An overview of employment generation in the sectors of GHANA’S economy: Foreign direct investment perspective

Abstract

As foreign direct investment (FDI) contributes to economic growth and development of the host country, it also serves as a basis of employment creation in an economy. Over the past years, FDI has helped accumulate capital for developmental projects in most developing and least developed countries. This study provides an overview of job creation through FDI inflow within the Ghanaian economy by considering the number of jobs allocated to the various sectors. The study makes use of a descriptive statistical method that quantitatively supports data analysis. The results show that as the total FDI registered projects decrease, the number of expected jobs to be created also declines. The outcome also revealed that the service sector enjoys a higher percentage of the FDI registered project and the total number of employments generated within the selected period. The result further indicates that about 84% of the aggregate jobs created were for Ghanaians. The outcome also showed that the tourism and export trade sectors’ performance towards job generation from FDI inflow is lower than other sectors of the economy. It is suggested that the government should continue to put in a great effort to make the country’s business environment much friendly for investors.

Keywords: FDI, employment, sectors, Ghana, economic growth, trade inflow