The impact of foreign direct investment on Ghana's capital market

Date

2010-06

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Abstract

The objective of this study is to review and ascertain whether there is a positive or negative impact of foreign direct investment on the six selected companies. In addition, the study will examine how these impacts trickle down to the industry the six companies operate in and to the capital market as a whole. In order, achieve this objective, the following research questions were used as a guide to the study.
To what extent has FDI affected Ghana's capital market? What are the benefits of FDI support to the economy? Both Primary and Secondary data were collected to draw a conclusion to the study. Interviews were conducted in six selected companies and other organisations such as the Ministry Trade and Industry, Ghana Investment Promotion Centre, Ministry of Finance and the Ghana Stock Exchange in order to draw a valid conclusion. The result of the study indicated that there is a positive impact of foreign direct investment on the selected companies and the stock market in Ghana as well. These companies with FDI support do not only benefit from the financial resources but are also competing keenly in their various industries to be the market leaders.
Although the study was conducted on only six listed companies on the stock market, the impact in the selected companies and the stock market is very significant.
Companies are therefore encouraged to seek FDI support as one way to improve their operations.

Description

Thesis submitted to the Department of Business Administration, Ashesi University College, in partial fulfillment of Bachelor of Science degree in Business Administration, June 2010

Keywords

Ghana, foreign direct investment, capital market

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