Inclusive finance, bank pricing behaviour, and livelihood activities of households in Ghana

Vera Ogeh Lassey Fiador () and Mohammed Amidu ()
Additional contact information
Vera Ogeh Lassey Fiador: University of Ghana Business School
Mohammed Amidu: University of Ghana Business School

SN Business & Economics, 2021, vol. 1, issue 1, 1-29

Abstract: Abstract This paper examines how bank pricing behaviour affects the relationship between financial inclusion and livelihood activities using a sample of households that covers many regions of Ghana. The empirical approach is conducted in two stages: first, we employ a biprobit model to explore the relationship between financial inclusion and individual livelihood activities. Second, we use two-stage least-squares and robust probit methods to assess the effect of inclusive finance on livelihood activities in the light of pricing behaviour of banks. Our results reveal that individual households who have a source of livelihood are motivated to have an account with a bank if they perceive the possibility of having higher income from their accounts. The results also suggest that individuals have a higher chance of earning more income when they are included financially by means of owning accounts, using their accounts to save, having access to credit, and making frequent withdrawals and payments using their accounts.

Keywords: Banks; Financial inclusion; Livelihood; Bank pricing strategy; Developing country (search for similar items in EconPapers)
JEL-codes: C36 D14 G21 I3 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s43546-020-00017-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:snbeco:v:1:y:2021:i:1:d:10.1007_s43546-020-00017-6

Ordering information: This journal article can be ordered from
https://www.springer.com/journal/43546

DOI: 10.1007/s43546-020-00017-6

Access Statistics for this article

SN Business & Economics is currently edited by Gino D'Oca

More articles in SN Business & Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().