Impact of FDI on Economic Growth, Employment, and Poverty Reduction in Ghana

Abstract

The Republic of Ghana is one of the most economically developed countries in West Africa. In the past 10 years, Ghana’s economy has maintained a sound momentum and strong economic growth. The Republic of Ghana regards foreign direct investment (FDI) as a key factor in promoting its economic growth. This article separates economic growth, employment and poverty reduction, and focuses on the single impact of foreign direct investment (FDI) on Ghana’s economic growth, employment and poverty. The research in this article shows that foreign direct investment can promote the economic development of Ghana, and foreign direct investment can increase employment opportunities in Ghana and reduce poverty at the same time. Finally, this article gives corresponding recommendations based on the research conclusions: In maintaining sustainable economic growth, favorable policies should be adopted to encourage and support Ghana, so as to attract more foreign direct investment to stimulate economic growth.