Sokoine University of Agriculture

Aggregate cocoa supply response to government expenditure in Ghana

Show simple item record Jonathan, A. 2021-04-22T08:47:58Z 2021-04-22T08:47:58Z 2019
dc.description A Dissertation 2019 en_US
dc.description.abstract The cocoa sub-sector of Ghana is a major employer and source of income for most smallholder farmers as well as a major export earner for the government. The importance of the cocoa sub-sector has resulted in government committing over 50% of agricultural expenditure to the sub-sector in an attempt to increase annual output. Despite the large share of government agricultural expenditure on the sub-sector, studies have found the productivity level in the cocoa sub-sector to be amongst the lowest in the world. This study was conducted to find out how responsive cocoa supply was to government expenditure on the sub-sector. Specifically, the objectives of the study were to explore the composition of expenditure on non-research activities and then to determine the responsiveness of cocoa supply to research and non-research expenditures. The study employed the vector error correction model, using time series data from 1996 to 2016 to estimate both the short- and long-run elasticities. Results show that in terms of composition and pattern of non-research expenditure, larger share was dedicated to administrative work while training of field and technical staff received the least expenditure over the study period. Further, the findings show that expenditure on research positively impacted the level of cocoa supply in both the short- and long-run. Non- research expenditure on the contrary had a negative effect on cocoa supply in the short- run but showed a positive effect in the long-run. The empirical results showed that cocoa supply was more responsive to research expenditure than to non-research expenditure. The study recommends the need for increased research expenditure and the need for right targeting of non-research expenditure to ensure the best possible aggregate cocoa supply response. en_US
dc.language.iso en en_US
dc.publisher Sokoine University of Agriculture en_US
dc.subject Aggregate cocoa supply en_US
dc.subject Government expenditure en_US
dc.subject Smallholders farmers en_US
dc.subject Ghana en_US
dc.title Aggregate cocoa supply response to government expenditure in Ghana en_US
dc.type Thesis en_US

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