The Contributions of Non-Farm Economic Activites to Poverty Reduction in the Yilo-Krobo District

Abstract

Non-farm economic activities are emerging as an important player in the rural economy notwithstanding the continuing dominance of farming. This is attributed to a multiplicity of factors. This paper presents findings of a study on the rural non-farm economy in the Yilo-Krobo District of the Eastern Region. The study reveals a strong association between poverty at the household level and participation in the non-farm economic activites. It reveals further that some characteristics play crucial role in facilitating household participation and effectiveness in the nonfarm economy. These include higher education, household size, income directly obtained from participation in the non-farm economy as well as the number of persons from a household involved in the economy. A set of factors of critical importance to the operations of non-farm enterprises are financial capital, labour and credit. Household access to basic social amenities also enhances the reduction and sustenance of poverty reduction efforts. Non-farm households experience varying levels of access to health services, consumption of portable water and waste disposable facilities. Using data obtained from the Ghana Living Standards Survey 5 plus, the study the predicted and compared incomes from farm and nonfarm economic activities and arrived at the conclusion that the latter contributes more to household income.