IDEAS home Printed from https://ideas.repec.org/a/taf/oaefxx/v12y2024i1p2421886.html
   My bibliography  Save this article

The effect of fuel prices on agri-food sector output in Ghana

Author

Listed:
  • Ramatu Ussif
  • Jamal Mohammed
  • Ussif Abdul-Aziz Sirin

Abstract

This paper applied the Cobb-Douglas production function to look into the impact of global crude oil prices on agricultural output in Ghana. Annual time-series secondary data spanning from 1980 to 2020 were utilized, sourced from the World Development Indicators and the US Energy Information Administration. The variables employed included agriculture value added per gross domestic product (GDP), international Brent crude oil prices, agricultural employment as a percentage of total employment, Tractors and agricultural equipment, as well as the proportion of land used for agriculture. To investigate the short- and long-term correlations between these variables, the Autoregressive Distributed Lag (ARDL) cointegration technique was employed. A unit root test was performed to evaluate the stationarity of the variables before ARDL analysis. The EViews Statistical/Econometric package facilitated the analysis. The findings from the ARDL cointegration estimates revealed a negative correlation between international crude oil prices and agriculture value added per GDP. According to the model, all variables exhibited cointegration over both the short and long term. Control variables, including agricultural employment as a percentage of total employment and agriculture machinery and tractors, showed a positive correlation with agriculture value added per GDP. However, agricultural land was found to be insignificant in influencing agricultural output.The research evinced a negative effect of crude oil prices on agricultural output in Ghana, hence rising fuel cost could trigger food insecurity and threatens livelihoods, highlighting the need for policy interventions that stabilize energy costs and support sustainable agricultural practices.

Suggested Citation

  • Ramatu Ussif & Jamal Mohammed & Ussif Abdul-Aziz Sirin, 2024. "The effect of fuel prices on agri-food sector output in Ghana," Cogent Economics & Finance, Taylor & Francis Journals, vol. 12(1), pages 2421886-242, December.
  • Handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2421886
    DOI: 10.1080/23322039.2024.2421886
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23322039.2024.2421886
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/23322039.2024.2421886?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2421886. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/OAEF20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.