Crop Productivity and Multidimensional Poverty Reduction in Ghana

Abstract

This study estimated crop productivity and multidimensional poverty based on health, education, and living standards indicators in rural and urban areas and the agroecological zones of Ghana. The multidimensional poverty index was regressed on crop productivity with instrumental variable fixed and random effects models and pseudo panel data from the Ghana Living Standards Survey Rounds 5 and 6. The study found multidimensional poverty headcount ratio reduced 46% in 2005/06 to 34% in 2012/13 in Ghana. The multidimensional poverty headcount ratio reduced 49% in 2005/06 to 38% in 2012/13 rural and reduced 25% 2005/06 to 16% 2012/13 urban. The multidimensional poverty headcount ratio reduced 32%, 29%, and 60% in 2005/06 to 28%, 21%, and 45% in 2012/13 at the coastal, forest, and savannah agroecological zones, respectively. The study further showed that 1% growth crop productivity reduced multidimensional poverty by 0.17% disaggregated into 0.09% and 0.28% coastal and savannah agroecological zones respectively but marginally reduced at the forest zone.