Loan syndication and cocoa production: Evidence from Ghana

James Ntiamoah Doku, Raymond K. Dziwornu, Richard Agbanyo, & Joyce Owusuaa Awuletey

The syndication of loans is an innovative financing model that has emerged in the financial landscape to help lenders spread risk and share opportunities. This study examines the relationship between syndicated loans and cocoa production in Ghana, using annual time-series data spanning from 1993 to 2020, as well as the autoregressive distributed lag model (ARDL). The study found a positive and significant short-run and long-run relationship between syndicated loans and cocoa production. Specifically, a 1% increase in the amount of syndicated loans increases cocoa production by 0.25% in the long run. The Ghana Cocoa Board should ensure efficient utilisation of syndicated loans by investing in productivity-enhancing programmes to boost cocoa production.