Income Generation in Rural Ghana: Welfare, Diversification, and Inequality Across Agroecological Zones" — GLSS7 analysis in R
# Income Generation in Rural Ghana
## Welfare, Income Diversification, and Inequality Across Agroecological Zones
**Authors:** Kinsley Delanyo Adjei & Yaw Bonsu Osei-Asare
**Data:** Ghana Living Standards Survey 7 (GLSS7, 2016/17)
**Target Journal:** World Development
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## Overview
This repository contains the full replication code for our study on income diversification and household welfare among rural households in Ghana. Using the Ghana Living Standards Survey 7 (GLSS7), we analyse how income diversification strategies and welfare outcomes vary across three agroecological zones — Coastal, Forest, and Savannah — and examine the role of supply chain participation in shaping these outcomes.
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## Research Questions
1. How does income diversification vary across agroecological zones in rural Ghana?
2. What are the welfare returns to income diversification, and do they differ across the welfare distribution?
3. Does supply chain position mediate the relationship between diversification and welfare?
4. Is there spatial clustering in income diversification patterns across Ghanaian districts?
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## Methods
| Method | Purpose |
|---|---|
| Simpson Diversity Index (SDI) | Measure of income diversification |
| Tobit (Censored) Regression | Determinants of SDI |
| Poisson Regression | Determinants of number of income activities |
| Quantile Regression | Heterogeneous welfare returns to diversification |
| Multinomial Logit | Determinants of supply chain participation |
| Spatial Autocorrelation (Moran's I) | Spatial clustering of diversification |
| LISA Cluster Maps | Local spatial patterns |
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## Repository Structure
```
income-diversification-rural-ghana/
│
├── income_Ghana.R # Main analysis: data cleaning, variable
│ # construction, descriptive stats,
│ # Tobit, Poisson, Quantile regression
│
├── supply_chain_analysis.R # Supply chain classification and analys …