Chapter 9 Rural Nonfarm Income Diversification: Implications on Tree-Crop Agricultural Sector Inequalities and Sustainable Development in Ghana

This chapter uses the Ghana Living Standards Survey (GLSS) 7 datasets to investigate and examine the effect of rural non-farm diversification and its implications on agricultural (tree-crop) farming sector inequalities and sustainable development in Ghana. Applying a Gini-decomposition method and/or technique within a quantitative approach, the study outcome indicates the average non-farm income thus, increased income inequality among tree-crop smallholder rural livelihoods and households. Income diversification by farm households has gained the attention of governments, policy makers, and researchers because of its commonness and contribution to socio-economic development especially in developing countries. Aggregationally, non-farm self-employment reduced income inequality, and non-farm wage employment income led to an increase in income inequality. Increased rate of educational enrollment and achievement is the most important variable of non-farm income inequality. Government effort at expanding tree-crop acreages and improve yields have to degree achieved its intended policy implementation, increased rate of educational achievement could undermine the socio-economic policy cohesion and sustainable development of rural livelihood, communities, and national economy. Tree crop policies should take account of the spatial distribution of tree-crop commodity production and in particular, the implication and effect of rural non-farm diversification on agricultural sector inequalities.