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AbstractThis paper quantifies the effects of the determinants of intersectoral labor mobility and the effect of intersectoral labor mobility on deforestation in Ghana over the period 1970–2008. A cointegration and error correction modeling approach is employed. The empirical results show that labor mobility from the agricultural to the non-agricultural sector exerts negative effects on deforestation in Ghana in the long run and short run. Relative agricultural income exerts a significant negative effect on intersectoral labor mobility in the long run. Deforestation is influenced positively by population pressure, the price of fertilizer and rainfall, whereas access to irrigation infrastructure exerts a negative effect in the long run. In the short run, real producer prices of cocoa and maize exert significant positive effects on deforestation whereas access to irrigation infrastructure exerts a negative significant effect. Fruitful policy recommendations based on the empirical magnitudes and directions of these effects are made in this paper.