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

Christian Henning Kuhlgatz () and Awudu Abdulai

No 114692, 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland from European Association of Agricultural Economists

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.

Keywords: Export crops; Farm households; Household welfare; Poverty; Generalized propensity score; Crop Production/Industries; International Relations/Trade (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-afr and nep-int
Date: 2011-09-02
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