Research On China-Ghana Economic And Trade Relations (2000-2018)

Ghana has a long-standing history with China and the cooperation agreements between the two countries has recorded significant improvements and growth over the years.The trade relations between the two countries put both countries in a position to collaborate,resolve problems in different domains and explore opportunities for shared beneficial trade and economic growth.All in all,different mechanisms are pertinent to understand the effect of the economic growth of exports and imports and the ever-growing trade integration between the two countries.To understand the effect of the economic growth of exports and imports and the ever-growing trade integration between the two countries,this thesis seeks to review the cooperation agreements between the two countries that is beneficial for the economic development of both countries.There has been a rapid increase in exports to China which is largely driven by the growth in imports of manufactured goods and the demand for cheap manufactured goods from China.It is obvious that the industrial sector in Ghana is being challenged by the increased imports of manufactured goods from China.These industries face competition both in the internal and external markets.Given that most of these industries are currently poorly developed,Ghana must find policies that will deal with the deindustrialization that may occur if Chinese imports continue to grow coupled with job losses and the obstruction of economic diversification.To further understand this,an in-depth analysis was performed to further comprehend the outcomes and impacts of recent Chinese manufacturing investments and development assistance as well as the general perceptions on the rising presence of China in Ghana and impact of Chinese firms in Ghana through the employees of various Chinese companies.Also,key areas such as Chinese investments in infrastructural development,employment,and how these have strengthened the relationship between Ghana and China.Besides,despite the country's enormous indebtedness,the areas of Chinese investment in Ghana have paved the way for increased infrastructural development and impacted employment positively.It can therefore be argued that cheap Chinese producers are providing a huge relief for the country's economically challenged.In addition,there is a marked disparity in tariff policy between the two countries that discourages Ghana's agricultural exports to China.Although the initiation of the local production of Ghanaian products by the Government of Ghana is commendable,however,Ghana exports less to China and imports most of its products from China.Lastly,relevant background knowledge was ascertained by probing into one of Ghana's essential export commodities and how it has sustained the growth of the economy over the years.This research work concludes by calling on both countries to ensure that the relations and cooperation continue to be anchored on long-honoured values of fairness and equality.It was obvious that China is one of Ghana's major aid partners and has a significant impact on its trade and economic affairs as a result of being a major financial donor and financier of development projects.It is therefore likely that China's importance as Aid partner will rise remarkably in the near future.