Investment Behaviour and Return Intention of Ghanaian Immigrants in the United Kingdom

Abstract

International return migration has been topical for the past two decades and has been reflected in several studies worldwide. Even though considerable research has been carried out on the impact of return migration and the drivers of remittance, more is needed to know about the link between investment behaviour and the return intention of immigrants to their origin countries. The study adapted the Rubicon Model and the Theory of Planned Behaviour (TPB) to examine the predictors of Ghanaian immigrant's investment in Ghana. The Rubicon and TPB models denote that the pros and cons of an individual's intentions are dissected through a rigorous assessment of the desired outcome that may be beneficial and risk-free. Using an explanatory mixed method design comprising a sample of 297 Ghanaian immigrants living in the UK and qualitative interviews with 30 respondents, this study examined the investment behaviour and return intention of Ghanaian immigrants living in the UK. At the bivariate level of analysis, a chi-square independent test was used to examine the association between immigrants' investment behaviour and return intention, transnational characteristics, and investment in Ghana. At the multivariate level, binary logistic regression models were employed to measure the isolated effects of each independent variable on the likelihood of a Ghanaian migrant investing in Ghana. The qualitative interviews were used to validate and explain the quantitative findings. The results showed that, the mean age of the respondents was 37.8 years. The majority of the respondents were married (77.10%), had first-degree education (85.19%) and more than half of them have stayed in the UK between 1-6 years (50.51%). Two-thirds (66.33%) were fully employed. The study found that out of the 297 sampled respondents, 279 of them sent remittances home. Out of this, 93.9% (229) had sent the remittances for investments purpose. Two-third (62.37%) of them invested in the real estate sector, with the highest remitting category being 1000 pounds and above, while 49.1% of them invested in the agricultural sector, with the highest remitting category being between 400- 599 pounds. Approximately 76% indicated that their motivation for investing in Ghana was driven by their desire to return. Variables associated with the investment behaviour included age (30 39), level of education, legal status and marital status. The qualitative interviews revealed that Ghanaian immigrants with guaranteed legal status in the UK could secure jobs and operate their businesses for capital accumulation in the UK for possible investment back home. However, they lamented lack of coordination between institutions when information was required. The study concludes that there is a significant association between investment behaviour and return intention (X2 = 44.75, p<0.001). The study recommends that as investment is shaped by youthful age of the immigrants, they prefer investing in the agribusiness and the real estate sectors, Ghanaian authorities should have an integrated mechanism that links these investment sectors to digital and financial services to whip up more interest in the sector. Policies aimed at migration and integration should hinge on the fact that migrants are transnational and therefore, creating space for them to maneuver their multiple loyalties would enable more investments in immigrants’ home regions while creating a more vibrant involvement in the host country’s labour market. Further research could be conducted using multi-sited surveys to test migration theories and generate new perspectives on return migration intention, investment, and entrepreneurship.