ISHS Acta Horticulturae 270: I International Symposium on Horticultural Economics in Developing Countries
EFFECT OF MONETARY POLICY ON TOMATO OUTPUT IN GHANA |
| Author: | K. Yerfi Fosu |
| Abstract:
The purpose of this study is to determine, empirically, whether domestic monetary policy influenced tomato output in Ghana during the period 1960–1985. The study employs standard economic causality testing, a la Granger, to ascertain whether money supply causes the level of tomato output in Ghana. Time series data relating to tomato output and money supply (Ml) in Ghana covering the period under study are used. It is observed, among other things, that tomato output in Ghana increased, on the average, by 11.69%, 18.31%, and 24.65% per annum during the periods 1960–1969, 1970–1979, and 1980–1985 respectively. In addition, it shows that tomato output levels are caused by monetary policy, with a one year lag. A positive correlation is observed between money supply and tomato output. The results of the study imply that restrictive monetary policy, such as occurs under recent WorldBank supported structural adjustment programmes, could exert recessionary effects on Ghana's tomato subsector. | |
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