Economic Transformation in Ghana

Type Working Paper - IFPRI Discussion Paper
Title Economic Transformation in Ghana
Author(s)
Publication (Day/Month/Year) 2012
URL http://www.ifpri.org/sites/default/files/publications/ifpridp01161.pdf
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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