Population density,urbanisation and agricultural mechanisation in modern Ghana

Farmers' technological choices take place within farming systems that are shaped by population pressure, connectivity to urban markets and agro-ecological conditions. The relationship between these drivers and agricultural technology use is ambiguous. On the one hand, population growth can increase the supply of labour, driving down wage rates and reducing the incentives for mechanisation. On the other hand, rural–urban movements of people can reduce rural labour supply while simultaneously driving up the demand for food and hence the demand for mechanisation. Past theories of agricultural mechanisation have explained the low adoption of agricultural machinery in land-abundant cereal production systems of SSA in terms of these drivers. However, recent empirical observations find extensive adoption of mechanised ploughing technology by small, medium and large-scale farmers in Ghana. Examining the Ghanaian experience can thus shed new light on theories of mechanisation. A large household survey dataset covering eight districts is combined with geo-spatial data on population, urban proximity and agro-ecological factors to consider whether the existing theories are able to explain farm-level adoption decisions in this context. The analysis finds that a farmer's decision to use agricultural machinery is associated with lower population density and proximity to urban centres. In northern Ghana, these drivers of technological change are as important as farm household characteristics in understanding cross-sectional patterns of machinery adoption.     

CAPITAL ALLOCATION IN LESS DEVELOPED ECONOMIES

“European mining is done by companies, and company's money is almost like government money…. Machinery is bought, houses are built, in fact the capital of the company is spent…. After possibly a series of great hardships to the staff and disasters to the company, it is found that the tin raised is infinitesimal in value when compared with the rate of expenditure, and that the longer the work goes on the greater will be the losses. This is usually discovered when the paid-up capital is all but exhausted. The company is wound up and the State gets a bad name with investors, and the only people who really enjoy themselves are the neighbouring Chinese miners who buy the mine and the plant for an old song and make several large fortunes out of working on their own ridiculous and primitive methods.”