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Urban Farm-Nonfarm Diversification, Household Income And Food Expenditure In Ghana

Author

Listed:
  • AMPAW Samuel

    (Department of Economics, University of Ghana)

  • NKETIAH-AMPONSAH Edward

    (Department of Economics, University of Ghana)

  • SENADZA Bernardin

    (Department of Economics, University of Ghana)

Abstract

This paper investigates the impact of farm-nonfarm diversification (FND) on household income and food expenditure in urban Ghana using propensity score matching (PSM) technique to account for potential selection bias. We find diversified households to be statistically different from undiversified households in terms of household characteristics. Age, gender, educational attainment of the household head, household size, ownership of livestock and agricultural land, and receipt of miscellaneous and rent incomes are positive and significant determinants of FND in urban Ghana. In addition, we find that participation in both farm and nonfarm activities positively and significantly impacts household income and food expenditure. In the light of growing urbanization, with its implications for unemployment, poverty and food insecurity, we recommend diversification among urban households as a means of smoothing income and consumption.

Suggested Citation

  • AMPAW Samuel & NKETIAH-AMPONSAH Edward & SENADZA Bernardin, 2017. "Urban Farm-Nonfarm Diversification, Household Income And Food Expenditure In Ghana," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 12(2), pages 6-19, August.
  • Handle: RePEc:blg:journl:v:12:y:2017:i:2:p:6-19
    as

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    File URL: http://eccsf.ulbsibiu.ro/RePEc/blg/journl/12202ampaw&nketian&senadza.pdf
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    References listed on IDEAS

    as
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    3. Bernardin Senadza, 2014. "Income diversification strategies among rural households in developing countries: Evidence from Ghana," African Journal of Economic and Management Studies, Emerald Group Publishing, vol. 5(1), pages 75-92, April.
    4. Davis, Junior, 2006. "Rural Non-farm Livelihoods in Transition Economies: Emerging Issues and Policies," eJADE: electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization, Agricultural and Development Economics Division, vol. 3(2).
    5. Bernardin Senadza, 2012. "Non-farm Income Diversification in Rural Ghana: Patterns and Determinants," African Development Review, African Development Bank, vol. 24(3), pages 233-244.
    6. World Bank, 2003. "Reaching the Rural Poor : A Renewed Strategy for Rural Development," World Bank Publications, The World Bank, number 14084, March.
    7. Barrett, Christopher B. & Reardon, Thomas, 2000. "Asset, Activity, And Income Diversification Among African Agriculturalists: Some Practical Issues," Working Papers 14734, Cornell University, Department of Applied Economics and Management.
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    10. United Nations UN, 2015. "The Millennium Development Goals Report 2015," Working Papers id:7222, eSocialSciences.
    11. David D. Mkwambisi & Evan D. G. Fraser & Andy J. Dougill, 2011. "Urban agriculture and poverty reduction: Evaluating how food production in cities contributes to food security, employment and income in Malawi," Journal of International Development, John Wiley & Sons, Ltd., vol. 23(2), pages 181-203, March.
    12. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
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