Abstract:
The purpose of this study is to investigate the dynamics and the determinants of foreign
direct investment (FDI) in the ECOWAS subregion within the context of tax policy,
exchange rate movements and ease of doing business. Having adopted a quantitative
research approach and a causal research design, the study obtained secondary data from 15
ECOWAS member countries using a census sampling technique. By using both random
effect and fixed effect panel regression analysis techniques, the study found that tax policy
and exchange rate movements registered negative effect on foreign direct investments
whereas ease of doing business recorded a positive effect. The study concludes that high
taxes and weakening domestic currency are inimical to foreign direct investment whereas
creating a conducive business environment characterized by political stability, certainties
in the financial ecosystem and minimized regulatory bottlenecks incentivize the
establishment and expansion of businesses in the local economy. The study recommends
for optimum tax policies, strong currency-targeted monetary policies and business-friendly
regulatory regimes that attract foreign investors into the Ghanaian local economy.
Description:
Dissertation in the Department of Accounting,
School of Business, submitted to the School of
Graduate Studies, in partial fulfilment of the
requirements for the award of the degree of
Master of Business Administration
(Accounting)
in the University of Education, Winneba
DECEMBER, 2023