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Determinants and Welfare Impacts of Export Crop Cultivation - Empirical Evidence from Ghana

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  • Kuhlgatz, Christian
  • Abdulai, Awudu

Abstract

This paper investigates the determinants of farm households‟ participation in export cropping and the impact of export cropping on household welfare, using cross-sectional data obtained from the Ghanaian living standards survey 2005-6. Given the problem of selectivity bias that arise when households self-select into export cropping, we employ the full information maximum likelihood approach to analyze the participation decision, and generalized propensity matching approach to examine the welfare impacts of participation. The empirical results indicate that farmers facing lower transport costs and having better access to credit facilities are more likely to participate in export cropping. Estimates of the welfare impacts of export cropping generally reveal a positive relationship between engagement in export cropping and farm household welfare. However, a consideration of the impact of extent of export cropping shows a non-linear relationship with household welfare indicators, with per capita expenditures rising and poverty declining only at higher levels of export specialization.

Suggested Citation

  • Kuhlgatz, Christian & Abdulai, Awudu, 2011. "Determinants and Welfare Impacts of Export Crop Cultivation - Empirical Evidence from Ghana," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114692, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae11:114692
    DOI: 10.22004/ag.econ.114692
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    References listed on IDEAS

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    1. Raju Ghimire & Wen-Chi Huang, 2016. "Adoption Pattern and Welfare Impact of Agricultural Technology," Journal of South Asian Development, , vol. 11(1), pages 113-137, April.
    2. Chege, Jane Wambui & Rose Athiambo, Nyikal & Mburu, John & Muriithi, Beatrice Wambui, 2015. "Impact Of Export Horticulture Farming On Per Capita Calorie Intake Of Smallholder Farmers In Eastern And Central Provinces In Kenya," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3(4), pages 1-17, October.
    3. Ibrahim, Mohammed & Florkowski, Wojciech J. & Kolavalli, Shashidhara, 2012. "Determinants of Farmer Adoption of Improved Peanut Varieties and their Impact on Farm Income: Evidence from Northern Ghana," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 125000, Agricultural and Applied Economics Association.

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    Keywords

    Crop Production/Industries; International Relations/Trade;

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