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Access to microfinance and intra household business decision making: Implication for efficiency of female owned enterprises in Ghana

Author

Listed:
  • Akpalu, Wisdom
  • Alnaa, Samuel Erasmus
  • Aglobitse, Peter B.

Abstract

Inadequate access to credit contributes to poverty among especially women in developing countries. It is evidenced that in patriarchal societies, males are likely to influence investment decisions when loans are granted to their spouses or female relatives. However the existing literature is inconclusive on whether this influence is positive or negative. This study empirically examines the impact of access to microfinance by women, and male involvement in business decision making on efficiency of small scale enterprises in northern Ghana. We found very low level mean technical efficiency of 40% indicating that output of the enterprises could potentially be more than doubled without employing additional inputs. Moreover access to microfinance increases efficiency by 11%; and enterprises with male spousal influence were less efficient than their counterparts that were independently managed by the women. Furthermore, enterprises owned by women who managed more than one business operated at relatively lower efficiency levels.

Suggested Citation

  • Akpalu, Wisdom & Alnaa, Samuel Erasmus & Aglobitse, Peter B., 2012. "Access to microfinance and intra household business decision making: Implication for efficiency of female owned enterprises in Ghana," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 513-518.
  • Handle: RePEc:eee:soceco:v:41:y:2012:i:5:p:513-518
    DOI: 10.1016/j.socec.2012.04.020
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    References listed on IDEAS

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    6. Johnson, Susan, 2004. "Gender Norms in Financial Markets: Evidence from Kenya," World Development, Elsevier, vol. 32(8), pages 1355-1374, August.
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    8. Shahidur R. Khandker, 2005. "Microfinance and Poverty: Evidence Using Panel Data from Bangladesh," World Bank Economic Review, World Bank Group, vol. 19(2), pages 263-286.
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    10. Samuel Kobina Annim, 2010. "Microfinance efficiency trade-offs and complementarities," Global Development Institute Working Paper Series 12710, GDI, The University of Manchester.
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    Cited by:

    1. repec:eee:wdevel:v:107:y:2018:i:c:p:176-188 is not listed on IDEAS
    2. Fall, Fran├žois & Akim, Al-mouksit & Wassongma, Harouna, 2018. "DEA and SFA research on the efficiency of microfinance institutions: A meta-analysis," World Development, Elsevier, vol. 107(C), pages 176-188.
    3. repec:spr:jglont:v:9:y:2019:i:1:d:10.1186_s40497-018-0128-0 is not listed on IDEAS
    4. repec:eee:wdevel:v:121:y:2019:i:c:p:53-62 is not listed on IDEAS
    5. Samuel Erasmus Alnaa & Ferdinand Ahiakpor, 2015. "Synthesis of Microfinance and Technical Efficiency: Implications for Poverty Reduction in Ghana," Research in Applied Economics, Macrothink Institute, vol. 7(1), pages 13-25, March.

    More about this item

    Keywords

    Stochastic frontier; Technical efficiency; Access to microfinance; Gender; Ghana;

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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