Abstract:
This study investigates if there is an asymmetric relationship between Ghanaian retail and
wholesale plantain prices. Using the Consistent Threshold Autoregressive Model(C-TAR), this study finds that
the retail and wholesale plantain prices are threshold co integrated. The study also finds that the retail and
wholesale plantain prices adjust asymmetrically for deviation from the long run equilibrium. The findings of
this study further indicate that 63.2% of the positive deviations and 24.9% of the negative deviations persist
to the next period. These results suggest that any price movement that squeezes the margins is transmitted
more rapidly than an equivalent that stretches the margin.
