EFFECTS OF RESEARCH AND DEVELOPMENT EXPENDITURE AND CLIMATE VARIABILITY ON AGRICULTURAL PRODUCTIVITY GROWTH IN GHANA

Abstract

This paper examines the effects of agricultural research expenditure and climate change on agricultural productivity growth by region in Ghana. A panel dataset is constructed for 2000-2009 from the Food and Agriculture Organization of the United Nations; the Ministry of Food and Agriculture, Ghana ;and the Agriculture (ASTI) database of the International Food Policy Research Institute. A Malmquist index was used to compute agricultural productivity growth, including decomposition components efficiency change and technical change. The determinants of productivity growth are examined using a fixed effects regression model. The results specify that significant causal factors impact positively on Ghana’s agricultural productivity growth, include climate variability, infrastructure, and agricultural research and development expenditure. The study confirms there is a need to strengthen and develop new technological progress for sustainable .