Access to Financial Services and Its Impact on Household Income: Evidence from Rural Ghana

Martinson Ankrah Twumasi (), Hongyun Zheng (), Love Offeibea Asiedu-Ayeh (), Anthony Siaw () and Yuansheng Jiang ()
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Martinson Ankrah Twumasi: Sichuan Agricultural University
Hongyun Zheng: Huazhong Agricultural University
Love Offeibea Asiedu-Ayeh: Sichuan Agricultural University
Anthony Siaw: Sichuan Agricultural University
Yuansheng Jiang: Sichuan Agricultural University

The European Journal of Development Research, 2023, vol. 35, issue 4, No 6, 869-890

Abstract: Abstract This study examines the determinants of access to financial services and its impact on household income, using household data collected from rural Ghana. An endogenous treatment regression model is utilized to address the selection bias issue. The results reveal that access to financial services is affected by household heads’ age, gender, education, off-farm work participation, farming experience, and access to non-fixed assets. Access to financial services exerts a positive and statistically significant impact on household income. Moreover, we find that access to financial services has a larger income impact for households with no member with chronic disease and male-headed households, relative to their counterparts. Our findings highlight the importance of financial services patronization in improving rural household welfare.

Keywords: Access to financial services; Household income; Endogenous treatment regression model; Ghana (search for similar items in EconPapers)
JEL-codes: G23 H24 I31 R51 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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DOI: 10.1057/s41287-022-00544-y

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