Abstract:
This study examines the long-run relationship between exports and imports for the Ghanaian
economy for the period of 1948 to 2010. Empirically, we find that Ghana’s exports and imports are
cointegrated using Granger and Engle (1987) two-step procedure. However, the slope coefficients from the
cointegration equations were not statistically equal to 1 and the equilibrium relationship further indicates
that the economy of Ghana imports more than 1 dollar to get 1-dollar exports revenue. Conclusively, the
sustainability of Ghana’s foreign deficit is doubtful
