Abstract:
This study identifies the macroeconomic factors which influence agricultural production in
Ghana. The main purpose of the study is to find out the key macro factors that influence
agricultural production in Ghana. The Cobb-Douglas production was employed and the
Ordinary Least Squares estimation technique was used. Our dependent variable is
agricultural output. The independent variables are labour force, inflation, real exchange rate
and Real GDP per capita. We found that 1% increase in labour force caused agricultural
production to decrease by 0.655946%. Also a 1% increase in inflation caused agricultural
production to increase by 0.00459045%. In addition, a 1% increase in real exchange rate
caused agricultural production to increase by 0.083949%. Finally, a 1% increase in real
GDP per capita caused agricultural production to decrease by 1.05825%. Apart from
inflation, labour force, real exchange rate and real GDP per capita were statistically
significant. Therefore, the key macro economic factors that influence agricultural production
in Ghana are labour force, real exchange rate and real GDP per capita. The agricultural
sector should be made more attractive and conductive to ensure continuous production of
food in Ghana.
