Foreign deficit

An Application of the Error Correction Model in Analyzing the Long Run Equilibrium between Ghana’s Exports and Imports

by: Henry de-Graft Acquah – Joyce De-Graft Acquah This study investigates the long-run relationship between Ghana’s exports and imports for the period of 1948 to 2012. Using the Engle Granger two-step procedure we find that Ghana’s exports and imports are cointegrated. However, the slope coefficients from the cointegration equations were not…