The impact of location tax incentives on the growth of rural economy: evidence from Ghana

Abstract Over the last two decades, location tax incentives programs serving as a motivating force have been progressively well known activities to draw in and/or hold foreign direct investments (FDIs) economically blighted areas. The study examined impact of on growth rural economy Ghana from period 1994 2018. data were sourced Investment Promotion, UNCTAD, and World Tax Database. Using ARDL Cointegration Error Correction Models estimated examine static dynamic long-run effects short-run dynamics system speed adjustment equilibrium. However, FDI is skewed towards Greater Accra region, Ashanti Central Eastern Western regions notwithstanding government has given since 1990s. shows that there positive statistically significant effect employment creation development long run. It revealed trade openness market size development. emerged no correlation between regional distribution Ghana. become well-established fact adequate holidays are beneficial businesses encourage them make investment decisions. therefore recommended more extensive mindfulness crusade through workshops, courses, advertisements necessary empower investors about accessible business opportunities.