Foreign direct investment, technological transfer, employment generation and economic growth: new evidence from Ghana

Obeng-Amponsah, William; Owusu, Erasmus

doi:10.1108/ijoem-02-2022-0200

Cited by 5 publications

(2 citation statements)

References 46 publications

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“…Hence, the technological diffusion of the financial sector and improvement in the quality of financial services will attract foreign and local investments and improve the industrial sector since it leads to easy fund transfer from the finance sector to the real sector (Obeng-Amponsah & Owusu, 2023). Moreover, within the Solow growth model and Evolutionary Institutional theory framework, the Endogenous Growth model asserts that technology plays a pivotal role in economic growth, exerting a substantial influence on the promotion of overall economic development.…”

Section: Short Run and Long Run Estimationsmentioning

confidence: 99%

Moderator Effect of Technological Advancement on Financial Development and Economic Growth Nexus in Asian Countries

Hewage,

Pyeman,

Othman

2024

JIS

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The examination of the nexus between Financial Development (FD), Technological Advancement (TA), Human Capital (HC), andPrivate Consumption (PC) to Economic Growth (EG) has gained substantial attention in both empirical and theoretical academia sincethe early nineteenth century. Scholars affirm that FD, HC, PC, and TA are crucial factors in determining optimal resource allocationand efficient utilization required to achieve sustainable EG. This study investigates the nexus of FD, HC, and PC with EG in Asiancountries, with TA serving as the moderator. Data from 35 countries were collected annually over 15 years, spanning from 2005 to 2019. Using short panel data analysis, due to the higher number of crosssections (35) compared to time intervals (15), the findings confirm TA’s significant moderator effect in both short and long-run time scenarios. Additionally, a significant negative relationship with EG is observed for FD and PC, while TA and HC are identified as promoters of EG. The study underscores the importance of investing in TA while concurrently developing the quality of the labor force. Policymakers are encouraged to prioritize technology development and the introduction of innovative techniques. However, caution is advised in FD projects, necessitating strategies to reduce domestic private consumption.

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Section: Short Run and Long Run Estimationsmentioning

confidence: 99%

Moderator Effect of Technological Advancement on Financial Development and Economic Growth Nexus in Asian Countries

Hewage,

Pyeman,

Othman

2024

JIS

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“…Gunby obtained no significant evidence of positive spillovers from FDI at the aggregate level of China's economy using a meta-analysis [23]. Obeng-Amponsah examined data for Ghana from 1995 to 2017 and found that FDI does not affect economic growth or employment in Ghana [24].…”

Section: Introductionmentioning

confidence: 99%

The Spillover Effect of Foreign Direct Investment on China’s High-Tech Industry Based on Interprovincial Panel Data

Zhao,

Chen,

Dai

et al. 2024

Sustainability

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Since its reform and opening-up, the scale of China’s utilization of foreign direct investment (FDI) has been expanding. Meanwhile, the “Belt and Road” initiative has opened up broader markets and trade opportunities for China. As a pillar industry supported by the state, the high-tech industry has also become an industry with more foreign investment. Therefore, based on the data of China’s high-tech industry from 2012 to 2021, this paper analyzes the technology spillover effect of foreign direct investment on the high-tech industry in the whole country as well as in the east, west, and northeast regions by using the C-D production function. The results show that in the eastern region, FDI has a positive spillover effect on the output and technological innovation of the high-tech industry; compared with the eastern region, FDI in the central and western regions inhibits technological innovation but has a positive effect on the output of the high-tech industry; in the northeastern region, FDI hampers the output of the high-tech industry but promotes the enhancement of the technological innovation capacity. The reason for this is that FDI is unevenly distributed in each region of China, and the absorption capacity of high-tech enterprises in each region is different from that of foreign direct investment. Finally, against the background of “Belt and Road”, this paper puts forward policy suggestions in light of the actual development situation of each region. China should strengthen the supervision of FDI to ensure the sustainability of foreign investment. All regions should give full play to their comparative advantages and deal with the balanced development of FDI and local factor inputs to realize the coordinated development of China’s regional economy.

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Greenfield investment and job creation in Ghana: a sectorial analysis and geopolitical implications of Chinese investments

Assamah,

Yuan

2024

Humanit Soc Sci Commun

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Multinational investment has attracted mixed reactions from scholars and policymakers concerning their role and impact on job creation in host countries, particularly in developing economies. Using Ghana as a case study, this paper examines the impact of Greenfield investment on job creation. Proponents of multinational corporations (MNCs) argue that foreign direct investment (FDI) leads to economic growth, creates technological spillover, increases exports, and creates jobs, among other benefits. This has encouraged developing economies to adopt developmental strategies around MNC activities. Although most researchers have analyzed the impact of FDI on job creation, the unanswered question is: Does greenfield investment in Ghana lead to significant job creation in the formal sector? Extant literature considers FDI monolithic, without adequately differentiating between Green and Brownfield investments. Using granular data from the FDI Markets, this research paper fills this gap by empirically analyzing the Greenfield investment by 386 multinational companies in Ghana from 2003 to September 2020. Over the specified year range, these companies engaged in 500 projects across Ghana. Adopting the ordinary least square analysis (OLS), the study demonstrates that Greenfield investment has a statistically significant and positive impact on job creation in Ghana. Out of the 31 sectors, only the following sectors contribute significantly to job creation through Greenfield investment in Ghana: Consumer Products, Food & Beverage, Industrial Equipment, and Non-automotive transport OEM. This paper contributes to a better understanding of how government investment in fixed assets (GCF) such as roads, railways, and industrial buildings in the local economy should be managed efficiently so as not to spur inflation, which correlates negatively with jobs. Finally, this paper analyzes Chinese investments in Ghana, comparing them with U.S. investments, and examining their broader geopolitical implications, which highlights the importance of aligning foreign investments with national development strategies and adhering to international norms and standards.

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Foreign direct investment, technological transfer, employment generation and economic growth: new evidence from Ghana

Cited by 5 publications

References 46 publications

Moderator Effect of Technological Advancement on Financial Development and Economic Growth Nexus in Asian Countries

Moderator Effect of Technological Advancement on Financial Development and Economic Growth Nexus in Asian Countries

The Spillover Effect of Foreign Direct Investment on China’s High-Tech Industry Based on Interprovincial Panel Data

Greenfield investment and job creation in Ghana: a sectorial analysis and geopolitical implications of Chinese investments

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