Explaining changes in Sri Lanka’s wage distribution, 1992-2014: a quantile regression analysis

Sri Lanka experienced robust economic growth during the period 1992–2014 and had a decline in inequality due to wages rising fastest among low earners. The decline in inequality came almost entirely from rising rewards to low-skill labor, consistent with Sri Lanka’s comparative advantage in the global economy. However, educational and occupational upgrading served to widen wage gaps between the highest earners and the rest of the workforce. Using quantile regression analysis, this study also finds that selection bias overestimates average wages and underestimates the level of inequality, while exaggerating the extent to which women’s wages grew. It concludes with a discussion of the negative implications of persistent inequities across education, occupation, and gender, and recommends policies to address them.     

Labour reserves and surplus populations: Northern Ghana and the Eastern Cape of South Africa

This article is focused on the political economy of two of Africa's “labour reserve” regions, northern Ghana and the Eastern Cape of South Africa. The majority of residents in these regions are taken as paradigmatic examples of “surplus populations.” They exemplify a main feature that has been used to theorize the concept of surplus populations today, namely, that their labour is surplus to the needs of capital accumulation. We follow the method of Arrighi and Piselli, tracing the political economic transformations of these regions from the turn of the 20th century until the present in order to ground the concept of surplus population in a specific historical context. We argue that it is limiting to think about these populations' utility or uselessness only in relation to capital. To understand the political implications of “surplus populations,” we must think about the interrelation between the political and economic roles that they play and how these developed within specific historical contexts.     

Accounting for the Gender Technology Gap Amongst Smallholder Rice Farmers in Northern Ghana

Narrowing the gender technology gap in agricultural production has become a critical policy issue in sub‐Saharan Africa. A better understanding of the gender technology gap is essential for policy formulation and programme planning to ensure equity in resource allocation, and household‐level food security in low and middle income countries, such as Ghana. We employ a metafrontier approach to analyse the differences in the efficiency of male and female farmers, recognising the endogeneity of some of the variables in the inefficiency effects model, in particular the credit constraints of the rice farmers under study. Our findings show that while the rice farms themselves are very similar, average yields for male managed farms tend to be significantly higher than female managed farms reflecting higher seeding and fertiliser application rates on male managed farms. However, there is no significant difference between the genders in either land used for rice or total output per farm household. We find some evidence that relative to the metafrontier, male managed farms are less efficient than female managed farms. The results further show gender technology gap amongst the smallholder rice farmers with females’ technology gap ratio being significantly greater than that of males, with females operating on a production frontier closer to the metafrontier. Policies that provide females more access to productive resources and other agricultural services could assist in the generation of relatively higher output.     

Rural 'Community', Chiefs and Social Capital: The Case of Southern Ghana

Social capital emphasizes community and social cohesion as the foundation of development. In Africa, this has prompted the promotion of traditional authorities as agents of development because chiefs and elders are assumed to embody communal norms. Critics have argued that this vision is ahistorical. In response, social capitalists have attempted to 'historicize' their analyses. But in many cases, 'history' simply refers to the micro-level production of trust, networks and norms. From a historian's perspective this is problematic because it ignores historical processes that often produce social hierarchies and inequality within 'traditional' communities. Using a case study from southern Ghana, I argue that, because of their particular view of history, many social capitalists remain blind to differentiation and conflict at the community level. As a result, social capital-driven projects run the risk of reproducing deeply rooted inequalities.     

Adoption and impacts of sustainable intensification practices in Ghana

Sustainable agricultural intensification requires the use of multiple agricultural technologies in an integrated manner to enhance productivity while conserving the natural resource base. This study analyses the adoption and impacts of sustainable intensification practices (SIPs) using a dataset from Ghana. A multivariate probit (MVP) model was estimated to assess the adoption of multiple SIPs. Moreover, we used a multivalued semi-parametric treatment effect (MVTE) model to estimate the effects of adopting multiple SIPs on maize productivity. The MVP model results show, among others, that access to market, capital, and information/knowledge would enhance the adoption of SIPs. The MVTE model results show that a higher number of SIPs is associated with higher productivity which is more visible when commercial inputs are used in combination with cultural practices. These results have the following policy implications. First, they imply that good rural infrastructure and agricultural services such as rural road network, village-level input delivery system, input credit, and multiple information/knowledge sharing approach (instead of the conventional singular formal information/knowledge sharing approach) can enhance adoption. Second, the results suggest that promoting an integrated use of technologies, instead of a single technology, would have a positive impact on farm productivity and farm household income.     

Agricultural land-use change during economic reforms in Ghana

Land-use change is driven by many interrelated factors including national policies formulated in response to the forces of globalization. This study integrates remote sensing data with social surveys to identify the role of demographic, technology and market-related variables in cropland expansion during economic reforms in Ghana. Macroeconomic changes increased the commercial orientation of farming as the sources of food supply changed from import to domestic production. However interest rates liberalization increased the use of labor at the expense of fertilizer and other complementary inputs. Demographic variables were more important in explaining cropland change after structural adjustment. Public agricultural support services are required for sustainable market-induced agricultural change in Ghana.     

Assessing the sustainability of vegetable production practices in northern Ghana*

Urban vegetable production is an intensive agricultural strategy through which urban dwellers secure income and improve their livelihoods. An ethnographic study was conducted in Tamale, Northern Ghana, to understand whether vegetable gardening was a sustainable form of intensification. The study used an updated version of the Food and Agricultural Organization’s International Framework for Evaluating Sustainable Land Management. Accordingly, qualitative data were collected on the security and access to land, political acceptability and human and environmental health implications of urban patch farming. Changes between 2008 and 2014 in the spatial area of the vegetable sites were measured. Cabbage farmer incomes were quantified. The study found that urbanization has prompted an increase in the cultivation of highly profitable vegetables like cabbage. However, they are irrigated with grey and waste water while eaten raw. This, and the use of pesticides in high dosages, poses health and environmental hazards. Industrial growth has reduced the area of open space urban agriculture by 8.7% between 2008 and 2014. Farmers cope with this by cultivating on interstitial spaces and moving to periurban fringes. There, farmers develop institutional liaisons to gain access to intensification technologies and commercialize their production. This production system is dynamic but not yet sustainable.     

Willingness to Pay for Insured Loans in Northern Ghana

Index insurance has been heralded as a potential solution to risk management problems faced by smallholder farmers in developing countries. Despite its potential, demand for standalone index insurance contracts has remained low in early field trials. We investigate the willingness to pay for drought index insurance‐backed loans in northern Ghana using contingent valuation. We find that index insurance lowers overall demand for agricultural loans. We also compare micro‐level index insurance, provided directly to farmers, with meso‐level insurance, provided to the credit agency and find that farmers appear to prefer micro‐level insurance. Finally, farmers are willing to pay to avoid basis risk.     

Labor‐saving technologies and structural transformation in northern Ghana

Labor‐saving technologies played a fundamental role historically in the structural transformation of agrarian economies. We focus on an emerging labor‐saving trend in Ghana, use of motorized tricycles (MTs), which provide an affordable alternative to manually transferring crops from plots to homestead. A household survey collected in 2017 in northern Ghana is used to shed light on how the time savings made available by using MTs may be converted into activities that enhance agricultural productivity and/or diversify the household away from agriculture. Detailed information collected on the agricultural production and agro‐processing behavior of 1,400 households allows us to examine the above transformative channels. Ordinary least squares and instrumental variable regressions are applied to quantify the effect of MTs on related outcomes. We find households are able to diversify their farming activities into selling processed agricultural goods with the time savings provided through MT adoption. Policies aimed to foster the diffusion of MTs elsewhere in Ghana may expedite structural change and, hence, economic growth.     

Managing logging compensation payment conflicts in Ghana: Understanding actor-empowerment and implications for policy intervention

Forest resources outside permanent forest reserves form a substantial part of the overall natural forest biodiversity resources in Ghana. However, timber exploitation in off-reserve areas has been problematic as loggers and farmers have often been involved in conflicts over payment of crop-damage compensation. The paper examines 81 cases of this conflict which were reconstructed chronologically to investigate patterns of actors’ use of power resources and strategies and their effectiveness. The study employed an actor-empowerment conceptualisation of power and used a two-actor game model for the reconstruction of the conflicts. While several strategies and resources were mobilised and employed by the actors, their effectiveness were context-bound. The paper makes a case for areas where actors’ conflict capabilities could be built, why mediated bargaining can be more effective for managing such local conflict constellations and the need to interlock actor interests for mutual interaction by institutionalising mediated bargaining.     

Climate Change,Crop Selection and Agricultural Revenue in Ghana: A Structural Ricardian Analysis

We apply a Structural Ricardian Model (SRM) to farm‐level data from Ghana for seven principal food crops in order to model the factors which influence farmers' decisions about which food crops to grow and the revenue conditional on these choices. Our application of the SRM incorporates a flexible functional form to allow for the possibility that the effects of temperature and rainfall may not be linearly separable. We use this model as a basis for simulations of the effects of climate change. These simulations suggest that extreme climate change will lead to a significant reduction in the average net revenue per hectare from maize, which accounts for over half of current food production. Across a range of climate change scenarios, there is also substantial substitution of maize for heat‐tolerant millet, and a reduction in the cultivation of other crops. Under most of the climate change scenarios that we consider, these results imply a substantial reduction in the aggregate value of agricultural production, since millet is the lowest‐value crop.     

FDI and income inequality in Africa

This paper tests the impact of foreign direct investment (FDI) on income inequality in a panel of 16 African countries from 1980 to 2013. We controlled for both non-linear effects and heterogeneity by using a Pooled Mean Group estimator. There is robust evidence that the relationship is non-linear and we document a U-shaped effect of FDI on inequality. The results reveal that FDI increases equality of distribution of income in the countries examined. However, this effect diminishes with further increases in FDI. Policy implications emanating from this study suggest that although FDI may be growth enhancing, FDI-induced growth may not necessarily translate into a reduction in inequality. FDI has to be structured in such way that the resulting skill-biased employed is mitigated. To address inequality, policy implications from this study imply that FDI has to target both ends of the labour market.     

For the Environment: An Assessment of Recent Military Intervention in Informal Gold Mining Communities in Ghana

This article reflects critically on the impacts of the recent ban on artisanal and small-scale mining (ASM) – low-tech, labour-intensive mineral extraction and processing – in Ghana. Government officials claimed that a ban was necessary because the country’s ASM activities, most of which are found in the informal economy, pose a serious threat to local waterbodies and that security forces were needed for its enforcement. It is argued here, however, that projecting the ban and associated military intervention as actions taken specifically to protect the environment has helped the government escape scrutiny over its choice of strategy to combat illegal mining. Perhaps more importantly, it has masked what may be the real reasons behind these moves: 1) to help the government regain control of the purchasing side of an ASM sector that is now heavily populated and influenced by foreigners; and 2) to put it in an improved position to demarcate parcels of land to the multinational mineral exploration and mining companies that supply it with significant quantities of revenue in the form of taxes, royalties and permit fees.     

The role of social networks in the adoption of competing new technologies in Ghana

We use a detailed dataset to examine the impact of social networks, conditional on contextual and individual confounders, on farmers' adoption of competing improved soybean varieties in Ghana. Based on the contagion conceptual framework, we employ a spatial autoregressive multinomial probit model to examine how neighbours' varietal and cross-varietal adoption of improved varieties affect a farmer's adoption decision in the social network. Our results show that adoption decisions in a network tend to converge on one variety, such that beyond a threshold of adopting neighbours of that improved variety, the cross-varietal effects tend to lose significance in the network. If the shares of adopting neighbours of the improved varieties are equal, we find evidence that farmers are not more likely to adopt either improved variety compared to farmers with no neighbours who have adopted the improved varieties. The findings demonstrate the significance of neighbourhood effects in the adoption of competing technologies.     

Risk aversion in agricultural water management investments in Northern Ghana: experimental evidence

Sub‐Saharan Africa (SSA) is one of the regions in the world most affected by food price volatility and production variability. Poor small‐scale farmers in this region are particularly vulnerable to this variability. As a result, households may be reluctant to adopt new agricultural water management (AWM) technologies when they involve more risk than what they mitigate. Despite risk's role in AWM investments, there have been few attempts to estimate the magnitude and nature of risk aversion in relation to this type of farm decisions. To partially close this gap, this article uses an experimental approach applied to 137 households in Northern Ghana. We find that more than 70% of households are moderately or slightly risk averse. This contrasts with other studies in SSA, where most household decision‐makers exhibit severe to extreme risk aversion. We also find that households that stand to lose as well as gain something from participation in games are less risk averse than households playing gains‐only games. This result suggests that most farmers’ current wealth put them at risk of falling into a poverty trap. Thus, the losses from the riskiest investments on AWM technologies may fall more heavily on the poor, suggesting that additional efforts be given to the creation of viable insurance mechanisms.     

Drivers of perceived land tenure (in)security: Empirical evidence from Ghana

Tenure security is believed to be critical in spurring agricultural investment and productivity. Yet what improves or impedes tenure security is still poorly understood. Using household- and plot-level data from Ghana, this study analyses the main factors associated with farmers’ perceived tenure security. Individually, farmers perceive greater tenure security on plots acquired via inheritance than on land allocated by traditional authorities. Collectively, however, perceived tenure security lessens in communities with more active land markets and economic vibrancy. Plots held by migrant households and women in polygamous households are perceived as less tenure secure, while farmers with political connections are more confident about their tenure security.     

新形势之下的新疆城乡居民收入差距分析

改革开放以来,新疆居民的收入出现了不断增加的趋势,同时,城乡居民收入差距急剧扩大。该文对新疆居民收入增长的制约因素进行分析,提出了缩小新疆内部的居民收入差距、消除贫困,促进北南疆协调发展等对策。     

Planning for peri urbanism: Navigating the complex terrain of transport services

Transport studies give an indication that peri-urban communities in developing countries, particularly Africa, are faced with poor urban transport services. While this notion is established, there remains a limited understanding of how residents in peri-urban communities cope with such a transport challenge. In view of this gap, this study explores the strategies employed to circumvent the challenges of poor transport services in peri-urban communities of Ghana. The study findings show that due to transport-related challenges such as poor roads in peri-urban communities, drivers from the city do not want to operate between the peri-urban areas and the city center. Rather, drivers convey residents of peri-urban communities only to the edges of peri-urban areas – a point they consider immotorable – making it difficult for them to connect to their homes. As a stop in the gap, there is an emergence of taxi stations at the edges of the peri-urban communities to connect commuters to their homes. Unfortunately, this emerging solution is characterised by safety issues as vehicles used are rickety and poorly maintained. These findings offer two major contributions to urban planning studies: First, it is the foremost research to provide understandings of an indigenous solution to lack of transport services in peri-urban communities. Secondly, it is an important research demonstrating the contributions of taxi drivers to the growth of peri-urban areas.     

Enhancing Access to the Global Food Manufacturing Value Chain: The Role of a Food Safety Technical Regulation in Ghana

Demonstrating compliance with food safety requirements of the global food economy is a prerequisite for access. This article presents an overview of the governance within global value chains and their impact on the prospects of developing countries accessing and participating in the global food manufacturing value chain. Based on fieldwork undertaken in Ghana, the article investigates the issues that hinder compliance of the Ghanaian food manufacturing sector with the basic requirements of food safety and investigates the potential role of a technical regulation in enhancing compliance, and therefore participation, in the global food manufacturing economy.