Foreign direct investment (FDI) is one of the economic growth stimulus due to its associated variables such as capital investment, technical know-how, knowledge transfer and managerial competence required for economic growth. In the last decade, China has emerged on the international financial scene as both financier and investment partner to African economies. Many African economies such as the oil producing and exporting ones have witnessed streams of China’s FDI in their economies whereas non-oil exporting ones have accessed some of China’s FDI in selective sectors. This paper aims at investigating the relationship between China’s FDI and economic growth in Ghana measured by real average annual domestic product (GDP) per capita growth for the period 2001-2010. By using ordinary least squares (OLS) regression model, the result indicates that China’s FDI has negative significant effect on Ghana’s economic growth. However, it exerts different effects on value added in the three economic sectors.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Literature Review on FDI and Economic Growth
- FDI Trend and Performance in Ghana
- Performance of China's Outward FDI in Different Sectors of the Ghanaian Economy
- Empirical Analysis of China's FDI and Ghana's Economic Growth
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper examines the relationship between China's foreign direct investment (FDI) and economic growth in Ghana. It aims to determine the impact of China's FDI on Ghana's real average annual domestic product (GDP) per capita growth during the period 2001-2010.
- The role of FDI in economic growth
- China's emergence as a major investor in Africa
- The impact of China's FDI on Ghana's economic sectors
- The relationship between China's FDI and Ghana's GDP growth per capita
- The significance of FDI for developing countries
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction provides an overview of FDI and its role in economic growth, highlighting the increasing importance of developing countries as both recipients and sources of FDI. It also discusses the trend of China's FDI in Africa and its impact on various economies, including Ghana.
The literature review explores various theories regarding the determinants of FDI, including the product cycle theory, the pure capital movement theory, and the stagnation thesis. It also examines the motivation behind FDI, such as market-seeking, natural resources-seeking, and efficiency-seeking, and highlights the specific characteristics of China's FDI in Africa.
The chapter on FDI trend and performance in Ghana analyzes the country's economic development and its efforts to attract FDI. It explores Ghana's political stability, market reforms, and economic growth, providing context for understanding the role of FDI in the country's development.
The chapter on the performance of China's outward FDI in different sectors of the Ghanaian economy focuses on the impact of Chinese investment on various economic sectors in Ghana. It provides insights into the specific areas where China's FDI has been concentrated.
Schlüsselwörter (Keywords)
The main keywords and focus topics of the text include China, FDI, Ghana, GDP growth per capita, economic growth, developing countries, and investment impact.
- Quote paper
- Stephen Bodybobton Antwi (Author), 2012, China’s Outward Foreign Direct Investment Impact on Economic Growth in Developing Countries: Empirical Evidence from Ghana, Munich, GRIN Verlag, https://www.grin.com/document/204435
