Irrigated Agriculture and Welfare: Panel Data Evidence from Southern Ghana

Abstract

We present results on the drivers and impacts of household adoption of irrigated agriculture technologies on welfare in Southern Ghana. Using a panel data and a doubly robust estimator to account for selection bias, the estimates show statistically significant positive impacts on income, consumption, and proportions of in-transfers, out-transfers and savings with financial institutions. The impacts on the welfare indicators differ based on the adoption of alternative irrigated agriculture technologies. We also identify key factors influencing the adoption including extension visit, farmer based organization, ownership of agricultural land, access to water resources, among other community and household level characteristics. The findings show the importance of information, social capital and networks, and access to infrastructure in the adoption process of irrigation technologies in Southern Ghana. The results suggest that agricultural development, particularly irrigated agriculture technologies can contribute to improvements in the economic status of farm households in Southern Ghana.