Africa is a Continent endowed with enormous natural resources that has attracted the attention of the west in particular; and has been described as a base for development of western Countries. In the twenty first century, the world's second largest economy; China has become a new development partner to Africa in Economic Corporation and trade. China-Africa trade also known as Sino-Africa trade and relationship has increased tremendously over the last two decades especially. The main components of Sino-African relations have been in areas including: Bilateral trade, Investments and Aid. Sino-African relations have been under scrutiny with some accusing China of pursuing an aid for oil/resource policy and even neocolonial hidden motives. Further, there are some who question the impact of relations on local industries. The Study focuses on one of the most promising economies in Africa: Ghana. SinoGhana economic relations have a long-standing history. The study aims to take cursory look at Sino-Africa trade relations, and its impact on the Ghanaian Economy; especially in the Textile sector, an important sector of the economy. To this end the study employs case study approach; employing available qualitative and quantitative data from relevant sources for empirical analysis. The results reveal that Sino-African Economic and trade relations impact on the Ghanaian textile industry negatively in areas such as employment, although some positive benefits such as cheaper prices for consumers accrue.

Ghana is endowed with natural resources such as gold, cocoa, crude oil, and other factor endowments that gives the country a comparative advantage in trade. Ghana, a low-middle income country, is the second largest producer of gold in Africa and 11th in the world, as well as the second largest exporter of cocoa in the world. With all the factor endowments and export potential however, the country exports basically raw materials with little value addition and therefore is deprived of the full benefits accruing to trade and exports.This paper employs an empirical method and applies the Ricardian Model of Comparative Advantage using available secondary data to explore the importance of exports to the economic growth of the country and certain challenges of value addition. The findings show that exports promote economic growth as well as that value addition can be beneficial in earnings and needs government attention in following the recommendations therein.

Many economists and governments are now of the view that promoting trade in general and exports, in particular, are the solution to poverty reduction and balance of payment problems and eventual development. In the modern era, most economies have adopted the theory of comparative and specializing in goods for which they have comparative advantage and trading for much needed foreign exchange earnings. While most studies have evaluated the impact and benefits of international trade, few have focused on the costs associated with the trade. T his paper reviews both benefits and costs associated with trade, in order to strike a balance and provide a complete overview of trade for, especially developing economies. A model of cost and benefit analysis of trade (MCBAT) is subsequently developed. In order to achieve the objectives of the study, the paper uses an empirical method of study and uses empirical data for costs and Granger causality tests, error correction models, Least squares (Gauss-Newton / Marquardt steps) and Wald tests in Eviews statistical software to determine impact. T heoretical and empirical analysis prove that has both benefits and costs, and whilst trade provides quality, cheaper and variety of goods, and may promote economic growth, it may harm developing economies in terms of deficit balance of payments and debts, resource depletion and domestic industries.