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The Ghanaian manufacturing sector 1991-95: Firm growth, productivity and convergence

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  • Francis Teal

Abstract

The removal of high levels of protection combined with substantial real devaluations have changed the environment in which Ghanaian manufacturing firms have operated in the 1990s. The changes in output, composition and productivity, which have occurred over this period, are examined in this article. Survey evidence for the growth of the sector is shown to be consistent with data from sales tax returns. Analysis of the panel survey shows that, in a comparative context, the rate of job creation in Ghana's manufacturing sector is high. This rate is highest in medium-sized firms; small firms have not grown more rapidly than larger firms. There has been no underlying growth in technical efficiency and output growth has been matched by a commensurate growth in labour and capital inputs. Labour productivity differs substantially by firm size due primarily to differences in physical, not human, capital endowments.

Suggested Citation

  • Francis Teal, 1999. "The Ghanaian manufacturing sector 1991-95: Firm growth, productivity and convergence," Journal of Development Studies, Taylor & Francis Journals, vol. 36(1), pages 109-127.
    • Handle: RePEc:taf:jdevst:v:36:y:1999:i:1:p:109-127
    DOI: 10.1080/00220389908422614
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    Cited by:

    1. Reyes Aterido & Mary Hallward-Driemeier & Carmen Pagés, 2011. "Big Constraints to Small Firms' Growth? Business Environment and Employment Growth across Firms," Economic Development and Cultural Change, University of Chicago Press, vol. 59(3), pages 609-647.
    2. Waldkirch, Andreas & Ofosu, Andra, 2010. "Foreign Presence, Spillovers, and Productivity: Evidence from Ghana," World Development, Elsevier, vol. 38(8), pages 1114-1126, August.
    3. Takahiro FUKUNISHI, 2009. "Has Low Productivity Constrained The Competitiveness Of African Firms? A Comparison Of Kenyan And Bangladeshi Garment Firms," The Developing Economies, Institute of Developing Economies, vol. 47(3), pages 307-339, September.
    4. Francis Teal, 2000. "Private Sector Wages and Poverty in Ghana: 1988-1998," Economics Series Working Papers WPS/2000-06, University of Oxford, Department of Economics.
    5. Ishengoma, Esther K. & Kappel, Robert, 2008. "Business Constraints and Growth Potential of Micro and Small Manufacturing Enterprises in Uganda," GIGA Working Papers 78, GIGA German Institute of Global and Area Studies.
    6. Florian Leon & Samuel Monteiro, 2019. "Financial constraints, factor combination and Gibrat's law in Africa," Working Papers hal-02493343, HAL.
    7. Francis Teal & Måns Söderbom & Francis Teal, 2000. "Skills, investment and exports from manufacturing firms in Africa," Economics Series Working Papers WPS/2000-08, University of Oxford, Department of Economics.
    8. Janvier D. Nkurunziza, 2005. "The Effect of Credit on Growth and Convergence of Firms in Kenyan Manufacturing," Economics Series Working Papers WPS/2005-01, University of Oxford, Department of Economics.
    9. Iacovone,Leonardo & Ramachandran,Vijaya & Schmidt,Martin, 2013. "Stunted growth : why don't African firms create more jobs ?," Policy Research Working Paper Series 6727, The World Bank.

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