Urban Farm-Nonfarm Diversification, Household Income and Food Expenditure in Ghana
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Date
2017
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Publisher
De Gruyter Open
Abstract
This paper investigates the impact of farm-nonfarm diversification (FND) on household
income and food expenditure in urban Ghana using propensity score matching (PSM) technique
to account for potential selection bias. We find diversified households to be statistically different
from undiversified households in terms of household characteristics. Age, gender, educational
attainment of the household head, household size, ownership of livestock and agricultural land,
and receipt of miscellaneous and rent incomes are positive and significant determinants of FND
in urban Ghana. In addition, we find that participation in both farm and nonfarm activities
positively and significantly impacts household income and food expenditure. In the light of
growing urbanization, with its implications for unemployment, poverty and food insecurity, we
recommend diversification among urban households as a means of smoothing income and
consumption.
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Keywords
Farm-Nonfarm Diversification, Household Income, Poverty, Food Expenditure, Propensity Score Matching, Urban Ghana