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

34 Pages Posted: 30 Nov 2018

See all articles by Paul Kwame Nkegbe

Paul Kwame Nkegbe

University for Development Studies - Department of Development Studies

Abdelkrim Araar

Université Laval - Département d'Économique

Benjamin Abu

University of Development Studies

Yazidu Ustarz

University for Development Studies

Hamdiyah Alhassan

University for Development Studies - Faculty of Agribusiness and Communication Sciences

Edinam Dope Setsoafia

University for Development Studies - Faculty of Agribusiness and Communication Sciences

Shamsia Abdul-Wahab

University of Development Studies

Date Written: November 29, 2018

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.

Keywords: Non-farm participation, Market participation, Commercialization, Endogeneity, Ghana

JEL Classification: D13, 012, Q13

Suggested Citation

Nkegbe, Paul Kwame and Araar, Abdelkrim and Abu, Benjamin and Ustarz, Yazidu and Alhassan, Hamdiyah and Setsoafia, Edinam Dope and Abdul-Wahab, Shamsia, Rural Non-Farm Engagement and Agriculture Commercialization in Ghana: Complements or Competitors? (November 29, 2018). Partnership for Economic Policy Working Paper No. 2018-07. Available at SSRN: https://ssrn.com/abstract=3293320 or http://dx.doi.org/10.2139/ssrn.3293320

Paul Kwame Nkegbe (Contact Author)

University for Development Studies - Department of Development Studies ( email )

P.O. Box TL 1350
Ghana

Abdelkrim Araar

Université Laval - Département d'Économique ( email )

CREFA
Ste-Foy, Quebec 179Que G1K
Canada

Benjamin Abu

University of Development Studies ( email )

Tamale
Ghana

Yazidu Ustarz

University for Development Studies ( email )

P.O. Box TL 1350
Tamale
Ghana

Hamdiyah Alhassan

University for Development Studies - Faculty of Agribusiness and Communication Sciences ( email )

Box 1882
Tamale
Ghana

Edinam Dope Setsoafia

University for Development Studies - Faculty of Agribusiness and Communication Sciences ( email )

Box 1882
Tamale
Ghana

Shamsia Abdul-Wahab

University of Development Studies ( email )

Tamale
Ghana

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