International Growth Centre (IGC), London School of Economic and Political Science
Abstract
Using a new wave of firm-level data from the World Bank’s Enterprise Surveys this study examines the linkages between foreign firm participation and the investment
climate in Ghana. The analysis of the binding constraints of direct investment is split between objective and subjective measures of the investment climate. While the
subjective measures indicate accessing finance is the main constraint to doing business, the objective measures suggest foreign firm participation is affected by a
multiplicity of institutional, physical and finance related infrastructures, namely the administration of financial statements, power outages and the judicial system. A breakdown of the effects of the binding constraints by ownership, firm size, industry and region is also provided
