Overview of Ghana’s Export and Import, FDI inflow and outflow: Is there any connection between its trading partners and foreign investing countries?

Abstract

Foreign direct investment inflows and outflows, export and import are seen as some of the major factors for transforming a country’s economic growth and development. This paper provides and evaluates literature review on importation and exportation alongside inward and outward FDI in Ghana. By considering some selected countries such as China, India, the United States of America, and the United Kingdom in determining whether there is some sort of connection between Ghana’s trading partners and investing countries in its economy by the use of the quantitative method. The results show that Ghana’s export values have improved rapidly over the past years with a continuous decrease in its imports. The outcome further proves that, at the initial level, export from Ghana to China, India, the US, and the UK were of lower values and with much effort by the Ghana government to control the balance of trade deficit from these major trading partners is in the process of achieving the goal, as the country has been experiencing balance of trade surplus from China and India except in the situation the US, and the UK. It was also revealed that China, India, the US, and the UK are not only major trading partners but also among the top investing nations in Ghana. It is suggested that Ghana should increase its outward FDI and also encourages its multinational companies to embark on cross-border investment.