Table 6.6—Sources of growth in baseline and agriculture-led scenarios (percent) Decomposition
Decomposition of total GDP growth
Source of growth Total growth
Baseline 100
Labor 26.9 Land 12.7 Capital 26.2 Productivity 34.2
Agriculture-led growth
100
22.4 8.7
22.2 46.7
Source: The Ghanaian dynamic computable general equilibrium model results. Note: GDP = gross domestic product.
Table 6.7—Poverty impacts in baseline and agriculture-led scenarios (percent) Initial poverty rate,
Final poverty rate, 2015
Zone 2005/06 National
28.5
Urban 10.8 Accra Coast Forest
Southern Savannah Northern Savannah
Southern Savannah Northern Savannah
10.6 5.5 6.9
21.6 31.9
Rural 39.2 Coast Forest
24.0 27.7 36.7 68.3
Baseline 16.9
7.6 7.7 2.8 4.2
15.2 25.7 23.7 8.8
12.3 12.5 55.5
Agriculture-led growth 13.5
5.7 5.3 2.0 2.9
12.6 22.3 19.2 5.1 7.9 9.7
49.6
Source: Ghanaian dynamic computable general equilibrium model results. Note: The poverty rate is the proportion of the population with per capita consumption below the poverty line.
raises concerns about the cost of such a growth acceleration. The next section addresses the concern of how much additional public spending would be required to accelerate growth in the agricultural sector.
Agricultural Investment Analysis To answer the question of how much public agricultural spending is required to achieve productivity-led agricultural growth in Ghana, we estimate the required public spending by using the formula developed in Chapter 2 of this volume and