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Intersectoral labor mobility and deforestation in Ghana

  • Owusu, Victor
  • Fosu, K. Yerfi
  • Burger, Kees

This paper quantifies the effects of the determinants of intersectoral labor mobility and the effect of intersectoral labor mobility on deforestation in Ghana over the period 1970–2008. A cointegration and error correction modeling approach is employed. The empirical results show that labor mobility from the agricultural to the non-agricultural sector exerts negative effects on deforestation in Ghana in the long run and short run. Relative agricultural income exerts a significant negative effect on intersectoral labor mobility in the long run. Deforestation is influenced positively by population pressure, the price of fertilizer and rainfall, whereas access to irrigation infrastructure exerts a negative effect in the long run. In the short run, real producer prices of cocoa and maize exert significant positive effects on deforestation whereas access to irrigation infrastructure exerts a negative significant effect. Fruitful policy recommendations based on the empirical magnitudes and directions of these effects are made in this paper.

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Article provided by Cambridge University Press in its journal Environment and Development Economics.

Volume (Year): 17 (2012)
Issue (Month): 06 (December)
Pages: 741-762

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Handle: RePEc:cup:endeec:v:17:y:2012:i:06:p:741-762_00
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