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Sacrificing Cereals for Crude: Has oil discovery slowed agriculture growth in Ghana?

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  • Ackah, Ishmael

Abstract

This study applies the quadratic hill climbing model, stepwise regression, and a dynamic generalized method of moments to investigate the relationship between oil rents and agriculture growth in Ghana. Agriculture, once considered the backbone of Ghana’s economy recorded a reduction of its contribution to GDP from 45% in 1992 to 22% in 2013 and a growth rate of 0.04 in 2015. The results from all models confirm an inverse relationship between oil rents and agriculture output. Further, availability of agriculture land is a major driver of agriculture output. Since oil resources are exhaustible and oil revenues are volatile, the study recommends a sustainable investment plan that emphasis on diversification, private investment in the agriculture value chain, and productive land use, and encourages higher percentage of revenues into agriculture.

Suggested Citation

  • Ackah, Ishmael, 2016. "Sacrificing Cereals for Crude: Has oil discovery slowed agriculture growth in Ghana?," MPRA Paper 69953, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:69953
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    File URL: https://mpra.ub.uni-muenchen.de/69953/2/MPRA_paper_69953.pdf
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    References listed on IDEAS

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    Cited by:

    1. Ackah, Ishmael, 2016. "Does bad company corrupts good character? A spatial econometric analysis of oil resource management in Africa," MPRA Paper 74456, University Library of Munich, Germany.
    2. Evelyn Asante-Yeboah & George Ashiagbor & Kwabena Asubonteng & Stefan Sieber & Justice C. Mensah & Christine Fürst, 2022. "Analyzing Variations in Size and Intensities in Land Use Dynamics for Sustainable Land Use Management: A Case of the Coastal Landscapes of South-Western Ghana," Land, MDPI, vol. 11(6), pages 1-28, May.

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    More about this item

    Keywords

    Oil revenues; Agriculture; Ghana; Oil Production;
    All these keywords.

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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