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Agriculture and Economic Growth in Republic of Ghana

Year 2018, Volume: 22 Issue: 3, 363 - 375, 24.09.2018
https://doi.org/10.29050/harranziraat.421660

Abstract

The main objective of this work was to examine the
contributions of the agricultural, service and industrial sectors to economic
growth in Ghana, and to show the distribution and changes in growth rates from
year to year and the current performces of the various sectors. Time series
data from 1984-2013 on all the variables of interest obtained from various
organizations was used for the analysis. The Ordinary Least Squares estimation
technique was used for the analysis. The results showed that a 1% increase in
the growth of the agricultural sector will cause GDP growth to increase by
0.248%. Also, a 1% increase in the growth of the services sector will lead to
0.472% increase in GDP growth. Finally, 1% increase in the growth of the
industrial sector will bring 0.315% increase in GDP growth.  All the explanatory variables are
statistically significant at the 5% level of significance. It is concluded that
the service sector contributed most to the overall growth. It is recommended
that for Ghana to achieve higher GDP growth rate, she should
activate/strengthen the service as well as the agricultural sector to lead the
growth in the Ghanaian economy. Therefore, for Ghana to attain higher GDP
growth rates as her key dream, more of her resources should be channeled into
the service sector (0.472). Nevertheless the government should make structural
changes in agricultural sector as it also forms the core of growth and
development of the economy and employs the highest labour force. The
agricultural sector should also be modernized for further growth and further,
government must provide enough subsidies and incentives to motivate farmers
especially for cocoa.

References

  • Abayomi, O. (1997). “The agricultural sector in Nigeria: The way forward.” CBN Bullion, 21: 14-25.
  • Gujarati, D.N., 1995. Basic Econometrics. Literatür Yayıcılık dağıtım pazarlama sanayi ve ticaret Limited Şirketi, İnternational Edition, Third Edition, İstanbul, 1995.
  • Datta, K. and Kumar, C. (2011). Relationship between Inflation and economic growth in Malaysia. International Conference on Economics and Finance Research IPEDR, Vol. 4, No. 2, pp. 415-1
  • EIU (1998a): Country report Ghana, 2nd quarter 1998; Economist Intelligence Unit, London.
  • EIU (1998b): Country profile Ghana; Economist Intelligence Unit, London.
  • EIU (1999c): Country profile Ghana; Economist Intelligence Unit, London.
  • Faridi, M. Z. (2012). Contribution of agricultural exports to economic growth in Pakistan. Pakistan Journal of Commerce. Social. Science, 6(1) :133 – 146.
  • Ghana Statistical Services (2008) Ghana living standards survey: Report on the fifth round. Accra: Ghana Statistical Sevices.
  • Ghana Statistical Services (2011) Ghana’s economic performance 2010: In figures. Accra: Ghana Statistical Services. Ghana Statistical Services (2013) Revised: Gross domestic product 2012. Accra: Ghana Statistical Service.
  • IMF (2000): Ghana: Selected Issues; IMF Staff Country Report No. 2000/2, Washington, D.C.ISSER, (2013). The state of Ghanaian economy. University of Ghana, Legon, Ghana.
  • Johnston, B. F. (1970). Agriculture and structural tranformation in developing countries: a survey of research. J. Econ. Literature 8: 369 – 404.
  • Lall, S., Navaretti, G., Teitel, S., Wignaraja, G., (1995): Technology and enterprise development: Ghana under Structural Adjustment; St.Martin’s Press, New York.
  • Maddison, A. (2001) The world economy – Volume 1: A Millennial Perspective & Volume 2: Historical Statistics. Paris: OECD Publishing.
  • Madhukar, S. and Nagarjuna, B. (2011). Inflation and growth rates in India and China: a perspective of transition economies, International Conference on Economics and Finance Research, Vol. 4, No. 97 pp. 489-490.
  • Mubarik, A. (2005). Inflation and growth. An estimate of the threshold level of Inflation in Pakistan. SBP- Research Bulletin, Vol. 1, No. 1 pp. 35-43. Ogen, O. (2007). “The agricultural sector and Nigeria’s development: comparative Perspective from the Brazilian agro-industrial sector economy (1960-1995)”. Nebula March 2007@Noble World Archives.
  • Worldbank (1993a): Ghana 2000 and Beyond: Setting the Stage for Accelerated Growth and Poverty Reduction; Africa Regional Office, Western Africa Department, Washington D.C.
  • Worldbank (2007) Ghana: Meeting the Challenge of Accelerated and Shared Growth. Country Economic Memorandum, Volume III (Report No 40934-GH).

Gana Cumhuriyeti’nde Tarım ve Ekonomik Büyüme

Year 2018, Volume: 22 Issue: 3, 363 - 375, 24.09.2018
https://doi.org/10.29050/harranziraat.421660

Abstract

Bu çalışmanın temel amacı,
tarım, hizmet ve sanayi sektörlerinin Gana'daki ekonomik büyümeye olan
katkısını incelemek ve büyüme oranlarının yıldan yıla yıllara göre dağılımını
ve değişimini ve çeşitli sektörlerin mevcut performansını ortaya koymaktır.
Analiz için çeşitli kuruluşlardan elde edilen tüm değişkenler üzerinde
1984-2013 arası zaman serileri verileri kullanılmıştır. Analiz için En Küçük
Kareler tahmin tekniği kullanılmıştır. Sonuçlar, tarım sektörünün büyümesinde%
1'lik bir artışın GSYİH büyümesinin% 0,24 oranında artacağını göstermiştir.
Ayrıca, hizmetler sektörünün büyümesinde %1.0’lik bir artış, GSYİH büyümesinde
%0.472 oranında bir artışa yol açacaktır. Son olarak, sanayi sektörünün
büyümesindeki %1.0'lik artış, GSYİH büyümesinde %0.315 oranında bir artış
sağlayacaktır. Tüm açıklayıcı değişkenler, % 5 anlamlılık düzeyinde
istatistiksel olarak anlamlıdır. Hizmet sektörünün genel büyümenin çoğuna
katkıda bulunduğu sonucuna varılmıştır. Gana'nın daha yüksek GSYH büyüme
oranına ulaşması için, Gana ekonomisindeki büyümeye öncülük etmek için hizmetin
yanı sıra tarım sektörünü de aktive etmeli / güçlendirmelidir. Bu nedenle, daha
fazla kaynak hizmet sektörüne yönlendirilmelidir (0.472). Bununla birlikte, hükümetin,
ekonominin büyümesi ve gelişmesinin çekirdeğini oluşturduğu ve en yüksek
işgücünü istihdam ettiği için tarım sektöründe yapısal değişiklikler yapması
gerekmektedir. Tarım sektörü, daha fazla büyüme için modernize edilmeli ve
ayrıca, hükümet çiftçileri özellikle kakao için motive edecek yeterli
sübvansiyon ve teşvik sağlamalıdır.

References

  • Abayomi, O. (1997). “The agricultural sector in Nigeria: The way forward.” CBN Bullion, 21: 14-25.
  • Gujarati, D.N., 1995. Basic Econometrics. Literatür Yayıcılık dağıtım pazarlama sanayi ve ticaret Limited Şirketi, İnternational Edition, Third Edition, İstanbul, 1995.
  • Datta, K. and Kumar, C. (2011). Relationship between Inflation and economic growth in Malaysia. International Conference on Economics and Finance Research IPEDR, Vol. 4, No. 2, pp. 415-1
  • EIU (1998a): Country report Ghana, 2nd quarter 1998; Economist Intelligence Unit, London.
  • EIU (1998b): Country profile Ghana; Economist Intelligence Unit, London.
  • EIU (1999c): Country profile Ghana; Economist Intelligence Unit, London.
  • Faridi, M. Z. (2012). Contribution of agricultural exports to economic growth in Pakistan. Pakistan Journal of Commerce. Social. Science, 6(1) :133 – 146.
  • Ghana Statistical Services (2008) Ghana living standards survey: Report on the fifth round. Accra: Ghana Statistical Sevices.
  • Ghana Statistical Services (2011) Ghana’s economic performance 2010: In figures. Accra: Ghana Statistical Services. Ghana Statistical Services (2013) Revised: Gross domestic product 2012. Accra: Ghana Statistical Service.
  • IMF (2000): Ghana: Selected Issues; IMF Staff Country Report No. 2000/2, Washington, D.C.ISSER, (2013). The state of Ghanaian economy. University of Ghana, Legon, Ghana.
  • Johnston, B. F. (1970). Agriculture and structural tranformation in developing countries: a survey of research. J. Econ. Literature 8: 369 – 404.
  • Lall, S., Navaretti, G., Teitel, S., Wignaraja, G., (1995): Technology and enterprise development: Ghana under Structural Adjustment; St.Martin’s Press, New York.
  • Maddison, A. (2001) The world economy – Volume 1: A Millennial Perspective & Volume 2: Historical Statistics. Paris: OECD Publishing.
  • Madhukar, S. and Nagarjuna, B. (2011). Inflation and growth rates in India and China: a perspective of transition economies, International Conference on Economics and Finance Research, Vol. 4, No. 97 pp. 489-490.
  • Mubarik, A. (2005). Inflation and growth. An estimate of the threshold level of Inflation in Pakistan. SBP- Research Bulletin, Vol. 1, No. 1 pp. 35-43. Ogen, O. (2007). “The agricultural sector and Nigeria’s development: comparative Perspective from the Brazilian agro-industrial sector economy (1960-1995)”. Nebula March 2007@Noble World Archives.
  • Worldbank (1993a): Ghana 2000 and Beyond: Setting the Stage for Accelerated Growth and Poverty Reduction; Africa Regional Office, Western Africa Department, Washington D.C.
  • Worldbank (2007) Ghana: Meeting the Challenge of Accelerated and Shared Growth. Country Economic Memorandum, Volume III (Report No 40934-GH).
There are 17 citations in total.

Details

Primary Language English
Subjects Agricultural Engineering
Journal Section dp
Authors

Edwin Okine This is me 0000-0002-4969-9399

Remziye Özel 0000-0001-9240-3453

Publication Date September 24, 2018
Submission Date May 7, 2018
Published in Issue Year 2018 Volume: 22 Issue: 3

Cite

APA Okine, E., & Özel, R. (2018). Agriculture and Economic Growth in Republic of Ghana. Harran Tarım Ve Gıda Bilimleri Dergisi, 22(3), 363-375. https://doi.org/10.29050/harranziraat.421660

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