[Occasional Paper No. 19] Ghana’s Attempts at Industrialization: How Can the Country Achieve the Success It Yearns For?

Since independence, Ghana has sought to extensively develop the manufacturing sector of the economy with the goal of becoming an industrialized nation, enjoying rapid and sustained economic growth and development. Yet, data reveal that the manufacturing sector has performed very poorly, leading to the failure of the country’s industrialization attempts despite strong policy attention paid to the sector.

Economic fundamentals such as high fiscal deficits, macroeconomic instability, shortage of foreign currency, inadequate raw materials to feed the manufacturing industries, etc. have commonly been cited by researchers as being responsible for this failure. We show that although economic fundamentals (and other factors) are the immediate causal factors affecting the performance of Ghana’s manufacturing sector, they are themselves affected by certain intermediate as well as more primitive or root causes, which have not been significantly addressed over the years and which are not only daunting to address but are also very delicate to deal with.

To ensure the success of the present and future industrialization efforts and achieve rapid and sustained growth and development of the broader economy, the country needs to adopt bold steps to address these root causes. We have provided a number of recommendations by which the country can address the root causes in order to permit long-term improvements in the economic fundamentals to stimulate manufacturing development and industrialization.

Read the full paper here.

May 24, 2019

Ghana’s Attempts at Industrialization: How Can the Country Achieve the Success It Yearns For? [Occasional Paper No. 19]

[Occasional Paper No. 19] Ghana’s Attempts at Industrialization: How Can the Country Achieve the Success It Yearns For?

Since independence, Ghana has sought to extensively develop the manufacturing sector of the economy with the goal of becoming an industrialized nation, enjoying rapid and sustained economic growth and development. Yet, data reveal that the manufacturing sector has performed very poorly, leading to the failure of the country’s industrialization attempts despite strong policy attention paid to the sector. Economic fundamentals such as high fiscal deficits, macroeconomic instability, shortage of foreign currency, inadequate raw materials to feed the manufacturing industries, etc. have commonly been cited by researchers as being responsible for this failure. We show that although economic fundamentals (and other factors) are the immediate causal factors affecting the performance of Ghana’s manufacturing sector, they are themselves affected by certain intermediate as well as more primitive or root causes, which have not been significantly addressed over the years and which are not only daunting to address but are also very delicate to deal with. To ensure the success of the present and future industrialization efforts and achieve rapid and sustained growth and development of the broader economy, the country needs to adopt bold steps to address these root causes. We have provided a number of recommendations by which the country can address the root causes in order to permit long-term improvements in the economic fundamentals to stimulate manufacturing development and industrialization. Read the full paper here.
May 9, 2018

Economic Shocks And Growth 
In Post-Independence Ghana, 1957 To 2017 [Occasional Paper 14]

[Occasional Paper 14] Economic Shocks And Growth 
In Post-Independence Ghana, 1957 To 2017

The study analyses economic growth based on annual changes in real gross domestic product (GDP) in Ghana during the post-independence period from 1957 to 2017 using an econometric approach involving an autoregressive modelling scheme that incorporates several economic shocks as separate independent variables. The economic shocks included in the model are world cocoa price shock, world oil price shock, weather shock due to an El Nino weather phenomenon, and political instability shock for military coups or attempted military coups. Read more full paper here