Thesis (Ph.D.)--The George Washington University, 2006. / Adviser: David Shambaugh. Includes bibliographical references (p. 327-359)

This thesis explored the critical role of government policies in attracting and retaining Foreign Direct Investment (FDI) in Ghana. The study was motivated by the dearth of research on how government policies influence the attraction and retention of FDI in Sub-Saharan African (SSA) countries. The paucity of studies on this issue is surprising in light of the active role that government policies and agencies have assumed in the last three decades in attracting inward FDI to Africa. This study attempted to fill this gap by using Ghana as a case study to analyse the extent to which government policies have been successful in attracting and retaining FDI in the country. In setting the conceptual and theoretical background of the study, the international business literature on FDI and corporate strategies that guides the activities and decision making of multinational firms in investing abroad was explored and conceptualised, '.;fhe study adopted a mixed method of enquiry. This involvedthe use of questionnaire surveys and semi-structured interviews to collect data from foreign investors in Ghana and government policymakers. Both the quantitative and qualitative data collected was analysed using a variety of methods, including an independent sample t-test, ANOVA, factor analysis, correlations, multiple regression and content analysis. This approach yielded some novel and interesting findings, and provided deeper insights into the role of government in the attraction and retention of FDI. The principal finding of the study was that government policies such as tax, privatization, investment promotion policy, free zone, entry and operations, and the standard of treatment of foreign firms play a critical role in attracting and retaining FDI. In essence, SSA governments have attempted to create an attractive and conducive environment for FDI, but the study revealed that the existence of favourable FDI policies alone is not sufficient in attracting and retaining substantial FDI. It is argued that the policies have to be supported by efficient business facilitation factors, as well as generous incentives. All of these, it is further argued, are necessary for the country to meet the minimum requirement of being competitive enough to attract and retain substantial FDI. The study also revealed that in SSA countries in particular, political and social stability is seen as absolutely crucial to the country's ability to attract and retain FDI. The study also underscored the importance of a marketing strategy, such as the direct targeting of particular investors with specialist expertise to invest in sectors in which Ghana possesses competitive advantage. It is argued that this is the best way for Ghana to attract the right type and amount of FDI into the country. The study thus postulates that such a strategy is more likely to fully reward Ghana with a substantial inflow of FDI that is commensurate with the country's potential. Essentially, a successful inward FDI approach requires the creation of a favourable investment environment that is boosted by direct targeting of investors, and luring them into the important sectors of the SSA nation's economy. The theoretical, methodological and policy contributions and implications of the study are discussed, along with the limitations and areas for future research.

Canada is one of the countries depending on foreign investment to a fairly high extent. After some time of concern about foreign investment¹ the Foreign Investment Review Act (FIRA) was implemented.² With the federal election in 1984 the Canadian government took the stand in favour of foreign investment again and changed FIRA to a more positive "Investment Canada". Anyway, the control of foreign investment should be seen only as part of a larger economic policy, which determines the economic criteria for investment decisions. One of these criteria is the Canadian tax law. And as one example, prior to 1980, all private corporations were entitled to the refundable tax in respect of their investment income. A first limitation was introduced in October of 1973, whereby corporations other than Canadian-controlled-private corporations were denied any refundable tax in respect of income from real property for taxation years commenced after 1979. Finally, as a result of the November 12, 1981 budget, for taxation years commenced after that date, investment income no longer "earns" refundable tax unless the corporation was a Canadian-controlled-private corporation throughout the relevant taxation year. The Canadian taxation of residents and non-residents in Canada, including the taxation of Canadian and non-Canadian-controlled companies and branches of foreign companies, is unequal and discriminating. This thesis will give some ideas about the Canadian taxation of foreign investment in Canada, referring sometimes to the Canadian-German Double Tax Convention as well as the O.E.C.D. Model Double Tax Convention. Since tax planning is a part of general economic investment decisions, the taxation of foreign investments will be evaluated in relation to other investment criteria for investments in Canada. As it will become obvious, there are reasons in favour of the Canadian tax policy on one hand and reasons against it on the other hand. As a conclusion, I am of the opinion that it is worthwhile to consider changes in the taxation of foreign investment. / Law, Peter A. Allard School of / Graduate

This thesis identifies social attitudes toward foreign direct investment (FI) in the province of British Columbia. Historically, regional development in B.C. has largely depended upon the exploitation of natural resources, which attracted heavy inflows of foreign capital to this province. The purpose of this study is to measure individual preferences in B.C. society with respect to the issue of FI, an important component of past economic development. A survey of opinions was carried out among selected societal sub-groups of the population by means of a mailed questionnaire during the summer of 1975. The analysis revealed that the respondents were generally well informed and possessed a basic understanding and knowledge about FI in the province. Contributions of FI to past regional economic development were highly valued, but almost half of the respondents were not in favour of further FI in their regions. This result indicates that for a significant portion of B.C. residents, apart from provincial and local business groups, the present pattern of FI is not satisfactory. Since a majority of respondents perceived the past benefits in terms of economic criteria (such as the provision of employment and higher income levels), their reluctance to favour future investment may be interpreted in different ways. One interpretation is that the people thought the economic benefits generated by FI were not distributed equitably under the current investment pattern. Another is that British Columbians' development goals have been changing with more emphasis on non-economic criteria. A final interpretation is that the residents did not want any FI simply because they had secured their own jobs, which might have been directly or indirectly the result of FI, and thus perceived the issue from a strictly individual welfare viewpoint. The analysis of responses by economic sub-regions lead to the formulation of the following development paradigm: In the urban centre of Vancouver, and the repidly growing Okanagan and Central sub-regions, as well as in the least developed North East, receptiveness to FI were positive; while in the interior sub-regions (where the past FI inflows were the heaviest), the respondents' approval of future FI was lower. Regional analysis also revealed that receptiveness to future FI was frequently inversely related to the existing level of such investment in the host region. Unequal distribution of benefits accruing from FI seemed to be one of the major causes of opinion discrepancies. The capital-intensive nature of FI in resource industries often exacerbated spatial and social inequities. Opinion differences between the respondents from the metropolis and those from the hinterland, between business and union groups, between white collar and blue collar workers, and among various income groups, all suggest that the problem of distribution of benefit is a major factor determining their receptiveness to FI. The provision of employment was a criterion for judging the benefits of FI. The less favourable attitudes indicated by women, people with less formal education, the younger generation, and the old time residents in the province, may well reflect the skewed distribution of employment opportunities generated by past FI projects. For the public sector, strategies for coping with future FI could be approached in two ways: A negative approach suggests use of public initiative for redirection of investment patterns by restrictive measuresrsuch as an enforcement of FI guidelines. Positive approach centres on benefit and employment redistribution policies. The government could advise foreign investors to modify their investment strategies. Recommendations are made to internalize their corporate profits within the project region. The public sector can also generate initiatives in planning for the regions based on an increased emphasis on non-economic factors. / Applied Science, Faculty of / Community and Regional Planning (SCARP), School of / Graduate

Bibliography: leaves 305-324. / The thesis examines the theory of the determinants and welfare impact of foreign direct investment on host countries, concluding that resource transfer effects are not necessarily beneficial in certain circumstances. The distribution and penetration of foreign direct investment in the South African economy is analysed in the context of the debate about dependency and the role of technology in economic development. It is concluded that given the small amounts of fixed capital actually transferred to South Africa and the negative basic transfer which has occurred since the war, the role of technology in the economic development of South Africa has been crucial. It is argued that despite the relatively low level of foreign direct investment penetration in south Africa, efforts to reduce this penetration are hampered by continuing high dependence on foreign technology, which reflects the ~ay in which the international technology market works. The conclusion is that this dependence can only be reduced by assimilating and copying foreign technology, which should, if necessary, be purchased separately from capital, especially if foreign investors are reluctant to risk fixed investment in the New South Africa. The statistical sources used are official South African Reserve Bank figures for capital flows and stocks, a data base constructed by the author from the Bureau of Market Research's unpublished industrial register and the results of a questionnaire administered to a stratified random sample of local and foreign manufacturing firms in South Africa.

Thesis (Ph.D.)--Auburn University, 2005. / Abstract. Vita. Includes bibliographic references (ℓ. 93-102)

published_or_final_version / abstract / toc / China Area Studies / Master / Master of Arts

published_or_final_version / Business Administration / Master / Master of Business Administration

published_or_final_version / Geography and Geology / Master / Master of Philosophy

A Dissertation Submitted to the Faculty of Commerce University of the Witwatersrand for the Degree of Master of Commerce / The purpose of this paper is to provide a critical assessment of the Foreign Direct Investment (FDI) policy stance in South Africa. We analyse whether investment incentives will be effective in increasing FOI inflows and look at the importance of the behaviour of transnational corporations (TNCs) in determining the impact of FDI on the host. This analysis allows us to determine the appropriate objective of FDI policy, namely channelling TNC behaviour' such that they generate the desired benefits for the host-This raises the question of how such behaviour may be channelled in practice. Using the framework of information economics, we identify the nature of the difficulties with which policy makers must deal in designing behavioural incentives. Although this does not lead us directly to policy prescriptions, when augmented with practical considerations, it provides us with a basis for analysing whether FDI policy (as distinct from industrial policy) is called for by isolating one instance in which a differentiated approach. would be likely to increase the efficacy of policy, we show that there is good reason to suspect that the absence of a distinct FDI policy in South Africa may be suboptimal. / AC2017