A Micro-Level Empirical Analysis of Annual Household Food Budget Shares in Ghana

Abstract

This study examines Ghana's annual household food expenditures and their Engel food curve using data from the 2017-2018 seventh round of the Ghana Living Standards Survey, which covered 14,009 household and lasted for one-year. Household demographics and specific variables influencing annual household food budget decisions in Ghana were examined, including income, household size, educational status of household head, household location, and household connectivity to electricity. The study establishes an inverse relationship between the share of the household food budget and the increase in household income, and a high annual household food expenditure elasticity with 0.49 pesewas out of every one cedi serving as an annual household marginal food budget share in Ghana, on average and ceteris paribus. The study provides additional statistical evidence that characterizes food as a necessity in Ghana and placed the country in the medium food insecurity zone. Economic development in Ghana means achieving food security at all times, which calls on the country to redouble its efforts to meet SDG Goal 2.