Nontariff measures and production allocation decisions of cereal farmers in Ghana
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Date
2023
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Publisher
wileyonlinelibrary.com/journal/agr
Abstract
Using exogenous variation in trade shocks, this study
examines the association between nontariff measures and
cereal production allocation decisions among commercial
farmers in Ghana. We study nontariff measures from both
an extensive (experience of nontariff measures) and an
intensive (cost of nontariff measures) perspective using a
sample of 455 cereal farmers in Ghana. We employ the
seemingly (un)related regression (SURE) and the inverse
probability weighting with regression adjustment (IPWRA)
to estimate the effect of nontariff measures on production
allocation decisions. The result shows that nontariff
measures are associated with lower cereal production and
intensity of cereal commercialization but positively associ ated with the consumption of cereals. The results are
robust after controlling for potential endogeneity using the
Lewbel 2SLS. In addition, we find that our results are not
likely to be driven by unobserved heterogeneity. We find
evidence of consistent and robust estimates of nontariff
measures when the IPWRA model is applied and compared
to the SURE estimates. Overall, our study shows that
nontariff measures can be a depressive pathway to
cereal sustainable production and commercialization with
associated policy implications for economic development
[EconLit Citations: F1, F13, E23, Q13].
Description
Research Article
Keywords
cereal production, commercialization, Ghana, nontariff measure