The desire of every Less Developing Country
(LDC) like Ghana is the need to ensure rapid industrialization. This is in the
light that industrialization, the process of manufacturing consumer goods and
creating social overhead capital is a prerequisite for economic development and
an escape route for unemployment, high poverty level, income inequalities,
social imbalances while delivering a higher level of welfare, self-reliance, confidence
and social harmony for the country and its citizen. It is logical to say that
industrialization if correctly harnessed can transform and stabilize a country
structurally. For these Less Developing Countries (LDCs), industrialization is
seen as a conscious effort of growing the manufacturing sector of the economy.
Hence, industrial reforms and policies are tailored to have a strong impact on
manufacturing outputs (Anaman & Osei-Amponsah, 2009).

In Ghana, the government and economic experts have
emphasized the role that industrialization and manufacturing can play in the
structural transformation of the economy. The industrial policy for Ghana launched
in 1980s opined that its major goal is to achieve an accelerated pace of
industrial development for the nation making the industrial sector the main
source of strength for the economy. Hence, several fiscal, monetary, exchange
rate and commercial policies and measures have been adopted to encourage industrialization
within the ambit of available resources. To resolve the bottlenecks and mark a
watershed in the evolution of the manufacturing sector of Ghana; the Structural
Adjustment Program (SAP) was embarked on with a primary objective of removing
the structural distortions and bottlenecks occasioned by Government controls
with the knowledge that foreign exchange rate is a major determinant in the
efficient allocation and utilization of scare resources to enhance the flow of
capital into a country, stimulating domestic industrial production, promotion
of export, create a favourable purchasing

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