Ghana's status as one of the African Lions is linked to the country's remarkable growth performance, which culminated in the attainment of lower middle-income status. However, employment response to growth has been weak. Additionally, growth has been accompanied by substantial reduction in poverty, albeit increasing inequality. This development is explained by a slower growth in high labour absorption sectors of agriculture and manufacturing as against high growth in low employment generating sectors of mining and oil extraction. Fixing the problem of the missing middle of dwindling manufacturing and raising productivity in agriculture are recommended for the promotion of growth inclusiveness.

This paper investigates the effects of trade liberalization on firm productivity in Ghana. We examine Ghanaian trade policy from 1993 to 2002, a period during which trade liberalization deepened with intermittent protection in a number of ways across industries, to investigate the effects of trade policy reforms and firm productivity. We find a strong negative impact of nominal tariffs on firm productivity, controlling for observed and unobserved firm characteristics and industry heterogeneity, a result that is robust to various alterations of the base model, including treating tariffs as endogenous and employing different estimation techniques. These results indicate that firms that are overprotected have a lower level of Total Factor Productivity than firms that are exposed to import competition. The estimated coefficients on both tariffs and its squared term confirm that higher tariffs are particularly distortionary

This paper has been prepared as part of a series of studies on 'Natural Resources, structural change, and industrial development in Africa' as part of a larger UNU-WIDER research project on 'Jobs, poverty and structural change in Africa'.

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Typescript prepared by Anna-Mari Vesterinen at UNU-WIDER. Terms of use: Documents inUNU-WIDER acknowledges specific programme contribution from KOICA for the series of studies on 'The Practice of Industrial Policy -Lessons for Africa' and core financial support to its work programme for the governments of Denmark, Finland, Sweden, and the United Kingdom.The World Institute for Development Economics Research (WIDER) was established by the United Nations University (UNU) as its first research and training centre and started work in Helsinki, Finland in 1985. The Institute undertakes applied research and policy analysis on structural changes affecting the developing and transitional economies, provides a forum for the advocacy of policies leading to robust, equitable and environmentally sustainable growth, and promotes capacity strengthening and training in the field of economic and social policy-making. Work is carried out by staff researchers and visiting scholars in Helsinki and through networks of collaborating scholars and institutions around the world.UNU-WIDER, Katajanokanlaituri 6 B, 00160 Helsinki, Finland, wider.unu.edu The views expressed in this publication are those of the author(s). Publication does not imply endorsement by the Institute or the United Nations University, nor by the programme/project sponsors, of any of the views expressed. Abstract:The article explores the various co-ordination mechanisms between the state and the business community in Ghana, and the implications for economic growth in the country. We focus on three periods in the economic history of state-business relations: the immediate postindependence period and the adoption of a statist approach to development where the state was the main engine for development; the period of military rule that was characterized by some semblance of civility in the relations between the state and the private sector; and the postmilitary regime, where positive relationships with the private sector were deliberately developed and cultivated.

There is a long history to regulation in Ghana, dating back to the colonial days when the regulation of mining land was perceived to be a tool used by the colonial government to protect large mining concessionaires from the intrusive activities of indigenous small scale and informal mining operations. Throughout the long period beginning from the 1960s to the early 1980s, when the state controlled most formal economic activities, the issue of regulation was taken for granted as the state developed only minimal structures for the purpose of regulating the interaction among different economic agents, without interfering too much with old regulations. still poor environment. The continued dominant role of a 'state monopoly' in the telecommunications sector is often used as an example of how 'halfhearted' regulation can impede competition. Just as the mass poverty of the people makes price regulation a difficult option, so does the weakened legal system after many years of poor governance.