Riassunto analitico
The main objective of this study is to examine the impact of cocoa production and the trend of
cocoa production in the Ghanaian economy. The declining output of cocoa production resulting
from decreasing in foreign exchange earnings and its impacts on the Ghanaian economy has
become a major concern to major stakeholders. This has necessitated this study, focusing on the
impact of cocoa production in the Ghanaian economy over the period of 30 years. This has
become more than necessary as cocoa production has been considered as the backbone of the
Ghanaian economy over some years because of the foreign exchange earnings which supports
the country’s developmental projects, not only that, but given the significance of Ghana as the
principal second producer and exporter of cocoa in the world. This study examines cocoa
production, export and foreign earnings contribution to Ghana over a 30 years period ranging
from 1980 and 2018 to ascertain the impact of cocoa production in the economy. The study uses
Ordinary Least Square technique (Regression analysis) to assess the impact of cocoa production
on economic growth (GDP as dependent variable) and cocoa production, cocoa exports,
manufacturing, FDI and population as independent variables. The study revealed that, cocoa
production has positive relationship on economic growth of Ghana but statistically insignificant
which was surprisingly not expected. Cocoa export tends out to have a positive relationship with
economic growth and statistically significant. The study therefore recommends among other
things that decision makers must be proactive in coming out with laws that will set aside and
provide cocoa lands in order to increase cocoa production. The price of cocoa at the local market
should be brought to a level where it will encourage especially the youth to go into cocoa
production.
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