Abstract
The study empirically examines the impact of agricultural sector on the economic GDP growth of Ghana, using time series data from 1984 to 2018. The cointegration test results showed the non-existence of long-run relationships existing between the overall GDP and agricultural output. In its set-up, the error correction method estimates the long-run relationship between economic growth and agricultural output as well as fluctuation in the short-run. Based on the basic regression model, agricultural output exhibits a significantly positive impact on the overall GDP growth of the country. Similarly, the industrial and service sector also contributed positively to overall GDP growth. The results indicate the need to promote value added agricultural export expansion policies to achieve high economic GDP growth.
Highlights
Agriculture plays a crucial role in contributing to socio-economic development in many countries
The results indicate the need to promote value added agricultural export expansion policies to achieve high economic gross domestic product (GDP) growth
The subsequent sections present the results of the econometric analysis for the main objective to test the causal linkage between the overall GDP growth and agricultural GDP of Ghana
Summary
Agriculture plays a crucial role in contributing to socio-economic development in many countries. It is the primary source of employment, livelihood, and food security for the majority of rural people. In the year 2019, the agricultural sector contributed about 20% to Ghana’s gross domestic product (GDP). This sector does contribute to Ghana’s GDP and absorbs a lot of labor forces and provides raw materials for industrial growth and development. In Ghana, the GDP growth rate was 8.4%, while that of the agricultural growth rate was 6.3% in the year 2018. The overall economic growth and development of a country depend upon the health of the agricultural sector. The reasons are that it provides food, raw materials, and foreign exchange, which further pushed indu-
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