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Economic Transformation in Ghana: Where Will the Path Lead?

Author

Listed:
  • Shashidhara Kolavalli

    () (International Food Policy Research Institute)

  • Elizabeth Robinson

    () (Department of Economics; University of Gothenburg)

  • Guyslain Ngeleza

    (International Food Policy Research Institute)

  • Felix Asante

    () (Institute of Statistical, Social and Economic Research; University of Ghana)

Abstract

In the context of the Ghanaian government’s objective of structural transformation with an emphasis on manufacturing, this paper provides a case study of economic transformation in Ghana, exploring patterns of growth, sectoral transformation, and agglomeration. We document and examine why, despite impressive growth and poverty reduction figures, Ghana’s economy has exhibited less transformation than might be expected for a country that has recently achieved middle-income status. Ghana’s reduced share of agriculture in the economy, unlike many successfully transformed countries in Asia and Latin America, has been filled by services, while manufacturing has stagnated and even declined. Likely causes include weak transformation of the agricultural sector and therefore little development of agroprocessing, the emergence of consumption cities and consumption-driven growth, upward pressure on the exchange rate, weak production linkages, and a poor environment for private-sector-led manufacturing.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Shashidhara Kolavalli & Elizabeth Robinson & Guyslain Ngeleza & Felix Asante, 2012. "Economic Transformation in Ghana: Where Will the Path Lead?," Journal of African Development, African Finance and Economic Association (AFEA), vol. 14(2), pages 41-78.
    • Handle: RePEc:afe:journl:v:14:y:2012:i:2:p:41-78
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    References listed on IDEAS

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    1. Clemens Breisinger & Xinshen Diao & Rainer Schweickert & Manfred Wiebelt, 2010. "Managing Future Oil Revenues in Ghana: An Assessment of Alternative Allocation Options," African Development Review, African Development Bank, vol. 22(2), pages 303-315.
    2. Gustavo Anríquez & Silvio Daidone, 2010. "Linkages between the farm and nonfarm sectors at the household level in rural Ghana: a consistent stochastic distance function approach," Agricultural Economics, International Association of Agricultural Economists, vol. 41(1), pages 51-66, January.
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    5. Francis Teal, 1999. "Why Can Mauritius Export Manufactures and Ghana Not?," The World Economy, Wiley Blackwell, vol. 22(7), pages 981-993, September.
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    7. Clemens Breisinger & Xinshen Diao & James Thurlow & Ramatu M. Al Hassan, 2011. "Potential impacts of a green revolution in Africa—the case of Ghana," Journal of International Development, John Wiley & Sons, Ltd., vol. 23(1), pages 82-102, January.
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    Cited by:

    1. De Pinto, Alessandro & Demirag, Ulaç & Haruna, Akiko & Koo, Jawoo & Asamoah, Marian, 2012. "Climate change, agriculture, and foodcrop production in Ghana," GSSP policy notes 3, International Food Policy Research Institute (IFPRI).
    2. Albert Danso & Samuel Adomako & Joseph Amankwah‐Amoah & Samuel Owusu‐Agyei & Renata Konadu, 2019. "Environmental sustainability orientation, competitive strategy and financial performance," Business Strategy and the Environment, Wiley Blackwell, vol. 28(5), pages 885-895, July.
    3. M. Ali Nasrun & Fariastuti & Sukma Indra, 2020. "The Role of Agricultural Sector in Explaining Poverty in Indonesia: A Study Case of West Kalimantan," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 297-303.
    4. Diao, Xinshen & Cossar, Frances & Houssou, Nazaire & Kolavalli, Shashidhara, 2014. "Mechanization in Ghana: Emerging demand, and the search for alternative supply models," Food Policy, Elsevier, vol. 48(C), pages 168-181.
    5. Chapoto, Antony & Mabiso, Athur & Bonsu, Adwinmea, 2013. "Agricultural commercialization, land expansion, and homegrown land-scale farmers: Insights from Ghana:," IFPRI discussion papers 1286, International Food Policy Research Institute (IFPRI).
    6. Houssou, Nazaire & Kolavalli, Shashidhara & Silver, Jed, 2016. "Agricultural intensification, technology adoption, and institutions in Ghana," GSSP policy notes 10, International Food Policy Research Institute (IFPRI).
    7. Diao, Xinshen & Cossar, Frances & Houssou, Nazaire & Kolavalli, Shashidhara & Jimah, Kipo & Aboagye, Patrick, 2012. "Mechanization in Ghana: Searching for sustainable service supply models:," IFPRI discussion papers 1237, International Food Policy Research Institute (IFPRI).

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