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Access to Financial Services and Its Impact on Household Income: Evidence from Rural Ghana

Author

Listed:
  • Martinson Ankrah Twumasi

    (Sichuan Agricultural University)

  • Hongyun Zheng

    (Huazhong Agricultural University)

  • Love Offeibea Asiedu-Ayeh

    (Sichuan Agricultural University)

  • Anthony Siaw

    (Sichuan Agricultural University)

  • Yuansheng Jiang

    (Sichuan Agricultural University)

Abstract

This study examines the determinants of access to financial services and its impact on household income, using household data collected from rural Ghana. An endogenous treatment regression model is utilized to address the selection bias issue. The results reveal that access to financial services is affected by household heads’ age, gender, education, off-farm work participation, farming experience, and access to non-fixed assets. Access to financial services exerts a positive and statistically significant impact on household income. Moreover, we find that access to financial services has a larger income impact for households with no member with chronic disease and male-headed households, relative to their counterparts. Our findings highlight the importance of financial services patronization in improving rural household welfare.

Suggested Citation

  • Martinson Ankrah Twumasi & Hongyun Zheng & Love Offeibea Asiedu-Ayeh & Anthony Siaw & Yuansheng Jiang, 2023. "Access to Financial Services and Its Impact on Household Income: Evidence from Rural Ghana," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(4), pages 869-890, August.
    • Handle: RePEc:pal:eurjdr:v:35:y:2023:i:4:d:10.1057_s41287-022-00544-y
    DOI: 10.1057/s41287-022-00544-y
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    More about this item

    Keywords

    Access to financial services; Household income; Endogenous treatment regression model; Ghana;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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