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Rural Non-Farm Engagement and Agriculture Commercialization in Ghana: Complements or Competitors?

Author

Listed:
  • Paul Nkegbe
  • Abdelkrim Araar
  • Benjamin Abu
  • Yazidu Ustarz
  • Hamdiyah Alhassan
  • Edinam Dope Setsoafia
  • Shamsia Abdul-Wahab

Abstract

We used an endogenous switching probit and a generalized structural equation model (GSEM) to assess the effect of non-farm participation on householders’ decisions to sell and on the level of commercialization of agricultural goods in Ghana. For this study, we used the Ghana Living Standards Survey for the years 2012-2013 and found that non-farm participation consistently increased both the probability of selling crops and quantities sold. We concluded that non-farm engagement by farmers boosts market participation and commercialization in Ghana, implying that non-farm engagement and agricultural commercialization are complementary. Developing the agricultural sector requires the government to create the conditions necessary to stimulate farmers’ participation in non-farm activities.

Suggested Citation

  • 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.
    • Handle: RePEc:lvl:pmmacr:2018-07
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    1. Dagunga, Gilbert & Ayamga, Micheal & Danso-Abbeam, Gideon, 2020. "To what extent should farm households diversify? Implications on multidimensional poverty in Ghana," World Development Perspectives, Elsevier, vol. 20(C).
    2. Ramona Bunkus & Ilkhom Soliev & Insa Theesfeld, 2020. "Density of resident farmers and rural inhabitants’ relationship to agriculture: operationalizing complex social interactions with a structural equation model," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 37(1), pages 47-63, March.

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    More about this item

    Keywords

    Non-farm participation; Market participation; Commercialization; Endogeneity; Ghana; Africa;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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