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Determinants of Income Diversification of Farm Households in the Western Region of Ghana

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  • Agyeman, Bernard Archibald Senyo
  • Asuming-Brempong, Samuel
  • Onumah, Edward Ebo

Abstract

This study assesses the determinants of income diversification of farm households in the Western Region of Ghana. A censored Tobit regression model was used to find the determinants of the degree of income diversification measured by the Simpsons Index of Diversity (SID). The results indicate that a total of 65% of households engage in non-farm income sources. The estimated Share of Non-farm Income (SNFI) - 29.05% in total household income and SID-0.338 were found to be low. Age, number of years of education, female headed households, household income per capita, number of extension visits, productive assets owned and nature of road were found to be significant in determining income diversification of farm households in the Western Region. Farm households require government and private sector support to increase the gains made in participating in various diversification strategies through policy, provision of public goods, capacity building in order to raise their living standards.

Suggested Citation

  • Agyeman, Bernard Archibald Senyo & Asuming-Brempong, Samuel & Onumah, Edward Ebo, 2014. "Determinants of Income Diversification of Farm Households in the Western Region of Ghana," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 53(1), pages 1-18, February.
    • Handle: RePEc:ags:qjiage:195729
    DOI: 10.22004/ag.econ.195729
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    6. Ehiakpor, Dennis S. & Danso-Abbeam, Gideon & Dagunga, Gilbert & Ayambila, Sylvester N., 2019. "Impact of Zai technology on farmers’ welfare: Evidence from northern Ghana," Technology in Society, Elsevier, vol. 59(C).
    7. Kleemann, Janina & Celio, Enrico & Fürst, Christine, 2018. "Reprint of “Validation approaches of an expert-based Bayesian Belief Network in northern Ghana, West Africa”," Ecological Modelling, Elsevier, vol. 371(C), pages 101-118.
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    9. Bekele Gebisa Etea & Deyi Zhou & Kidane Assefa Abebe & Dessalegn Anshiso Sedebo, 2019. "Household Income Diversification and Food Security: Evidence from Rural and Semi-Urban Areas in Ethiopia," Sustainability, MDPI, vol. 11(12), pages 1-16, June.
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    12. Amine, Benmehaia Mohamed & Fatima, Brabez, 2016. "Determinants Of On-Farm Diversification Among Rural Households: Empirical Evidence From Northern Algeria," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(2), pages 1-13, April.
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    14. Johny, Judit & Wichmann, Bruno & Swallow, Brent M., 2017. "Characterizing social networks and their effects on income diversification in rural Kerala, India," World Development, Elsevier, vol. 94(C), pages 375-392.
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