Determinants of Foreign Direct Investments: The Case of Ghana

Author(s)

Godfred Anim , Prof. Jiang Xinying ,

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Volume 9 - November 2020 (11)

Abstract

the study assessed the determinants of foreign direct investment inflows into Ghana. It used data sourced from World Development Indicators from 1996 to 2018 in time series. The study employed OLS and FMOLS for its statistical analysis. In essence, it concluded that research and development negatively and significantly influence foreign direct investment inflows while human development and institutional quality positively and significantly influence foreign direct investment inflows. On the other hand, economic growth, inflation rate, corporate tax, and unemployment rate have no significant influence on foreign direct investment inflows. The study recommends that policymakers should strengthen and safeguard institutional regulations that would support the private sector to attract more investment to support the growth agenda. Also, human development investment ought to prioritize developing the country's human capital to augment the growth-agenda.

Keywords

Foreign direct investment; Ghana; Ordinary least square; Fully modified ordinary least square; Determinants

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