Abstract
This paper uses a nationally representative household pseudo-panel dataset for Ghana, a rain-fed agriculture economy, to investigate whether there is a positive relationship between rainfall-driven agricultural income and household per capita expenditure. By using the Two Stage Least Squares Instrumental Variable (2SLS-IV) estimator, it is found that a fall in rainfall-driven agricultural income leads to a decrease in per capita expenditure. The results show that the gender and the locality of the household head matter in the response of per capita expenditures to rainfall-driven agricultural income. Female-headed and rural households are more vulnerable to rainfall-driven agricultural income changes. The expenditure disaggregation indicates that female-headed households significantly reduce per capita nonfood expenditure in times of rainfall-induced agricultural income decrease whilst the response of male-headed households focuses more on reducing per capita food and remittance expenditures.
Original language | English |
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Pages (from-to) | 98-122 |
Number of pages | 25 |
Journal | South African Journal of Economics |
Volume | 85 |
Issue number | 1 |
DOIs | |
Publication status | Published - 1 Mar 2017 |
Externally published | Yes |
Keywords
- Agricultural income
- Per capita expenditure
- Rainfall