Title: Determinants of choice of economic sector in the non-farm economy in Ghana

Authors: Nkechi S. Owoo

Addresses: Department of Economics, University of Ghana, P.O. Box LG 57, Legon-Accra, Ghana

Abstract: This paper examines the economic sector choice of individuals in the non-farm economy, using the 2012 Ghana Living Standards Survey (GLSS). The multinomial logit regression results indicate that factors that influence individuals' decisions to participate in the non-farm economy differ for the different sectors - manufacturing, wholesale/retail and services. This research emphasises the heterogeneous nature of choice and entry into various sectors of the non-farm economy in Ghana. From a policy perspective, the findings may signal the various policy measures that policy-makers may adopt in order to increase participation into a targeted sector, and promote long-term growth and development of the country.

Keywords: non-farm economy; household enterprises; gender; Ghana; Africa; economic sector choice; manufacturing industry; wholesale-retail industry; retailing; services; service industry.

DOI: 10.1504/AJESD.2016.074442

African Journal of Economic and Sustainable Development, 2016 Vol.5 No.1, pp.31 - 54

Received: 03 Jun 2015
Accepted: 04 Jun 2015
Published online: 30 Jan 2016 *

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