An empirical analysis of the determinants of cocoa production in Cote d’Ivoire

Abstract

Cote d’Ivoire has been at the helm of cocoa production for more than 3 decades. Despite being fraught by occasional challenges, she is still poised to steer the global cocoa production rudder. To keep the mantle of, we investigate and analyse some determinants that influence cocoa shortage in Cote d’Ivoire. Employing an ARDL using time series data for a 33-year period, we identify a long-run relationship between cocoa output and labour, land as well as fertilizer implements. We found a short-run relation among the same variables using an ECM. Additionally, political stability and carbon dioxide emissions had no statistically significant effect, indicating that Ivorian cocoa production is not impacted by these non-economic factors. Intuitively, policy makers can identify the causes of the shortages in the long and short terms and calibrate targeted decisions that will benefit the cocoa sector in particular and Ivorian agricultural activity in general.