IJSSER

Title: THE ECONOMIC EFFECT OF ABANDONED PROJECTS IN GHANA - THE STUDY AREA OF SELECTED REGIONS IN GHANA
Authors: Joseph Ampofo Ansah , Christine Ampofo-Ansah , Eunice Antiaye and Richard Nii Kotey
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Joseph Ampofo Ansah1 , Christine Ampofo-Ansah2 , Eunice Antiaye3 and Richard Nii Kotey4 1. Josah Developers Limited, Accra- Ghana 2,3. Accra Technical University (Secretaryship and Management Studies Dept.) 4. Riverside Publications, Accra- Ghana
MLA 8 Ansah, Joseph Ampofo, et al. "THE ECONOMIC EFFECT OF ABANDONED PROJECTS IN GHANA - THE STUDY AREA OF SELECTED REGIONS IN GHANA." Int. j. of Social Science and Economic Research, vol. 6, no. 11, Nov. 2021, pp. 4366-4393, doi.org/10.46609/IJSSER.2021.v06i11.008. Accessed Nov. 2021. APA 6 Ansah, J., Ampofo-Ansah, C., Antiaye, E., & Kotey, R. (2021, November). THE ECONOMIC EFFECT OF ABANDONED PROJECTS IN GHANA - THE STUDY AREA OF SELECTED REGIONS IN GHANA. Int. j. of Social Science and Economic Research, 6(11), 4366-4393. Retrieved from doi.org/10.46609/IJSSER.2021.v06i11.008 Chicago Ansah, Joseph Ampofo, Christine Ampofo-Ansah, Eunice Antiaye, and Richard Nii Kotey. "THE ECONOMIC EFFECT OF ABANDONED PROJECTS IN GHANA - THE STUDY AREA OF SELECTED REGIONS IN GHANA." Int. j. of Social Science and Economic Research 6, no. 11 (November 2021), 4366-4393. Accessed November, 2021. doi.org/10.46609/IJSSER.2021.v06i11.008.
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Abstract: Ghana is littered with many abandoned projects which is a cause for concern, considering its economic effect. The study will look at the various projects at different sectors of the economy and find out the causes of abandonment and how to mitigate them. The researcher surveyed various construction. projects in 6 regions of Ghana across various sectors. Target population was 500. However, 312 respondents responded to the questionnaire representing 62.4% which is representative enough. The researcher identified some causes of abandonment namely: Delayed capital, Cost overrun, Overambitious project activities and goals, Political influence, Incompetent project managers, Inflation, causing price and wage changes and Disputes on responsibility (who is in charge of the project). Factor analysis was then used to examine the dimensions within the dataset, to establish and confirm the correlation that exists among the factors and related items were grouped. The study adopted a quantitative enquiry approach where various analytical tools were employed and relative importance index (RII) for the three main constructs; causes of abandoned projects, impacts of abandonment and mitigating actions. The items ranged from low to high level importance based on the ranking criteria recommended. The relative criteria for the study constructs ranked between 0.861 and 0.972 indicating high importance level and has significance on the overall economy of Ghana. The effects on economic prosperity following the abandonment and consequent nonexistence of the benefits that could have been derived on alternative investment considering the scarce resources available. The opportunity cost of government investment is the potential benefits the country has lost because of huge capital investment in infrastructural activities and this has ripple effect on the economy in a number of ways such as waste, under-utilization of human resources; reduction in employment, Increase in bankruptcy of firms, incidence of bad debt among others.

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