Infrastructure and Foreign Direct Investment Inflows: Evidence from Ghana

Fosu, Prince (2016): Infrastructure and Foreign Direct Investment Inflows: Evidence from Ghana. Published in: Management and Economic Journal No. 2 (30 March 2016): pp. 79-93.

Abstract

The main objective of the study is to examine the impact of economic and social infrastructure on FDI in flows in Ghana using the Two Stage Least Squares (2SLS) estimation technique and quarterly time series data from 1975 to 2012. The results indicate a positive and statistically significant effects of economic and social infrastructure on net FDI inflows in Ghana. While market size, trade openness and agglomeration exerted a positive and statistically significant effect on FDI inflows, inflation and external debt stocks revealed a negative effect on FDI inflows. In order to attract more FDI inflows, the study recommends an increase investment in electricity generation and educational facilities respectively to enhance economic and social infrastructure.

• Item Type: MPRA Paper
• Language: English
• Keywords: Economic Infrastructure, Social Infrastructure, FDI, 2SLS, Ghana
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General > E00 - General; F - International Economics > F3 - International Finance > F30 - General; H - Public Economics > H0 - General > H00 - General; H - Public Economics > H5 - National Government Expenditures and Related Policies > H54 - Infrastructures ; Other Public Investment and Capital Stock

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