The Determinants Of The Inflows Of Foreign Direct Investment In Ghana

The core objective of the research was to observe the most important determinants of Foreign Direct Investment(FDI)in Ghana.The research utilizes time series yearly data on FDI,GDP Per Capita,Trade Openness,Macroeconomic Stability,Government Consumption Expenditure,Exchange Rate,Natural Resource Endowment and Interest Rate from Ghana over the study period 1980-2017.However,it was found that a country's trade openness and size of its market,its natural resources,infrastructure,the extent and level of government spending and consumption,growth of the economy and interest rate regimes in the country forms the major determining factors of FDI inflows in Ghana.To summarize it,Foreign Direct Investment(FDI)in Ghana is for the most part diverted to the mining and oil and gas sector at the detriment of the essential drivers of economic growth in Ghana,hence,FDI becomes less effective on Ghana's economic growth and development.Ghana's Foreign Direct Investment(FDI)attraction depends on major factors stated earlier above.Therefore,the research suggested that the government of Ghana must generate and create a conducive socio-economic and political atmosphere with attractive features for FDI.Again,government must display the investment possibilities of the country to the universe through numerous technological channels,thus,Ghana Investment Promotion Center(GIPC)and the Free Zones Board(FZB)are commendable creativities by government in the direction of drawing in FDI.