It is not what you think! The effect of colonial legacies on Africa’s inward FDI: the Case of UK FDI in Ghana

Maktoba Omar, Collins Osei

Research output: Contribution to journalArticle

Abstract

Purpose – This paper examines the role colonial ties play in attracting Foreign Direct Investment (FDI) using Ghana as a case study. Colonisation left behind legacies of institutional framework, social ties and remnants of companies of colonial masters which could potentially offer contemporary businesses from home countries the benefits of country of origin agglomeration. Design/methodology/approach – This paper uses sequential explanatory mixed research design through 101 questionnaires and eight interviews from UK companies with FDI in Ghana. Findings – Colonial ties have limited influence on contemporary flow of FDI to Ghana. Majority of UK companies are influenced by agglomeration opportunities in general rather than country of origin agglomeration. Research limitations/implications – The sample was taken from the non-extractive industry in Ghana and caution must be applied in generalising the findings. However, some universal issues concerning agglomeration and institutions have been discussed. Originality/value – Although there has been some research on colonial history and its impact on FDI in Africa, existing knowledge on bilateral relations is rather limited. Unlike previous studies, this research provides depth by examining colonial influence on FDI between two countries, using two key concepts: country of origin agglomeration and institutions. It provides UK companies with contemporary views to consider when exploring FDI opportunities in Ghana, particularly in relation to the effects of the colonial history
Original languageEnglish
Pages (from-to)(In-Press)
Number of pages17
JournalCritical Perspectives on International Business
Volume(In-Press)
DOIs
Publication statusAccepted/In press - 14 Dec 2019

Fingerprint

Foreign direct investment
Africa
Ghana
Agglomeration
Country of origin
Colonial history
Social ties
Investment opportunities
Design methodology
Institutional framework
Industry
Home country
Colonization
Bilateral
Questionnaire
Research design

Keywords

  • FDI determinants
  • Africa
  • Ghana
  • UK companies
  • FDI motives
  • Institutions
  • Agglomeration
  • Bilateral trade
  • Colonial legacies
  • Country of origin

Cite this

It is not what you think! The effect of colonial legacies on Africa’s inward FDI: the Case of UK FDI in Ghana. / Omar, Maktoba; Osei, Collins.

In: Critical Perspectives on International Business, Vol. (In-Press), 14.12.2019, p. (In-Press).

Research output: Contribution to journalArticle

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