Investment in Ghana: An overview of FDI components and the impact on employment creation in the Ghanaian economy
|Title:||Investment in Ghana: An overview of FDI components and the impact on employment creation in the Ghanaian economy|
Vol 5 No 1 (2020)
Published date: 15-04-2020 (print) / 15-04-2020 (online)
Economics, Management and Sustainability
Nanjing University of Science and Technology, 200 Xiaolingwei Street, 210094, Nanjing, Jiangsu Province, China
Accra Institute of Technology, 34 Concam Cres, Accra, Ghana
|Keywords:||FDI component, local currency component, total cost, employment, economy, Ghana|
|JEL classification:||E22, F21, O16|
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.
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