International Journal of Political Science and Development
 

International Journal of Political Science and Development

Vol. 5(6), pp. 203–209, October, 2017. 

DOI: 10.14662/IJPSD2017.100

ISSN: 2360-784X

Research Paper

Analysis of Structural Breaks and Time Series Properties of West African Coffee Production:

An Application of the Perron Test

^*Binuomote, S. O. and Ajetomobi J. O.

Department of Agricultural Economics, Faculty of Agricultural Sciences, Ladoke Akintola University of Technology, Ogbomoso. Nigeria. E-mail: sobinuomote@lautech.edu,ng

Accepted 10 October 2017

This paper examines the structure of the West African Coffee Agriculture by analyzing three pertinent annual series, namely;  acreage, yield and producer price of coffee, in Cote d’Ivoire, Ghana, Nigeria and Togo  during the 1961- 2010 period. The Perron (1989) test which examined the null and alternative hypotheses of a unit root or `trend-stationary.` series respectively, in the presence of possible slope and/or level shifts was particularly adapted to examine the effect of date - specific market reform policy among coffee- producing West African countries. The results for the Perron unit root tests indicates that while coffee producer price,yield and acreage in Nigeria, coffee acreage and producer price in Ghana, coffee producer price in Cote d’Ivoire and coffee yield in Togo were stationary around a linear deterministic trend. The Perron changing growth model also revealed that SAP, otherwise refered to as structural break significantly and positively affected only coffee yield in Nigeria and Cote d’Ivoire, but has no impact whatsoever in Ghana and Togo.

Key words: Structural break, Unit root, Coffee, Structural Adjustment Programme, Growth model, and ECOWAS

Cite This Article As: Binuomote, S.O., Ajetomobi, J.O.(2017). Analysis of Structural Breaks and Time Series Properties of West African Coffee Production: An Application of the Perron Test. Int. J. Polit. Sci. Develop. 5(6) 210-220