The impact of tax, economic growth, grant and inflation on foreign direct investment in Ghana.

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JUNE, 2015
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As of late consideration has been given to fascination of foreign direct investment (FDI) with strategies that will whet the hankering of outside firms. In Ghana for instance, a legal instrument, Act 478 was proclaimed in 1994 that went for decreasing snags to and making motivating forces to foreign direct investment. Regression analysis was utilized to break down the relationship and effect of tax, grant, inflation and GDP on FDI. A multiple linear regression model displayed to empower us to foresee the volume of corporate tax revenue utilizing the FDI values. Discoveries from the study uncover that the development rate of GDP expanded following 1981.Averagely, the development rate of GDP for the time of study is 6%. In addition the study demonstrated a positive relationship in the middle of GDP and Foreign Direct Investment (FDI). Additionally, it was figured out that GDP is not a critical indicator of FDI. Expansion as measured by the buyer cost file expanded was additionally figured out to be an inconsequential indicator of FDI. Regardless, expansion has been communicating decidedly with FDI. The normal rate of swelling somewhere around 2001 and 2013 was discovered to be 20.5% whiles the nation encountered its most elevated expansion for the period in 2001 at 59.4%. Awards that are gotten by the nation which speak to the lawfully tying duties that commit a particular estimation of trusts accessible for dispensing for which there is no reimbursement prerequisite has no huge effect on FDI per this study. On the other hand, it was uncovered that allows communicate decidedly with FDI. From the relapse results, Grants and Inflation have no measurable effect on FDI. Charges, which speak to obligatory exchanges to the focal government for open objects were likewise distinguished as having a positive association with FDI. Then again, from the different relapse models, duties were distinguished as the main critical indicator of FDI.
A thesis submitted to the School Of Business, Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfillment of the requirement for the degree of Master of Business Administration (Finance) ,