Economic Ramifications of the European Union Ban on Vegetables and Other Produce from Ghana Due to Illegal Mining

Abstract

The research evaluates the financial consequences resulting from the EU vegetable and produce import restrictions against Ghana because of its ''galamsey'' environmental effects. The research explains the immediate monetary damage faced by farmers as well as examines both macroeconomic rural impacts alongside business initiatives to limit the adverse effects on the agricultural industry. The research design combines quantitative data collection through mixed methods with qualitative research methods to accomplish a detailed economic analysis of the EU ban. The Ghana Export Promotion Authority (GEPA) together with EU Trade Reports and national and international trade bodies supplied secondary data related to agricultural export volumes and values which Ghana exported to the EU. The research team distributed a designed survey to farmers who operated own small farms in addition to agricultural groups and local agricultural business operators. Quantitative data assessment for export patterns and production histories relied on descriptive statistics and regression analysis and time-series analysis through statistical methods. The evaluation of export earnings changes from EU trade policy updates because of illegal mining utilized OLS regression methods. The export volumes decreased dramatically after the EU ban from 35,000 to 25,000 tonnes. The banning era resulted in a GDP decline for each person in the population which decreased from $1,200 before the ban to reach $1,000 after the ban implementation. National GDP per capita decreased by 16.7% indicating that economic fallout from the EU ban impacted every sector in the country beyond fishing. The research indicated that expansion-based production directly boosts export volumes when the regression coefficient (β1>0\beta_1 > 0β1>0) show positive effects yet higher production does not necessarily result in export expansion when these coefficients demonstrate negative impacts. Additional intervention measures are needed for smallholder training while improving international standard support systems should be implemented according to the study's findings. The adoption of supporting measures will decrease financial constraints and keep small farming intact because agriculture continues to be essential for Ghana's agricultural export sector.