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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
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    File URL: http://purl.umn.edu/114692
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    References listed on IDEAS

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    1. Prebisch, Raúl, 1950. "The economic development of Latin America and its principal problems," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 29973, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. Balat, Jorge & Brambilla, Irene & Porto, Guido, 2009. "Realizing the gains from trade: Export crops, marketing costs, and poverty," Journal of International Economics, Elsevier, vol. 78(1), pages 21-31, June.
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    5. Govereh, Jones & Jayne, T. S., 2003. "Cash cropping and food crop productivity: synergies or trade-offs?," Agricultural Economics, Blackwell, pages 39-50.
    6. shepherd, Ben, 2010. "Geographical Diversification of Developing Country Exports," World Development, Elsevier, vol. 38(9), pages 1217-1228, September.
    7. Puhani, Patrick A, 2000. " The Heckman Correction for Sample Selection and Its Critique," Journal of Economic Surveys, Wiley Blackwell, vol. 14(1), pages 53-68, February.
    8. Michela Bia & Alessandra Mattei, 2008. "A Stata package for the estimation of the dose–response function through adjustment for the generalized propensity score," Stata Journal, StataCorp LP, vol. 8(3), pages 354-373, September.
    9. Edwin Leuven & Barbara Sianesi, 2003. "PSMATCH2: Stata module to perform full Mahalanobis and propensity score matching, common support graphing, and covariate imbalance testing," Statistical Software Components S432001, Boston College Department of Economics, revised 01 Feb 2018.
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    Cited by:

    1. Chege, Jane Wambui & Rose Athiambo, Nyikal & Mburu, John & Muriithi, Beatrice Wambui, 4. "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).
    2. 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.

    More about this item

    Keywords

    Export crops; Farm households; Household welfare; Poverty; Generalized propensity score; Crop Production/Industries; International Relations/Trade;

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