areas, with increasing disparity over time. (2) The green development level of a city influences its neighbors, enhancing or degrading their GDE stability and type. (3) Economic growth, foreign direct investment, industrial structure, and technological innovation significantly impact YRDUA's GDE. (4) In cities with low green development, economic growth strongly promotes GDE, while government regulation most restricts it. In medium-level cities, industrial structure advancements have the largest promotional effect, whereas technological innovation is the most limiting factor. In high-level cities, foreign investment intensity is the main inhibitor, while government regulation supports GDE. Marketization and environmental regulation effects on GDE remain consistent across different city levels. These findings provide targeted guidance for the green transition of urban agglomerations in China and other developing nations.

Ukraine’s national policy on RES: analysis of international obligations and integration into European energy markets

Introduction. Ukraine, as it moves toward integration with European markets and fulfills its international climate commitments, faces the necessity of transforming its economy towards sustainable development. A key aspect of this transformation is the adoption of renewable energy sources (RES) and enhancing energy efficiency across all sectors of the economy. Amid the ongoing armed conflict and destruction of energy infrastructure, Ukraine is actively working to restore and modernize its energy sector, aiming to reduce its reliance on imported fossil fuels and align with European energy markets. The adoption of the National Energy and Climate Plan through 2030, which was developed in line with European Union standards and the Paris Climate Agreement, outlines the main strategic development priorities. These include a substantial reduction in greenhouse gas emissions, increasing the share of RES in the national energy mix to 27%, and improving energy efficiency by 30%. These initiatives are designed to ensure a sustainable energy system that will foster economic growth, enhance energy independence, and tackle climate change. Despite Ukraine’s significant potential in renewable energy development – such as solar, wind, and bioenergy—numerous challenges impede the implementation of these projects. The major obstacles include financial instability, institutional barriers, and the ongoing military conflict. However, Ukraine’s national policy is showing positive trends in the adoption of modern green technologies and its gradual integration into the European energy market. This study also highlights the importance of international cooperation in fostering the development of Ukraine’s «green» economy. Support from international financial institutions like the European Bank for Reconstruction and Development and the World Bank plays a crucial role in financing RES and energy efficiency projects. International agreements, including REPowerEU and the European Green Deal, offer Ukraine opportunities to attract additional investments and expedite the energy sector’s reform process. Thus, the development of Ukraine’s national RES policy, alignment with international obligations, and integration into European markets are not only essential for preserving energy independence but are also crucial for achieving the country’s sustainable development goals in the face of climate change and global challenges. The purpose of the article is to analyze Ukraine’s national policy on renewable energy sources, its alignment with international obligations, and to assess the prospects for Ukraine’s integration into European energy markets. Research methods. To achieve these objectives, the study uses methods such as system analysis, statistical data analysis, and comparative analysis. The data used comes from both primary and secondary sources, including statistics from the State Statistics Service of Ukraine and international reports on renewable energy development. Research results. The analysis shows that Ukraine has made some progress in increasing the share of renewable energy in its overall energy consumption. However, substantial investments and international support will be necessary to achieve the goals outlined in the National Plan by 2030. Several scenarios for the development of renewable energy in Ukraine have been considered, with the most optimistic one projecting successful integration into European energy markets. Research perspectives. Future studies could focus on practical aspects of implementing energy efficiency and decarbonization initiatives, as well as a deeper exploration of the potential for attracting foreign investment in the development of RES in Ukraine.

Russian-Chinese cooperation in the Arctic

This article examines the main areas of cooperation between Russia and the People’s Republic of China in the Arctic region. In the new geopolitical conditions, sanctions, deterioration of relations with Western countries, Russia has reoriented its foreign policy with the countries of Asia and the Global South. To maintain stability and develop the economy, it is necessary to solve internal problems of regional development. The most important from the point of view of socio-economic and geopolitical factors are such macro-entities as the Far East and the Arctic. Separate management institutions have been established – the Ministry for the Far East and the Arctic, the Corporation for the Development of the Far East and the Arctic. Regulatory and legal acts concerning the development of these regions are being adopted. The largest investment projects are being implemented, in which foreign investors, including Chinese ones, invest. In recent years, China has been pursuing an active foreign policy in the Arctic region. There is a growing interest in the development of the Northern Sea Route and the Northwest Route. As an observer country in the Arctic Council since 2013, China has its own interests in the legal definition of Arctic sea waters. Scientific cooperation with Arctic countries in the field of climate change and northern lights observation is increasing. In recent years, Russia and China have been strengthening interstate cooperation in various areas. The most effective area today seems to be cooperation in the energy sector, for example, the YAMAL LNG project. The areas of construction of nuclear icebreakers and joint development of the Northern Sea Route seem promising. China is also expected to contribute to the development of investment projects in the Far East, among which it is worth highlighting the territories of advanced development. For the Republic of Sakha (Yakutia), the most important project is the construction of the Lena Bridge, which should connect transport routes in the Far East, East Asia and the Arctic.

ANALISIS PELATIHAN KOMUNIKASI LINTAS BUDAYA PADA PERUSAHAAN MULTINASIONAL (Studi Kasus PT Kawasan Industri Nusantara KEK Sei Mangkei)

International business is a business activity carried out between one country and another. International business activities can be carried out in various forms of Foreign Direct Investment, licensing, franchising, and multinational corporation (MNC). According to Rugman, a multinational company is a company that produces abroad in addition to the parent country and operates across national borders. The development of multinational companies in Indonesia is currently very rapid supported by Indonesia's growing economic conditions. The increasing number of multinational companies in Indonesia also goes hand in hand with the increasing need to hire more workers from various countries that allow them to communicate with foreign workers stationed in Indonesia. Interaction that occurs beyond the boundaries of language and cultural differences, demanding the ability of each party to be able to understand the differences that exist is referred to as intercultural communication. The purpose of this study is to analyze how cross-cultural communication training in multinational companies in the Nusantara Industrial Zone SEZ Sei Mangkei. This research uses a qualitative method that produces descriptive data in the form of written, spoken words from people and observed behavior. With data collection techniques, namely library research, questionnaires and observation. The results showed that cross-cultural communication training at the multinational company Nusantara Industrial Estate SEZ Sei Mangkei was motivated by the existence of cross-cultural communication barriers with foreign investors, namely language differences that can lead to misunderstandings and failure of business agreements. To ensure that its employees use the English language skills acquired from the training program, the company implements daily work in speaking English.

The Differential Effect of Regulatory Signals on Shareholder Dissent: The Case of Shareholder Voting in Director Elections

ABSTRACTResearch Question/IssueIn the Japanese context of shareholder voting in director elections, this study examines how regulatory signals differently influence shareholder dissent depending on their resource dependence relationship with regulatory bodies.Research Findings/InsightsWe find that the effect of a regulatory change in the disclosure of voting records on shareholder dissent is strengthened as shareholdings by domestic institutional investors increase, while it is mitigated as shareholdings by foreign institutional investors increase. Moreover, we find that this effect is pronounced under conditions where directors seemingly fail to fulfill or to qualify for their role.Theoretical/Academic ImplicationsThis study develops a resource dependence perspective of shareholder dissent and argues that shareholder dissent can be shaped by regulatory signals from regulatory bodies who provide them with legitimacy. This study enriches the existing insights on corporate governance role of institutional investors by focusing on their resource dependence on regulatory bodies.Practitioner/Policy ImplicationsThis study sheds light on the dynamic nature of shareholder behavior and suggests that shareholder preferences are not only heterogeneous but also mutable over time in response to regulatory signals. This implies that managers need to pay attention not only to current shareholder preferences but also to future anticipated shareholder preferences to successfully manage their relationships with shareholders.

Analisis Politik Hukum Pariwisata Indonesia dan Dampaknya terhadap Kebijakan Keimigrasian

The high The politics of tourism law in Indonesia greatly influences immigration policy. The politics of tourism law in Indonesia has resulted in a very large acceptance of the entry of foreigners. One of the functions of immigration is to facilitate community welfare development, which has given rise to demands for the Directorate General of Immigration to provide policies that support the international tourism sector. Various immigration facilitation policies such as free visas and ease of applying for visas are implemented to support increasing the country's foreign exchange in the tourism sector. Empirical Juridical Research with a legislative approach analyzed using Legal Theory in Policy Orientation produces the following conclusions: a) Indonesian tourism legal politics currently applies with two approaches, namely culture and economics, but the two are not carried out in a balanced manner so that tourism legal politics actually becomes culture as a potential or resources that can be utilized for economic benefits but are not followed by real efforts to preserve or sustain tourism, b) Indonesian tourism legal politics greatly influences the direction of immigration policy in Indonesia, this is shown by: Visa Free Visit Policy, Immigration Ease Policy for Foreign Investors and Tourists, Beware of Overtourism, and Challenges of Strengthening Supervision of Foreigners.

Digital Nomadism and the Emergence of Digital Nomad Visas: What Policy Objectives Do States Aim to Achieve?

Digital nomads who travel internationally while working remotely with digital technologies constitute a small but increasing migrant population that has attracted significant research attention lately. Since 2020, there is also a corresponding rise of “digital nomad” visas adopted by several countries around the world to cater for this type of global mobility and even to attract digital nomads. This paper reviews the resurgence of digital nomadism and a concomitant emergence of digital nomad visas to analyze how and why they emerged. The findings allow for categorizations of such policies in terms of their heterogeneity of designs, objectives, and implications. Our findings reveal that the states offering digital nomad visas have designed their visas either through creating a brand new or an adaptive policy approach — the choice of the policy design approach explains the states’ policy priorities. Our analysis shows that digital nomad visas are motivated by three broader socioeconomic interests of the visa issuing countries which include the promotion of tourism, attraction of foreign investments and entrepreneurship, and talent acquisition through a migration policy model. Furthermore, the digital nomad visas invoke the notion of “hypermobility” and permeability of state borders in light of widespread adoptions of digital technologies in work and employment; however, there are paradoxes and contradictions embedded within these policies which manifest through restrictive and exclusionary criteria based on wealth, skills, and nationality. The paper concludes with some critical observations on the novelty of digital nomad visas as a novel migration regime.

How do foreign and domestic institutional investors drive the market value? The influence of family ownership

PurposeThis paper aims to investigate and compare the impact of foreign and domestic institutional investors on the market value of family and non-family companies. Subsequently, it examines how different degrees of family ownership influence foreign and domestic institutional investors and their value impacts.Design/methodology/approachThe sample of this study includes 339 non-financial firms from NIFTY-500 for 11 years from 2011 to 2020, which contains 128 family and 211 non-family companies. Both static (fixed-effect model) and dynamic (two-step system generalized method of moments) models are employed to test the hypotheses.FindingsFindings suggest that foreign institutional investors outshine domestic institutions regarding value creation. Meanwhile, higher (>50%) family holdings are detrimental to foreign institutional investors, while moderate holdings (26–49%) improve domestic institutional investments. The favorable effect of foreign players gets diluted with the higher (>50%) family holdings, while the adverse impact of domestic players improves with the moderate (26–49%) family holdings. Overall, partial family control is beneficial, while low and absolute family control is detrimental to market value. These findings indicate that institutional investors are family control-dependent, where the family control effect is not static.Originality/valueThis paper offers a novel perspective by addressing the effect of costs and benefits realized at three distinctive levels of family holdings on foreign and domestic institutional investors and their value impacts to witness differences caused by varying family control, which is not done earlier as per the best of our knowledge.

Determinants of foreign direct invesment in eight ASEAN countries

This research aims to analyze the influence of economic growth, labor, regulatory quality, political stability, and carbon emissions on Foreign Direct Investment (FDI) in eight member countries of the Association of Southeast Asian Nations (ASEAN). With strong economic growth, a qualified workforce, good regulations, stable politics, and low environmental degradation, ASEAN member countries have great potential for investment, which generates long-term returns. This makes the ASEAN region interesting to analyze the factors that influence FDI in the region. Using the Seemingly Unrelated Regression (SUR) method and secondary data from the World Bank, this study combines cross-sectional and time-series data to provide a comprehensive overview. The research findings indicate that variables such as labor, regulatory quality, political stability, and carbon emissions have a significant impact on foreign direct investment in ASEAN countries. These findings underscore the importance of these factors in determining the direction and volume of foreign investment. This study contributes significantly to understanding the dynamics of foreign investment in the ASEAN region and highlights the importance of efforts to improve political stability, regulatory quality, and manage carbon emissions to drive economic growth through foreign capital inflows. The implications of these findings can serve as a policy foundation for governments and stakeholders in ASEAN to enhance the attractiveness of foreign investment.

The Level of Green Development in China and Influencing Factors—A Case Study of the Huai River Ecological Economic Belt

ABSTRACTEnvironmental issues are significant challenges for China's growth, with green development being crucial. The Huai He River Ecological and Economic Belt (EEB), a vital north–south economic corridor, plays a key role in demonstrating ecological civilization and regional coordinated development, essential for China's eco‐progress. This study uses the super‐SBM‐DEA model to measure the green development efficiency (GDE) of the EEB from 2005 to 2020, introducing innovative input–output indicators like technological innovation, industrial, environmental, and social gains. It analyzes the GDE from multiple angles using the Malmquist index, Moran index, and Durbin model, examining the temporal and spatial evolution and influencing factors of the EEB. Four key findings emerge: (1) The EEB's green development level trends upward, with western urban areas showing superior sustainable growth and environmental efficiency compared with the east. (2) Technological progress is the primary driver for improving the green level in the EEB. (3) The spatial agglomeration of green development levels is increasing. (4) Technological innovation significantly influences the EEB's GDE, while the digital economy level and environmental regulation promote it. Conversely, a single energy structure, urbanization, and foreign investment negatively impact the GDE, whereas economic growth and industrial structure enhancement positively affect the region's GDE but may adversely affect neighboring areas. The study recommends strategies to advance the premium quality evolution of the EEB, tailored to its regional characteristics.

Shaping China's National Image Through Infrastructure: Business Communication Strategies under the Belt and Road Initiative

With the promotion of the Belt and Road Initiative, the global investment and construction activities of Chinese infrastructure enterprises such as China Construction and China Railway have significantly improved the national image and brand awareness. However, in this process, these enterprises face challenges such as cultural differences, information gaps, and local people's doubts about foreign investment. This study explores how Chinese infrastructure companies shape the country's image through effective business communication strategies in the context of the Belt and Road Initiative. Through literature review and case study, this study will focus on the communication strategies adopted by Chinese infrastructure enterprises in countries along the Belt and Road, and how these strategies affect local consumers' perception and trust in Chinese brands. The study reveals that successful communication cases not only enhance brand recognition, but also increase consumer trust in the quality and efficacy of the program. In addition, cultural communication strategies are essential in different markets, helping enterprises integrate into the local society and improve their brand image. This study provides a new perspective and ideas for the brand communication of Chinese infrastructure enterprises in the international market. I contribute theoretical support for future academic research in related fields.

THE ROLE OF RELATIONSHIP MARKETING IN CONSUMER PURCHASE DECISION: AN EXPLORATORY STUDY

Objective: This study seeks to investigate the function of relationship marketing in consumer purchasing decisions. Theoretical Framework: As a result of the significant changes witnessed in the last millennium at the global level in all spheres of life, perhaps the most prominent is the shift from the planned economy to the market economy, as well as the pressures of intense competition, the emergence of globalization, the information and technology revolution, the rise in levels of foreign investment, and the enormous increase in the number and types of products, services, and brands. It significantly influenced the decisions of consumers. Method: Our study consists of a qualitative setting; thus, we have utilized the depth method, which helped us clarify the relation between consumer purchase decisions and relationship marketing from the perspective of both the consumer and the company, using semi-structured and unstructured interviews. Results and Discussion: The results indicate that the foundation for achieving growth and sustainability in the markets is to attract the greatest number of customers possible, to strive for their satisfaction and gain loyalty, to work on establishing permanent partnership relationships with all customers, and to treat each customer as if it were its market division. Research Implications: From a managerial application perspective, an understanding of consumers' expectations of their relationships with sellers would assist marketers in establishing, enhancing, and maintaining these relationships. Marketers need to identify how they can use customer data to improve customer relationships. Permission from customers can provide marketers with the privilege of contacting customers; information such as customer needs makes possible the customization of products and services; and data about the initiation and growth of customer relationships help to ensure effective and timely feedback. Marketers can informally survey their customers by asking about the relevance of various services, or they can formally survey their customers to gain more in-depth customer-specific information. Originality/Value: The findings provide insight into consumers' motivations and attitudes with regard to relationship marketing and suggest a way forward for further research. In particular, a number of ways in which mobile phone companies might seek to encourage consumers to consider value-added service propositions more seriously and become less solely price-sensitive are proposed.

Macroeconomic Determinants of Effective Corporate Tax Rates: The Case of the Slovak Republic

The effective corporate tax rate is a critical measure reflecting a nation’s fiscal policy and its attractiveness to foreign investment. This study investigates the relationship between macroeconomic determinants and effective corporate tax rates, focusing on Slovakia’s competitiveness within the European Union from 2004 to 2022. Using a panel regression model, the research identifies significant correlations between nominal tax rates, unemployment, government debt, and effective tax rates. Our findings reveal a consistent downward trend in both nominal and effective tax rates across EU member states, with Slovakia maintaining relatively lower effective tax rates compared to older EU members, thus enhancing its fiscal competitiveness. However, discrepancies persist among member states, influenced by differences in tax policies, enforcement, and exemptions. The study underscores the complex interplay between fiscal policies and macroeconomic conditions, highlighting the importance of aligning effective tax rates with broader economic goals. Policymakers are advised to consider reforms that balance tax competitiveness with fiscal sustainability, ensuring that effective tax rates reflect intended policy outcomes. This analysis offers valuable insights into tax policy dynamics within the EU and provides a framework for designing strategies to attract investment while maintaining economic stability.

The impact of perceived insecurity on attracting foreign direct investment in Mexico

There are different aspects that foreign investors take into account when deciding where to invest their money, among them are location, natural resources, stability, and security. Mexico has been a country that has received large flows due to its important location and thanks to the natural resources it has, but unfortunately, insecurity has been a determining factor for these flows to decrease and move to new places. It should be noted that in the last two decades, insecurity has become a serious problem for the federal government since the presidency of Vicente Fox, until the current administration. The purpose of this research is to find out if the perception of insecurity causes less investment attraction. With data obtained from the Ministry of Economy, we constructed a database that includes the flows of new investments divided by the 8 regions established by the National Institute of Statistics and Geography (INEGI), an institutional body in charge of conducting national censuses per year. Once the percentages of the public safety perception index and investment flows were related, we calculated the correlation coefficient between the two variables. This research was constructed based on the public safety perception index developed by the INEGI. This institution has conducted this survey since 2011 of the population aged 18 years and older by state between March and April of each year. The years used for the research were from 2019 to 2023, due to the change of government from that year. We obtained that the regions with a positive coefficient were the Northeast (0.022753824), West (0.176961292), North Central (0.348370972), East (0.62473457), Southwest (0.02064411), and Southeast (0.470923432), so it can be proved that the perception of insecurity influences the reduction of foreign direct investment flows.

Effect of foreign direct investment on income inequality in Ghana

The objective of this study was to investigate the impact of foreign direct investment (FDI) on income inequality in Ghana, by examining the effect of FDI flow, FDI stock and FDI per capita on income inequality in Ghana. The study adopted the quantitative and descriptive research design to analyse annual time series data on the dependent and independent variables spanning twenty-seven (27) years from 1996 to 2022. The ordinary least square and seemingly unrelated regression techniques were used for data analysis. The study revealed that FDI flow, FDI stock and FDI per capita had a statistically significant positive effect on income inequality. The study thus recommended that the government of Ghana should intensify its efforts to carefully develop and implement progressive and attractive policies that can induce more investment from foreign multinationals, thereby increasing the stock of external capital inflows that can be channeled into the most value generating sectors of the country to eliminate production inefficiencies and boost domestic output that can increase income inequality. Additionally, the government of Ghana through the appropriate agencies can improve the enforcement of its regulatory policies to ensure that multinational firms and the general activities of foreign investors consistently provide fair and commensurate wages to Ghanaian workers, in order to promote the beneficial effects that FDI has on reducing income inequality in Ghana. MNCs must therefore provide the same value of remuneration for the same level of skills-quality and demand that workers in other economies would receive. This will eliminate wage differentials, transition low-wage earners into higher income status and thus reduce income inequality.