Analysis on the Contribution of Agricultural Sector on the Economic Development of Ghana

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.