Chinese Investment in Ghana
DOI:
https://doi.org/10.15678/AOC.2015.1304Keywords:
Ghana, China, FDIs, spillover effectsAbstract
Over recent periods, especially in the last two decades, Africa has recorded growth and received inflows of both direct and indirect forms of foreign investment. This is due to ongoing globalisation and to the redistribution or allocation of capital and wealth among nations with the idea of competing on a global scale. Many countries, particularly sub-Saharan African countries, have seen this trend as part and parcel of their long term development plan and growth agenda ever since China became a development partner for most of these countries. In this paper, the Investment Development Path (IDP) theory introduced by Dunning in 1981 is used to examine the basis of the Chinese Investment model. The author sheds light on Chinese investment in Ghana after 2008 and the performance of these investments. In order to examine the possible positive impacts and prospects of foreign direct investment in Sub-Saharan African countries, the author considers the significant role of Asian investment, especially that of the People’s Republic of China and its strategic dominance of investment on the continent. The last section of the article briefly examines the specifics of Chinese investment in Ghana. Finally, the author presents a summary and some policy recommendations.References
Abdul, M. A. (2012) “Evidence of the Investment Development Path Hypothesis in Africa: Its Impact on Intra-Regional Foreign Direct Investment from the Ghanaian Perspective”. LAP LAMBERT Academic Publishing.
Abodakpi, J. (2012) “Multinational Corporations and Spillover Effects in Ghana – A Look at FDI, Its Targets, Impacts, and Potential”. Unpublished Master thesis, UEK, Cracow.
ACET (2009a) “Looking East: China-Africa Engagements. Ghana Country Case Study. Accra: African Center for Economic Transformation, http://acetforafrica.org/wp-content/uploads/2010/08/. Accessed: 17 September 2014.
ACET (2009b) “Looking East: A Guide to Engaging China for Africa’s Policy-makers”. Vol. 2. Accra: African Center for Economic Transformation. Accessed: 17 September 2014.
Broadman, H. R. (2007) “Africa’s Silk Road: China and India’s New Economic Frontier”. Washington: The World Bank.
China Trade Policy Review (2008) “Trade Policy Review Mechanism: China”. Geneva: World Trade Organisation.
Dunning, J. H. (1981) “Explaining the International Direct Investment Position of Countries: Towards a Dynamic and Development Approach”. Weltwirtschaftliches Archiv Vol. 117.
Dunning, J. H. (1986) “The Investment Development Cycle Revisited”. Weltwirtschaftliches Archiv Vol. 122.
Dunning, J. H. (1993) Multinational Enterprises and the Global Economy. Massachusetts: Addison-Wesley Publishing.
Dunning, J. H. and Narula, R. (1996) “The Investment Development Path Revisited: Some Emerging Issues” in J. H. Dunning and R. Narula (eds) Foreign Direct Investment and Governments: Catalysts for Economic Restructuring. London and New York: Routledge.
Durán, J. J. and Úbeda, F. (2001) “The Investment Development Path: A New Empirical Approach and Some Theoretical Issues”. Transnational Corporations Vol. 10(12).
Duran, J. J. and Úbeda, F. (2005) “The Investment Development Path of Newly Developed Countries”. International Journal of the Economics of Business 12.
GIPC (2008, 2009–2013) “Annual Investment Report”. Ghana Investment Promotion Centre.
IMF (2012) “World Economic Outlook: Growth Resuming, Dangers Remain”. Washington DC: International Monetary Fund.
Kudina, A. and Jakubiak, M. (2008) “The Motives and Impediments to FDI in the CIS”. Global Forum on International Investment, 27–28 March.
Reuters (2007) “Ghana to Supply China Cocoa under Dam Funding Deal”.
UNCTAD (1998) “World Investment Report 1998: Trends and Determinants”. United Nations Conference on Trade and Development. New York and Geneva: United Nations.
Wang, J. Y. and Bio-Tchané, A. (2008) “Africa’s Burgeoning Ties with China”. Finance and Development 46: 44–47.
