The Price Incentive to Smuggle and the Cocoa Supply in Ghana, 1950-96

June 1, 1998

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Format: Chicago

Ales Bulir. The Price Incentive to Smuggle and the Cocoa Supply in Ghana, 1950-96, (USA: International Monetary Fund, 1998) accessed September 18, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

From the early 1960s to the early 1980s, the officially recorded production of cocoa in Ghana declined by 60 percent. During the 1983–95 Economic Recovery Program, however, cocoa production doubled. Although these developments have inspired much empirical research, most of the studies have been unable to explain the medium-term persistence of cocoa output to remain below its estimated capacity level. The paper argues that the price incentive to smuggle can explain as much as one-half of the observed decline in output and the subsequent recovery. A cointegration analysis and a dynamic error-correction model of cocoa supply support the analysis.

Subject: Agricultural commodities, Agricultural prices, Anti-smuggling, Commodities, Exchange rates, Foreign exchange, Prices, Producer prices, Revenue administration

Keywords: Agricultural commodities, Agricultural prices, Anti-smuggling, Cocoa supply, Cointegration, Commodity taxation, Cross-price elasticity, Exchange rates, Ghana, Ghana-Côte d'Ivoire price differential, Global, International price, Price, Price development, Producer, Producer price, Producer prices, Smuggling, Supply, WP

Publication Details

Pages:

26
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1998/088
Stock No:

WPIEA0881998
ISBN:

9781451851137
ISSN:

1018-5941

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