Technical Efficiency in Agriculture in Ghana-Analyses of Determining Factors

The paper sought to estimate technical efficiency in Ghana’s agricultural sector and more importantly, investigate the factors that influence the estimated technical efficiencies. Using data from 1976-2007, the results showed a decreasing returns to scale in Ghana‘s agriculture. Land is negatively inelastic showing over use of the factor. Technology variables, fertiliser and tractor and combines are positively related to output. Whilst fertiliser is elastic, tractor and combines is inelastic. The level of inefficiency is 21% with decreasing returns to scale. The SFA specification is the appropriate model, indeed, superior to OLS. None of the hypothesised variables to explain technical efficiency were statistically distinguishable from zero. The negative sign for land requires decrease in the use of land relative to other inputs. This calls for increase in the use of other variables. The insignificance of the TE effect variables suggest that these variables may be inappropriate in explaining TE in the case of Ghana. Other variables may have to be explored. Keywords: technical efficiency, agriculture, Ghana, determinant

Effects of Foreign Direct Investment Inflows into Agriculture on Food Security in Ghana

This study investigated the effects of FDI on food security in a developing country, Ghana. A double logarithm functional form was employed. Daily energy consumption (hunger) was negatively related to agricultural FDI and significant in both the short run and long run. Likewise, daily protein consumption (nutrition) was negatively related to agricultural FDI and statistically significant in the short run and long run. This outcome established a detrimental effect of agricultural FDI inflow on food security in Ghana. Efforts at growing Ghana's economy and increased national income relative to population growth may not promote food security unless government directs final expenditure towards food security programmes specifically. Though further improvement in FDI inflow to agriculture should not be ignored for the sake of its positive benefits, specific interventions are required to ensure that smallholders are not side-lined in production. Government must support appropriate lower priced technologies that smallholders can adopt. Keywords: Food security, Daily energy consumption, Daily protein consumption, Agricultural FDI, agricultural economic growth, government final expenditure, democracy, Ghana

Determinants and Effects of Foreign Direct Investment in Ghana – Review of Literature

This paper reviewed papers published on foreign direct investment (FDI) on Ghana to determine the factors that gravitate FDI into Ghana, the effects of FDI on Ghana and identify the gaps that exist for further research. The literature used excluded long essays and thesis as well as working papers that have not been published in a journal. The resulting literature retrieved numbered 27, while 23 were subjected to detailed review. The review revealed a publication bias towards inward FDI, publishing in journals outside Ghana and a preponderance of use of time series data. Results of recent data tended to produce more statistically significant results than previous and shorter span data. Factors that determined inflow of FDI into Ghana are exchange rate, exchange rate volatility, real exchange rate, previous level of FDI, inflation, size of the economy, democracy and trade. FDI inflow benefited Ghana’s economy through its effect on agricultural exports, firm productivity, industrial output, stock market and ultimately GDP and GDP growth. However, agricultural FDI negatively impacted food security. Studies on directional spillover effects of FDI in Ghana are non-existent and deserve investigation among other areas. Key words: foreign direct investment, Ghana, determinants, effects, review

Crowds in or crowds out? The effect of foreign direct investment on domestic investment in Chinese cities

This study investigates the empirical relationship between foreign direct investment (FDI) and domestic investment (DI) in China using a comprehensive city-level panel over the period from 2003 to 2011. System-generalized method-of-moment estimation reveals mixed results. At the national level, FDI neither crowds in nor crowds out DI, indicating a neutral FDI–DI nexus. However, when the full sample is segmented by geographical topology, a positive and significant FDI–DI nexus can be found in eastern and, to a lesser extent, central cities. A negative, although insignificant, association is reported among western cities. Further, the empirical nexus is conditional on several local absorptive capacities including human capital, financial development, and institutional quality. These findings suggest that a region-based FDI strategy in general and local governments should strengthen their absorptive capacities to fully internalize FDI spillovers

Economic Globalization, Nutrition and Health: a review of quantitative evidence

BACKGROUND: Unhealthy dietary patterns have in recent decades contributed to an endemic-level burden from non-communicable disease (NCDs) in high-income countries. In low- and middle-income countries rapid changes in diets are also increasingly linked to malnutrition in all its forms as persistent undernutrition and micronutrient deficiencies continue to coexist with a rising prevalence of obesity and associated NCDs. Economic globalization and trade liberalization have been identified as potentially important factors driving these trends, but the mechanisms, pathways and actual impact are subject to continued debate. METHODS: We use a ‘rigorous review’ to synthesize evidence from empirical quantitative studies analysing the links between economic globalization processes and nutritional outcomes, with a focus on impact as well as improving the understanding of the main underlying mechanisms and their interactions. FINDINGS: While the literature remains mixed regarding the impacts of overall globalization, trade liberalization or economic globalization on nutritional outcomes, it is possible to identify different patterns of association and impact across specific sub-components of globalization processes. Although results depend on the context and methods of analysis, foreign direct investment (FDI) appears to be more clearly associated with increases in overnutrition and NCD prevalence than to changes in undernutrition. Existing evidence does not clearly show associations between trade liberalization and NCD prevalence, but there is some evidence of a broad association with improved dietary quality and reductions in undernutrition. Socio-cultural aspects of globalization appear to play an important yet under-studied role, with potential associations with increased prevalence of overweight and obesity. The limited evidence available also suggests that the association between trade liberalization or globalization and nutritional outcomes might differ substantially across population sub-groups. Overall, our findings suggest that policymakers do not necessarily face a trade-off when considering the implications of trade or economic liberalization for malnutrition in all its forms. On the contrary, a combination of nutrition-sensitive trade policy and adequate regulation of FDI could help reduce all forms of malnutrition. In the context of trade negotiations and agreements it is fundamental, therefore, to protect the policy space for governments to adopt nutrition-sensitive interventions

Technical efficiency of organic agriculture: a quantitative review

This article examines the variations in mean technical efficiency estimates in organic agriculture and the factors that explain the observed variations. A three-stage process was employed in data collection. Firstly, journals on organic agriculture and related disciplines were identified and searched. Secondly, several publishers’ websites and databases, namely Cambridge Journals, Elsevier, Emerald, Oxford University Press, Sage, Taylor and Francis, and Wiley, among others, were covered. Databases included AgEcon Search, CAB Abstracts, DOAJ, EBSCOhost, Google Scholar and ScienceDirect. Thirdly, the reference lists of studies found in the first and second stages were searched to identify additional literature. In all, 42 studies constituting 109 observations covering the period 2002-2014 were found. Unlike existing literature on technical efficiency quantitative reviews in agriculture, this article employs a battery of tests to select the appropriate solution for multiple observations from the same primary study, as well as the appropriate functional form for the selected fractional regression model. The mean technical efficiency of organic agriculture for the period of study and the effects of other study characteristics are thoroughly discussed

Is foreign aid effective in the food manufacturing sector?

Following the inconsistency of the effectiveness of aid based on the total economy and agriculture, this study provides evidence for food manufacturing for developing countries and economies in transition. Using data on 22 developing and 9 transition countries from 1990 to 2019, aid is ineffective independently. However, in the presence of appropriate policies (low inflation and increased trade), aid is effective in the food manufacturing sector for developing countries, transition economies and the combination of the two groups. Economic managers of developing and transition economies must keep down inflation and promote trade as these do not only benefit food manufacturing but have a collateral effect on the wider economy

TECHNICAL EFFICIENCY IN ORGANIC AND CONVENTIONAL AGRICULTURE - A GENDER COMPARISON

This article contributes to the pertinent literature by providing a gender perspective to organic-conventional technical efficiency comparative studies and to the debate on technical efficiency of organic and conventional agriculture. Data from 280 organic and 378 conventional cocoa farm from Suhum area in Ghana; segregated into 101 females and 557 males, were analysed. Using separate frontiers, females were found to be more technically efficient than males irrespective of technology; conventional or organic, although males tended to be more productive. Increased access to productive inputs to females is necessary to increase their participation in organic cocoa production and further enhance efficiency