Economic policy reforms and agricultural production in Ghana: (a case study of cassava production in Atebubu District)

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1997-07-08
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Ghana’s economic policy reforms including substantial trade and exchange rate policy reforms have had pervasive effect on agriculture through their influence on the sizes and prices of agriculture export as well as intermediate agricultural inputs. Current economic policy reforms aim at promoting export led growth through agriculture and to boost the international competitiveness of tradables especially the production of cocoa. The study notes that Ghana has within the past decade rationalised its tariff structure, comprising drawbacks of import duties on inputs and sales tax exemption for non traditional exports. While the export taxes on traditional export still remain those on non traditional export are currently at 8 per cent. Empirical evidence reveals that producers of non tradable like cassava have of late been obvious beneficiaries of trade deregulation; and devaluation. This study therefore undertook a full analysis only for cassava and to ascertain how the Atebubu district given its characteristics has specifically responded to this policy of export diversification. The case study methodology was generally applied using trend analysis. An overview of reforms in Ghana’s economic policies and its effect on agriculture in general at the macro level was analysed as the framework to begin with. The characteristics of agriculture in Atebubu district was also analysed in order to examine the farming systems and to identify the policy, institutional and infrastructural constraints affecting the farming systems. The study confirms that supply of Ghana’s agricultural crops especially cassava is responsive to price changes. It also argues that beyond price incentives, other constraints deteriorating infrastructure must be addressed if agricultural production is to be sustained. It was also observed that bank credit do not play major part in cassava cultivation and therefore investment and working capital requirements are primarily funded from farmers own savings. This study concludes that changing price incentives induced by economic policy reforms have boosted cassava production for export and helped promote some degree of export diversification.
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A thesis submitted to the Board of Postgraduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfilment of the requirement for the award of the Degree of Master of Science in Development Planning and Management, 1997
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