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Economic transformation in Ghana: Where will the path lead?

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  • Kolavalli, Shashi
  • Robinson, Elizabeth J. Z.
  • Diao, Xinshen
  • Alpuerto, Vida
  • Folledo, Renato
  • Slavova, Mira
  • Ngeleza, Guyslain K.
  • Asante, Felix Ankomah

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.

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Paper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 1161.

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Date of creation: 2012
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Handle: RePEc:fpr:ifprid:1161
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Keywords: economic growth; Economic transformation; agricultural sector; Private sector;

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  1. Nicholas Nsowah-Nuamah & Francis Teal & Moses Awoonor-Williams, 2010. "Jobs, Skills and Incomes in Ghana: How was poverty halved?," CSAE Working Paper Series 2010-01, Centre for the Study of African Economies, University of Oxford.
  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, 01.
  3. Breisinger, Clemens & Diao, Xinshen & Thurlow, James & Al-Hassan, Ramatu M., 2009. "Potential Impacts of a Green Revolution in Africa – the Case of Ghana," 2009 Conference, August 16-22, 2009, Beijing, China 51086, International Association of Agricultural Economists.
  4. Clemens Breisinger & Xinshen Diao & Rainer Schweickert & Manfred Wiebelt, 2009. "Managing Future Oil Revenues in Ghana - An Assessment of Alternative Allocation Options," Kiel Working Papers 1518, Kiel Institute for the World Economy.
  5. Breisinger, Clemens & Diao, Xinshen & Thurlow, James & Yu, Bingxin & Kolavalli, Shashi L., 2007. "Accelerated growth and structural transformation: Assessing Ghana’s options to reach middle-income status," GSSP working papers 7, International Food Policy Research Institute (IFPRI).
  6. Francis Teal, 1999. "Why can Mauritius export manufactures and Ghana not?," CSAE Working Paper Series 1999-10, Centre for the Study of African Economies, University of Oxford.
  7. Fabian Barthel & Matthias Busse & Robert Osei, 2011. "The Characteristics and Determinants of FDI in Ghana," The European Journal of Development Research, Palgrave Macmillan, vol. 23(3), pages 389-408, July.
  8. Aryeetey, Ernest & Baah-Boateng, William, 2007. "Growth, investment and employment in Ghana," ILO Working Papers 397933, International Labour Organization.
  9. Justin Sandefur, 2010. "On the Evolution of the Firm Size Distribution in an African Economy," CSAE Working Paper Series 2010-05, Centre for the Study of African Economies, University of Oxford.
  10. Geeta Kingdon & Justin Sandefur & Francis Teal, 2006. "Labour Market Flexibility, Wages and Incomes in Sub‐Saharan Africa in the 1990s," African Development Review, African Development Bank, vol. 18(3), pages 392-427.
  11. Charles Ackah & Denis Medvedev, 2012. "Internal migration in Ghana: determinants and welfare impacts," International Journal of Social Economics, Emerald Group Publishing, vol. 39(10), pages 764-784, August.
  12. Robinson, Elizabeth J. Z. & Kolavalli, Shashi L., 2010. "The case of tomato in Ghana: Processing," GSSP working papers 21, International Food Policy Research Institute (IFPRI).
  13. Barry Eichengreen & Poonam Gupta, 2010. "The Service Sector as India’s Road to Economic Growth?," Working Papers id:2604, eSocialSciences.
  14. Melo, Patricia C. & Graham, Daniel J. & Noland, Robert B., 2009. "A meta-analysis of estimates of urban agglomeration economies," Regional Science and Urban Economics, Elsevier, vol. 39(3), pages 332-342, May.
  15. Delgado, Christopher L. & Hopkins, Jane & Kelly , Valerie & Hazell, P. B. R. & McKenna, Anna A. & Gruhn, Peter & Hojjati, Behjat & Sil, Jayashree & Courbois, Claude, 1998. "Agricultural growth linkages in Sub-Saharan Africa:," Research reports 107, International Food Policy Research Institute (IFPRI).
  16. Breisinger, Clemens & Diao, Xinshen, 2008. "Economic transformation in theory and practice: What are the messages for Africa?," IFPRI discussion papers 797, International Food Policy Research Institute (IFPRI).
  17. Derek Headey & Dirk Bezemer & Peter B. Hazell, 2010. "Agricultural Employment Trends in Asia and Africa: Too Fast or Too Slow?," World Bank Research Observer, World Bank Group, vol. 25(1), pages 57-89, February.
  18. Akramov, Kamiljon T. & Asante, Felix Ankomah, 2009. "Decentralization and local public services in Ghana: Do geography and ethnic diversity matter?," IFPRI discussion papers 872, International Food Policy Research Institute (IFPRI).
  19. repec:fpr:resrep:clemensbreisinger is not listed on IDEAS
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Cited by:

  1. 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).
  2. 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).
  3. 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.

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