Abstract
MPhil. (Industrial Policy)
The textile industry has been a major contributor to industrialisation in many countries. Therefore the performance of firms in this subsector may be greatly linked to the growth of the subsector and subsequently act as a driver of economic growth, among other factors. Also, firm performance affects the sector‟s ability to participate in the global value chain (GVC). It is said that the ability to participate and consequently to gain from participating in the textile and apparel GVC are possible only through creating a local environment that attracts global buyers. Although the literature notes the importance of global buyers in driving the GVC, it places prominence on a host of local economic factors that constrain the performance of firms and the growth of the subsector.
This study therefore analyses some local factors in Ghana that may contribute to the performance and capacity of textile and apparel firms to integrate into the GVC through a mixed methods approach of interviews, questionnaires and quantitative data.
From the analyses in the study it is revealed that, for the Ghanaian textile subsector to contribute to economic development and gain from participating in the GVC, certain local factors should be improved. These factors include the facilitation of effective coordination between the government, institutions and all stakeholders in the industry, and improvements in infrastructure, financing, standards and certification, and in policy and other internal firm factors. The study also reveals that countries like Ethiopia and Mauritius have found ways of scaling these constraints through several strategies leading to the growth of their textile and garments subsector. Therefore, improving these factors may improve the competitiveness of firms in order to participate in, and benefit from, GVCs.