نبذة مختصرة : The issue of financing for human development has been crucial for governments and stakeholders. The financing mechanisms for human development have been broadly categorised into domestic and foreign. The foreign capital inflows are to complement domestic resources for development. However, despite the heterogeneity of past studies, several studies have proved that with adequate institutional quality, an inflow of finance can positively impact human development. This study sought to examine the effect of foreign capital inflows on human development and the role of institutional quality in Ghana using partial least square structural equation modelling (PLS-SEM) on selected quartered secondary data from 1996 to 2020, primarily incorporating World Development Indicators (WDI) and World Governance Indicators (WGI). It reveals firstly that foreign capital inflows have significant positive influence on institutional quality in Ghana; secondly, institutional quality has insignificant positive effects on human development; thirdly, the direct effects of foreign capital inflows on human development are negative and insignificant. Finally, the effects of foreign capital inflows on human development are not mediated by institutional quality despite the positive effects of institutional quality. The study concludes that institutional quality does not mediate between the effects of foreign capital inflows and human development in Ghana. However, this study recommends that the government design and implement appropriate policies to create an enabling environment to strengthen institutions and regulations while attracting foreign capital as a supplementary source of domestic investment to enhance human development. ; Thesis (MPhil) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2024
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