The impact of manufacturing industries on Ghana’s economy

2017 IJRSM – Volume 6 Issue 2

Author/s:

Addo, Eric Osei*
Beijing Normal University, China (ericoseiaddo@hotmail.com)

Abstract:

Ghana’s economic growth over the last decade has been among the most rapid in Africa and faster than in some high investment emerging market economies. The economy of Ghana has experienced moderate but consistent growth over the past 25 years, with growth rate between 1990 and 2010 averaging 5 percent. Industry in Ghana accounts for about 25.3% of total GDP. However, Ghana’s industrial production is rising at a 7.8% rate, giving it the 38th fastest growing industrial production in the world due to government industrialization policies. Currently, it is estimated that the average medium-term real GDP growth rate in Ghana would be at least 8% per annum. Currently, Ghana’s industrial sector after the rebasing of the national account estimates in November 2010 consists of five sub-sectors namely; Manufacturing, Construction, Mining and Quarrying, Electricity, Water and Sewerage. Prior to the rebasing, the electricity and water and sewerage sub-sectors had been lumped together. The key objective of the study is to examine the factors that affect the competitiveness of local industries highlighting both the internal and external constraints. Questionnaires were used as the main instrument for primary data collection from the respondents. Also, various questions under each objective were analyzed systematically using the one sample t-test presented in tables and graphs (SPSS and Excel). In addition, Michael Porter’s Theory was used to analyze the competitiveness of local manufacturing industries in Ghana. Lastly, logical inferences and interpretations were made out of the resultant data.

Keywords: competitiveness; manufacturing industries; Ghana

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DOI: https://doi.org/10.5861/ijrsm.2017.2003

*Corresponding Author