The Impact of Macroeconomic Variables, Investment Incentives and Government Agreements on FDI Inflows in Ghana
Journal Title: Journal of Economics and Business - Year 2019, Vol 2, Issue 3
Abstract
The last two decades have witnessed an extensive growth and an ever-increasing competition in foreign direct investment (FDI) flows to the developing countries. This has resulted in higher investment incentives offered by the host governments and an increase in the number of bilateral investment treaties (BITs) and regional agreements on investments. This research addresses the effectiveness of selective government policies and investment agreements in attracting FDI flows in developing countries. To achieve this, the impact of economic variables such as presence of infrastructure, cost of labor, annual gross domestic product (GDP) growth, real effective exchange rate, and tax incentives as well as bilateral investment treaties on the inflows of foreign direct investment within a 30-year span in Ghana was examined. The paper employed a regression analysis with the dependent and independent variables being FDI inflows and the listed variables respectively. Additionally, analytical techniques such as heteroskedasticity and Chou test were conducted. From the study, it is observed that inflows of FDI vary within the structural break analyzed and a low percentage of BITs reflect as a contributing factor of FDI. However, national policies proved to play a significant role in attracting FDI into Ghana.
Authors and Affiliations
Judith Lawson, Du Kuanqi, Bentum-Micah Geoffrey
Keywords
Related Articles
- EP ID EP646533
- DOI 10.31014/aior.1992.02.03.149
- Views 65
- Downloads 0
The Effects of Bankruptcy Probability, Auditor Switching and Company Size Toward Audit Delay
The purpose of this study was to find out the effects of the probability of bankruptcy and auditor switching toward audit delay, with the size of the company on manufacturing companies listed in Indonesia Stock Exchange...
Role of Notary Public in Increasing the Ease of Doing Business Index through the Apostille Convention
This research aims to analyze the role of the notary in international business practices and analyze the position of the Apostille Convention in increasing the Ease of Doing Business Index in Indonesia. This is a normati...
An Empirical Investigation on Impact of Interest Rates on Agricultural Investment in Nigeria
The main thrust of this study is to examine the impact of interest rate on agricultural investment in Nigeria for the period 1980–2015. In a bid to finding the nexus between interest rate and agricultural investment in N...
The Effect of Work Discipline and Work Environment on the Performance of AL Hudori Cooperative of Palembang Employees
The purpose of this research is to determine the effect of work discipline on employees performance; the effect of work environment on employees performance; the variable that has the most dominant effect on employees pe...
Gender Gap in SME Ownership: Are Women Left Behind? Evidence from Sri Lanka
The current study examines the gender gap in SME ownership and socio-economic factors which lead women to start Small and Medium Enterprises (SMEs) in Sri Lanka. The study conducted enterprise survey with 329 SME owners...