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Journal of Social Economics Research

June 2021, Volume 8, 1, pp 50-65

Domestic Remittances and Household Food Diversity in Rural Ghana

Bernard Baah-Kumi

,

Yu-Feng Lee

Bernard Baah-Kumi 1

Yu-Feng Lee 2

  1. Department of Agricultural Economics and Agricultural Business New Mexico State University, USA. 1

  2. Department of Economics, Applied Statistics, and International Business New Mexico State University, USA. 2

Pages: 50-65

DOI: 10.18488/journal.35.2021.81.50.65

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Article History:

Received: 18 January, 2021
Revised: 22 February, 2021
Accepted: 08 March, 2021
Published: 25 March, 2021


Abstract:

This work investigates the effect of domestic remittances on households’ food diversity in rural Ghana using three-stage least squares estimation technique and cross-sectional data from the Ghana Living Standards Survey, round six (GLSS 6). The study finds that Northern Ghana rural households’ food diversity scores are lower than their Southern counterparts. Results show that domestic remittances positively affect rural household food diversity in Ghana, and the difference in food diversity index between Northern and Southern rural households narrows as remittances increase. The study also finds that rural households with at least primary educated householders have enhanced food consumption in variety while increasing household size tends to deteriorate food diversity. The study recommends that domestic remittances matter to food consumption diversity, especially in Northern Ghana. Therefore, policymakers should implement remittance tax credits to service providers and strengthen competition in the industry by supporting remittance technologies’ interoperability to minimize costs to increase flows. Increased domestic remittance flows to Northern Ghana could narrow the rural household food diversity gap between Northern and Southern Ghana. Farm and non-farm investment and rural sector-specific education investment are also recommended.
Contribution/ Originality
This study contributes to the existing literature by investigating domestic remittances impact in narrowing food diversity gap between rural households in Northern and Southern Ghana, controlling for other household characteristics. The study’s originality comes from incorporating locational differences in the remittances-food security relationship.

Keywords:

Domestic remittances, Internal migration, Food diversity, Rural households, Northern Ghana, Southern Ghana.

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Funding:

This study received no specific financial support.

Competing Interests:

The authors declare that they have no competing interests.

Acknowledgement:

Both authors contributed equally to the conception and design of the study.

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