Reaching middle-income status in Ghana by 2015: Public expenditures and agricultural growth

Using district-level data on public expenditures from 2000 to 2006, and household-level production data from the 2005/06 Ghana Living Standards Survey, this paper estimates the returns to different types of public investments across four agro-ecological zones of Ghana. We then assess the amount of p...

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Main Authors: Benin, Samuel, Mogues, Tewodaj, Cudjoe, Godsway, Randriamamonjy, Josee
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2008
Subjects:
Online Access:https://hdl.handle.net/10568/161693
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author Benin, Samuel
Mogues, Tewodaj
Cudjoe, Godsway
Randriamamonjy, Josee
author_browse Benin, Samuel
Cudjoe, Godsway
Mogues, Tewodaj
Randriamamonjy, Josee
author_facet Benin, Samuel
Mogues, Tewodaj
Cudjoe, Godsway
Randriamamonjy, Josee
author_sort Benin, Samuel
collection Repository of Agricultural Research Outputs (CGSpace)
description Using district-level data on public expenditures from 2000 to 2006, and household-level production data from the 2005/06 Ghana Living Standards Survey, this paper estimates the returns to different types of public investments across four agro-ecological zones of Ghana. We then assess the amount of public agricultural expenditures required to raise agricultural growth to 6.9 percent per year until 2015, as this is the target growth needed for Ghana to achieve its goal of middle-income status. The results reveal that provision of various public goods and services has substantial impact on agricultural productivity. A one percent increase in public spending on agriculture is associated with a 0.15 percent increase in agricultural labor productivity, with a benefit-cost ratio of 16.8. Spending on feeder roads ranks second (with a benefit-cost ratio of 8.8), followed by health (1.3). Formal education was negatively associated with agricultural productivity. The estimated marginal effects and returns differ across the four agro-ecological zones. For Ghana to achieve middle income status by 2015, agricultural public spending should grow at an estimated rate of 19.6 percent per year, or by a total amount of GH¢264 million (or US$478 million) per year in 2000 prices over the 2005–2015 period. These requirements are lower if the government is able to achieve a higher efficiency in its public spending than the estimated elasticity of 0.15; this could potentially be achieved by reforming public institutions to improve the provision of agriculture-related public goods and services.
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spelling CGSpace1616932025-11-06T05:12:24Z Reaching middle-income status in Ghana by 2015: Public expenditures and agricultural growth Benin, Samuel Mogues, Tewodaj Cudjoe, Godsway Randriamamonjy, Josee agricultural development public spending investment Using district-level data on public expenditures from 2000 to 2006, and household-level production data from the 2005/06 Ghana Living Standards Survey, this paper estimates the returns to different types of public investments across four agro-ecological zones of Ghana. We then assess the amount of public agricultural expenditures required to raise agricultural growth to 6.9 percent per year until 2015, as this is the target growth needed for Ghana to achieve its goal of middle-income status. The results reveal that provision of various public goods and services has substantial impact on agricultural productivity. A one percent increase in public spending on agriculture is associated with a 0.15 percent increase in agricultural labor productivity, with a benefit-cost ratio of 16.8. Spending on feeder roads ranks second (with a benefit-cost ratio of 8.8), followed by health (1.3). Formal education was negatively associated with agricultural productivity. The estimated marginal effects and returns differ across the four agro-ecological zones. For Ghana to achieve middle income status by 2015, agricultural public spending should grow at an estimated rate of 19.6 percent per year, or by a total amount of GH¢264 million (or US$478 million) per year in 2000 prices over the 2005–2015 period. These requirements are lower if the government is able to achieve a higher efficiency in its public spending than the estimated elasticity of 0.15; this could potentially be achieved by reforming public institutions to improve the provision of agriculture-related public goods and services. 2008 2024-11-21T09:57:24Z 2024-11-21T09:57:24Z Working Paper https://hdl.handle.net/10568/161693 en Open Access application/pdf International Food Policy Research Institute Benin, Samuel; Mogues, Tewodaj; Cudjoe, Godsway; Randriamamonjy, Josee. 2008. Reaching middle-income status in Ghana by 2015. IFPRI Discussion Paper 811. https://hdl.handle.net/10568/161693
spellingShingle agricultural development
public spending
investment
Benin, Samuel
Mogues, Tewodaj
Cudjoe, Godsway
Randriamamonjy, Josee
Reaching middle-income status in Ghana by 2015: Public expenditures and agricultural growth
title Reaching middle-income status in Ghana by 2015: Public expenditures and agricultural growth
title_full Reaching middle-income status in Ghana by 2015: Public expenditures and agricultural growth
title_fullStr Reaching middle-income status in Ghana by 2015: Public expenditures and agricultural growth
title_full_unstemmed Reaching middle-income status in Ghana by 2015: Public expenditures and agricultural growth
title_short Reaching middle-income status in Ghana by 2015: Public expenditures and agricultural growth
title_sort reaching middle income status in ghana by 2015 public expenditures and agricultural growth
topic agricultural development
public spending
investment
url https://hdl.handle.net/10568/161693
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AT moguestewodaj reachingmiddleincomestatusinghanaby2015publicexpendituresandagriculturalgrowth
AT cudjoegodsway reachingmiddleincomestatusinghanaby2015publicexpendituresandagriculturalgrowth
AT randriamamonjyjosee reachingmiddleincomestatusinghanaby2015publicexpendituresandagriculturalgrowth