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Buffer Stock Operations and Well-Being: The Case of Smallholder Farmers in Ghana

Author

Listed:
  • Emmanuel Abokyi

    (Ghana Institute of Management and Public Administration
    University of Groningen)

  • Dirk Strijker

    (University of Groningen)

  • Kofi Fred Asiedu

    (KAAF University College)

  • Michiel N. Daams

    (University of Groningen)

Abstract

This study investigates the possible causal relationship between buffer stock operations in Ghanaian agriculture and the well-being of smallholder farmers in a developing world setting. We analyze the differences in the objective and subjective well-being of smallholder farmers who do or do not participate in a buffer stock price stabilization policy initiative, using self-reported assessments of 507 farmers. We adopt a two-stage least square instrumental variable estimation to account for possible endogeneity. Our results provide evidence that participation in buffer stock operations improves the objective and subjective well-being of smallholder farmers by 20% and 15%, respectively. Also, with estimated coefficient of 1.033, we find a significant and robust relationship between objective well-being and subjective well-being among smallholder farmers. This relationship implies that improving objective well-being enhances the subjective well-being of the farmers. We also find that the activities of intermediaries decrease both the objective and subjective well-being of farmers. This study demonstrates that economic, social, and environmental aspects of agricultural life could constitute priorities for public policy in improving well-being, given their strong correlation with the well-being of farmers. Based on the results of this study, we provide a better understanding, which may aid policy-makers, that public buffer stockholding operations policy is a viable tool for improving the well-being of smallholder farmers in a developing country.

Suggested Citation

  • Emmanuel Abokyi & Dirk Strijker & Kofi Fred Asiedu & Michiel N. Daams, 2022. "Buffer Stock Operations and Well-Being: The Case of Smallholder Farmers in Ghana," Journal of Happiness Studies, Springer, vol. 23(1), pages 125-148, January.
    • Handle: RePEc:spr:jhappi:v:23:y:2022:i:1:d:10.1007_s10902-021-00391-4
    DOI: 10.1007/s10902-021-00391-4
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