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Testing Long Run Relationship between Exports and Imports: Evidence from Ghana

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  • Francis Annan

Abstract

This study examines the long-run relationship between exports and imports for the Ghanaian economy for the period of 1948 to 2010. Empirically, we find that Ghana’s exports and imports are cointegrated using Granger and Engle (1987) two-step procedure. However, the slope coefficients from the cointegration equations were not statistically equal to 1 and the equilibrium relationship further indicates that the economy of Ghana imports more than 1 dollar to get 1-dollar exports revenue. Conclusively, the sustainability of Ghana’s foreign deficit is doubtful.

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  • Francis Annan, 2011. "Testing Long Run Relationship between Exports and Imports: Evidence from Ghana," Journal of Economics and Behavioral Studies, AMH International, vol. 3(6), pages 381-387.
    • Handle: RePEc:rnd:arjebs:v:3:y:2011:i:6:p:381-387
    DOI: 10.22610/jebs.v3i6.294
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    References listed on IDEAS

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    6. Paresh Kumar Narayan & Seema Narayan, 2005. "Are exports and imports cointegrated? Evidence from 22 least developed countries," Applied Economics Letters, Taylor & Francis Journals, vol. 12(6), pages 375-378.
    7. M.Upender, 2007. "Long Run Equilibrium Between Indias’S Exports And Imports During 1949-50 -2004-05," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(1).
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    1. de-Graft Acquah, Henry & De-Graft Acquah, Joyce, 2015. "An Application of the Error Correction Model in Analyzing the Long Run Equilibrium between Ghana’s Exports and Imports," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 9(3), pages 1-6, December.

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