Diao, Xinshen

Houssou, Nazaire

Kolavalli, Shashi

Increasing agricultural mechanization has long been of interest to many African countries. Constrained by the limited area that can be cultivated through the use of the hand hoe and its association with perceptions of primitiveness and drudgery, agricultural mechanization and large-scale farming have long been a part of the vision of modernizing agriculture in many African countries, including Ghana.

Can the private sector lead agricultural mechanization in Ghana?

Fang, Peixun

Magalhaes, Eduardo

Pahl, Stefan

Silver, Jed

Urbanization has had a major impact on livelihoods in Ghana and throughout Africa as a whole. However, much research on urbanization has focused on effects occurring within cities, while there is insufficient understanding of its effects on rural areas. This paper examines the impact of urbanization—through a typology of districts—on rural livelihoods in Ghana. The country’s districts are classified into seven spatial groups according to the size of the largest city in each district in southern and northern Ghana. The paper does not address rural–urban migration but instead focuses on the livelihoods of rural households. In contrast to the extensive literature focusing on the effects of urbanization on individuals, we assess its impacts on individual rural households as a whole, with a particular focus on youth-headed households. Many rural households have shifted their primary employment from agriculture to nonagriculture, especially in the more urbanized South. In contrast, change in livelihood diversification within rural households with family members’ primary employment in both agriculture and nonagriculture appears much less rapid. Rural youth-headed households are significantly more associated with the transition away from agriculture than households headed by other adults, and such trends are stronger in locations closer to larger cities, particularly in the South. Although the nonagricultural economy is becoming increasingly important for rural households, contrary to expectations, the probit model analysis in this paper shows that agricultural production does not appear to be more intensified—in terms of modern input use—in the more urbanized South, and youth do not show greater agricultural technology adoption than other adults, indicating that the constraints against modern input adoption may be binding for all farmers, including youth and farmers in more urbanized locations. We also find that rural poverty rates are consistently lower among nonagricultural households, and the share of middle-class population is also disproportionally higher among rural nonagricultural households than agricultural households. While the probit analysis confirms the positive relationship between being a nonagricultural household and being nonpoor or becoming middle class after controlling for all other factors, education seems to play the biggest role. As rural youth become more educated and more households shift from agriculture to the rural nonfarm economy, a different range of technologies for agricultural intensification is necessary for agriculture to be attractive for youth. A territorial approach and related policies that integrate secondary cities and small towns with the rural economy deserve more attention such that the diversification of rural livelihoods can become a viable alternative or complement to rural–urban migration for youth.

Cities and rural transformation: A spatial analysis of rural youth livelihoods in Ghana

Ellis, Mia

McMillan, Margaret S.

Rodrik, Dani

Recent growth accelerations in Africa are characterized by increasing productivity in agriculture, a declining share of the labor force employed in agriculture and declining productivity in modern sectors such as manufacturing. To shed light on this puzzle, we disaggregate firms in the manufacturing sector by size using two newly created panels of manufacturing firms, one for Tanzania covering 2008-2016 and one for Ethiopia covering 1996-2017. Our analysis reveals a dichotomy between larger firms that exhibit superior productivity performance but do not expand employment much, and small firms that absorb employment but do not experience any productivity growth. We suggest the poor employment performance of large firms is related to use of capital-intensive techniques associated with global trends in technology.

Africa’s manufacturing puzzle: Evidence from Tanzanian and Ethiopian firms

Benin, Samuel

Johnson, Michael E.

You, Liangzhi

Chilonda, Pius

Kennedy, Adam

An in-depth quantitative analysis is undertaken in this paper to assist the Southern African Development Community (SADC) Secretariat, member countries, and development partners in setting future regional investment priorities for agricultural research and development in the SADC region. A primary goal of this work was to identify a range of agricultural research priorities for achieving sector productivity and overall economic growth in southern Africa, at both the country and regional levels. This is accomplished by adopting an integrated modeling framework that combines a disaggregated spatial analytical model with an economywide multimarket model developed specifically for the region.

Exploring strategic priorities for regional agricultural research and development investments in southern Africa

Diao, Xinshen

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