Exploring strategic influences underpinning foreign direct investment (FDI) projects and international subcontracting

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Date
NOVEMBER, 2015
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Abstract
Foreign Direct Investment and International Subcontracting are one of the mainly steady and efficiently significant streams of global finance to a nation. Despite governments’ efforts to entice FDI and international subcontracting, Ghana has attracted relatively small inflows. The main aim of this research is to thoroughly investigate strategic influences underpinning FDI and international subcontracting. A literature review was undertaken and it delved into the benefits, challenges and strategic influences underpinning FDI and international subcontracting. Arising from this, questionnaires were used to gather data from respondents in the Accra metropolis. Quantitative approach was adopted. Purposive and snowball sampling techniques were employed. Fifty nine questionnaires were retrieved out of seventy distributed representing an eighty four percent response rate. The data were analyzed and presented using descriptive statistics and Relative Importance Index only. The results of this study pointed out that level of trade policy of host country; specific incentive policies by host country’s government; political stability; technological gap between host and foreign countries and number of bilateral investment treaties signed by host countries were the most important strategic influences underpinning FDI. Furthermore, the findings also pointed out that degree of competition, economic development; experience in similar projects, government policies and inflation were the most important strategic influences underpinning international subcontracting. The findings from the study are useful for construction stakeholders, helping them to know the factors influencing FDI and international subcontracting and their impact on the construction industry. In spite of the significance of these findings, there are unavoidable limitations and shortcomings due to the scope and manner in which it was undertaken. It is recommended that government policies should focus on maintaining open oriented policies to continue to attract increased FDI and international subcontracting.
Description
A dissertation presented to the Department of Building Technology of the Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the award of a Master of Science (MSc.) honors degree in Construction Management.
Keywords
Foreign Direct Investment, International subcontracting, Strategic Influences
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