Population density, urbanisation and agricultural mechanisation in modern Ghana

Frances Warren

Review of Development Economics, 2023, vol. 27, issue 3, 1605-1629

Abstract: Farmers' technological choices take place within farming systems that are shaped by population pressure, connectivity to urban markets and agro‐ecological conditions. The relationship between these drivers and agricultural technology use is ambiguous. On the one hand, population growth can increase the supply of labour, driving down wage rates and reducing the incentives for mechanisation. On the other hand, rural–urban movements of people can reduce rural labour supply while simultaneously driving up the demand for food and hence the demand for mechanisation. Past theories of agricultural mechanisation have explained the low adoption of agricultural machinery in land‐abundant cereal production systems of SSA in terms of these drivers. However, recent empirical observations find extensive adoption of mechanised ploughing technology by small, medium and large‐scale farmers in Ghana. Examining the Ghanaian experience can thus shed new light on theories of mechanisation. A large household survey dataset covering eight districts is combined with geo‐spatial data on population, urban proximity and agro‐ecological factors to consider whether the existing theories are able to explain farm‐level adoption decisions in this context. The analysis finds that a farmer's decision to use agricultural machinery is associated with lower population density and proximity to urban centres. In northern Ghana, these drivers of technological change are as important as farm household characteristics in understanding cross‐sectional patterns of machinery adoption.

Date: 2023
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