The Impact Of Chinese OFDI On Ghana's Manufacturing Industry

From the beginning of the 21st century,China's foreign direct investment has expanded rapidly,and the number of investment countries and investment scale have continued to expand.In 2015,China's total foreign direct investment volume ranked second in the world,surpassing the total amount of foreign investment attracted by the same period for the first time,achieving net export of capital.As China's foreign economic cooperation continues to deepen,its direct investment in African countries is also gradually expanding.Among them,as a solid partner of China in Africa,Ghana has established decades of friendship with China.More and more Chinese companies have chosen to invest directly in Ghana,and the Chinese government has been continuously providing substantial financial assistance to Ghana..In recent years,under the background of the Chinese government actively encouraging enterprises to "go global" and proposing a series of new policies such as the "Belt and Road Initiative" and the China-Africa Cooperation Forum,more Chinese companies have chosen to go to Ghana and invest.From the perspective of Ghana,domestic foreign direct investment and the largest number of registered foreign companies are from China,which has a very positive impact on the development of manufacturing in Ghana.On the basis of combing relevant literature,this paper first analyzes the development history and current situation of Ghanaian manufacturing industry,as well as a series of existing problems,and also analyzes the actual characteristics and driving factors of China's direct investment in Ghana.Subsequently,this paper starts from the four aspects of capital formation,technological progress,labor employment and trade structure,and analyzes in detail the impact mechanism of China's foreign direct investment on the development of manufacturing in Ghana,and provides a theoretical basis for further empirical research.Thirdly,according to the proposed mechanism of influence,this paper studies and analyzes the impact of China's foreign direct investment on the manufacturing industry in Ghana by constructing corresponding models.The results show that China's OFDI can obviously promote the development of Ghana's manufacturing industry.At the same time,it helps to improve the capital accumulation,technological progress and labour employment.However,China's OFDI have negative effect on the trade structure of Ghana's manufacturing industry.Finally,the paper argues that the Ghanaian government should also take corresponding measures to strengthen the proper management of foreign direct investment inflows,thereby increasing manufacturing output and reversing previous problems.On the other hand,based on the conclusions reached,this paper suggests that the Ghanaian government should formulate relevant policies to ensure the normal operation of the market,attract foreign investors with clear investment targets.Meanwhile,Ghana's government should continuously strengthen Innovation and the level of domestic education,which in turn will promote the rapid development of manufacturing in Ghana.