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Public expenditures and agricultural productivity growth in Ghana

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  • Benin, Samuel
  • Mogues, Tewodaj
  • Cudjoe, Godsway
  • Randriamamonjy, Josee

Abstract

Using district- and regional-level public expenditure data and household-level production data, this paper estimates the agricultural productivity returns to different types of public expenditure across various agro-ecological zones of Ghana. The results reveal that provision of various public goods and services in the agricultural, education, health and rural roads sectors have substantial impact on agricultural productivity. A one percent increase in public spending on agriculture is associated with a 0.15 percent increase in agricultural labor productivity, with a benefit-cost ratio of 16.8. Spending on feeder roads ranks second (with a benefit-cost ratio of 5), followed by health (about one hundredth of the value). Formal education was negatively associated with agricultural productivity. The estimated marginal effects and returns differ for the four agro-ecological zones. Implications are drawn for prioritizing additional or future public resources.

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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51634.

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Date of creation: 2009
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Handle: RePEc:ags:iaae09:51634

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Keywords: Agricultural Development; Ghana; Public Spending and Investments; International Development; Productivity Analysis; Public Economics;

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Cited by:
  1. Mogues, Tewodaj & Yu, Bingxin & Fan, Shenggen & Mcbride, Linden, 2012. "The impacts of public investment in and for agriculture: Synthesis of the existing evidence," IFPRI discussion papers 1217, International Food Policy Research Institute (IFPRI).
  2. Allen, Summer L. & Badiane, Ousmane & Ulimwengu, John M., 2012. "Government Expenditures, Social Outcomes, and Marginal Productivity of Agricultural Inputs: A Case Study for Tanzania," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126663, International Association of Agricultural Economists.

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