EconPapers    
Economics at your fingertips  
 

The Impacts of Improvements in the Delivery of Credit from Formal and Semi-Formal Financial Institutions: Evidence from Ghana

Samuel Amponsah

Journal of African Development, 2017, vol. 19, issue 2, 33-66

Abstract: This study examines the impacts of improvements in delivery of credit from formal and semi-formal financial institutions to households in Ghana. The main interest of the study is to exploit plausibly variations in access to credit from these institutions, since before the passage of the Borrowers and Lenders Act, 2008 (Act 773) and the Non-Bank Financial Institutions Act, 2008 (Act 774) in 2008, households in the country could hardly borrow from the formal financial institutions. Particular attention is paid to a number of socioeconomic outcomes, including agriculture, non-farm businesses, and expenditure. This paper documents evidence of a decline in the share of households who have some informal borrowing, reduction in agricultural activities, and increases in non-farm business activities as well as increases in the number of non-farm business employees. While the reforms altered the borrowing patterns of households, it did not necessarily induce demand for credit. This paper also finds improvements in consumption, profits (both farm and non-farm activities) and loan repayments.

Keywords: Households’; access; to; credit·; Formal; and; Semi-formal; financial; institutions·; Difference-indifference (search for similar items in EconPapers)
JEL-codes: G21 G31 J23 O12 O13 Q14 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (44)

Downloads: (external link)
http://www.afeawpapers.org/RePEc/afe/afe-journl/wp ... 19n2_Fall_2017_3.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:afe:journl:v:19:y:2017:i:2:p:33-66

Access Statistics for this article

More articles in Journal of African Development from African Finance and Economic Association (AFEA) Contact information at EDIRC.
Bibliographic data for series maintained by Christian Nsiah ().

 
Page updated 2025-03-19
Handle: RePEc:afe:journl:v:19:y:2017:i:2:p:33-66