Sources of Growth in the Ghanaian Manufacturing Sector (1965-2006)

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This study examines the major determinant of manufacturing growth in Ghana, emphasizing the importance of trade. Trade therefore is put into three sections namely, exports, imports and economic liberalization. It Further considered the question as to whether the removal of trade barriers has been able to promote industrial convergence. Annual time series data covering the period 1965 to 2006 was used. The researcher applied the bounds testing approach to co-integration and error correction models, developed within an auto-regressive distributed lag (ARDL)framework, to investigate whether a long-run relationship exist. Using this approach the researcher found evidence of long-run relationship between growth and its determinants. The results indicate that economic liberalization has positive impact on growth while imports have negative impact and this result is consistence with other findings. Again, there is sufficient evidence to conclude that smaller firms are growing faster relative to large firms.
A thesis submitted to the Department of Economics, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfillment of the requirements for the award of a Master of Philosophy Degree in Economics.