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Economic transformation in Ghana: Where will the path lead?

Author

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  • Kolavalli, Shashidhara
  • 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.

Suggested Citation

  • Kolavalli, Shashidhara & Robinson, Elizabeth J. Z. & Diao, Xinshen & Alpuerto, Vida & Folledo, Renato & Slavova, Mira & Ngeleza, Guyslain K. & Asante, Felix Ankomah, 2012. "Economic transformation in Ghana: Where will the path lead?," IFPRI discussion papers 1161, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:1161
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    Cited by:

    1. 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.
    2. Annemarie Paassen & Charity Osei-Amponsah & Laurens Klerkx & Barbara Mierlo & George Owusu Essegbey, 2022. "Partnerships Blending Institutional Logics for Inclusive Global and Regional Food Value Chains in Ghana; with What Smallholder Effect?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(5), pages 2179-2203, October.
    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.
    4. Pinto, Alex de & Demirag, U. & Haruna A & Koo, Jawoo & Asamoah M, 2012. "Climate change, agriculture, and food-crop production in Ghana," GSSP policy notes 3, International Food Policy Research Institute (IFPRI).
    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. Enoch Bessah & Emmanuel A. Boakye & Sampson K. Agodzo & Emmanuel Nyadzi & Isaac Larbi & Alfred Awotwi, 2021. "Increased seasonal rainfall in the twenty-first century over Ghana and its potential implications for agriculture productivity," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(8), pages 12342-12365, August.
    7. van Paassen, A. & Osei-Amponsah, Charity & Klerkx, L. & van Mierlo, B. & Essegbey, G. O., 2022. "Partnerships blending institutional logics for inclusive global and regional food value chains in Ghana; with what smallholder effect?," Papers published in Journals (Open Access), International Water Management Institute, pages 1-25.().
    8. 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).
    9. Diao, Xinshen & Cossar, Frances & Houssou, Nazaire & Kolavalli, Shashidhara & Jimah, Kipo & Aboagye, Patrick Ohene, 2012. "Mechanization in Ghana: Searching for sustainable service supply models," IFPRI discussion papers 1237, International Food Policy Research Institute (IFPRI).
    10. Emmanuel Kwame Doffour & Emmanuel Boye Asamoah & Isaac Kwadwo Anim & Eric Agyenim-Boateng, 2025. "Factors That Influence Dividend Policy: Do Macroeconomic Factors Matter?," Finance, Accounting and Business Analysis, Academic Publishing UNWE, vol. 7(1), pages 120-133, June.
    11. Holli Capps Herron & Peter Waylen & Kwadwo Owusu, 2023. "Spatial and temporal variability in the characteristics of extreme daily rainfalls in Ghana," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 117(1), pages 655-680, May.
    12. Frances Warren, 2023. "Population density, urbanisation and agricultural mechanisation in modern Ghana," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1605-1629, August.
    13. 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.

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