IDEAS home Printed from https://ideas.repec.org/p/fpr/mtiddp/37.html
   My bibliography  Save this paper

An empirical investigation of short and long-run agricultural wage formation in Ghana

Author

Listed:
  • Abdulai, Awudu
  • Delgado, Christopher L.

Abstract

This paper investigates empirically the factors that influence real agricultural wage rates in Ghana, based on 1957 to 1991 data. The Johansen cointegration framework is used to examine long-run relationships among agricultural and urban wage rates, the domestic terms of trade between agriculture and non-agriculture, urban unemployment, capital stock in agriculture and the size of the rural population. An error correction model is then used to investigate short-run dynamic relationships among the variables. The results show that: (1) there is only one stable equilibrium relationship among agricultural wage rates and their determinants in the long-run; (2) a 1 percent change in the domestic terms of trade between agriculture and non-agriculture leads to a 0.48 percent change in the real agricultural wage rate in the short-run and a 0.83 percent change in the long run; (3) the analysis suggests a one-time and one way upwards structural shift of 3.6 percent in real agricultural wages during the 1980s.

Suggested Citation

  • Abdulai, Awudu & Delgado, Christopher L., 1999. "An empirical investigation of short and long-run agricultural wage formation in Ghana," MTID discussion papers 37, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:mtiddp:37
    as

    Download full text from publisher

    File URL: http://www.ifpri.org/sites/default/files/publications/pubs_divs_mtid_dp_papers_dp37.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. M. M. Huq, 1989. "The Economy of Ghana," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-19749-1.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rashid, Shahidur & Sharma, Manohar & Zeller, Manfred, 2002. "Micro-lending for small farmers in Bangladesh," MTID discussion papers 45, International Food Policy Research Institute (IFPRI).
    2. Dorosh, Paul A. & Shahabuddin, Quazi, 2002. "Rice price stabilization in Bangladesh," MSSD discussion papers 46, International Food Policy Research Institute (IFPRI).
    3. Nicholas Minot & Lisa Daniels, 2005. "Impact of global cotton markets on rural poverty in Benin," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 453-466, November.
    4. Shahabuddin, Quazi & Dorosh, Paul A., 2002. "Comparative advantage in Bangladesh crop production," MTID discussion papers 47, International Food Policy Research Institute (IFPRI).
    5. Luc Christiaensen & Lionel Demery & Stefano Paternostro, 2002. "Growth, Distribution, and Poverty in Africa : Messages from the 1990s," World Bank Publications - Books, The World Bank Group, number 15215, December.
    6. Gulati, Ashok & Narayanan, Sudha, 2002. "Rice trade liberalization and poverty," MTID discussion papers 51, International Food Policy Research Institute (IFPRI).
    7. Klugman, Jeni & Loening, Josef, 2007. "Welfare Impacts of Food Price Inflation in Ethiopia," MPRA Paper 24892, University Library of Munich, Germany.
    8. Gabre-Madhin, Eleni Z. & Haggblade, Steven, 2003. "Successes in African agriculture," MSSD discussion papers 53, International Food Policy Research Institute (IFPRI).
    9. Shahidur Rashid, 2004. "Spatial Integration of Maize Markets in Post-liberalised Uganda," Journal of African Economies, Centre for the Study of African Economies, vol. 13(1), pages 102-133, March.
    10. Delgado, Christopher L. & Rosegrant, Mark W. & Wada, Nikolas & Meijer, Siet & Ahmed, Mahfuzuddin, 2002. "Fish as food," MTID discussion papers 52, International Food Policy Research Institute (IFPRI).
      • Delgado, Christopher L. & Rosegrant, Mark W. & Wada, Nikolas & Meijer, Siet & Ahmed, Mahfuzuddin, 2002. "Fish as food," MSSD discussion papers 52, International Food Policy Research Institute (IFPRI).
    11. Luc Christiaensen & Lionel Demery & Stefano Paternostro, 2003. "Reforms, Remoteness and Risk in Africa: Understanding Inequality and Poverty during the 1990s," WIDER Working Paper Series DP2003-70, World Institute for Development Economic Research (UNU-WIDER).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Donyina-Ameyaw, Samuel, 2004. "A Small Macroeconmetric Model Of Trade And Inflation In Ghana," The Warwick Economics Research Paper Series (TWERPS) 696, University of Warwick, Department of Economics.
    2. Andy McKay & Jukka Pirttilä & Finn Tarp, 2015. "Ghana: Poverty Reduction Over Thirty Years," WIDER Working Paper Series wp-2015-052, World Institute for Development Economic Research (UNU-WIDER).
    3. Jones Danquah & Daniel Sarpong & Ari Pappinen, 2013. "Causal relationships between African mahoganies exports and deforestation in Ghana: policy implications," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 15(1), pages 51-66, February.
    4. Michael Tribe & Mozammel Huq, 2019. "Ghana's new national income data series: follow-up to M Huq and M Tribe's - The economy of Ghana: 50 years of economic development (Palgrave Macmillan, 2018)," Working Papers 1907, University of Strathclyde Business School, Department of Economics.
    5. Andrew McKay & Jukka Pirttilä & Finn Tarp, 2015. "Ghana: Poverty reduction over thirty years," WIDER Working Paper Series 052, World Institute for Development Economic Research (UNU-WIDER).
    6. Anthony Atkinson, 2015. "The Distribution of Top Incomes in Former British West Africa," Working Papers 201503, World Inequality Lab.
    7. George B. Amegavi & James K. Mensah, 2020. "Commitment To Public Interest And Public Service Motivation Development Challenges: A Qualitative Inquiry," Public administration issues, Higher School of Economics, issue 6, pages 67-83.
    8. Adarkwah Yaw Antwi & John Adams, 2003. "Rent-seeking Behaviour and its Economic Costs in Urban Land Transactions in Accra, Ghana," Urban Studies, Urban Studies Journal Limited, vol. 40(10), pages 2083-2098, September.
    9. Morten Jerven, 2014. "A West African experiment: constructing a GDP series for colonial Ghana, 1891–1950," Economic History Review, Economic History Society, vol. 67(4), pages 964-992, November.
    10. John Kuada, 2020. "Culture and economic development in Africa – opportunities and challenges," Working Papers 20/062, European Xtramile Centre of African Studies (EXCAS).
    11. Ameyaw, Samuel Donyina, 2004. "A Small Macroeconometric Model of Trade and Inflation in Ghana," Economic Research Papers 269590, University of Warwick - Department of Economics.
    12. Islam, Roumeen & Wetzel, Deborah L., 1991. "The macroeconomics of public sector deficits : the case of Ghana," Policy Research Working Paper Series 672, The World Bank.
    13. John Kuada, 2020. "Culture and economic development in Africa – opportunities and challenges," Research Africa Network Working Papers 20/062, Research Africa Network (RAN).
    14. John Kuada, 2020. "Culture and economic development in Africa – opportunities and challenges," Working Papers of the African Governance and Development Institute. 20/062, African Governance and Development Institute..
    15. Edward R Carr, 2005. "Placing the Environment in Migration: Environment, Economy, and Power in Ghana's Central Region," Environment and Planning A, , vol. 37(5), pages 925-946, May.
    16. David Kwasi Mensah, 2021. "Leadership and Economic Development of Ghana," Journal of Social Science Studies, Macrothink Institute, vol. 8(1), pages 24-46, June.
    17. Nkechi S. Owoo & Monica P. Lambon-Quayefio, 2017. "The agro-processing industry and its potential for structural transformation of the Ghanaian economy," WIDER Working Paper Series wp-2017-9, World Institute for Development Economic Research (UNU-WIDER).
    18. Vijverberg, Wim P. M., 1995. "Returns to schooling in non-farm self-employment: An econometric case study of Ghana," World Development, Elsevier, vol. 23(7), pages 1215-1227, July.
    19. Addy, Samuel N, 1998. "Ghana: revival of the mineral sector," Resources Policy, Elsevier, vol. 24(4), pages 229-239, December.
    20. Michael, Tribe, 2013. "Aid and Development: Issues and Reflections," SIRE Discussion Papers 2013-40, Scottish Institute for Research in Economics (SIRE).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fpr:mtiddp:37. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.