Sustainable Foreign Direct Investment Research Articles

Foreign Direct Investment and Gross Domestic Product in Ghana

This paper addresses how Governments of Ghana has made tremendous effort over the past decade at attracting sustainable Foreign Direct Investment (FDI) inflows to boost its Gross Domestic Product (GDP) and other economic indicators. It is noteworthy that Ghana is well endowed with rich natural resources comprising Gold, Oil, Timber, Cocoa, Bauxite, manganese etc. which form the backbone of its economy and dominates the main sources of foreign exchange(Budget statement, 2004).The low foreign exchange earnings on its export product as a result of its primary state compels it to expostulate to international financial and technical assistance at well as making giant strides to attract Foreign Direct Investment inflows to Ghana to supplement its locally generated revenue. This study explores whether FDI inflows have had any significant impact on GDP growth rate, the results indicate that FDI inflows have had an influence on GDP growth, it is however important to note that there are other important macroeconomic variables which need to be considered.

Foreign Direct Investment in Times of Crisis

This paper compares the current foreign direct investment (FDI) recession with responses to past economic crises. The authors find that although developed country outflows have taken an equally big hit as major developed countries have after past crises, outflows seem to be bouncing back more slowly this time. By contrast with the overall decline in recent years, inflows to emerging markets often remained stable during their past economic crises. Both patterns indicate that the global scale of the current crisis has led to a greater response than after individual country crises in the past. Compared with global economic downturns since the 1970s, the current recession has also been greater in magnitude. The exception is the plunge in the early 2000s, despite the much smaller economic crisis at the time. The authors conclude by recommending that policymakers not just further liberalize regimes - as they find was the typical pattern during earlier crises - but rather use the downturn to rethink their policies with an enhanced focus on sustainable FDI promotion.

Towards a sustainable FDI policy for power sector development

Foreign Direct Investment (FDI) and its infrastructure development potential has been the focus of management scholars for long. Indian power sector, marked by years of under-investment and ever increasing demands can also leapfrog by infusion of FDI. India has the potential to attract far more FDI in the power sector as compared to less than 4% of the nation’s total FDI that it attracts at present. The root of the problem is as much a question of inadequate reforms as it is of insufficient investment inflow. Therefore, we have undertaken this study that attempts to examine the determinants of FDI in order to enable Indian power sector to attract more FDI and to benefit from these capital inflows.