TITLE:
The Impact of Maize Trade on the Development of the Maize Industry in Ghana
AUTHORS:
Richard Amponsah, Ximei Kong, Simon Abendin
KEYWORDS:
Maize Trade, Maize Production, Maize Industry Development, Ghana and VECM
JOURNAL NAME:
Open Journal of Business and Management,
Vol.9 No.4,
July
23,
2021
ABSTRACT: This paper examines the impact of maize trade on the development of the
maize industry in Ghana using a time series dataset for 1980-2019. The study
adopted the multivariate vector error correction model (VECM). We assess whether maize trade spurs development in the maize
industry and hence economic growth. The study further examined whether
other production variables such as fertilizer, machinery, and FDI efficiently
stimulates development in the maize industry. The empirical analysis results
suggest that maize trade and other variables positively impact the maize
industry in the long run. Firstly, the results show that the import and export
of maize positively impact maize productivity in Ghana, hence growth in the
maize industry development in the long run. Secondly, the inputs of production
including, Land, Machinery, Labor, have a long-run positive significant
relationship with the development of the maize industry in Ghana. Thirdly,
other production inputs such as fertilizer have a positive non-statically
long-run effect on the maize productivity in Ghana. Based on these findings, we
recommend that governments look into policy initiatives on the development of
the maize industry. The policy initiatives should provide financial and
non-financial incentives such as fertilizer and certified seed subsidies, complimentary service provisions on inputs,
good agronomic practices. Also, marketing of outputs
over an E-Agriculture platform, and reduce trade restrictions to maximize maize production.