Evaluating the Contribution of the Export Sector to Real GDP Growth Rate Under Structural Adjustment Programme (SAP): The Case of Ghana

This study evaluates the contribution of the export sector to real gross domestic product (GDP) growth rate in the past eight years in Ghana. First, it reviews the main economic policy adopted by the government from 1983 to 2007 to reverse the postindependence economic decline of the Ghanaian economy. Second, it assesses the extent to which the continued reform agenda has facilitated the growth of the export sector during 2000-2007. Third, it presents an evaluation of the contribution of the performance of the export sector as a major stimulus to economic growth. Documentary analysis of available evidence reveals that the implementation of the Structural Adjustment Programme (SAP) has led to a positive export sector performance and subsequent real GDP growth rates during the period under review. However, this study argues that there is little aggregate evidence that the trade policy reforms and liberalization since the late 1980s have produced a very significant export response. Exports have not increased consistently and imports have tended to grow faster than exports following liberalization widening the trade deficit and thus constraining growth. (C) 2012 Wiley Periodicals, Inc.