Research on World Agricultural Economy

Analysis of Ghana—Nigeria Export Trade: Linkages, Impacts and Policy Implications

Mohammed Kebiru Ibrahim

Department of Agricultural Economics and Extension, Prince Abubakar Audu University,  Anyigba P.O. Box 1008, Nigeria

Ufedo Monday Shaibu

Ufedo Monday Shaibu, Department of Agricultural Economics and Extension, Prince Abubakar Audu University, Anyigba P.O. Box 1008, Nigeria; Department of Agribusiness, University of Ghana, Legon‑Accra P.O. Box 571, Ghana

DOI: https://doi.org/10.36956/rwae.v5i4.1172

Received: 16 July 2024 | Revised: 12 August 2024 | Accepted: 26 August 2024 | Published Online: 14 November 2024

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Abstract

This study hypothesised that the Ghana-Nigeria export trade has a significant impact on the economy of Ghana. Time series on variables of interest were obtained from the World Development Indicator (WDI) of the World Bank and the Ghana Statistical Service (GSS). The 2018 input-output table for Ghana was obtained from the social accounting matrix of the Organisation for Economic Co-operation and Development (OECD). The data were analysed using descriptive statistics, input-output analysis, and the autoregressive distributed lag (ARDL) bound testing approach. Through input-output analysis, this study found significant total impacts (151.585 to 190.139 million Ghana Cedis) in 2017 and 2018, centred around export commodities such as food and live animals, beverages, and tobacco. The expanding field of influence (214.373 to 268.898) and the ratio of impacts to Ghana's GDP (0.058% to 0.062%, then 0.044%) substantiate their pronounced role in the economy. The ARDL model showed that a percent increase in Ghana-Nigeria exports led to a 0.1017% increase in Ghana’s real GDP on the log-run. The speed of adjustment was 42.18% in each period. By providing support to exporters, both countries can leverage their comparative advantages, strengthen economic ties, and foster sustained growth through increased export trade.

Keywords: Agribusiness; Export Trade; Real GDP; Input‑Output Analysis; Linkages; OECD

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