Sacrificing Cereals for Crude: Has oil discovery slowed agriculture growth in Ghana?

Ishmael Ackah

MPRA Paper from University Library of Munich, Germany

Abstract: This study applies the quadratic hill climbing model, stepwise regression, and a dynamic generalized method of moments to investigate the relationship between oil rents and agriculture growth in Ghana. Agriculture, once considered the backbone of Ghana’s economy recorded a reduction of its contribution to GDP from 45% in 1992 to 22% in 2013 and a growth rate of 0.04 in 2015. The results from all models confirm an inverse relationship between oil rents and agriculture output. Further, availability of agriculture land is a major driver of agriculture output. Since oil resources are exhaustible and oil revenues are volatile, the study recommends a sustainable investment plan that emphasis on diversification, private investment in the agriculture value chain, and productive land use, and encourages higher percentage of revenues into agriculture.

Keywords: Oil revenues; Agriculture; Ghana; Oil Production (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q4 Q43 Q48 Q5 (search for similar items in EconPapers)
Date: 2016-03-10
New Economics Papers: this item is included in nep-agr and nep-ene
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Citations: View citations in EconPapers (2)

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