Foreign Direct Investment: Attracting Foreign Direct Investment to Ghana - Lessons from the Republic of Korea

Abstract

This article examines the Republic of Ghana’s experience in attracting FDI. Thus, the main thrust of this article is threefold. First, it evaluates the main economic policy adopted by the government from 1970 to 2008 to reverse the post independence economic decline. Second, it examines how the policies facilitated the attraction of FDI inflows to Ghana. Finally, it reviews some of the problems that impede the attraction of value-added FDI inflows to Ghana. A thorough analysis is done with the use of the Diamond model of competitiveness to check the attractiveness of Ghana relative to the Republic of Korea (Korea) to ascertain how best to address this issues. This article argues that a lot still is to be done to attract more FDI and it will be profitable for Ghana to use Korea as an example of best practices in terms of policies for improving the attractiveness of the country.