Government erected entry barriers to the commercial transport market in Ghana offers an opportunity to explore socio-economic problems with particular reference to developing countries. Our study focuses on the clash between market incumbents in Ghana’s commercial transport sector and new entrants, motorbike operators who sell their services to passengers and are thus competing with incumbents. Using the New Institutional Economics as a tool for analysis we examine the tensions in the market and how the law is used to suppress competition and what can be done to overcome this suppression of market activity.
Ibid. p.52. This Decree established the Omnibus Licensing Authority with the responsibility of prescribing routes and parking places for private and publicly owned omnibuses fixing fares. See Omnibus Services Decree (1972) National Redemption Council Decree 1971 Article 5 (a) (i) and (ii). It also had the power to license all motor vehicles intended to be used as omnibuses within a prescribed area ibid. Article 1.