Linkages between Farm and Non-Farm Sectors at the Household Level in Rural Ghana

dc.coverageGhana
dc.creatorGustavo Anríquez and Silvio Daidone;Agriculture and Economic Development Analysis Division
dc.date2023-04-27T11:44:19Z
dc.date2023-04-27T11:44:19Z
dc.date2008
dc.date2019-05-30T14:45:14.0000000Z
dc.date.accessioned2026-06-27T20:01:09Z
dc.descriptionIn the light of an expanding rural non-farm (RNF) sector in developing rural economies, this paper explores the effects of this expansion within the household. Using rural Ghana as a case study this paper explores if the RNF economy allows for economies of diversification within farms; how input demands, agricultural-specific and shared, are transformed by the expansion of this sector; and if this expansion has measurable effects in overall household production efficiency. We first explore the c haracteristic of the intra-household linkages (technological and welfare driven) between the agricultural and RNF sectors both assuming perfectly working input and output markets, and assuming market failures, in particular missing labor and credit markets. We then try to measure the identified linkages by estimating a household level input distance function. This function is estimated consistently without making log-transformations as has been previously done in the literature. Our empirical an alysis suggests that there are high levels of inefficiency in Ghanaian farms. Also, there are cost-complementarities between the RNF sector and the agricultural sector, particularly with food crops in which the poorest tend to specialize. The expansion of the RNF sector increases demand for most inputs including agricultural land. Finally, we show that smaller farms tend to be more efficient, and that RNF output is helping the farm household to become more efficient, but the latter result is not robust.
dc.format41
dc.formatapplication/pdf
dc.identifier2521-1838
dc.identifierhttps://openknowledge.fao.org/handle/20.500.14283/AI509E
dc.identifierhttp://www.fao.org/3/a-ai509e.pdf
dc.identifier.urihttp://hdl.handle.net/123456789/182131
dc.languageEnglish
dc.relationFAO Agricultural Economics Working Paper
dc.rightsFAO
dc.titleLinkages between Farm and Non-Farm Sectors at the Household Level in Rural Ghana
dc.titleLinkages between Farm and Non-Farm Sectors at the Household Level in Rural Ghana
dc.titleA consistent stochastic distance function approach
dc.typeDocument

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