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Determinants of Performance in the Wood Industry in Ghana: An Overview
Fidelis Quansah
Lecturer
, University of Professional Studies, Accra
&
Patrick Tandoh
-
Offin, (PhD)
Lecturer, School of Public Service and Governance, GIMPA, Accra
ABSTRACT
The
potential that the w
ood
industry
present
s for
diversifying
national
economies
through improved foreign
exchange
earnings, increased employment opportunities, and local
economic development cannot be underestimated. At the global level, this potential of the wood
industry has been deemed to be dependent on factors such as market orientation, firm size,
mana
gement attitudes, and firm, industry, product and market characteristics. Thus, it is
possible for countries and economies at different stages of development, different levels of
industrialization and with differing levels of wood or forestry resource endo
wment to
demonstrate or respond differently to the industry’s potential benefits also at the local or
domestic level.
The wood industry in Ghana contributes significantly in all three areas mentioned
above. The timber or wood industry, dominated mainly b
y private small and medium scale
enterprises (SMEs), averagely accounts for about 6% of the Gross Domestic Product (GDP).
According to Awuah
-
Seiwaah (2010), the sector is the fourth most important foreign exchange
earner (accounting for 11%) after Minerals
(36%), Cocoa (35%), and Tourism (12%).
It
provides direct employment to more than 100,000 people in logging and processing mills as
well as
in
public institutions
. It also contributes about 4% of the national tax revenue in Ghana.
It is clear therefore th
at the performance of the wood industry depends on the above
-
mentioned
factors.
This study aims to determine which factors are the most important for
evaluating the
performance in
Ghana
’s
wood
industry, especially in a global market space where
being
inter
nationally competitive is essential.
The study reviews empirical research that have applied
factors that have generally been accepted by researchers to be the determinants of performance
in the wood industry as a way to assess the usefulness of such factor
s in evaluating and making
appropriate recommendations for improving performance in the wood industry in Ghana.