Ghana : Economic Diversification Through Productivity Enhancement
After nearly a decade of strong growth fueled by the boom in commodity prices, Ghana’s economy remains undiversified and vulnerable to external shocks.This report strives to analyze the main challenges for economic diversification from a productivi...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/292511575924848299/Ghana-Economic-Diversification-Through-Productivity-Enhancement http://hdl.handle.net/10986/33067 |
| Summary: | After nearly a decade of strong growth
fueled by the boom in commodity prices, Ghana’s economy
remains undiversified and vulnerable to external shocks.This
report strives to analyze the main challenges for economic
diversification from a productivity angle.In looking at a
set of high-growth economies of the past, the Growth Report
2008 identified common characteristics of successfully
applied growth models—the “ingredients of growth”—to inform
policy formulation around the world.However, since
independence in 1957, Ghana’s long-term growth dynamics have
been mixed and can be divided into three distinct
periods.Drivers of the economic expansion of Ghana changed
significantly over the years; currently, the service and
natural resources sectors provide the main sources of
growth.As a consequence of the change in input factors for
growth, the contribution of total factor productivity to
growth is on a declining path.The structural shift of the
Ghanaian economy into services and natural resource sectors
comes with two key economic management challenges. First ,
Ghana’s shift to services sectors only marginally
contributes to labor productivity growth.Second,
concentration of economic activity in natural resources
increase economic volatility and complicate
macro-management.The provision of basic public services
remains a challenge according to private sector executive
surveys.Economic diversification is a key element of
economic development in which a country moves to a more
diverse production and trade structure. |
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