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Impacts of social networks and input credit scheme participation on the welfare of smallholder farmers in northern Ghana

Abdul-Rashid Asumah Seidu () and Yazeed Abdul Mumin ()
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Abdul-Rashid Asumah Seidu: University for Development Studies
Yazeed Abdul Mumin: University for Development Studies

SN Business & Economics, 2025, vol. 5, issue 9, 1-22

Abstract: Abstract This study examines how farmers’ and their peers’ participation in input credit schemes influences household income and food consumption in northern Ghana. We apply the Spatial Durbin Model and Control Function to identify peer effects and use the Endogenous Switching Regression Model to account for selection bias. The results show that peer credit access significantly boosts income and food security, particularly among farmers without credit access. This suggests that even non-participating farmers benefit indirectly through their networks. Our findings highlight the potential of leveraging social networks to enhance the reach and impact of agricultural credit interventions.

Keywords: Social networks; Credit constraint; Input credit; Income; Food security; Treatment effects; D1; D6; C31; G51; Q1 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s43546-025-00877-w

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