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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:How does foreign direct investment affect the export decisions of firms in Ghana?
Authors:Abor, Joshua
Adjasi, Charles K.D.
Hayford, Mac-ClaraISNI
Periodical:African Development Review
Geographic term:Ghana
Subjects:foreign investments
External link:https://onlinelibrary.wiley.com/doi/10.1111/j.1467-8268.2008.00193.x/pdf
Abstract:Foreign direct investment (FDI) has been identified to promote exports of host countries by augmenting domestic capital for exports, helping to transfer technology and new products for exports, facilitating access to new and large foreign markets, providing training for the local workforce, and upgrading technical and management skills. However, little is known about the role of FDI in the export behaviour of firms in developing countries. The main questions raised in this study are: how does FDI affect the export decisions of firms? How does FDI affect the export performance of firms? The study examines export decisions and export performance within the Ghanaian manufacturing sector on a panel of plants from 1991 to 2002. Using a probit model, the results show that FDI has a positive effect on firms' decision to export. The random effect results also reveal a positive relationship between FDI and export performance. These findings have significant implications for policy in terms of promoting initiatives to encourage more FDI inflows in Ghana. Bibliogr., note, sum. [Journal abstract]