Assessment of The Effects of Second Hand Clothing On The Performance of The Ghanaian Textile Industry: The Case of Local Clothing Industry in The Sunyani - East Municipality

CATHOLIC UNIVERSITY COLLEGE OF GHANA, FIAPRE
FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION
ASSESSMENT OF THE EFFECTS OF SECOND HAND CLOTHING ON THE

PERFORMANCE OF THE GHANAIAN TEXTILE INDUSTRY: THE CASE OF
LOCAL CLOTHING INDUSTRY IN THE SUNYANI EAST MUNICIPALITY
BY
DEBORAH OLAWUNMI OJEIFO
A LONG ESSAY SUBMITTED TO THE FACULTY OF ECONOMICS AND

BUSINESS ADMINISTRATION IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF BACHELOR OF SCIENCE
DEGREE IN ECONOMICS AND BUSINESS ADMINISTRATION
JUNE, 2015
i
DECLARATION
CANDIDATES DECLARATION
I, Deborah OlawunmiOjeifo, hereby declare that, this research work is the result of my
own original research, in spite of references made to other related literature prepared by
other people. This piece has not been presented for an award of any certificate in this
university or elsewhere.
Candidates Name: Deborah OlawunmiOjeifo

Signature:Date:
SUPERVISORS DECLARATION
I, Msgr. Seth OseiAgyemang, hereby declare that, the preparation and presentation of this
research work was supervised in accordance with the guidelines on supervision of
research work laid down by the regulations of the Catholic University College of Ghana,
Fiapre.
Supervisors Name:
Msgr. Seth OseiAgyemang
Signature:Date:
ii
ACKNOWLEDGEMENT
I would want to acknowledge the Almighty God for the grace given me in the course of
the study. I wish to express my heartfelt gratitude to all my lecturers at the Faculty of
Economic and Business Administration most especially my supervisor, Msgr. Seth
OseiAgyemang for the pains in taking me through my research work. God bless you all.
To all my friends, course mates and relatives I say thank you for being there for me
through my studies and the conduct of the study.
iii
DEDICATION
I dedicate this research to The Almighty God, the Ojeifo Family for guiding and
providing for me throughout my course especially my parents Mr. Dare Lewis Ojeifo and
Mrs. Flora Ojeifo and also my wonderful siblings MifuelayoOjeifo,EguarojeOjeifo,
David Ojezele, Joshua Ojezele and Daniel Sado Denis. I am also very grateful for the
support from my friends Yaw Baah-Nuakoh and IfetoluwaboriAkerele.
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TABLE OF CONTENT
TITLE PAGE ..................................................................................................................... i

DECLARATION............................................................................................................... ii
ACKNOWLEDGEMENT ............................................................................................... iii
DEDICATION.................................................................................................................. iv
TABLE OF CONTENT.................................................................................................... v
LIST OF TABLES ......................................................................................................... viii
LIST OF FIGURES ......................................................................................................... ix
ABBREVIATIONS ........................................................................................................... x
ABSTRACT ..................................................................................................................... xii
CHAPTER ONE: INTRODUCTION ............................................................................. 1
1.1Background of the Study ............................................................................................... 1
1.2Statement of the Problem ............................................................................................... 4
1.3Research Objectives ....................................................................................................... 6
1.3.1General Objective ....................................................................................................... 6
1.3.2Specific Objectives ..................................................................................................... 6
1.4Research Questions ........................................................................................................ 6
1.5Significance and Justification of the Study.................................................................... 7
1.6Scope and Limitation of the Study................................................................................. 7
1.7Organisation of the Study .............................................................................................. 8

CHAPTER TWO: LITERATURE REVIEW ................................................................ 9
2.1Introduction .................................................................................................................... 9
2.2The Global Textile Industry ........................................................................................... 9
2.3The Ghanaian Textile Industry in Perspective ............................................................. 10
2.4Effects of Foreign Textiles on the Local Economy ..................................................... 13
2.5Preference for Local or Foreign Textile....................................................................... 17
2.6Conclusion ................................................................................................................... 19
CHAPTER THREE: METHODOLOGY .................................................................... 21
3.0Introduction .................................................................................................................. 21
3.1
Background of the Study Area ........................................................................... 21
3.2
Study Design and Type ...................................................................................... 22
3.3Study Population ...................................................................................................... 23

3.4
Sampling Techniques and Sample size .............................................................. 24
3.5
Data Collection Methods and Tools ................................................................... 24
3.6
Data Analysis Method ........................................................................................ 25
3.7Limitations of the Study ........................................................................................... 25

3.8Ethical Considerations.............................................................................................. 26
CHAPTER FOUR: ANALYSIS AND DISCUSSION OF RESULTS ....................... 26
4.1
Introduction ........................................................................................................ 27
vi
4.2
Presentation of Results ....................................................................................... 27
4.2.1Personal Characteristics ..................................................................................... 27

4.2.3Perception of the General Population, who Purchases cloths towards second
hand clothing ............................................................................................................. 30
4.2.4Reasons that Influences Preference for local textile to Second-hand clothing31
4.2.5Effect of Second Hand Clothing on Local Textile Industry .............................. 33
4.3
Discussion of Results ......................................................................................... 34
4.3.1
Personal Characteristics .............................................................................. 34
4.3.2
Perception of the General Population, who Purchases cloths towards second
hand clothing ............................................................................................................. 35

4.3.3
Preference of the General Population for Second Hand to Local Clothing 35
4.3.4
Reasons that Influences Preferences for local textile to second-hand
clothing ..................................................................................................................... 36
4.3.5
Effect of Second Hand Clothing on Local Textile Industry ....................... 37
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECCOMMENDATIONS 39

5.1
Introduction ........................................................................................................ 39
5.3
Conclusion.......................................................................................................... 40
5.4
Recommendations .............................................................................................. 41
REFERENCE .................................................................................................................. 42
APPENDIX ...................................................................................................................48
vii
LIST OF TABLES
Page
Table 1: Personal Characteristics of Students ................................................................... 27
Table 2: Perception of Second Hand Clothes ................................................................... 30
Table 3: Foreign Textiles are causing the Collapse of Local Industries ........................... 33
Table 4: Importation of Second Hand Clothing Has Caused Loss of Jobs....................... 33
viii
LIST OF FIGURES
Page
Figure 1: Preference for Local and Foreign Textiles ........................................................ 29
Figure 2: Strong Patriotism as an influence for local textiles ........................................... 31
Figure 3: National Pride as a Reason for Patronising Local Textiles ............................... 32
Figure 4: Consumer Ethnocentrism as a Reason for Preferring Local Textile .................32
ix
ABBREVIATIONS
AGOA
African Growth and Opportunity Act
CMT
Cut, Make and Trim
EMS
Express Mail Services
GDP
Gross Domestic Product
ISI
Import Substitution Industrialization
MFA
Multi Fibre Agreements
MPCU
Municipal Planning Coordinating Unit
NHIL
National Health Insurance Levy
OEM
Original Equipment Manufacturing
RTA
Regional Trade Agreement
SAPs
Structural Adjustment Policies
SHC
Second-hand clothing
SOEs
State-Owned Enterprises
SPSS
Statistical Package for Social Sciences
SSA
Sub-Saharan Africa
T&C
Textile and Clothing
VAT Value Added Tax

WTO World Trade Organization
xi
ABSTRACT
The study was conducted in the Sunyani municipality with the general objective of
assessing the effects of importing second hand clothing on the local clothing industry in
the Sunyani municipality. The study adopted a cross section study design. Data was
collected on a sample size of 200 respondents with the aid of questionnaires and the
statistical package for social science analysis software was used in analysing the data.
From the results of the study the study can make the following conclusions. The fact is
that most of the respondents preferred second hand clothing to the local textiles. This was
as a result of it being perceived to be cheap, stylish, durable and with popular designers
among others. People who patronized local textiles did so mainly based on some form of
a sense of pride. The second hand clothing industries have caused the collapse of local
textile businesses and many have lost their jobs coupled with the fact that the low quality
of local textiles is exposed. Further studies can be conducted from the perspective of the
local textile companies. This should be done to identify their prospects as well as the
challenges they face in their operations in the wake of second hand clothing competition.
xii
CHAPTER ONE: INTRODUCTION

1.1
Background of the Study
Despite several trade initiatives, textile exports have not improved while imports have
surged more than before. As a result of trade liberalization, protection granted to the
industry was removed and the sector was exposed to intense competition that led to
notable decline in production and closure of some of the firms. There has been declined
in production had notable effects on the labour markets in three aspects. There is marked
decrease in labour demand and hence low level of formal employment and wages, given
cut in production and factory closures (IPP Media, 2007).
The total global trade in textiles and clothing is worth more than $200 billion each year.
The Second Hand Cloth (SHC) trade has grown ten-fold since 1990 but, at roughly $1
billion per year, still represents less than 0.5per cent of this total in value terms (Field,
2000).In volume terms the proportion is higher, since SHC sells at around 1020 per cent
of the price of new clothes, but it still comprises less than 5 per cent of the total global
trade. However, this proportion varies considerably according to the receiving country
(Baden & Barber, 2005).
The international textiles and apparel trade has been one of the most contentious trade
issues between the developed and developing countries. Restrictions have been imposed
in terms of quota and tariffs on imports since the 1950s. In January 2005, after the
phasing out of the multi fire arrangement, the quantitative restrictions will be removed,
allowing for free competition between countries for market access. The biggest share of
the market will be occupied by countries having a competitive advantage in terms of cost,
product quality, responsiveness to market requirements and manufacturing flexibility.

Developing economies in the African region which will have to adapt to new market
conditions for sustained competitiveness; failing to do so will force them out of the
market (Hurreeram& Little, 2004).
Almost all countries are involved in the trade, either as exporters, processors and reexporters, or importers, with some countries playing more than one role. Developing
countries are the major consumers of second-hand clothing. It should be noted that the
SHC industry in exporting countries is considered by some commentators to be in
difficulties (Textile Recycling Association, 2005).This is largely attributed to the rise in
cheap but lower-quality new clothing imported from Asia.
However, in relative terms, the trade hashada very positive impactonpoverty alleviation
during thecurrentharsheconomic climate. At the present time, theKenyaneconomy for
instance isnotcapable of providing substitute jobsforthe unemployedor alternative
clothingthatisaffordable tothemassof the population. In contrast, the second-hand
andclothingtrade issoakinguplabour andofferingconsumersacheaperclothingalternative
inthe
face
ofincreasingpoverty,
decliningrealwagesandrisingunemployment.Ifthe
Europeantextile recycling trade were todecline,the poverty alleviating nature of

thetradewouldalsodiminish (Baden & Barber, 2005).
In the attempt to regulate the influx of SHC into the country in order to create some form
of competition, working through the International Trade Centre, the Swiss Government in
partnership with Ghanas Trade Ministry have provided a USD$3.5 million grant, which
will be used to support young Ghanaian entrepreneurs within the local fabric and fashion
industry. Delivered through the Ethical Fashion Initiative Ghana Project, the funds are
intended to help recipients expand their businesses and become more self-reliant; produce
goods that can increase competitiveness in international markets, in the process fuelling
job creation; and establish sustainable supply chains within the industry (Vibe Ghana,
2012).
This initiative recognizes the effects that trade liberalization have had on the economy at
all levels including the textile industry. When textile trade liberalization factors are
combined with the exchange rate losses suffered by many firms and the increasingly high
cost of credit, it is clear that local firms were unable to adjust properly and promptly to
face external competition. The result was that many local firms, especially small and
medium-sized enterprises, went out of business (Britwum, et al., 2001).
The decline in Ghanas manufacturing sector is reflected in the decline of its share in
GDP and of its contribution to employment, compared to the growing preponderance of
the service sector. Many local firms remain unable to gain access to capital, technology
and managerial expertise and continue, therefore, to face unfair competition. It is
believed that some firms that survived only did so by becoming capital intensive.
Furthermore, the cessation of support for state-owned enterprises (SOEs) and their
eventual divestiture or liquidation cannot be justified in all cases on grounds other than
those of ideology. 17 The manufacturing sector, which adds value to goods, is crucial for
enhancing the international competitiveness of countries. Therefore, the perceived demise
of the local manufacturing sector in Ghana especially firms in the medium-scale
category, which is crucial for employment creation and innovation, is a matter of great
concern (Britwum, et al., 2001).
3
In the aftermath of liberalization effects, production in the textile sector has become less
labour intensive due to increased reliance on automated and computerized technology.
After trade liberalization the textile sector is characterized by frequent industrial disputes
and labour unrests indicating that industrial organization issues are important in gauging
the poverty reduction impacts. There winners and losers in the textile sector after
liberalization. This can be examined on how liberalization affects the different agents in
the supply chain. These agents include cotton farmers, transporters, ginneries, textile
factories, workers and the government. Cotton farmers for instance are mostly net losers
from liberalization and victims of poverty (IPP Media, 2007).
1.2
Statement of the Problem
Although countless researches have been done in this regard, surprisingly, the impact of
the SHC trade is less clear-cut on employment in developing countries than it is on
consumption. On one hand, the increase in SHC imports is often held responsible for the
decline of domestic textile and/or clothing production. On the other, the SHC trade
generates employment as people repair and distribute clothing. Impact on domestic
production Industry organizations and individual businesses frequently cite increased
SHC imports as destructive to local livelihoods. For example, Neil Kearney, General
Secretary of the International Textile, Garment and Leather Workers Federation, says
that unable to compete, local industries are collapsing, leaving hundreds of thousands of
workers jobless (ITGLWF, 2003). The actually effect of SHC on the economy is not
clear cut.
To critics, the business raises the perennial problem of how Africa can build its own
industry when it is flooded with cheap imports. While players in the market frequently
4
blame SHC for the decline in their fortunes, the authors of studies on the sector are
somewhat more circumspect in their conclusions. Hansen (1995; 1999; and 2000) and
Field (2000) suggest that the decline of textile and clothing companies in
ZimbabweandZambia has been primarily due to structural adjustment policies (SAPs).
While second-hand clothing represents only a very small proportion of the global
clothing trade, it represents more than 30 % of imports and over 50% by volume of
clothing imports too many sub-Saharan countries. At the crux of the issue is the
determination regarding if local garment industries are damaged by the import of cheap
used clothing from developed nations. Ultimately this is an issue that is championed by
textile trade associations on behalf of member companies and one addressed by trade
policy internationally and one that affects export prospects going forward for the garment
recycling industry participants.
One cannot help but ask what is the actual effect of SHC on the operations of the textile
industry and the economy? The paragraphs above seem to suggest that the effects of
second hand clothing on the local clothing industry is not clearly defined especially when
compared to the macro and micro economic benefits that it presents. This study would
want to assess the impact of second hand clothing on the local clothing industry in the
Sunyani municipality, which seems to been an avenue of second hand clothing in recent
years. This will be done by collecting data from members of the general public who
purchase cloths at various places in the municipality. To get the perspective of the
industry players, those who sell cloths in the municipality too would be included.
1.3
Research Objectives
1.3.1
General Objective
The general objective of the study is to assess the effects of importing second hand
clothing on the local clothing industry in the Sunyani municipality.
1.3.2
Specific Objectives
1. To examine the perception of the general population, who purchases cloths,

towards second hand clothing in the municipality
2. To assess the preference of the general population, who purchases cloths, for
second hand and local clothing in the municipality
3. To examine the reasons that influences the preference for second hand and local
clothing in the municipality
4. To identify the effect the second hand clothing on local clothing industry in the
municipality
5. To identify some of the measures that can be put in place to ensure that the local
textile industry does not collapse completely as a result of SHC.
1.4
Research Questions
The general research question is to identify the effects of importing second hand clothing
on the local clothing industry in the Sunyani municipality.
In order to address the objectives of the study, the researcher seeks to answer these
questions:
1. What is the perception of the general population , who purchases cloths, towards
second hand clothing in the municipality
6
2. What is the preference of the general population, who purchases cloths, for
second hand and local clothing in the municipality
3. What are the reasons that influences the preference for second hand and local
clothing in the municipality
4. What are the effect the second hand clothing on local clothing industry in the
municipality
5. What are some of the measures that can be put in place to ensure that the local
textile industry does not collapse completely as a result of SHC?
1.5
Significance and Justification of the Study
The introductory notes to the study pointed out that there is some form of gap in terms of
the literature available on the actual effect of SHC on the operations of stakeholders in
the textile industry. The results can serve as a body of knowledge, reference or
educational material for textile students, lecturers and other researchers on the challenges
and prospects of the textile industry in Africa. This study will also offer policy makers
and implementers an empirical data on the possible challenges and prospects that the
second hand clothing presents in the municipality.
1.6
Scope and Limitation of the Study
The scope of the study geographically is the Sunyani municipality. The study is limited to
those present at the time of the study. The concept that would shape the entire study
would be related to the personal characteristics of the respondents which include their
income status, educational background, occupation and age among others. How these are
related to the patronage of second hand and local clothing would be looked at. Issues with
7
perceived quality, social class classification of clothes, factors that accounts for patronage
from the individual as well as economic perspectives would be assessed.
1.7
Organisation of the Study
The study is will be organised into five (5) chapters. Chapter one: provides the
introduction that includes background statement, problem statement, justification,
objectives, scope, significance, and the organisation of the study. The Chapter two:
presents literature on the areas captured under the objectives of the research. This
includes perceptions of SHC, preference for local and foreign cloths, reasons that
accounts for the preferences for the two types of clothing lines and the effect of SHC on
the local textile industry. Chapter three: deals with the methods applied in the study.
Chapter four: presents the study findings and their interpretation; while chapter five has
conclusions and policy indicators.
CHAPTTER TWO: LITERATURE REVIEW

2.1
Introduction
This chapter of the project reviews literatures that are relevant to the issue of local and
foreign textiles. The review was done with literature from online sources like peer review
journals, books and articles. The data were both theoretical and empirical in nature. These
were grouped under the various necessary thematic perspectives to the study.
2.2
The Global Textile Industry
The clothing industry is labour-intensive and it offers entry-level jobs for unskilled labour
in developed as well as developing countries. Job creation in the sector has been
particularly strong for women in poor countries, who previously had no income
opportunities other than the household or the informal sector (Nordau, 2003). Moreover,
it is a sector where relatively modern technology can be adopted even in poor countries at
relatively low investment costs. These technological features of the industry have made it
suitable as the first rung on the industrialization ladder in poor countries, some of which
have experienced a very high output growth rate in the sector (e.g. Bangladesh, Sri
Lanka, Viet Nam and Mauritius).
These characteristics, however, have also made it a footloose industry that is able to
adjust to changing market conditions quickly. At the same time, the textile and clothing
industry has high-value added segments where design, research and development (R&D)
are important competitive factors (OECD, 2004; Nords, 2003). Thus the textiles and
clothing (T&C) comprise a unique industry in the global economy mainly for three broad
reasons. First, apparel production is a springboard for national development, and often is
the typical starter industry for countries engaged in export-oriented industrialization

(Adhikari, & Yamamoto, 2007; Gereffi, & Frederick, 2010).
Second, this industry has very low entry barriers due to its low fixed costs and emphasis
on labour-intensive manufacturing (Naumann, 2006; Gereffi,& Frederick, 2010).Third,
this industry is the most protected of all manufacturing industries in the global economy,
both in developed and developing countries. Protectionist interests have been extremely
ingenious in creating new protectionist instruments in the past 50 years (Adhikari, &
Yamamoto, 2007; Naumann, 2006).
2.3
The Ghanaian Textile Industry in Perspective
Production and Textile Imports Ghanas textile industry is mainly concerned with the
production of fabrics for use by the Garment industry and also for the export market. The
sub-sector is predominantly cotton-based although the production of man-made fibres is
also undertaken on a small scale. The main cotton-based textile products include: African
prints (wax, java, fancy, bed sheets, and school uniforms) and household fabrics (curtain
materials, kitchen napkins, diapers and towels). These products form the core of the subsector. The main products of the man-made fibres (synthetics) and their blends include:
uniforms, knitted blouses, socks etc. These are mainly made from polyester, acrylic and
other synthetics. There are also a number of small firms hand-printing their designs onto
bleached cotton fabrics, also known as tie and dye or batik cloth. Also, traditional or
indigenous textiles such as Kente cloth (traditional woven fabric), Adinkra cloth
(traditional hand printing fabric) and other types of woven fabrics used for various
purposes such as smock making etc. are proposed. Total industry output peaked at 129
million yards in 1977 with capacity utilization rate of about 60 %. GTP maintained the
10
lead in the industry with an annual production of 30.7 million yards (includes the outputs
of Juapong and Tema plants). This was followed by GTMC, ATL, and Printex with
production levels of 15 million, 13 million and 6 million yards respectively.
Unfortunately, total industry output declined from its 1970 level to 46 million yards in
1995 but recovered to 65 million yards in 2005. As at March 2005, GTP was producing 9
million yards, ATL 18 million yards GTMC 2.24 million yards and Printex 9.84 million
yards. A total annual output of 39.04 million yards was produced by the industry as at
March 2005, which translates to an average of 49.4% of initially installed capacity of the
four firms. Thus output had declined from 65 million yards in 2000 to 39 million yards in
2005.
Nearly two decades after independence, the textile sub-sector was the major key player in
Ghanas industrial sector, contributing significantly to employment and growth in the
economy. However, the sub-sector which was once the leader in Ghanas industrial sector
has undergone a considerable decline over the years due largely to the liberalization
program which made it almost impossible for Ghanas textile products to compete with
the cheap imports, particularly from Asia. Textile exports are an important source of
foreign exchange and revenue to textile manufacturing firms (Quartey, 2006).The
adoption of import substitution industrialization in the 1960s and 1970s saw the
establishment of many textile manufacturing companies such as Akosombo Textile
Limited (ATL) and Ghana Textile Product (GTP). However, a shortage of foreign
exchange to purchase raw materials needed in production saw the collapse of many of
these companies. This resulted in an influx of cheaper textile imports. Currently, these
fabrics largely tend to be good imitations of the original products of local manufacturers,
11
which make them desirable to the average Ghanaian (Quartey, 2006).Textile exports
generated $ 27.2 million dollars in 1992 and this increased to $ 179.7 million in 1994 but
revenue from exports declined consistently thereafter and by 1998 they had fallen to US $
3.173 million (Egu, 2009; Quartey, 2006).
Ghanas post independent ISI policy and its membership of the multilateral trading
system, both to a larger extent; have been the onerous genesis of the current problems
face by the T & C sector in Ghana. The one major problem identified with the sector,
especially under WTOs agreement of textile and clothing (ATC) regulating regime, has
been the China factor, which is characterized by influx of imitated and substandard textile
products on the Ghanaian market. ATC ended the 40 years of quota system under multifibre arrangement (MFA); the latter regime witnessed the fragmentation of textile and
clothing production to countries that did not have the comparative advantage and the
efficiency.
The MFA again, kept the low-cost producers (least developed countries) of the textile and
clothing production sector in its embryonic stage; assembly/cut, make and trim (CMT) of
the international production system (see Exhibit 5in appendix for the stages of upgrading
in the apparel value chain) which, according to Gereffis buyer-driven commodity
chain concept could not gain in the global textile and clothing supply chain. There is no
doubt that China is the greatest beneficiary of the end of the MFA quota regime (Morris,
2006). Few countries are able to compete against it on price as is evident from the fact
that its exports of clothing have already increased to approximately a quarter of the world
total since it joined the WTO in 2001 (de Janquieres, 2004 as cited by Morris, 2006).
12
For over two decades after ISI was started, the textile sub-sector dominated the
manufacturing sector and contributed significantly to livelihood. African wax prints
produced by these companies were in high demand on the Ghanaian market for making
traditional apparels like kaba and slit and other exquisite Africa wears (Egu, 2009). It
employed about 25,000 of the labour force, accounted for 27% of total manufacturing
employment and operated at about 60% of plant capacity (MOTI, 2004 as cited in
Quartey, 2006). The textile and clothing products were and still are uncompetitive in the
global market especially for those countries (Latin America and SSA) who adopted the
dependency and structuralism theory of the ISI policy (Schmitz, 1984; Ajei, 2007).
The indiscriminate nature of the policy led to the development of deeply inefficient and
high cost industries to successfully compete with their counter parts, China and other
Asian countries who adopted export-oriented ISI policy. The influx of imitated and
substandard products and the stiff competition from China could be solved by the
government of Ghana application of the Safeguards provision in WTO as a political
instrument to relieve pressure on government by Trade Unions and also as a measure to
restore efficiency to domestic industries (Ghori 2010). The theory rationale behind the
latter especially, is that safeguards provide time for local industries to raise investments
in order to improve their competitiveness (Ghori, 2010).
2.4
Effects of Foreign Textiles on the Local Economy
In an integrated world economy, no single country can be analysed in isolation from the
world-wide regime. This is true not only because countries engage in trade but because
there are many regulating regimes at multilateral and/regional levels, constraining
nations trade and economic policies both legally and practically. Since the beginning of
13
the last decade, Regional Trade Agreements (RTAs) have become an important feature of
the global trading regime, imposing major changes in the international trade structure.
Hence, national strategies and policies cannot be discussed independently of the
prevailing global geopolitical regime (Monte, &Memis, 2006).
In the 21st century of global challenges in all hemisphere of life, the innovations and
dynamism in the fashion industry cannot be over emphasized. A great competition is
therefore set among fashion industries in the developed and the under developed world
causing most vulnerable local industries to collapse. The fashion industry of Ghana is not
exempted in this regard with the independent fashion designers being the most affected.
Their businesses have been crippled by the influx of foreign clothes and textiles on the
Ghanaian market on the ticket of Trade Liberalization in the global front. It is an arguable
fact that the liberal trade in the global world has had a negative impact on the local
fashion industries. In order to sustain the businesses of the local designers, the local
industrialists have the hope that the ban of unnecessary importation of foreign clothes and
textiles, especially the second-hand types, can go a long way to revive the clothing and
textiles sub-sector (Sarpong, et al., 2011).
This is arguably not realistic as Ghana is a member of WTO whose policies encourage
liberal trade and frown on protectionism. What Ghana ought to do is to device means of
improving the skill and competency base of its fashion producers to make them efficient,
experts, and result oriented, and to be abreast with modern technology in fashion. Whiles
doing this, the government must equip and develop the sub-sector to be viable by
resourcing the independent fashion producers financially to enable them acquire modern
14
and efficient fashion machinery so as to produce quality garments to meet international

standards (Sarpong, et al., 2011).
For over two decades after ISI was started, the textile sub-sector dominated the
manufacturing sector and contributed significantly to livelihood. It employed about
25,000 of the labour force, accounted for 27% of total manufacturing employment and
operated at about 60% of plant capacity (MOTI, 2004). The textile sub-sector has also
been an important source of foreign exchange in Ghana.
Ghanas textile industry employed some 25,000 people and accounted for 27 % of total
manufacturing employment in 1977. However by 1995, employment within the subsector had declined to a mere 7,000 declining further to 5000 by the year 2000. As the
situation continues to deteriorate, employment continues to decline; as at March 2005 the
four major textile companies in Ghana employed a mere 2961 persons. A survey of 40
textile and garments industries in 2005 also confirmed that the situation is getting worse.
Ghanas current trade policy, which aims at promoting accelerated economic
development and reducing poverty, supports two parallel strategies, namely, export-led
industrialization and domestic market-led industrialization based on import competition.
The success of both strategies depends on the competitiveness of local producers in both
the domestic and international markets. For some years now, import competing industries
have been facing a number of challenges which are alleged to have inhibited their growth
(Quartey, 2006). The key factors usually noted as being responsible for aggravating the
situation have included the illegal inflow of goods through unfair trading practices,
infringement on intellectual property rights and the importation of imitation products that
15
may usually carry lower prices to mention but a few. Local manufacturers of textiles in
particular, are those significantly affected by these developments.
For instance, while in the mid 1970s, the textile industrys production capacity was
approximately 130 million metres and employed about 25,000 workers; by 2002,
production capacity and employment levels had dropped to 36 million metres and 2,000
workers respectively (Ministry of Trade and Industry, 2002). In some African countries
where this has happened, governments have responded to reverse the declining trend. For
instance, the Federal Government of Nigeria in September 2002 took various drastic
measures which included a total ban on importation of all finished textiles in order to
assist the Nigerian Textile Industry and save it from total collapse. Thus, while the textile
industries in Nigeria enjoy duty incentive of 10%, export expansion grant of 30% and;
0% Value Added Tax (VAT) and National Health Insurance Levy (NHIL), Ghanaian
industries have no duty incentives and export expansion grant, but rather are made to pay
a 12.5% VAT and 2.5% NHIL on their finished products, thereby, making Ghanas
products more expensive. The limited incentive structure has led to unemployment, loss
of government revenue and loss of access to the African Growth and Opportunity Act
(AGOA) (Quartey, &Abor, 2011).
Local producers of textiles have identified some safeguard options in the World Trade
Organization (WTO) stipulations such as Bi-lateral negotiations to limit exports,
emergency measures to limit imports and countervailing duty which Ghana can take
advantage of. Stakeholders have advocated for certain measures to revive the textiles
sector, namely, removal of duty on inputs for the production process; increase in duty on
finished fabrics imported; proper collection of duties and taxes on import seizure of
16
goods which are found to be undervalued, misrepresented, pirated, copied or substandard. Ironically, while the job losses continue and stakeholders continue to advocate
for a ban on imported textile, Ghanaians continue to patronize imported textile products
(Quartey, &Abor, 2011). One may therefore ask, why do Ghanaians continue to import
these products at the expense of local substitutes?
2.5
Preference for Local or Foreign Textile
The country-of-origin effect has been identified as an important factor explaining

customers product preference (Agrawal,&.Kamakura, 1999; Verlegh,&Steenkamp,
1999; Bhaskaran,&Sukumaran, 2007).Opoku and Akorli(2009) define country-of-origin
image as how a product designed, manufactured, or branded in a developed country is
perceived in a developing country. Knight (1999) argues that the country of manufacture
and product quality strongly influence consumer decision making in globally available
product categories. The extant empirical literature from developed countries suggests that
consumers in those countries tend to prefer products from developed countries to those
from less developed countries (Jaffe,& Martinez, 1995). They explain that consumers
prefer products from their own countries first, followed by products from other developed
countries before considering those from other countries. Normally (in Mexico),
consumers tend to have a preference for local products in countries where there is strong
patriotism, national pride, or consumer ethnocentrism (Heslop,& Papadopoulos, 2000).
Knight (1999) also suggests that consumers prefer domestically manufactured goods and
are willing to pay higher price for them. It is only when imported goods are of a
significantly superior quality that consumers will move to obtain those. With respect to
developing countries, the existing literature suggests that customers prefer western to
17
domestic products. Khan,&Bamber (2007) for instance found that consumers in the
former socialist countries of eastern and central Europe prefer western to domestic
products.
Okechuku and Onyemah (2000) in a Nigerian study found that the Nigerian consumer
obsession with foreign-made goods has had a detrimental effect on the domestic
manufacturing industry. They found that the country-of-origin is significantly more
important than price and other product attributes in consumer preference. Nigerian
consumers have a negative image of the Made in Nigeria label, rating it lower than
labels from more economically developed countries. They also found that the superior
reliability and technological advancement of foreign products are the most important
correlates of the Nigerian consumers likelihood to purchase foreign products.
Saffu and Walker (2006) examined the impact of country-of-origin effects and consumer
attitudes towards buy local campaign initiatives. They found that, the attitudes of
consumers to buy locally-made campaigns can be characterized as protectionist,
nationalistic, and self-interest seeking. In a study on five West African countries,
Ferguson, Dadzie and Johnston (2008) investigated the country-of-origin effects in
service evaluation and found that situational personal characteristics, such as motivation
and ability to process information, may influence use of country-of-origin attributes in
evaluating a service. Besides, individual characteristics, such as ethnocentrism and
culture orientation, may influence country-of-origin preference in service evaluation.
In a Ghanaian study, Opoku and Akorli (2009) examined consumer attitudes towards
local and imported products in a developing country market. They found that the country-
18
of-origin of the products is more important than price and other product attributes. They
showed that the Ghanaian consumer holds the Made in Ghana label in low regard
relative to foreign labels, whilst superior quality and consumer taste are the second most
important reasons for the Ghanaian consumers preference for foreign products. Clearly,
the empirical literature suggests that consumers consider products from developed
countries more favourably than those from less-developed and developing countries.
Following from this hypothesis, this study is therefore positioned to ascertain Ghanaians
preference for imported textiles to locally manufactured ones.
2.6
Conclusion
The global textile and clothing sector is characterized as buyer-driven commodity chain,
which is usually apply to industries where design and marketing play an important role,
but where production is relatively labour intensive (Gereffi, 2002; Farfan, 2005;
Naumann, 2006). Again in the production sector, there are low entry barriers for new
entrants due to easy-to-replicate sources of competitive (low skilled labour) advantage
and there are also a large number of competitors due to global fragmentation and new
entrants after the wave of trade liberalization and the phenomenon of globalization
(Gereffi, 2002). This means those involved in the Pre-production intangible (R&D,
Design and purchasing) activities and Post-Production intangible (Distribution,
Marketing and services) usually earned higher profitability and has increasing bargaining
power in the T&C trade. Those in Production (tangible activities), however, get lower
profitability as well as have decreasing bargaining power because it is assumed, they
contribute little to the value-added stage in the apparel global value chain (see Exhibit6
in appendix : Curve of value-added stages in the apparel global value chain)
19
(Gereffi,&Frederick, 2010). It is observed that the key to success in East Asias buyerdriven chains was to move from the mere assembly of imported inputs (traditionally
associated with export processing zones) to a more domestically integrated and higher
value-added form of exporting known alternatively as full-package supply or OEM
(original equipment manufacturing) production (Gereffi, 2002).
Apparel thus embodies two contrasting production systems characteristic of buyer-driven
chains: the assembly and the OEM models. Whereas the assembly model is a form of
industrial subcontracting in which manufacturers provide the parts for simple assembly to
garment sewing plants, the OEM model is a form of commercial subcontracting in which
the buyer-seller linkage between foreign merchants and domestic manufacturers allows
for a greater degree of local learning about the upstream and downstream segments of the
apparel chain (Exhibit 3 in Appendix: Global Value Chain) (Gereffi, 2002). There is
therefore clearly a relationship between value chain dynamics and quotas, particularly in
buyer-driven value chain, as is the case in textiles and clothing. Quotas have resulted in
the global fragmentation of textiles and clothing production to regions where low-cost
could not have been the determinant factor.
20
CHAPTER THREE: METHODOLOGY

3.0
Introduction
This chapter of the thesis outlines the procedure or strategies that the researcher adopted
to carry out the research work. This includes the study type and design, the methods used
in data collection, sampling techniques, data analysis and presentation styles and ethical
considerations among others.
3.1
Background of the Study Area
Sunyani Municipality is one of the twenty-two administrative districts in the BrongAhafo

Region of Ghana. It lies between Latitudes 70 20N and 70 05N and Longitudes 20
30W and 2010W and shares boundaries with Sunyani West District to the North,
Dormaa District to the West, Asutifi District to the South and Tano North District to the
East. The municipality has a total land area of 829.3 Square Kilometres (320.1square
miles). Sunyani also serves as the Regional Capital for BrongAhafo. One third of the total
land area is not inhabited or cultivated which provides arable lands for future investment.
The population density of the municipality is 122 persons per square kilometre (MPCU
Computation, 2010). On the average these areas have 18 persons per house. Given the
criterion that persons aged 15 years and above who complete basic school (Primary, JSS
or Middle school level) are literates, about 76% of the population of the municipality are
literates (GhanaDistricts.com, 2006).
The City of Sunyani is outfitted with modern communication facilities which include
fixed telephone and fax lines, mobile phones, internet and e-mail services. The mobile
telecommunication in the municipality includes brands like MTN, Tigo, Expresso, Airtel,
and Vodafone (the case under study). Additionally; postal services are available in the
21
form of post office, as well as expedited mail services provided by EMS (Express mail
service), DHL and FedEx. The Sunyani Municipality abounds in conditions which are
potent for the promotion and sustenance of diverse investments. The nature of roads in
the district and their network is among the best nationwide and this facilitates easy
movement of people and goods. Its proximity to Kumasi, which is the second largest
commercial/industrial city in Ghana, is also an added advantage to potential investors.
Most of the industries are into trading of general goods, provisions, tourism and
hospitality, health and communication.
3.2
Study Design and Type
A research design is a detailed outline of how an investigation will take place. A research
design is a blueprint for the procedure on how data is to be collected, what instruments
will be employed, how the instruments will be used and the intended means for analysing
data collected.
The descriptive research attempts to describe, explain and interpret conditions of the
present i.e. what is. A descriptive research is concerned with conditions, practices,
structures, differences or relationships that exist, opinions held processes that are going
on or trends that are evident. Thus, this research design will be suitable for our data
gathering and analysis of the effect of SHC on the local textile industry.
Type
The research is a cross sectional survey of the Sunyani-East Municipality. This design
was chosen based on the purpose of the study, which is to describe the population with
respect to an outcome (effects of second-hand clothing). The cross sectional survey
22
allows the researcher to observe a large group of people at a single session and estimates
the prevalence of the outcome of interest for the population. Data can also be collected on
individual characteristics alongside information about the outcome. In this way crosssectional studies provides a snapshot of the outcome and the characteristics associated
with the research problem, at a specific point in time.
3.2
Study Variables
The independent variables that were considered in the study included the demographic
and personal characteristics of the study population like their educational background,
ethnicity, sex and professions. These are identified to have an influence on perceptions of
adverts. The dependent variables under consideration included preference for local and
foreign textiles, effect of foreign clothing on the local textile industry among others.
3.3
Study Population
The main objective of this study is to assess the effects of importing second hand clothing
on the performance of the Ghanaian textile industry with Sunyani-east municipality as the
case study.
The Ghanaian textile industry is made up of various players from the farmers involved in
the production of raw materials, such as cotton and wool, to those involved in the
transformation of raw or intermediate materials into textiles and clothing such as
dressmakers, tailors and those who supply services to consumers and businesses, such as
buyers and sellers of textiles and clothing both locally and internationally ,unions and
companies in the textile industry (The Textiles, Garment and Leather Employees Union
(TEGLEU) of Ghana, Akosombo Textile Limited (ATL), Ghana Textile Print (GTP) and
23
Printex).However, for this study, our local textile industry is defined by the buyers,
sellers and producers of clothing and textile both local and second-hand in the SunyaniEast municipality.
The population for this study includes members of the general public preferably persons
15 years and above who are regarded to be a better position to make choices based on the
options presented to them in terms of local and foreign fabrics., tailors and dressmakers,
producers of local fabrics, (kente, smock etc,) buyers and sellers of clothing both local
and foreign.
3.4
Sampling Techniques and Sample size
Through a purposive sampling technique, the study population was chosen. A simple
random sampling was done with the help of cards to inscribed with Yes and No. The
respondents who picked the Yes cards that amounted to the sample size formed part of
the study. This was intended to give some equal level of opportunity for the study
population to be a part of the study. The study conveniently took a sample size of 200
respondents which comprises of 40 tailors and dressmakers, 30 traders in local textiles
(smock, kente, kaba, GTP, Printex, and ATP), 30 sellers of SHC and 100 buyers of
clothing who are not involved in the production process or sale of any form of textile.
3.5
Data Collection Methods and Tools
The research used both primary and secondary data source. For primary data source, a
questionnaire with both open and closed ended questions was used to collect the data.
The structured questionnaire was grouped under five parts. The first part is about the
personal characteristics of the respondent, the second part seeks to identify thepreferences
of the respondents for local textile or foreign second-hand textile. According to
24
(YeboahFrimpong, 2013) there are certain factors that are responsible for why most
consumers inGhana show little interest in local goods.
Economic factors such as product quality, price, and product availability favour Ghanaian
consumers preference for foreign goods, hence the third part of the questionnaire seeks
to understand how these variables chosen influence the preferences of the general
population who purchase clothing towards SHC.Thefourth part presents the respondents
with options of choosing if national pride, strong patriotism and ethnocentrism are factors
influencing their preferences for local textiles or not.
The final part of the questionnaire looks at the effect of second hand clothing on local
clothing industry. Secondary data on the other hand was from scholarly articles and other
literature by other others that are relevant to the objectives of the study.
3.6
Data Analysis Method
Statistical Package for Socials Sciences (SPSS) Statistical software version 20.0 for
windows was used for the data analysis. Results were being presented in the form of bar
graphs, tables and pie charts. These had their appropriate corresponding frequencies and
percentages.
3.7
Limitations of the Study
The study was limited by time and financial demands. Since it was combined with usual
undergraduate academic work it presented some form of constraints. All the expenses
associated with the research were borne from the pocket money of the researcher. The
sampling technique used presented some form of challenges when it comes to the
generalisation of findings but the sample size and the random sampling introduced
reduced some of the biases associated with the technique.
25
3.8
Ethical Considerations
The study sought approval from the University and the Faculty to make sure it conforms
to the standards of social sciences research. Ethical clearance was also obtained from all
the major stakeholders before data collection. Informed consent was sought from
respondents before questionnaires were administered after respondents have been briefed
of the purpose and the nature of the research. All secondary data used were rightly cited.
26
CHAPTER FOUR: ANALYSIS AND DISCUSSION OF RESULTS

4.1
Introduction
This chapter of the research presents the results of the study. The results are presented in
the form of tables and figures under the research objectives of the study. After the
analysis or data presentation the study discusses the results in line with the objectives of
the study and the literature review.
4.2
Presentation of Results
4.2.1
Personal Characteristics
Table 1:
Personal Characteristics of Students
Variables
Gender
Frequency
Male
87
43.5
108
54.0
No Response
2.5
15-18 years
13
6.5
19-25 years
39
19.5
26-30 years
71
35.5
31-55 years
48
24.0
Above 55years
26
13.0
1.5
Single
99
49.5
Married
87
43.5
Divorced
4.5
Widowed
1.5
No Response
1.0
Female
Age of Respondents
No Response
Marital Status
Percentages
27
Educational Background
No
Formal
22
11.0
69
34.5
JHS/SHS
60
30.0
Tertiary
30
15.0
No Response
19
9.5
Farming
3.0
Trading
90
45.0
Students
33
16.5
Civil Servants
59
29.5
No Response
12
6.0
GH50-GH100
3.0
GH100-GH200
11
5.5
GH200-GH300
12
6.0
GH300-GH400
54
27.0
84
42.0
No Response
33
16.5
Christianity
102
51.0
95
47.5
1.5
Education
Primary/Middle
Sch.
Occupation of Respondents
Income of Respondents
GH500
and
Above
Religion of Respondents
Moslem
Traditional
Source: Field Data, 2015
Table 1 reveals in relation to the gender of the respondents, that most of them were
females, 54% (108), males were 43.5% (87) while the rest, 2.5% (5) did not indicate their
28
gender. The age distribution in the table indicated that while majority 35.5% (71) was
between 26 30 years, 24% (48) were between 31-55 years. The occupational
distribution of the respondents in indicated that most of them were trader followed by
civil servants then students. The least were farmers. The educational background of the
respondents indicated that 34.5% (69) were in primary/middle school, whiles30% (60)
were in JHS/SHS. AND 15% (30) were in Tertiary. In terms of the occupation of the
respondents, 45% (90) were into farming, and 29.5% (59) did not indicate their
occupation and 16.5% (33) were into Teaching. The distribution for the income showed
that most of them 42% (84) received monthly income of GH 500 and above while the
least was 3% (6) of the population receiving GH 50 GH 99. The religion of the
respondents indicated that 51.0% (102) were Christians, 47.5% (95) were Muslims, and
1.5% (3) was Traditionalist.
4.2.2 Preference of the General Population for Second Hand and Local Clothing
local textile
second hand
36%
64%
Figure 1: Preference for Local and Foreign Textiles

29
Figure 1 suggests that most of the respondents 64% preferred foreign textiles to local
textiles but 36% preferred local textiles to foreign textiles.
4.2.3
Perception of the General Population, who Purchases Cloths Towards Second
Hand Clothing
Table 2:
Perception of Second-Hand Clothes
Variable
Response
Cheap
Yes
No
No Idea
Frequency
123
40
37
Percentage
61
20
19
Stylish
Yes
No
No Idea
103
92
5
51
46
3
Durable
Yes
No
No Idea
131
61
8
65
31
4
Readily available
Yes
No
No Idea
151
30
19
75
15
10
Yes
No
No Idea
170
28
2
85
14
1
Popular Designers
Table 2 indicates that in terms of the perception of second hand clothing in relation to it
being cheap, 61% (123) said it is the case but 20% (40) thought otherwise. When it came
to the style, about half of the respondents 51% (103) said it is more stylish than the local
textiles but 46% (92) however did not agree to this assertion. In terms of durability of
textiles, most of the respondents 65% (131) said it was durable than local textiles while
30
31% (61) indicated otherwise. Most of the respondents indicated that the second hand
clothing is readily available to the general public as compared to local textiles. Those
who said yes were 75% (151) of the respondents while those who said no made up of
15% (30). Most of the respondents 85% (170) thought foreign textiles have popular
designers as compared to local textiles but 14% (28) thought otherwise.
4.2.4
Reasons that Influences Preference for Local Textile to Second-Hand Clothing

yes
no
80, 40%
120, 60%
Figure 2: Strong Patriotism as an Influence for Local Textiles

Figure 3shows 60% the respondents patronised local textiles as a result of strong
patriotism but 40% indicated otherwise.
31
yes
no
48%
52%
Figure 3: National Pride as a Reason for Patronising Local Textiles

Figure 4 shows that 52% chose national pride as a reason for patronising local textiles but
48% indicated otherwise.
yes
no
28%
72%
Figure 4: Consumer Ethnocentrism as a Reason for Preferring Local Textiles

32
Figure 5 shows 72% of the respondents indicated that they are influenced by
ethnocentrism in terms of their preference for local textiles, while 28% indicated
otherwise.
4.2.5
Effect of Second Hand Clothing on Local Textile Industry
Table 3:
Foreign SHC Textiles are Causing the Collapse of Local Industries
Variables
Frequency
Percentage
Yes
105
52
No
95
48
Total
200
100

Table 3 shows that 52% (105) of the respondents thought foreign second-hand clothing
causes the collapse of local textile industries, while 48% (95) of the respondents thought
otherwise.
Table 4:
Importation of Second Hand Clothing Has Caused Loss of Jobs
Variables
Frequency
Percentage
Yes
60
30
No
110
55
No Idea
30
15
Total
200
100

Table 4 shows in terms of whether second-hand clothing has caused any job losses, 55%
(110) said no, 30% (60) said yes and 15% (30) of the respondents had no idea.
33
4.3
Discussion of Results
4.3.1
This study investigates the effect of importing second-hand clothing on the local textile
industry, with a sample size of 200 respondents which comprised of 40 tailors and
dressmakers, 30 traders in local textiles (smock, Adinkra cloth, GTP, Printex, and ATP),
30 sellers of SHC and 100 buyers of clothing who are not involved in the production
process or sale of any form of textile.
The data reveals that the respondents were well represented in terms of gender, age,
education, marital status, occupation, employment and income levels. Out of the 200
respondents, 54% (108) were female while 43.5% (87) were males, while the rest 2.5%
(5) did not indicate their gender. The uneven gender distribution reflects the
predominance nature of females in activities pertaining to buying and selling of textiles.
The data gathered on age distribution indicated that majority of the respondents (35.5%)
were between 26 30 years, an indicative of youthfulness of the sample. The
occupational distribution of the respondents in indicated that most of them were traders
followed by civil servants then students and
least were farmers, so generally the
surveyed population were educated, although without any form of high academic
achievements. The respondents can be said to be relatively high income earners since
most of them receive GH 500 and above. Christians were the majority with a substantial
number being Muslims.
34
4.3.2
Perception of the General Population, who Purchases Cloths Towards Second
Hand Clothing
The study noted that majority (64%)of the population in the municipality have preference
for second-hand clothing due to a number of important factors we considered. From the
data gathered in table 2, it can be noted that more than half of our respondents considered
the cheapness of second-hand clothing as a reason for their preference for it. They also
consider second-hand clothing to be very stylish, durable, have relatively more popular
designs and also readily available on the market.Quartey and Abor (2011) investigated
the perception of Ghanaians on their preferences about local and imported textiles. . In
response to their preference of textiles type, more than half of the participants stated a
preference for the local textiles with reasons being the good quality, attractiveness and
affordability of the local textiles. Those who stated that they preferred imported textiles
mentioned that they were cheap and very affordable. Majority of the consumers,
especially low income earners, purchase SHC because they perceive the clothes to be
very cheap and affordable.
4.3.3
Preference of the General Population for Second Hand to Local Clothing
The study identified that most of the respondents preferred second-hand clothing to local
textiles. This is evident in our study (figure 1) which graphically represents the results
from our chosen area of study of the preference for second-hand clothing to local textiles.
The data collected reveals that 63.5% (127) of our respondents have preference for
second-hand clothing, while 36.5% (73) of the respondents chose local textiles over
second-hand clothing.From table 2, it is evident in the data gathered on most of the major
variables that influencetheirpreference for cloth ( prices, style, the durability of these
35
cloths, availability and the popularity of their designs),that more than half of the total
number of respondents on each variable choose second-hand clothing over local textile.
Baden and Barber (2005) reported in their analysis of the impact of SHC on developing
countries, that SHC appeals to all persons of the socioeconomic ladder and, while SHC is
noted to be relatively cheap and affordable, most people are purchasing them because of
the popularity of western clothing styles. Knight (1999) also suggests that consumers
prefer domestically manufactured goods and are willing to pay higher price for them. It is
only when imported goods are of a significantly superior quality that consumers will
move to obtain those. With respect to developing countries, the existing literature
suggests that customers prefer western to domestic products.
4.3.4
Reasons that Influences Preferences for Local Textile to Second-Hand
Clothing
This study suggests that the three major factors that influence preferences for locally
produced textiles are; Ethnocentrism, national pride and strong patriotism.
Data gathered on our study(figures 3, 4 and 5) on the factors influencing the preference
for local textiles over second-hand clothing reveals that the major reason for preference
of local textile to second-hand clothing was consumer ethnocentrism 72.5% (145)
followed by national pride and strong patriotism. African textiles are not just seen as
mere clothing for the body, but a representation of heritage, culture and belonging to a
particular community, tribe or ethnic group. An apparent phenomenon that projected
African prints in the 1960s and 1970s to be accepted and customized as valuable and
prestigious cloth in Ghana and other countries in the sub-region is the aesthetic values
and most significantly the symbolic meanings they carried. (Howard, et al., 2012) African
36
prints have philosophical significance. The prints have names that could easily depict or
explain the beliefs, practices and culture of Ghanaians (Orhin, 2007). The patterns in
African prints tell stories of relevance to the wearer, such as proverbs, poems and
traditional African fables. The colours also hold philosophical significance as they can
represent social standing, age, tribal orientation and marital status. (Wendren, 2008)
4.3.5
Effect of Second Hand Clothing on Local Textile Industry
The data gathered from the study (tables 3, 4 and 5) indicates that second hand clothing
causes collapse of the local textile industry with respect to our chosen area of study.
Generally, a survey of the manufacturers of local textiles in Ghana showed that about
75% of them had reduced production by 20% to 50%. Reasons stated for this reduction
were the low demand for local textiles, high production costs, high wages, high cost of
raw materials, and the influx of imitated textiles that were sold cheaply. (Quartey,&Abor,
2011).
Local textile trading businesses have been crippled by the influx of foreign clothes and
textiles on the Ghanaian market on the ticket of Trade Liberalization in the global front. It
is an arguably fact that the liberal trade in the global world has had a negative impact on
the local fashion industries. In order to sustain the businesses of the local designers, the
local industrialists have the hope that the ban of unnecessary importation of foreign
clothes and textiles, especially the second-hand types, can go a long way to revive the
clothing and textiles sub-sector (Sarpong, et al., 2011). With regard to the competition
posed by the importation of new and used clothing and textiles, a collective approach is
required to address the issue. In support to the opinions expressed by Boakye (2010) and
37
Adamptey (2009), the study calls for all fashion producers especially small-scale
manufacturers in Ghana to form strong alliance in order to stand and gather effective
force to put their grievances forward to parliament and other stake-holders who formulate
and implement policies to address importation of fashion goods that compete unfairly
with the Ghanaian products. For example, only textile fabrics that are not easily produced
and are needed in the country should be imported to save the local textiles and clothing
industry from collapsing. This means that, some restriction on importation of textile
products should be enforced. (Sarpong, et al., 2011).
38
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECCOMMENDATIONS

5.1
Introduction
This chapter of the study presents a summary of all the major points that was realized in
the course of the study. From this the study identified some issues that are worth
addressing by giving out some recommendations.
5.2
Summary
The general objective of the study is to assess the effects of importing second hand
clothing on the local clothing industry in the Sunyani municipality, specifically
understanding the perception of the general population who purchases cloths towards
second hand clothing in the municipality, assessing their preferences for second hand and
local clothing in the municipality and examining the reasons that influence their
preferences for both second-hand and local textiles. The study also attempts to identify
the effect the second hand clothing on local clothing industry in the municipality. The
study adopted a descriptive research design and cross section type of research. Both
quantitative and qualitative data was collected with the aid of questionnaires and the
statistical package for social science analysis software was used in analysing the data.
The questionnaire was designed to provide data on the personalities of the respondents,
their perception of the type of clothes they choose to purchase, their preferences for local
textile and second hand textiles and the factors that influence their preference for local
textiles to second-hand clothing. Finally, the questionnaire sought their idea on the effect
of second-hand clothing on the local textile industry. The result of the study reveals that
most of the middle-aged female respondents in the municipality preferred second hand
39
clothing to the local textiles. This was as a result of it being perceived to be cheap,
stylish, durable and with popular designers coupled with the fact that the importation of
SHC awakened respondents in the municipality to the low quality of local textiles.
People who patronized local textiles did so mainly based on some form of a sense of
pride. The study shows that the importation of second hand clothing has caused the
collapse of local textile businesses and many have lost their jobs.
5.3
Conclusion
In conclusion, the study found out that indeed the importation of SHC has a great impact
on the local textile industry with respect to our chosen area of study. The adverse effect
of SHC on the local textile industry is a problem that deserves to be analysed critically.
The findings from the study reveal that it has brought about a collapse of the local textile
industry and job loss for the traders in local textile. The study also prove that secondhand clothing brings peoples awareness to the poor quality of the local fabrics but in a
better light, the local textile industry can attempt to upgrade the quality of the textiles
produced to that of the second-hand clothing imported.
It can also be concluded that
residents of the municipality still have preference for local textile due to their national
pride, ethnocentrism and strong patriotism.
40
5.4 Recommendations
Based on the finding of this study, the following recommendations would be
necessary;
The major players in the local textile industry need to put in place measures that
can assist the industry meet some of the perceived nature of second hand clothing
for which people patronize it the more. Issues that pertain to prices, style and
durability among others need to be tackled.
Emergency measures to limit imports and countervailing duty should be put in

place to revive the textiles sector like the removal of duty on inputs for the
production process and increasing duty on finished fabrics imported.
An issue that pertains to trade restrictions and taxes need to be well designed in
order to keep the local businesses operating.
Issues that pertain to patriotism, pride in culture and ethnicity need to be hyped in
order to get more people to patronize local textiles. This is based on the fact that
most people preferred to use local textiles because of issues that have got to do
with national pride and interest. If for instance the African wear for Fridays are
well developed it will open the local market to more income.
Finally, in agreement with the suggestions of Boakye (2010) and Adamptey

(2009), small scale producers of local textiles in Ghana should form strong
alliances and forward their grievances to parliament and other stakeholders who
formulate and implement policies to address importation of fashion goods that
compete unfairly with the Ghanaian products.
41
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45
APPENDIX I
CATHOLIC UNIVERSITY COLLEGE OF GHANA - FIAPRE
FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION
ASSESSMENT OF THE EFFECTS OF SECOND HAND CLOTHING ON THE
PERFORMANCE OF THE GHANAIAN TEXTILE INDUSTRY: THE CASE OF
LOCAL CLOTHING INDUSTRY IN THE SUNYANI EAST MUNICIPALITY
QUESTIONNAIRE
I am a final year student of the Catholic University College of Ghana. I am collecting this
data to aid me in my long essay. I assure you that data collected will be used for this
research only and with outmost confidentiality. You may refuse to answer any of the
questions that you do not feel comfortable to answer. Results of the study will be
available upon request.
I thank you very much in advance for your collaboration and for sacrificing your
invaluable time.
Questionnaire No. .
Part I: Professional Characteristics
1. Gender: Male [
2. Age: 15-18years [
55years[
Female [
] 19-25years[
] 26-30years[
] 31-55years[
] Divorced[
] Widowed[ ]
3. Marital Status: Single [
] Married[
4. Educational Background:
46
] Above
No Formal Education [
Tertiary [
] Primary \Middle Level [
] J.S.S\Secondary
5. Occupation: Farming [
] Trading [
] Teaching [
] Others [
] Please
Specify...............................................
6. Income per month: GH50- GH100 [
GH300 [
] GH100-GH200 [
] GH300-GH400 [ ] GH500 and above[
7. Religion: Christianity [
] Moslem [
] Traditional [
] GH200-
]
] others [
] Please
specify......................
Part II: Preference of the General Population for Second-hand and local textiles
8
Which of the following do u prefer the most?

Local textile [ ] Second-hand textile [ ]
Part III: Perception of the General Population, who purchases cloths towards
second hand clothing
9
Which of the following can you say pertains to second hand clothing as compared
to local textiles
Variable
Yes
No
Cheap
Stylish
Durable
Readily available on the market
Popular designers
Others ..
47
No Idea
Part IV: Reasons that Influences Preference for local textiles

10 Do you tend to have a preference for local textiles as a result of;
Reasons
Yes
No
strong patriotism
national pride
consumer ethnocentrism
Part V: Effect of Second Hand Clothing on the performance of Local Textile

Industry
11 Do you think the foreign textiles are causing the collapse of local industries?
Yes [ ] No [ ]
12 Has the importation of second hand clothing caused job losses?
Yes [ ] No [ ] No Idea [ ]
Thanks for your cooperation.
48

Assessment of The Effects of Second Hand Clothing On The Performance of The Ghanaian Textile Industry: The Case of Local Clothing Industry in The Sunyani - East Municipality

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Assessment of The Effects of Second Hand Clothing On The Performance of The Ghanaian Textile Industry: The Case of Local Clothing Industry in The Sunyani - East Municipality

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CATHOLIC UNIVERSITY COLLEGE OF GHANA, FIAPRE

FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION

ASSESSMENT OF THE EFFECTS OF SECOND HAND CLOTHING ON THE

A LONG ESSAY SUBMITTED TO THE FACULTY OF ECONOMICS AND

Candidates Name: Deborah OlawunmiOjeifo

Msgr. Seth OseiAgyemang

TITLE PAGE ..................................................................................................................... i

1.7Organisation of the Study .............................................................................................. 8

Background of the Study Area ........................................................................... 21

Study Design and Type ...................................................................................... 22

3.3Study Population ...................................................................................................... 23

Sampling Techniques and Sample size .............................................................. 24

Data Collection Methods and Tools ................................................................... 24

Data Analysis Method ........................................................................................ 25

3.7Limitations of the Study ........................................................................................... 25

Presentation of Results ....................................................................................... 27

4.2.1Personal Characteristics ..................................................................................... 27

Discussion of Results ......................................................................................... 34

Personal Characteristics .............................................................................. 34

Perception of the General Population, who Purchases cloths towards second

hand clothing ............................................................................................................. 35

Preference of the General Population for Second Hand to Local Clothing 35

Reasons that Influences Preferences for local textile to second-hand

Effect of Second Hand Clothing on Local Textile Industry ....................... 37

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECCOMMENDATIONS 39

African Growth and Opportunity Act

Cut, Make and Trim

Express Mail Services

Gross Domestic Product

Import Substitution Industrialization

Multi Fibre Agreements

Municipal Planning Coordinating Unit

National Health Insurance Levy

Original Equipment Manufacturing

Regional Trade Agreement

Structural Adjustment Policies

Statistical Package for Social Sciences

Textile and Clothing

VAT Value Added Tax

CHAPTER ONE: INTRODUCTION

Background of the Study

product quality, responsiveness to market requirements and manufacturing flexibility.

Europeantextile recycling trade were todecline,the poverty alleviating nature of

Statement of the Problem

1. To examine the perception of the general population, who purchases cloths,

Significance and Justification of the Study

Scope and Limitation of the Study

Organisation of the Study

CHAPTTER TWO: LITERATURE REVIEW

The Global Textile Industry

the typical starter industry for countries engaged in export-oriented industrialization

The Ghanaian Textile Industry in Perspective

Effects of Foreign Textiles on the Local Economy

and efficient fashion machinery so as to produce quality garments to meet international

Preference for Local or Foreign Textile

The country-of-origin effect has been identified as an important factor explaining

CHAPTER THREE: METHODOLOGY

Background of the Study Area

Sunyani Municipality is one of the twenty-two administrative districts in the BrongAhafo

Study Design and Type

Sampling Techniques and Sample size

Data Collection Methods and Tools

Data Analysis Method