Comparative analysis of asymmetric impact of cashew nuts and cocoa beans exports on Ghana's economic growth : a non-linear ARDL approach

The study applied the newly developed Non-linear Autoregressive Distributed Lag (NARDL) model by Shin et al. on annual data for Ghana from 1970 to 2019. Evidence of a long-run asymmetric cointegration relationship exists between cashew nuts exports, cocoa beans exports, and economic growth. Findings further revealed both cashew nuts and cocoa beans exports have a positive impact on Ghana's economic growth in the long-run in support of the export-led growth theory. However, the impact of cocoa bean exports is greater than that of cashew nuts exports on the economic growth of Ghana. The Granger causality test revealed the existence of a unidirectional (one-way) causality running from economic growth to both the cashew nuts and cocoa beans exports. Government and policy makers should therefore continue to encourage and promote agricultural export growth to spur the economic development of Ghana. Also, policies and measures geared towards exchange rate stability by the government and Bank of Ghana should be promulgated and implemented to propel economic growth and export expansion in Ghana.