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Credit for What?: Informal Credit as a Coping Strategy of Market Women in Northern Ghana

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Abstract

This paper explores the use of informal credit as a strategy for managing risks by market women in northern Ghana. A broad concept of the costs of risk management strategies is introduced and encompasses both a time and monetary dimension. Based on qualitative data, the analysis reveals that market women invest a considerable amount of time in maintaining complex networks of informal credit providers to insure their access to credit once a shock occurs. Informal credit involves high transaction costs and prevents market women from growing out of poverty in the long term.

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  • Kati Schindler, 2007. "Credit for What?: Informal Credit as a Coping Strategy of Market Women in Northern Ghana," Discussion Papers of DIW Berlin 715, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp715
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    Cited by:

    1. Haruna Abdallah Imam & Hardy Tamimu r, 2015. "'Life beyond the Walls of my Hometown': Social Safety Networks as a Coping Strategy for Northern Migrants in Accra," Asian Journal of Social Sciences and Management Studies, Asian Online Journal Publishing Group, vol. 2(1), pages 25-43.
    2. Schicks, Jessica, 2014. "Over-Indebtedness in Microfinance – An Empirical Analysis of Related Factors on the Borrower Level," World Development, Elsevier, vol. 54(C), pages 301-324.
    3. Ganle, John Kuumuori & Afriyie, Kwadwo & Segbefia, Alexander Yao, 2015. "Microcredit: Empowerment and Disempowerment of Rural Women in Ghana," World Development, Elsevier, vol. 66(C), pages 335-345.
    4. Salia, Samuel & Hussain, Javed & Tingbani, Ishmael & Kolade, Oluwaseun, 2017. "Is women empowerment a zero Sum game? Unintended Consequences of microfinance for Women’s empowerment in Ghana," MPRA Paper 82895, University Library of Munich, Germany, revised 23 Aug 2017.
    5. World Bank, 2011. "Tackling Poverty in Northern Ghana," World Bank Other Operational Studies 2755, The World Bank.
    6. Bruck, Tilman & Schindler, Kati, 2008. "The Impact of Conflict and Fragility on Households: A Conceptual Framework with Reference to Widows," WIDER Working Paper Series 083, World Institute for Development Economic Research (UNU-WIDER).
    7. Ha van Dung, 2014. "Short-term precaution, insurance and saving mechanisms in rural Vietnam," Working Papers CIE 82, Paderborn University, CIE Center for International Economics.

    More about this item

    Keywords

    Africa; Ghana; informal credit; risk management; women;

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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