Research on Relationship between China and Ghana: Trade and Foreign Direct Investment (FDI)

Foreign direct investment (FDI) refers to long term participation by country A into country B. There are two types of FDI: inward FDI and outward FDI. Many African countries have already done much to create a more business-friendly environment and many have made impressive progress towards political and economic stability. In their efforts to revive economic activity they have scaled down bureaucratic obstacles band interventions in their economies, embarked on privatization programs and are putting in place pro-active investment measures. These efforts helped by other factors such as high commodity prices have borne fruit in recent years. Research on the impact of China on other developing countries is still at an early stage and there are still a number of key areas where current knowledge is limited. The result indicated that, China is the second highest country in terms of trade and FDI in Ghana.