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Can location incentives deliver jobs to the less endowed regions of Ghana?

Obeng, Camara Kwasi (2016): Can location incentives deliver jobs to the less endowed regions of Ghana?

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Abstract

Countries have used location incentives extensively as in-country policy to disperse FDI to regions other than the prosperous ones even though there is no consensus on its effectiveness. This study, therefore, explored the effect of location incentive in influencing the location of FDI and job opportunities away from the Greater Accra region to the remaining nine regions of Ghana. Using the Ghana Investment Promotion Centre data set from 1994 to 2015 and employing trend analysis, the results show that there is no relationship between location incentives and regional distribution of FDI and job opportunities. Thus, FDI and its associated job opportunities is still concentrated in the Greater Accra region in spite of the juicy location incentives government has provided in Ghana. The study recommends that government must work to improve on the investment climate in the less endowed Northern region, Upper West region and Upper East region of Ghana so as to attract FDI to these regions and hence deliver job opportunities to ensure regional balance in economic growth and development.

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