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The Impact of Finance on Welfare of Smallholder Farm Household in Ghana

R. Nordjo and C. Adjasi

No 277142, 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia from International Association of Agricultural Economists

Abstract: This study estimates the effect of access to finance on smallholder farmer s welfare in the Northern Region of Ghana. Using field survey data, we compared the average difference in welfare between farmers with access to finance and non-equivalent control groups. By adopting Propensity Score Matching (PSM) and Propensity Score Weighting (PSW) to control selection bias, the results of the econometric estimation indicate that access to finance has a positive and significant effect on the welfare of smallholder farmers. The result provides evidence that smallholder farmers participation in financial services must be promoted. Thus, policy towards extending finance to smallholder farmers must be adopted. Acknowledgement : I am extremely indebted to my supervisor, Prof Charles K.D Adjasi, for his advice, dedication, guidance, and exceptional mentorship. I also thank the Alliance for a Green Revolution in Africa (AGRA) Ghana to help me secure funding for my fieldwork.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev
Date: 2018-07
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae18:277142

DOI: 10.22004/ag.econ.277142

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