Title: Climate conditions and cocoa yields in ECOWAS countries: fully modified OLS approach

Authors: Kenneth Ofori-Boateng; P.B. Eregha; Insah Baba

Addresses: Ghana Institute of Management & Public Administration (GIMPA), P.O. Box Ah 50, Achimota, Accra, Ghana ' Department of Economics, University of Lagos, Akoka-Lagos, Nigeria ' Business School, WA Polytechnic, Upper West, Ghana

Abstract: The ECOWAS region's supply of 70% of world cocoa output generates about 2 billion US dollars annually and contributes substantially to the economic development of the region. Unfortunately, evidence has shown that the region has high vulnerability profile in terms of weather conditions which can affect cocoa output. Therefore, the study examined the climate conditions and cocoa yield in ECOWAS countries from 1969 to 2009 drawing data from eight cocoa producing countries in the region. The study used the crop yield response framework and employed the Fully Modified OLS (FMOLS) approach. It was revealed that precipitation positively and significantly influenced cocoa output in the ECOWAS region, while extreme temperature hampered the production of cocoa. Labour and fertiliser input had positive influence on the production of cocoa in the region. Adaptation strategies should focus on investment in cocoa irrigation infrastructure to combat the varying effect of climate change in the region.

Keywords: climate conditions; crop yield response; fully modified OLS; ECOWAS region; ordinary least squares; climate change; rainfall; precipitation; extreme temperatures; labour; fertilisers; adaptation strategies; irrigation infrastructure; Economic Community of West African States; Africa.

DOI: 10.1504/IJGE.2015.075138

International Journal of Green Economics, 2015 Vol.9 No.2, pp.182 - 198

Received: 18 Apr 2015
Accepted: 03 Dec 2015
Published online: 04 Mar 2016 *

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