The presence of foreign firms in Ghana: the role of financial, infrastructural and institutional constraints

Amissah, E.B. ORCID: 0000-0002-2665-2264 and Stack, M.M. ORCID: 0000-0002-9213-7607, 2021. The presence of foreign firms in Ghana: the role of financial, infrastructural and institutional constraints. Journal of African Business. ISSN 1522-8916

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Using logit regression on firm-level survey data, this study examines the effects of various aspects of the business environment on foreign firm participation in Ghana. An analysis of the main constraints on non-mining foreign investment is important in terms of prioritising reforms of the overall business environment. In addition, assessing the variation of effects according to different firm characteristics matters for government policy formulation aimed at incentivising sub-categories of foreign firms. The findings suggest that financial factors (access to finance) and institutional factors (the judicial system and land access) are most important in constraining the probability of foreign investment. Distinct effects are obtained depending on firm characteristics relating to the degree of foreign ownership, the size of the firm and the industry in which the firm operates. The effects of the business environment also vary according to the firm's regional location. JEL Classification: F23, G30, C35

Item Type: Journal article
Publication Title: Journal of African Business
Creators: Amissah, E.B. and Stack, M.M.
Publisher: Taylor & Francis (Routledge)
Date: 7 September 2021
ISSN: 1522-8916
Rights: This is an Accepted Manuscript of an article published by Taylor & Francis in Journal of African Business on 07 September 2021, available online:
Divisions: Schools > Nottingham Business School
Record created by: Linda Sullivan
Date Added: 02 Dec 2021 10:36
Last Modified: 07 Mar 2023 03:00

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