IDEAS home Printed from https://ideas.repec.org/a/blg/journl/v12y2017i2p6-19.html
   My bibliography  Save this article

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

    Download full text from publisher

    File URL: http://eccsf.ulbsibiu.ro/RePEc/blg/journl/12202ampaw&nketian&senadza.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. United Nations UN, 2015. "The Millennium Development Goals Report 2015," Working Papers id:7097, eSocialSciences.
    2. Bezu, Sosina & Barrett, Christopher B. & Holden, Stein T., 2012. "Does the Nonfarm Economy Offer Pathways for Upward Mobility? Evidence from a Panel Data Study in Ethiopia," World Development, Elsevier, vol. 40(8), pages 1634-1646.
    3. Martin Ravallion & Shaohua Chen & Prem Sangraula, 2007. "New Evidence on the Urbanization of Global Poverty," Population and Development Review, The Population Council, Inc., vol. 33(4), pages 667-701, December.
    4. 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.
    5. Sascha O. Becker & Marco Caliendo, 2007. "Sensitivity analysis for average treatment effects," Stata Journal, StataCorp LP, vol. 7(1), pages 71-83, February.
    6. 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, September.
    7. Barrett, C. B. & Reardon, T. & Webb, P., 2001. "Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications," Food Policy, Elsevier, vol. 26(4), pages 315-331, August.
    8. World Bank, 2003. "Reaching the Rural Poor : A Renewed Strategy for Rural Development," World Bank Publications - Books, The World Bank Group, number 14084, December.
    9. Rakhshanda, Kousar & Awudu, Abdulai, 2013. "Impacts of rural non-farm employment on household welfare in Pakistan," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149890, Italian Association of Agricultural and Applied Economics (AIEAA).
    10. 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.
    11. Owoo, Nkechi S. & Naudé, Wim, 2014. "Non-Farm Enterprise Productivity and Spatial Autocorrelation in Rural Africa: Evidence from Ethiopia and Nigeria," IZA Discussion Papers 8295, Institute of Labor Economics (IZA).
    12. Owusu, Victor & Abdulai, Awudu & Abdul-Rahman, Seini, 2011. "Non-farm work and food security among farm households in Northern Ghana," Food Policy, Elsevier, vol. 36(2), pages 108-118, April.
    13. United Nations UN, 2015. "The Millennium Development Goals Report 2015," Working Papers id:7222, eSocialSciences.
    14. Junior Davis, 2006. "Rural non-farm livelihoods in transition economies: emerging issues and policies," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 3(2), pages 180-224.
    15. 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.
    16. 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.
    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. Senadza Bernardin & Nketiah-Amponsah Edward & Ampaw Samuel, 2018. "Nonfarm diversification and the well-being of rural farm households in developing countries: Evidence from Ghana using new dataset," Review of Economics, De Gruyter, vol. 69(3), pages 207-229, December.

    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. Senadza Bernardin & Nketiah-Amponsah Edward & Ampaw Samuel, 2018. "Nonfarm diversification and the well-being of rural farm households in developing countries: Evidence from Ghana using new dataset," Review of Economics, De Gruyter, vol. 69(3), pages 207-229, December.
    2. Truong Lam Do & Trung Thanh Nguyen & Ulrike Grote, 2019. "Nonfarm employment and household food security: evidence from panel data for rural Cambodia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(3), pages 703-718, June.
    3. Janssens, C. & Van Den Broeck, G. & Maertens, M. & Lambrecht, I., 2018. "Mother s Non-Farm Entrepreneurship and Child Secondary Education in Rural Ghana," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277038, International Association of Agricultural Economists.
    4. Van den Broeck, Goedele & Swinnen, Johan & Maertens, Miet, 2017. "Global value chains, large-scale farming, and poverty: Long-term effects in Senegal," Food Policy, Elsevier, vol. 66(C), pages 97-107.
    5. Kehinde, Ayodeji Damilola, 2021. "The Distributional Impact of Non-Farm Income on Output and Farm Income of Cassava Farmers in Southwestern Nigeria," 2021 Conference, August 17-31, 2021, Virtual 315857, International Association of Agricultural Economists.
    6. Corral, Paul & Radchenko, Natalia, 2017. "What’s So Spatial about Diversification in Nigeria?," World Development, Elsevier, vol. 95(C), pages 231-253.
    7. Sharma, Govinda Prasad & Pandit, Ram & White, Ben & Polyakov, Maksym, 2015. "The Income Diversification Strategies of Smallholder Coffee Producers in Nepal," Working Papers 207693, University of Western Australia, School of Agricultural and Resource Economics.
    8. Govinda P. Sharma & Ram Pandit & Ben White & Maksym Polyakov, 2020. "The income diversification strategies of smallholders in the hills of Nepal," Development Policy Review, Overseas Development Institute, vol. 38(6), pages 804-825, November.
    9. Egziabher, Kidanemariam G. & Mathijs, Erik & Deckers, Jozef A. & Gebrehiwot, Kindeya & Bauer, Hans & Maertens, Miet, 2013. "The Economic Impact of a New Rural Extension Approach in Northern Ethiopia," Working Papers 146558, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    10. Paul Nkegbe & Abdelkrim Araar & Benjamin Abu & Yazidu Ustarz & Hamdiyah Alhassan & Edinam Dope Setsoafia & Shamsia Abdul-Wahab, 2018. "Rural Non-Farm Engagement and Agriculture Commercialization in Ghana: Complements or Competitors?," Working Papers PMMA 2018-07, PEP-PMMA.
    11. Tibesigwa, Byela & Visser, Martine, 2016. "Assessing Gender Inequality in Food Security among Small-holder Farm Households in urban and rural South Africa," World Development, Elsevier, vol. 88(C), pages 33-49.
    12. Megbowon Ebenezer Toyin & Mushunje Abbyssiania, 2017. "Income Diversification and its Determinants among Households in Eastern Cape Province, South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 8(6), pages 19-27.
    13. Christiaensen, Luc & Todo, Yasuyuki, 2014. "Poverty Reduction During the Rural–Urban Transformation – The Role of the Missing Middle," World Development, Elsevier, vol. 63(C), pages 43-58.
    14. Mamoudou Ba & Amar Anwar & Mazhar Mughal, 2021. "Non‐farm employment and poverty reduction in Mauritania," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(3), pages 490-514, April.
    15. Sènakpon F. A. Dedehouanou & John McPeak, 2018. "Diversify more or less? Household resilience and food security in rural Nigeria," Working Papers PMMA 2018-01, PEP-PMMA.
    16. Anjani Kumar & Shinoj Parappurathu & Suresh C. Babu & P. K. Joshi, 2017. "Can better governance improve food security? An assessment of the public food distribution system in Odisha, India," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(6), pages 1433-1445, December.
    17. Musa Hasen Ahmed & Hiwot Mekonnen Mesfin, 2017. "The impact of agricultural cooperatives membership on the wellbeing of smallholder farmers: empirical evidence from eastern Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-20, December.
    18. Musa Hasen Ahmed & Kumilachew Alamerie Melesse, 2018. "Impact of off-farm activities on technical efficiency: evidence from maize producers of eastern Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 6(1), pages 1-15, December.
    19. Benjamin Kamga Fomba & Dieu Ne Dort Fokam Talla & Paul Ningaye, 2023. "Institutional Quality and Education Quality in Developing Countries: Effects and Transmission Channels," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 86-115, March.
    20. José Antonio Rodríguez Martín & Juan Dios Jiménez Aguilera & José Antonio Salinas Fernández & José María Martín Martín, 2016. "Millennium Development Goals 4 and 5: Progress in the Least Developed Countries of Asia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(2), pages 489-504, November.

    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:blg:journl:v:12:y:2017:i:2:p:6-19. 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: Mihaela Herciu (email available below). General contact details of provider: https://edirc.repec.org/data/feulbro.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.