Technical change, competitiveness and poverty reduction : a study of the Ghanaian apparel industry

To guide future technology, industrial and poverty reduction policy planning and formulation, this study offers evidence of widespread technical inefficiencies and technical change among SMEs in apparel manufacturing business in Ghana. A survey of 140 firms shows weak signs of catching-up with the best practice firms even with increasing application of new technologies. Levels of poverty/deprivation remain high among apparel manufacturers, down from 41.8 percent in 2002 to 34.2 percent in 2007. The study linked the drop in poverty to output growth and proposed a more sustained and comprehensive policy measures to boost productivity growth through a better educated workforce and automated production processes to curb technical inefficiencies. Going forward requires good governance and workable international trade rules to change the present levels of performance of textiles/apparel industry in Ghana.