Estimation of Short and Long-run Relationship between Selected Food Prices and Macroeconomic Variables in Ghana

Lagged food prices directly cause food price rise in ghana and indirectly by crude oil and exchange rates. high import prices of agricultural inputs and biofuel discovery are reasons for causality. this paper analysed the short and long-run relationship between crude oil, exchange rate, and selected agricultural food commodity prices in ghana. johansen test was applied to lagged time periods to identify cointegration relation and error correction for long run adjustments. weak exogeneity was also conducted among the cointegration variables. shocks were transferred from lagged prices to current in ghana. this causes shocks and speculations in grain markets in ghana.