The Impact of Remittance Receipts on Agricultural Asset Accumulation: Evidence from Ghana

Abstract

In the remittance literature, the empirical relationship between remittance receipts and agricultural asset accumulation has not been fully explored, and no clear-cut findings have been established. This is even worse for the sub-Saharan region and particularly for Ghana where little or no studies have examined such connection. Most of the efforts are geared towards Latin America and the Caribbean (LAC), and Asian countries. The purpose of this study, therefore, is to explore the impact that remittance receipts have on the household accumulation of agricultural assets in Ghana. Using data from the sixth round of the Ghana Living Standards Survey, the study controls for selectivity bias inherent in remittance receipts by employing treatment effect estimators to investigate the connection between remittance receipts and asset accumulation. In addition to this, the study examines the factors influencing household asset ownership by using a Probit model. In the analysis of asset ownership, with the exception of household income, which significantly influences only the accumulation of farmland, all other variables significantly influence the household ownership of agricultural assets. Further, the results also suggest that the receipts of only international remittances significantly affect the household accumulation of farmland and livestock but not agricultural equipment. Thus, the receipts of only international remittances increase the household accumulation of farmland and livestock. However, the receipts of overall remittance (both international and domestic remittances) and the receipts of only domestic remittances do not increase the household accumulation of any form of agricultural asset. Keywords: Remittances, Treatment Effect Model, Agricultural Assets

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MPhil. Economics

Keywords

Remittances, Treatment Effect Model, Agricultural Assets

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