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The diffusion of technology by foreign firms has also encouraged the emergence of new occupational groups, enhanced skills and improved productivity in selected industries and services. Generally, enterprises in Ghana have low technical capability and low productivity. A survey of five industries – textiles, garments, food processing, woodworking and metalworking – concluded that the general level of technical capacity in Ghana was very low by the standards of not only developed countries but also of industrializing countries in Asia and Latin America (UNCTAD, 2003). Notwithstanding the difficult operating conditions, FDI has increased significantly the stock of technology by providing machinery and equipment and it has helped build up local industrial capabilities by contributing to skills formation. This contribution has been strong in the exploitation of natural resources, where the use of capital-intensive technology has developed a pool of trained labour. Capital-intensive technology used in mining has also resulted in the shifting of surface open-pit operations underground. FDI has also brought technology and marketing knowledge to new export-oriented industries such as agribusiness and downstream processing industries (e.g. wood and fish processing). In agriculture, the transformation of traditional farming geared to local consumers into intensive production for export has involved the adoption of a new set of technologies. Pineapple and organic vegetables are successful examples. Services have benefited from the new information technology, distribution and logistic support of the transnational corporations. According to firms surveyed by UNCTAD, product improvement, constituted the most relevant support to local firms, followed by training, provision of machinery and equipment together with information on market opportunities.

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Profile for Abubakari Zakari

Impact Analysis of foreign Direct Investment on Economic Growth in Ghana  

FDI and economic growth in ghana

Impact Analysis of foreign Direct Investment on Economic Growth in Ghana  

FDI and economic growth in ghana