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Household-specific food price differentials and high-value crop production in rural Ghana

Fred M. Dzanku

Food Policy, 2015, vol. 57, issue C, 73-82

Abstract: Using panel data from Ghana we have examined the relationship between household-specific producer–consumer price differentials and rural household cropland allocation between food and high-value crops. We test the hypothesis that cereal price bands induce a shift of resources away from high-value crop production, making smallholders appear unresponsive to price incentives. Our results lend support to this hypothesis, implying that a policy aiming at increasing farmers’ income through high-value crop production may fail if hard and soft infrastructure does not improve in rural areas, and if staple crop productivity does not increase significantly.

Keywords: Africa; Food crops; High-value crops; Price bands; Panel data; Ghana (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfpoli:v:57:y:2015:i:c:p:73-82

DOI: 10.1016/j.foodpol.2015.09.004

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