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Rice farm income diversification in Ghana and implications on household consumption expenditure

Author

Listed:
  • Bismark Amfo
  • James Osei Mensah
  • Ernest Baba Ali
  • Gilbert Dagunga
  • Seth Etuah
  • Robert Aidoo

Abstract

Purpose - This study investigates implications of crop and income diversifications on consumption expenditure (welfare) of rice-producing households in Ghana. It further compares diversification by three rice production systems: two-season rain-fed, two-season irrigated and one-season rain-fed rice production. Design/methodology/approach - Primary data were sourced from 225 rice farmers. Margalef index and three-stage least-squares were employed. Findings - Majority of rice-farming households in Ghana diversify livelihoods. The extent of livelihood diversification differs among two-season rain-fed, two-season irrigated and one-season rain-fed rice-producing households. Credit, distance to district capitals, production purpose and number of farming seasons influence crop and income diversifications, and consumption expenditure of rice-producing households. While crop diversification reduces consumption expenditure, income diversification increases it. Crop and income diversifications positively influence each other. Consumption expenditure reduces crop diversification but increases income diversification. Practical implications - Policy should be directed towards the promotion of more livelihood activities to boost rice farmers' welfare. There should be awareness creation and training programmes to enable rice farmers realize different economic activities within and outside the agricultural value chain. Originality/value - Crop and income diversifications were measured as continuous response variables, unlike previous studies that used a binary response variable. The authors established a synergy among crop and income diversifications, and consumption expenditure (welfare). The authors further compared crop and income diversifications by three rice production systems: two-season rain-fed, two-season irrigated and one-season rain-fed rice production systems.

Suggested Citation

  • Bismark Amfo & James Osei Mensah & Ernest Baba Ali & Gilbert Dagunga & Seth Etuah & Robert Aidoo, 2021. "Rice farm income diversification in Ghana and implications on household consumption expenditure," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 48(10), pages 1423-1442, June.
  • Handle: RePEc:eme:ijsepp:ijse-04-2021-0207
    DOI: 10.1108/IJSE-04-2021-0207
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    Cited by:

    1. Masanori Matsuura‐Kannari & Yir‐Hueih Luh & Abu Hayat Md. Saiful Islam, 2023. "Weather shocks, livelihood diversification, and household food security: Empirical evidence from rural Bangladesh," Agricultural Economics, International Association of Agricultural Economists, vol. 54(4), pages 455-470, July.

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