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Direct Research Journals
Vol.5 (1), pp. 21-25, January 2017
ISSN 2354-4147: International Standard Journal Number (ISJN) e-ISJN: A4372-2604

Determinants of cocoa production in the Ashanti region
Article Number: DRJA109104442
DOI:

Original Research Article


Eric  Effah  Sarkodie1 , Hadrat M. Yusif2 and Williams Kwasi Boachie3


1University of Education, Winneba, College of Technology Education, Department of  Accounting Studies Education, Kumasi, Ghana.

2Kwame Nkrumah University of Science and Technology, College of Arts and Social Sciences

Department of Economics, Kumasi,Ghana.

3University of Education, Winneba, College of Technology Education, Department of Accounting Studies Education, Kumasi, Ghana.

*Corresponding author E-mail:  effahsarkodie@yahoo.com


date Received: October 30, 2016     date Accepted: November 21, 2016     date Published: December 14, 2016

Abstract

The economic benefits of cocoa in Ghana include foreign exchange, employment and provision of raw materials for both domestic and international industries. For these reasons, there has been a government intervention in the cocoa industry that brought forth   policies including increased producer price and also cocoa pest and disease control programme (CODAPEC) to stimulate cocoa production. However, studies investigating factors influencing cocoa production in Ghana are very scarce. This study obtained Ordinary Least Squares (OLS) estimates from a Cobb-Douglas production function using cross section data obtained from 251 farmers. The respondents were selected using Random sampling technique. Questionnaires were administered to respondents and the items comprised farmers’ production years, farm size, family labour, hired labour, farm age, bags of fertilizer, Number of times of mass spraying and total Revenue. The dependent variable was output. The Log-Linear regression results showed an adjusted co-efficient of determination of 0.972. It was found that the total revenue and hired labour variables had significant influence on cocoa production. Both variables were significant at 1%. The number of times of mass spraying and farm size variables were statistically insignificant. This study could have important policy implication for government to increase producer price of cocoa.


Key Words: Ordinary Least Squares,Cobb-Douglas production function, Log-Linear regression, Cocoa, and Co-efficient of determination