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Testing The Marshall-Lerner-Robinson Condition In Ghana Prior To 1983: Was A Devaluation Of The Cedi Justified In Improving The Trade Balance?, Judith Olivia Canipe
Testing The Marshall-Lerner-Robinson Condition In Ghana Prior To 1983: Was A Devaluation Of The Cedi Justified In Improving The Trade Balance?, Judith Olivia Canipe
Masters Theses
The aim of this paper is to empirically predict the quantitative impact of a devaluation of the Ghanaian Cedi on the trade account for 1960 to 1983. The imperfect substitutes model is employed to test the Marshall-Lerner-Robinson condition. In doing so, conclusions are drawn about the World Bank's implementation of loan conditionalities requiring a devaluation in order to address the trade deficit. Similarities between the economic structure of Ghana and other less developed countries allow for an extension of this study to other countries considering depreciation policies. The effect of a currency devaluation on the cocoa industry is also discussed. …