TITLE:
Foreign Direct Investment Inflows in Ghana: Is There Any Political and Priority Influence in the Distribution among the Sectors and Regions of the Ghanaian Economy?
AUTHORS:
Yeboah Evans, Christiana Kesse, Apana Gladys, Kudakwashe Kimp Nyamoto
KEYWORDS:
FDI, Political, Regions, Sectors, Economy, GDP
JOURNAL NAME:
Open Journal of Business and Management,
Vol.6 No.4,
October
31,
2018
ABSTRACT:
Political influence is taking certain vital role in foreign direct investment
(FDI) inflow operations on the account of economic growth and development
on Ghana’s economy. To determine whether there has been any political and
priority influence in the distribution of FDI registered projects over the past
years, perceived strongholds of some regions in terms of presidential and parliamentary
elections were considered. Using descriptive statistics approach
which promotes the examination of the leverage of foreign direct investment
in a quantitative mode based on the data collected from the Ghana Investment
Promotion Centre between 2013 and 2017, it was realized that, these
perceived strongholds of some regions received less or none of the registered
projects through foreign direct investment. However, regions like the Upper
East and Upper West, political strongholds of the National Democratic Congress
(NDC) recorded no registered projects between 2012 and 2016 during
the NDC’s term of governance reflecting less or no political influence in the
distribution of the registered projects accumulated through FDI. It was also
revealed that, the service sector has been receiving much of the FDI projects
due to its greater percentage share contribution to Ghana’s gross domestic
product (GDP). It is suggested that, FDI registered projects should not be
centered in Greater Accra alone if the country needs a universal and equal
development across the various regions.