Factors Influencing the Competitiveness of Cocoa Export of Ghana and Its Implication on Ghana’s Economy

Abstract

This study examines the competitiveness of Ghana’s cocoa by assessing the performance and determinants of cocoa export from Ghana. Competitiveness of the country in cocoa exports was assessed using the Pearson's Correlation model and Linear Regression model using SPSS and STATA respectively. Time series data on Ghana’s cocoa production and exports and GDP from 2000 to 2014 were collected and analyzed using Pearson Correlation Statistics that were adopted in SPSS. The first analysis was to find the relationship between total cocoa products exports in US$ (including raw cocoa beans and processed cocoa products) and factors such as the real world prices of cocoa (US$/MT) between 2000 and 2014, the gross domestic product of Ghana, the amount of Cocoa beans produced (in tonnes) and processed cocoa exports. The outcome of the analyses revealed that Ghana has comparative advantage in the exportation of cocoa, that Ghana is highly competitive in exports of cocoa beans, total cocoa products and processed cocoa exports. In spite of improvements observed in the country’s export performance over the past three decades, there is potential for further improvement, based on the SPSS and STATA results. The study proceeds to propose measures eminent in ensuring robust cocoa production and consequential exports.

Keywords：Competitiveness, cocoa export, determinants, real world price, gross domestic price.

DOI: 10.7176/JESD/10-6-05

Publication date:March 31^st 2019