Trade Regimes And Domestic Industrial Policies: Their Impact On The Development Of The Textile & Apparel Industry In Ghana

Abstract

The decline and nonperformance of the ghanaian textile and apparel industries have been blamed on many factors; stiff competition from china, influx of substandard and often imitated products into ghana from neighboring ecowas countries, the presence of second-hand clothing as a substitute product, and the overall negative attitude towards  "made in ghana” goods by the ghanaian consumer, etc.  The study is focused on two components within the external business environment; domestic industrialization policy (post independent period) and ghana's membership of multilateral trade regimes (wto), which we assume have been the major determinant of the state of the textile and apparel industries in ghana to date. The study reviewed secondary data sources (trade and academic literature and economic theories, textile and apparel journals). Attention to the regional trade arrangement (ecowas), with trade facilitation as an instrument, suitable business models- the product cycle theory could be the window of opportunity for the revival of the textile and clothing industries in the sub-region.  Emphasis on sustainable advantage strategy (defined by porter in two concepts – operational effectiveness and strategic positioning) would be the way forward to joining the global textile and clothing supply chain.  The paper will aid both academia and industry in revamping the textile and clothing sector through the introduction of literature on the topic, as well as recommendations on business models, concepts and government policies.