Abstract:
The study determines the main dimensions along which to classify specific
markets as extremely high-priced, high-priced, medium priced, low priced and
those that are extremely low-priced. For this purpose, secondary data is obtained
on prices of 19 food items in 91 Markets in non-consecutive years from 2008 to
2015 in all regions of the country from the Statistical, Research and Information
Directorate of the Ministry of Food and Agriculture. This data constitutes a
multivariate dataset with nineteen variables and 455 observations. Generalized
Principal Component Analysis, which is a procedure for data classification and
summarization, is considered appropriate for analyzing this high dimensional
dataset. An appropriate index is designed to identify the various levels of the
prices and eigen-analysis among others further informed the choice of the
technique. It is found that there are indeed extreme priced markets in Ghana.
The results reveal that the classification of the markets is not influenced by their
location. Another important observation is that root and tubers and cereals are
major components of local food items. In order to reduce the disparity in price
levels there is the need for concentration to be given to the production of these
two types of local food items for economic wellbeing of Ghanaians
