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Policy Dynamics and Foreign Direct Investment Inflows in Ghana: What Are the Lessons for West African Countries?

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  • Abdoul' Ganiou Mijiyawa

Abstract

Unlike most West African countries, Ghana has recently attracted significant flows of foreign direct investment (FDI). This article examines why Ghana attracts more FDI than its West African counterparts and how Ghana has improved its FDI attractiveness. To do so, the article uses statistical analysis to investigate the dynamics of FDI policy-related factors in Ghana and compares Ghana's performance with West African countries' average performance. The results show that over time and compared with West Africa's average situation, Ghana has improved its level of openness to international markets, human capital, infrastructure, political stability, and quality of institutions. These results may explain Ghana's recent improved performance in attracting FDI, and they suggest that improving the aforementioned factors may attract more FDI to Ghana and its neighbors.

Suggested Citation

  • Abdoul' Ganiou Mijiyawa, 2014. "Policy Dynamics and Foreign Direct Investment Inflows in Ghana: What Are the Lessons for West African Countries?," Journal of African Business, Taylor & Francis Journals, vol. 15(1), pages 1-12, April.
    • Handle: RePEc:taf:wjabxx:v:15:y:2014:i:1:p:1-12
    DOI: 10.1080/15228916.2014.881214
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    References listed on IDEAS

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    1. Mr. Anupam Basu & Mr. Krishna Srinivasan, 2002. "Foreign Direct Investment in Africa—Some Case Studies," IMF Working Papers 2002/061, International Monetary Fund.
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    4. Mark A. Carlson & Leonardo Hernandez, 2002. "Determinants and repercussions of the composition of capital inflows," International Finance Discussion Papers 717, Board of Governors of the Federal Reserve System (U.S.).
    5. Jorge Braga de Macedo & Brites Pereira Luis & Jose Mario Lopes, 2009. "Drivers of China's foreign direct investment into Africa," Nova SBE Working Paper Series wp544, Universidade Nova de Lisboa, Nova School of Business and Economics.
    6. Nunnenkamp, Peter, 2002. "Determinants of FDI in developing countries: has globalization changed the rules of the game?," Kiel Working Papers 1122, Kiel Institute for the World Economy (IfW Kiel).
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