TECHNOLOGY ADOPTION AND EFFICIENCY IN GHANAIAN AGRICULTURE

Abstract

The study seeks to find out the socio-economic factors that explain the adoption of Green Revolution technology and its effects on output/efficiency and consumption expenditure among agricultural households in Ghana. The method of analysis involves probit estimation of the adoption model, a stochastic frontier estimation of the inefficiency model and a maximum likelihood estimation of a consumption equation. The consumption model was estimated within the frame work of Heckman's two stage method of correcting for sample selection. The proportion of GR input adoption was found to be greater for the following: households whose heads have formal education, households with higher levels of non-farm income, credit and labour supply as well as those living in urban centres. Efficiency is greater for the following: households living close to extension centres, in the rural areas and in the south of the country. Efficiency is also greater for male-headed households, large households and small farms. In addition to education and credit, we found households' assets, living in the forest belt and in the south of the country to be positively related to households' consumption. Unsurprisingly, household size was found to be negatively related to consumption. Technology adoption was found to have positive effects on households' output and consumption expenditure. It is recommended that technology adoption be taken seriously by increasing the levels of complementary inputs like credit, extension services and infrastructure. Also, households must be encouraged to plan their families while they form farmer groups as an important source of farm labour. Above all, the fundamental problems of illiteracy, inequality and lack of effective markets must be addressed through increasing the levels of formal and non-formal education, equitable distribution of the 'national cake' and a more effective management of the ongoing Structural Adjustment Programme.