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Effects of access to credit and income on dietary diversity in Ghana

Author

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  • Samuel Kobina Annim

    (University of Cape Coast)

  • Raymond Boadi Frempong

    (Universität Bayreuth)

Abstract

While the relationship between income and food security is well established, a case for the effect of credit on food security remains rather limited. This study examined the relationship between dietary diversity and household income and access to credit. We used the Food Diversity Index and Food Consumption Score to proxy dietary diversity. The fourth and fifth rounds of the Ghana Living Standards Survey, with respective sample sizes of 5779 and 8312 households, were used for the analysis. We applied an instrumental variable estimation technique to address the endogeneity between household nutritional status and income/credit. Results from both surveys showed that access to credit contributes to the consumption of a diversified diet in Ghana. Also, the results corroborated the expected positive relationship between income and dietary diversity. We recommend that, in addition to creating ways to generate income, an effort should be made to make the environment in Ghana and elsewhere more conducive to the activities of micro-credit institutions. This could be done by encouraging microfinance institutions in rural areas through tax exemptions and financial support systems.

Suggested Citation

  • Samuel Kobina Annim & Raymond Boadi Frempong, 2018. "Effects of access to credit and income on dietary diversity in Ghana," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(6), pages 1649-1663, December.
    • Handle: RePEc:spr:ssefpa:v:10:y:2018:i:6:d:10.1007_s12571-018-0862-8
    DOI: 10.1007/s12571-018-0862-8
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    2. Jude I. Iziga & Shingo Takagi, 2022. "Food Consumption–Production Adjustments to Economic Crises under Credit Constraints in Nigeria," Sustainability, MDPI, vol. 14(14), pages 1-25, July.
    3. Talnan Aboulaye Toure, 2023. "Financial inclusion, entrepreneurs’ credit risk exposure and social planner financial policy," Economic Change and Restructuring, Springer, vol. 56(4), pages 2747-2799, August.
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    5. Manisha Chakrabarty & Subhankar Mukherjee, 2022. "Financial Inclusion and Household Welfare: An Entropy-Based Consumption Diversification Approach," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(3), pages 1486-1521, June.
    6. Sayla Khandoker & Alka Singh & Shivendra Kumar Srivastava, 2022. "Leveraging farm production diversity for dietary diversity: evidence from national level panel data," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-20, December.
    7. Vasilii Erokhin & Li Diao & Tianming Gao & Jean-Vasile Andrei & Anna Ivolga & Yuhang Zong, 2021. "The Supply of Calories, Proteins, and Fats in Low-Income Countries: A Four-Decade Retrospective Study," IJERPH, MDPI, vol. 18(14), pages 1-30, July.

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