Promotion of export marketing of small scale industry products in Ghana

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1998-02-22
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The promotion of small scale industries has, since the middle 1980s, become a major policy of the government of Ghana in its efforts to diversify the Ghanaian economy. The choice of the small scale industrial strategy lies in the role it plays in the generations of employment, income, and foreign exchange, among others. However, the growth and development of the small scale industries require that they are able to compete effectively with large and medium scale firms as well as imported goods. To achieve this means that the small scale industries need to develop efficient and effective domestic and export marketing strategies. i.xport promotion policies have, therefore, been formulated and promotion institutions set up to implement these policies. The aim of the study was to: (i) identify the major policy instruments for export marketing; (ii) critically examine the implementation strategies for export marketing policies at both industry and exporter level; and (iii) make recommendations for the formulation of more coherent and effective export marketing policies and strategies for small scale industry products. The theoretical and analytical framework adopted for the study was dynamic comparative advantage and market structure-conduct-performance models. it has been concluded that, government has clearly defined policy goals, objectives and plan of action to achieve them. Though general macro-economic policy reforms have all provided an enabling environment, the desired success has not been realised due to lack of commitment to the implementation of the export promotion policies. Other problems that retard export promotion policies include: • unbalanced policy in favour of economic incentives as against marketing incentives; • inadequate information about the incentives packages; + lack of qualified and experienced international marketing personnel to provide practical guidance to producers and exporters; • inconsistency and lack of continuity in policy implementation, • low capital; and • inability to produce large volumes to meet demand schedules. At the firm and exporters level, the entrepreneurs lack managerial and technical skill to properly structure and conduct their businesses effectively and efficiently. The entrepreneurs are not engaged in direct export marketing, and thus have lost control over the marketing mix variables. They could, therefore, not penetrate the global market competitively. In order to address these problems and improve the performance of the sector, the following recommendations have been made relating to: (i) upgrading of managerial competence of producers and exporters and institutional capacity building; (ii) market research development institutions; (iii) development of channel alternatives; (iv) formation of co-operative groups; (v) development of Joint Establishment Export Promotions (JEEP); (vi) comprehensive export policy formulation; and (vii) provision of credit facilities
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A thesis submitted to the Board of Postgraduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfilment of the requirement for the award of the Degree of Master of Science in Development Policy and Planning, 1998
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