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Household-specific food price differentials and high-value crop production in rural Ghana

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  • Dzanku, Fred M.

Abstract

Using panel data from Ghana we have examined the relationship between household-specific producer–consumer price differentials and rural household cropland allocation between food and high-value crops. We test the hypothesis that cereal price bands induce a shift of resources away from high-value crop production, making smallholders appear unresponsive to price incentives. Our results lend support to this hypothesis, implying that a policy aiming at increasing farmers’ income through high-value crop production may fail if hard and soft infrastructure does not improve in rural areas, and if staple crop productivity does not increase significantly.

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  • Dzanku, Fred M., 2015. "Household-specific food price differentials and high-value crop production in rural Ghana," Food Policy, Elsevier, vol. 57(C), pages 73-82.
    • Handle: RePEc:eee:jfpoli:v:57:y:2015:i:c:p:73-82
    DOI: 10.1016/j.foodpol.2015.09.004
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