English (United Kingdom)

https://curated-unify.zendy.io/wp-json/zendy-region/v1/featured_content/oa?rat=en

https://curated-unify.zendy.io/wp-json/zendy-region/v1/highlighted_journal/

Global: Zendy Plus annual

Presents the access of premium content as premium feature

Premium Content

Presents the keyphrase highlighting as premium feature

Keyphrase Highlighting

Presents the summarisation as premium feature

Summarisation

Insights

Presents the pdf analysis as premium feature

PDF Analysis

Presents the zaia usage as premium feature

ZAIA

Global: Zendy Tools annual

Global: Zendy Free Plan

Global: Zendy Tools monthly

Global: Zendy Plus monthly

In this study, we explore the causal influence of export earnings of cocoa towards economic growth (i.e., gross domestic product (GDP)). The augmented Dickey–Fuller (ADF) and the Phillips–Perron (PP) unit root tests indicate that the two series are integrated of order one, I (1). The results of the trace and the maxi-eigenvalue cointegration test based on Johansen’s procedure indicate the existence of a cointegration between export earnings of cocoa and GDP. Thus, the two variables of the study have a long-run equilibrium relationship. The vector error correction model of order two, VECM (2), was considered as the “best” model after evaluating other competing models. It is observed that, in the long-run, previous year export earnings of cocoa is positively related to economic growth. In the short run, the results revealed that the previous GDP has positive effect on current GDP; and higher export earnings of cocoa have positive effect on GDP. Feedback causality is observed between economic growth (GDP) and export earnings of cocoa. This suggests a bi-directional causality from export earnings to economic growth (GDP). Keywords : Cointegration, VECM, Johansen, ADF, Causality.

Testing for Long-Run Relation between Economic Growth and Export Earnings of Cocoa in Ghana using Co-Integration Techniques