COMPLEMENTARITY OF FDI AND EMPLOYMENT GENERATIONIN THE AGRICULTURE SECTOR OF GHANA:ANALYSIS OF RECENT DEVELOPMENTS
COMPLEMENTARITY OF FDI AND EMPLOYMENT GENERATIONIN THE AGRICULTURE SECTOR OF GHANA:ANALYSIS OF RECENT DEVELOPMENTS

Summary/Abstract: Foreign direct investment inflows into Ghana have been a major source of economic growth transformation. Many investing countries aspire to provide Ghana’s economy with new models and direction for development alternatives to foreign aid which will in effect benefit both nations. Given the government’s intention of transforming most agri-culture products into finishedcommodities other than exporting these commodities in their raw states, a new set of incentives and policies to attract investors into the agricul-ture sector have been initiated. This consists of farming for food provision and employ-ment generation in a bid to moderating the high rate of unemployment aside depending on the normal farming methods. This study sets to investigate the impact of foreign direct investment in the agriculture sector on employment generation. The paper argues that employment created in the agriculture sector was attained through the number of regis-tered projects allocated to various sectors within the Ghanaian economy categorized by the Ghana Investment Promotion Centre. Methodologically, this study utilizes a statisti-cal descriptive approach that backs a summary of the complementary analysis of foreign direct investment inflow quantitatively using data on FDI inflows from 2013 to 2018. The result shows that the percentage share of the total number of registered projects allocated and employment created in the agriculture sector through FDI is very low compared to sectors like the manufacturing and service. It was also discovered that the agriculture sector contribution to the Gross Domestic Product (GDP) in the late 90s weighed much higher than the other sectors and continuous decline in the 2000s. It is recommended that investors should enter into the agriculturesector since there are many benefits.

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