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Health shocks are among the factors that have impeded households from experiencing better welfare. To mitigate the consequences of these shocks, individuals have sought to enrol in a formal insurance scheme or borrow from banks. This study estimates the effects of health shocks on households' welfare while examining the mitigating role of social assistance in Ghana.

The study utilized the three-stage least squares and feasible generalized least squares to estimate the impact of health shocks on households' welfare.

The authors find that health shocks put households at risk, particularly disability and severe illness, which significantly limits individuals’ ability to smooth consumption to increase welfare. We further find that hospitalization due to illness significantly allows households to increase welfare through consumption. Finally, we find that social assistance has the potential to reduce these adverse effects of shocks conditioned on the type of shock and the outcome variable in question.

First, we only used cross-sectional data for the two waves and therefore lacked panel data across time for analyses. Second, the data do not provide information on the exact amount of cash received by beneficiaries, so it was quite impossible to measure the exact effect of social assistance on welfare. We could only track whether or not having such assistance could mitigate the effect of a health shock.

The practical implication of the findings is that Ghana needs to build a resilient health system in order to withstand the health shocks of individuals.

No study has attempted to investigate the differential effect of health shocks – hospitalization, disability and labour days lost due to illness in Ghana. Our choice is dependent on the fact that these shocks have been an issue for many households in Ghana, thus the need to examine their impact on individual well-being. Second, social assistance has been Ghana’s flagship social protection programme, but what is missing in the literature is whether this programme is capable of reducing the effect of health shocks faced by beneficiaries’ households in Ghana.

The purpose of the paper was to investigate the role of fiscal incentives in driving foreign direct investment (FDI) inflows into the Ghanaian economy based on data from 1975 to 2017 with the Eclectic paradigm as the theoretical basis. FDI inflows was the dependent variable whiles trade openness, corporate tax rate, exchange rate and market size were the independent variables with corporate tax rate as the main explanatory variable of interest.

The autoregressive distributed lag (ARDL) bounds test technique was employed to investigate Cointegration in the model. The results showed the presence of cointegration among the variables.

The results revealed that corporate tax rates have a significant negative impact on FDI inflows into the Ghanaian economy in the long run and significant positive impact on FDI inflows in the short run. In the context of Ghana, the positive short-run relationship observed is attributed to the lag effect of tax policy on FDI inflows.

One obvious limitation of the research is that, it does not identify the specific foreign businesses that are more deserving of a low corporate rate and to what extent can that boost FDI inflows in Ghana. Another limitation is that the data analyzed in the paper is exclusively for Ghana and the findings may not be generalized for other countries.

Based on the research findings, it is recommended that the Ghana Revenue Service (GRA) restructures the corporate tax regime in the country to deal with the policy lapses. It is also recommended that low corporate rates should be maintained especially in respect of foreign companies that are into the production of goods and services for which indigenous companies in Ghana have a comparative disadvantage in order to drive FDI into the Ghanaian economy.

This paper is unique for providing up to date and dynamic insights into the tax incentive and FDI nexus in the Ghanaian context.