Ghanaian fair-trade cocoa-producing households' livelihood diversification and efficiency
by Justice G. Djokoto
International Journal of Green Economics (IJGE), Vol. 10, No. 2, 2016

Abstract: Though the studies examined the role of several factors that account for the variance in technical efficiency in agriculture, yet, the effect of livelihood diversification has not been addressed. This study assessed livelihood diversification and its extent, assessed existence of technical efficiency and the effect of livelihood diversification on technical efficiency of fair-trade cocoa farmers. A cross-sectional data of 253 cocoa farming households were collected from New Juaben Municipality in the eastern area of Ghana. Livelihoods pursued by the farmers were largely farming with households showing medium livelihood diversification. The estimates of technical efficiency showed existence of technical inefficiency. However, diversification of livelihoods by the fair-trade cocoa farm households did not promote technical efficiency. Within the context of this study, although livelihoods diversification did not increase technical efficiency, nevertheless, diversification of livelihoods among fair-trade cocoa farmers may be promoted for other reasons such as additional income security.

Online publication date: Tue, 29-Nov-2016

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