ABSTRACT
In many countries, confidence in the efficiency and effectiveness of government to regulate the micro economy has eroded, as a result of witnessing the shortcomings that have accompanied government intervention. There is a general recognition that economic growth requires substantial expansion of the private business sector, including transnational corporation operations, rather than just an expansion of government investment. Since attaining its independence in 1957, Ghana has experienced two distinct periods with regard to foreign direct investment restrictions. Prior to 1983, Ghana sought to limit foreign ownership and control through the establishment of ceilings for the percentage of equity owned by foreigners in each enterprise, through government ownership, and through a foreign investment approval process. In the years since 1983, Ghana has gradually relaxed foreign direct investment restrictions through the elimination of some percentage ownership requirements, through a privatization program, and through the establishment of more transparent and automatic foreign investment approval procedures.
