Skip to main content
Log in

Ethnicity and Economic Well-Being: The Case of Ghana

  • Published:
Social Indicators Research Aims and scope Submit manuscript

Abstract

In the context of decades of successful economic reforms in Ghana, this study investigates whether ethnicity influences economic well-being (perceived and actual) among Ghanaians at the micro-level. Drawing on Afro-barometer 2008 data, the authors employs logistic and multiple regression techniques to explore the relative effect of ethnicity on economic well-being. Results demonstrate that ethnicity is an important determinant of both measures of people’s economic well-being (perceived and actual) in Ghana. Ethnicity tends to have both negative and positive effect on economic well-being among different ethnic groups and different sub-sample. For instance, for three ethnic groups (Akans, Ga-Adangbes and Ewe/Anglo), ethnicity predicts lower level of economic well-being for rural residents, whereas for Akans, it minimizes the risk of deprivation in the urban setting. Findings from this study do not support the idea that ethnicity may be less relevant in shaping people’s well-being in an era of economic reforms in a society like that of Ghana. Detailed policy implications of the study are discussed emphasizing the need to develop ethnic-specific development programs to complement the on-going reforms as part of the country’s decentralization efforts.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Subscribe and save

Springer+
from $39.99 /Month
  • Starting from 10 chapters or articles per month
  • Access and download chapters and articles from more than 300k books and 2,500 journals
  • Cancel anytime
View plans

Buy Now

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

Explore related subjects

Discover the latest articles and news from researchers in related subjects, suggested using machine learning.

References

  • Addai, I. (1999a). Ethnicity and contraceptive use in Sub-Saharan Africa: The case of Ghana. Journal of Biosocial Science, 31(1), 105–120.

    Article  Google Scholar 

  • Addai, I. (1999b). Ethnicity and sexual behavior in Ghana. Social Biology, 46(1-2), 17–32.

    Google Scholar 

  • Agyeman, D. K. (1995). Democracy, politics of ethnicity and conflict in contemporary Ghana. In Mike Oquaye (Ed.), Democracy and conflict resolution in Ghana. Accra: Gold Type Press.

    Google Scholar 

  • Alesina, A., Baquir, R., & Easterly, W. (1999). Public goods and ethnic divisions. Quarterly Journal of Economics, 114(4), 1243–1284.

    Article  Google Scholar 

  • Alesina, A., Devleeschauwer, A., Easterly, W., Kurlat, S., & Wacziarg, R. (2003). Fractionalization. Journal of Economic Growth, 8(2), 155–194.

    Article  Google Scholar 

  • Austin, D. (1964). Politics in Ghana. London: Oxford University Press.

    Google Scholar 

  • Barro, R. (1991). Economic growth in a cross section of countries. Quarterly Journal of Economics, 407–443.

  • Bates, R. H. (2000). Ethnicity and development in Africa: A reappraisal. American Economic Review, American Economic Association, 90(2), 131–134.

    Google Scholar 

  • Boahen Adu, A. (2000). Ghana: Evolution and change in the nineteenth and twentieth centuries. Accra: Sankofa Educational Publishers.

    Google Scholar 

  • Bogetic, Z., Bussolo, M., Ye, X., Medvedev, D., Wodon, Q., & Boakye, D. (2007). Ghana’s growth story—how to accelerate growth and achieve MDGs? Volume 1 of the Ghana Country Economic Memorandum, World Bank, Washington, DC.

  • Booth, D., Crook, R., Gyimah-Boadi, E., Killick, T., Luckham, R., & Boateng, N. (2004). Drivers of change in Ghana: Overview report, Final Draft, 25 May 2004, London: ODI and Accra: CDD.

  • Bryman, A., & Duncan, C. (2009). Quantitative data analysis with SPSS 14, 15, 16: Guide for social scientists. New York, NY: Routledge.

    Google Scholar 

  • Carr, L. (1995). Ethnicity: A contemporary issue in African politics? Newick Initiative.

  • Collier, P. (2007). Growth strategies for Africa. A paper prepared for the Spence Commission on Economic Growth, January.

  • Collier, P., Hoeffler, A. (2002). Greed and grievances. World Bank DECRG Working paper.

  • Dickson, K. B. (1975). Development planning and national integration in Ghana. In D. R. Smock & K. Bentsil-Enchill (Eds.), The search for national integration in Africa. NY: Free Press.

    Google Scholar 

  • Easterly, W., & Levine, R. (1997). Africa’s growth tragedy: Policies and ethnic divisions. Quarterly Journal of Economics, 112, 1203–1250.

    Article  Google Scholar 

  • Ewusi, K. (1976). Disparities in levels of regional development in Ghana. Social Indicators Research, 3, 2–5.

    Google Scholar 

  • Fearon, J. D. (2003). Ethnic structure and cultural diversity by country. Journal of Economic Growth 8 (June), 195–222.

    Google Scholar 

  • Fosu, A., Bates, R., & Hoeffler, A. (2006). Institutions, governance and economic development in Africa: An overview. Journal of African Economies, Oxford University Press, 15(1), pp. 1–9.

  • Ghana Statistical Service. (2000). Ghana in figures. Ghana Publishing Corporation Assembly Press.

  • Government of Ghana. (2003). Ghana poverty reduction strategy 20032005: An agenda for growth and prosperity, vol. 1, Accra: Ghana Publishing Corporation, Assembly Press.

  • Hameso, S. (1997). Ethnicity in Africa: Towards a positive approach. London: TSC.

    Google Scholar 

  • International Monetary Fund. (2009). World economic and financial surveys: Regional economic outlook: Sub-Saharan Africa October.

  • Kimenyi, M. S. (2006). Ethnicity, governance and the provision of public goods. Journal of African Economies, Oxford University Press, 15(1), 62–99.

  • Knack, S., & Keefer, P. (1997). Does social capital have an economic payoff? A cross-country investigation. The Quarterly Journal of Economics, MIT Press, 112(4), pp. 1251–1288.

    Google Scholar 

  • Leigh, A. (2006). Trust, inequality and ethnic heterogeneity. The Economic Record, 82 (258), 268–280.

    Google Scholar 

  • Mauro, P., (1995). Corruption and growth. Quarterly Journal of Economics CX, 681–712.

    Google Scholar 

  • Montalvo, J. G., & Reynal-Querol, M. (2005). Ethnic diversity and economic development. Journal of Development Economics 76, 293–323.

    Google Scholar 

  • Osaghae, E. (1994). Towards a fuller understanding of ethnicity in Africa: Bringing rural ethnicity back in. In Osaghae (ed.). Between states and civil society in Africa (Dakar ACDESS).

  • Posner, D. N. (2004). Measuring ethnic fractionalization in Africa. American Journal of Political Science 48, 4 (October), 849–863.

    Google Scholar 

  • Roeder, P. G. (2001). Ethnolinguistic fractionalization (ELF) indices, 1961 and1985. <http//:weber.ucsd.edu\~proeder\elf.htm>(web-site consulted on 23 August 2004).

  • Sackey, H. A. (2005). Female labor force participation in Ghana: The effects of education. AERC Research Paper 150 African Economic Research Consortium, Nairobi.

  • Schluter, M., & Ashcroft, J. (1988). Ethnicity and nation-building Christian Norms, African Experience and a Possible Programme for South Africa, Jubilee Centre Publications Ltd.

  • Sirinivasan, T. N. (2001). Growth and poverty alleviation: Lessons from development experience. Working Paper No. 17. Tokyo: Asian Development Bank Institute.

    Google Scholar 

  • Streeten, P. P. (1971). Thinking about development. Cambridge: Cambridge University Press.

    Google Scholar 

  • Tavares, J., & Wacziarg, R. (2001). How democracy affects growth. European Economic Review, 1341–1378 (August).

  • Winters, L. A. (2000). Trade liberalization and poverty. Discussion Paper No. 7. Poverty Research Unit, University of Sussex, UK.

  • World Bank. (2007). Ghana: Meeting the challenge of accelerated and shared growth: Country economic memorandum: Vols. I, II, III, PREM 4, Africa Region, pp. 3–28.

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Isaac Addai.

Appendix

Appendix

See Table 5.

Table 5 Component variables of actual well-being (2008)

Rights and permissions

Reprints and permissions

About this article

Cite this article

Addai, I., Pokimica, J. Ethnicity and Economic Well-Being: The Case of Ghana. Soc Indic Res 99, 487–510 (2010). https://doi.org/10.1007/s11205-010-9595-6

Download citation

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11205-010-9595-6

Keywords