Econometric Modelling Of the Effects Of Intersectoral Labour Mobility On Deforestation in Ghana, 1970-99.

Abstract

The study analyses the effects of intersectoral labour mobility between agricultural and non-agricultural sectors on deforestation in Ghana. It is based on annual time series data covering the period 1970—99. The study describes the basic determinants of intersectoral labour mobility and deforestation and estimates the magnitudes o f the effects of their determinants in Ghana. The empirical results show that the effects of intersectoral labour mobility between agricultural and non-agricultural sectors on the environment is weak in the long run but statistically strong in the short-run. Furthermore, unemployment rate in the non-agricultural sector has contributed to the slow down o f intersectoral labour mobility to the non-agricultural sector. In addition, the increased rural population pressure on land has tended to increase the forest area cleared for agriculture. The study also observed that the producer price of cocoa tended to exert a significant positive effect on deforestation through agricultural expansion. This result suggests, inter alia, that polices which tend to provide incentives to farmers and encourage the use of improved technologies which stimulates increased productivity in the cocoa sector will reduce pressure on land and slow down the rate of deforestation in Ghana. Other policy recommendations and suggestions for future research are also made in the study.