Access To Credit Research Articles

Fruitless or Fruitful? Examining Ghana's Agricultural Inputs Subsidy and Household Welfare

ABSTRACTThere are mixed accounts of the impact of government input subsidies on farmers welfare outcomes in the global south with political colorations, which often tend to exaggerate outcomes. Ghana's Planting for Food and Jobs (PFJ) programme phase 1, promised to be revolutionary in attaining the Sustainable Development Goal (SDG)‐2 of ending hunger. However, the programme received criticisms with mixed sentiments within the political circle and policy arena, with scarce evidence in the extant literature. Using cross sectional data collected from 1107 maize farmers, we find that participating in the PFJ increases maize yield by 454.90 kg/ha, gross income by US$ 171.74 and per capita consumption by US$ 0.43. Our findings show that the adoption of only fertilizer increases maize yield significantly by 1609.2 kg/ha, gross maize income by $332, and improves per capita consumption significantly by $1.22. Participating in the PFJ programme is influenced by age, gender, marital status, education, farm size, credit, pests and diseases, market access, farm distance, radio, political affiliation, and the perception of timely supply of seeds and fertilizers. Our results suggest that adopting multiple combinations of packages remain financially viable. The choice of combinations of interventions is significantly influenced by socioeconomic and institutional factors. We suggest that agricultural extension and advisory services target efforts to address structural challenges relating to land ownership, credit access, market access, pests, and diseases to improve welfare outcomes. The study highlights the need to expand and sustain the PFJ programme to have a maximum impact on maize production, income generation, and household consumption.

Assessment of Satisfaction of MSME at the Pre-Stage of Loan Sanction by Public Sector Banks in Odisha, India

Micro, Small, and Medium Enterprises (MSMEs) are integral to the economic framework, significantly contributing to job creation, promoting equitable income distribution, and mitigating regional economic disparities. The success of MSME entrepreneurs is heavily reliant on the support they receive from financial institutions, particularly in terms of credit access and banking services. This research aims to investigate the determinants of satisfaction among MSME borrowers and assess their overall contentment with public sector banking services. Recommendations are provided to enhance borrower satisfaction, thereby facilitating accelerated growth within the MSME sector. The study employs rigorous scientific methodologies to analyze MSME's satisfaction with commercial banks, revealing that the relationships between various factors and customer satisfaction regarding bank policies and procedures are predominantly linear, with high correlation coefficients indicating a strong connection between these elements.

The effect of sustainable agricultural practices on crop productivity in Ethiopia: insights from a meta-analysis

Conventional agriculture harms the environment and threatens sustainability. To address these issues, sustainable agricultural practices (SAPs) have become imperative. This study utilizes a meta-analysis approach to comprehensively assess empirical studies, investigate the impact of SAPs on crop productivity, identify influencing factors, and examine their temporal evolution. The findings reveal that (1) SAP adoption significantly and positively influences crop productivity, with multiple practices exhibiting the most substantial impact, followed by sustainable agricultural technology. Individuals who adopted SAPs achieved crop productivity that was 980 kilograms per hectare higher than those who did not. (2) Factors such as age, farm size, family size, livestock units, credit access, off-farm income, market distance, and cooperative membership negatively affect crop productivity, whereas education and extension services have a positive impact. (3) The positive effects of education and extension services on crop productivity strengthen over time. The strengthening of these variables over time implies a gradual increase in farmer awareness, access to resources, and adoption of SAPs, highlighting their evolving role in driving them. Accordingly, none of the past researchers identified any patterns in the variables influencing crop productivity. Therefore, promoting SAP adoption and prioritizing education and extension services can offer farmers with experience and support, thereby enhancing crop productivity. Future initiatives should therefore combine interdisciplinary methods, technology, and community involvement for ensuring SAP’s sustainability and scalability.

Modeling the impact of input credit access on farm performance and food nutrition: insights from smallholder rice farmers in Ghana

PurposeThis paper examines the nexus between input credit access, farm performance and food nutrition in Ghana.Design/methodology/approachUsing a random sample of 239 smallholder rice farmers, we utilized the endogenous switching regression model to address the self-selection issue and estimate the impact of input credit access on farm performance and food nutrition and further analyze the heterogenous impacts.FindingsThe results show that socioeconomic (age, education, sex, off-farm activity and farm size), institutional (extension contact and farmer-based organizations) characteristics and location variable significantly influence the decision to access input credit. After adjusting for both observed and unobserved factors, our findings reveal that access to input credit significantly improves rice yield, net profit and food nutrition of smallholder rice farmers in Ghana. Furthermore, results reveal that the effects of input credit access on rice yield, net profit and food nutrition are heterogeneous and subject to farmers’ propensity to access input credit. Specifically, we find that those with a higher inclination to access input credit experience larger positive impacts, indicating a positive selection process.Research limitations/implicationsAccess to agricultural input credit is essential for the adoption of modern and climate-smart technologies in agricultural production. However, the persistent lack of access to input credit hampers agricultural productivity and constrains investment in farm input resources in Sub-Saharan Africa. Our study calls for proper targeting of input credit interventions to incentivize the uptake of farm input credit such as improved seeds and fertilizers to improve overall crop production and achieve food security.Originality/valueThe study utilized rigorous econometric methods to analyze the impact of input credit access on smallholder rice farmers' farm performance and food nutrition in Ghana. The findings provide valuable guidance for policymakers and future research on agricultural development in Ghana.

Navigating Financial Barriers: Examining Agricultural Credit Accessibility for Smallholder Paddy Farmers in Mvomero District, Tanzania

Access to agricultural credit is critical for the economic sustainability of smallholder farmers, particularly in developing regions like Tanzania. However, many smallholder paddy farmers in Mvomero District face significant barriers when trying to secure financing essential for improving productivity and livelihoods. This study investigates the enablers and obstacles influencing agricultural credit accessibility for these farmers. Using a mixed-methods approach, data were collected from 274 farmers and key informants, revealing that prior loan experience plays a significant role in facilitating credit access, with 80.7% of respondents indicating previous loan engagement. Additionally, secure land ownership was found to correlate with better credit terms, as those with formal titles reported a mean score of 3.12, highlighting the importance of land tenure in their borrowing experience. Despite the high level of engagement with credit markets, considerable challenges remain, with mean scores of 2.98 and 3.14 suggesting that interest rates and collateral requirements are perceived as substantial barriers to accessing credit. Furthermore, trust and reputation emerged as pivotal factors in loan procurement, with 73% of farmers expressing willingness to seek additional credit, which reflects a generally positive outlook on borrowing. These findings underscore the urgent need for tailored financial education programmes and supportive policies aimed at enhancing lending practices and improving access to capital for smallholder farmers in the region.

Rising Tides, Sinking Approval Rates: Examining SLR Risk and Mortgage Credit Access

Rising Tides, Sinking Approval Rates: Examining SLR Risk and Mortgage Credit Access

Credit Access among Arable Crop Farmers in Ondo State, Nigeria. Implication for Agricultural Productivity Enhancement

The study assessed credit access among arable crop farmers in Ondo State. A three stage random sampling techniques used in selection of respondents. Primary data were collected using structured questionnaire and analyzed using descriptive and inferential statistics. The bulk of farmers were in the age range of 40-49, with a mean age of 40 years. There was a higher percentage of female farmers (55%) compared to male farmers (45%). Most respondents had household sizes of 4-6 members. A significant portion of farmers (80.8%) had applied for loans, primarily from Cooperative Societies. Challenges to credit access included lack of collateral, high interest rates, lengthy loan approval processes, limited access to credit, inadequate financial literacy, unclear loan requirements, insufficient loan amounts, lack of farmer support, and inflexible repayment terms. The coefficient for age is 0.007, which advocates that for each extra year of age, there was a positive increase in credit access. The negative t-value of -6.255 and the p-value of 0.000 of the sex indicate that this relationship was statistically significant. The negative t-value of -3.687 and the p-value of 0.000 for marital status indicates that this relationship was statistically significant at 5% level of probability. The result showed that education (p-value of 0.000) has significant relationship with credit access. Based on the findings, it is recommended that government should develop and implement educational programs to enhance financial literacy among farmers. Strengthen and support existing cooperative societies, as they emerged as a significant source of credit.

Collateral Ownership as A Stepping Stone to Formal Credit Accessibility: A Perspective of Cottage Industry Owners

Purpose: The study investigates the influence of collateral ownership on formal credit accessibility for cottage industry owners in Dodoma, Tanzania. Design/Methodology/Approach: A cross-sectional survey randomly sampled 357 cottage industry owners from Dodoma City and Chamwino District Council in the Dodoma Region. Quantitative and qualitative data collection methods were used, including surveys and interviews. The analysis employed SPSS software to perform descriptive and inferential statistics, including Chi-square tests and binary logistic regression, to examine the influence of collateral ownership and formal credit accessibility. Findings: The study found that most cottage industry owners with collateral can only access a small amount of formal credit of up to five million Tanzanian shillings. Similarly, the study revealed that ownership of tangible assets, title deeds, business assets, and employment contracts significantly enhances the likelihood of cottage industry owners accessing credit from formal financial institutions in Dodoma, Tanzania. Research Limitation: The study concentrated on collateral ownership and formal credit accessibility to Dodoma City and Chamwino District Council cottage industry owners. Thus, the findings may not apply to all Tanzanian cottage industry owners within the councils due to different regional administrative structures. Also, future studies can examine how interest rates, the availability of business records, and the location of the business may affect formal credit accessibility. Practical Implication: Understanding the role of collateral ownership is crucial in informing policies to improve financial inclusion and reduce poverty. Social Implication: Enhancing credit accessibility through collateral ownership to cottage industry owners can promote economic growth and job creation in Tanzania. Originality/ Value: The application of credit rationing theory in comprehending the influence of collateral ownership and credit accessibility for cottage industry owners in Tanzania, contributing to the financial ecosystem for informal businesses in developing economies.

UNDERSTANDING THE DETERMINANTS OF THE PERFORMANCE OF WOMEN ENTREPRENEURS

Purpose: The present study aims to examine the determinants of performance of women entrepreneurs and its impact on credit accessibility and women empowerment. Methodology: A survey instrument has been designed to collect samples from 500 women entrepreneurs using a convenience sampling technique. Structural Equation Modelling (SEM) using SmartPLS 4 and Analysis of Variance (ANOVA) has been applied for data analysis. Findings: The results unveiled that there is a significant and positive impact of networking, motivation, socio-cultural, and training on the performance of women entrepreneurs. Further, it was found that performance has a significant impact on credit accessibility and women's empowerment. Implications: The present study has implications for governments, financial institutions, markets, and the media to collaborate in such a way that they assist, inspire, and facilitate aspiring women entrepreneurs. Originality: The past studies have mostly focused on the factors that affect nascent women entrepreneurs to start their businesses while ignoring the performance of those firms, so the present study has aimed to fill this gap by examining the determinants of the performance of women-managed entrepreneurial firms and its impact on credit accessibility and women empowerment.

Business environment and its impact on high-quality economic development: A configurational analysis of enhancement pathways.

The nexus between the business environment and high-quality economic development is pivotal for fostering sustainable growth. This study delves into their interrelationship, recognizing its profound practical significance. We have developed a comprehensive index system to evaluate high-quality economic development, encompassing four key dimensions: green development quality, robust economic growth, innovation dynamics, and equitable societal benefits. Concurrently, a business environment index system has been constructed, capturing the nuances of government functionality, social context, and market dynamics. Employing system theory and a configurational approach, this research utilizes the fsQCA method to decode the intricate mechanisms, dynamic pathways, and synergistic interactions among diverse elements within the business environment that influence high-quality economic development. The empirical findings underscore the substantial impact of the business environment on high-quality economic development, highlighting two primary catalyst pathways: the "Rule of Law-Government Efficiency" trajectory and the "Market-Led-Credit Environment" route. These pathways reveal that government efficiency, credit accessibility, legal frameworks, market fairness, and openness are instrumental in driving high-quality economic development. Conversely, inefficiencies in the market mechanism and governmental roles often result in suboptimal development trajectories. The study advocates for policy formulations that recognize and leverage regional distinctiveness, optimizing local resources and strengths to spur high-quality economic development tailored to each region's unique context.

Impact of postharvest handling technologies on income of tomato (Solanum Lycopersicum L.) smallholder farmers in Mvomero, Morogoro, Tanzania

This study investigates how smallholder tomato farmers in Mvomero District, Tanzania, utilize postharvest handling technologies (PHTs) and analyzes the factors influencing their adoption. We also assess the impact of PHTs on farmer income. Using a cross-sectional survey of 201 farmers, the study finds that a variety of PHTs are used, including lower-energy cool storage, Coolbot™ units, zero-energy cool chambers, and improved containers. Probit and ordinary least squares models reveal that factors such as farmer age, male gender, access to specific PHTs (Coolbot™, zero-energy chambers, improved containers), extension services, credit access, and shade use all significantly influence the adoption of PHTs. The study suggests that policymakers should design interventions considering different income levels. Strengthening extension services by increasing the number of workers and providing them with adequate resources is crucial to promote PHT adoption among tomato farmers, ultimately leading to increased income.

The synergistic effects of microcredit access and agricultural technology adoption on maize farmer’s income in Kenya

Addressing global food security demands urgent improvement in agricultural productivity, particularly in developing economies where market imperfections are perverse and resource constraints prevail. While microcredit is widely acknowledged as a tool for economic empowerment, its role in facilitating agricultural technology adoption and improving agricultural incomes remains underexplored. This study examines the synergistic effects of microcredit access and agricultural technology adoption on the incomes of maize farmers in Kenya. Using household-level data, we employ an endogenous switching regression framework to control possible endogeneity in access to microcredit. Our findings shows that microcredit access positively influences the adoption of advanced agricultural technologies. Key determinants, including marital status, use of fertilizer application, access to extension services, and cooperative membership, are identified as significant determinants of microcredit access. Notably, the Average Treatment Effect on the Treated (ATT) indicates a 40.52% increase in income among farmers who access microcredit, mainly driven by the timely adoption of high-quality seeds, improved agricultural technologies, and enhanced inputs. These results highlight microcredit’s role in promoting allocative efficiency and enhancing Total Factor Productivity (TFP) within agricultural systems. Robustness checks, including propensity score matching and sensitivity analyses, corroborate these findings. The study recommends the implementation of targeted financial policies and educational initiatives meant to promote credit access, encourage savings, and enhancing financial literacy, particularly for credit-constrained households. Integrating these measures could strengthen rural financial markets and drive sustainable agricultural development across the regions.

Assessing technical and scale efficiencies in tilapia production: influential factors and insights

This study assessed the technical and scale efficiency of tilapia farmers in Bangladesh with a focus on identifying key factors influencing their efficiency levels. Data from 199 randomly selected tilapia farmers were analyzed using Data Envelopment Analysis (DEA), followed by a Tobit regression model to determine the key variables affecting efficiency. The results revealed a mean TE of 0.77 under CRS, 0.83 under VRS, and a mean SE of 0.92, indicating that most inefficiencies were technical rather than scale-related issues. The study also identified farming training, credit access, and years of experience had a positive effect on TE, while adverse climatic conditions negatively impacted efficiency. The findings emphasize the importance of mitigating climate impacts and improving resource management to enhance efficiency. Expanding credit access, improving training programs, and taking initiatives for mitigating climate impacts could significantly improve the efficiency and long-term viability of tilapia production in the region.

Impact of multiple maize technology package adoption on the production efficiency and food security of smallholder farmers in Ethiopia: Evidence from the Sidama region.

This study aimed to investigate the individual or combined impacts of multiple maize technology package adoption on the production efficiency and food security of smallholder farmers in the selected districts of Sidama region of Ethiopia. The cross-sectional data of 424 sample farmers owing 545 maize plots were collected using multistage sampling approaches. The selection-bias corrected multinomial endogenous switching regression (MESR) model was employed to assess the impact of improved maize seed, chemical fertilizers, and row planting adoption on the production efficiency and food security of smallholder maize-producing farmers. In the first stage of the MESR model, the multinomial logit was used to examine the determinants of adoption. The results of the model showed that a male household head, greater household size, land size, tropical livestock unit, oxen, several plots, extension contact, credit access, and membership in farmers-based organizations were significant factors affecting the adoption of improved maize seed, chemical fertilizer, and row planting. In addition, the results from the second stage impact estimation demonstrated that the adoption of maize technology packages, both individually and in combination, significantly impacts the production efficiency and food security of farming households. Moreover, the simultaneous adoption of two or more technology packages has a greater impact than it does in isolation. The highest technical, allocative, and economic efficiency and food consumption scores, which are 33%, 37%, 47%, and 17, respectively, were achieved when farm households adopted all technology packages simultaneously, followed by the adopters of two packages in combination. Therefore, the policies and strategies aimed at increasing farmers' production efficiency and food security should address the important variables identified and promote wider adoption in combination to realize the utmost benefit.

Small and medium-sized enterprise financing in the manufacturing industry: demand-side determinants of bank credit access in Mozambique

Small and medium-sized enterprise financing in the manufacturing industry: demand-side determinants of bank credit access in Mozambique

Impact of Monetary Policy on Food, Beverages and Tobacco Output in Nigeria: 2000-2023.

This paper investigates the impact of monetary policy on food, beverages and tobacco output in Nigeria, focusing on the relationship between key monetary variables(monetary policy rate, exchange rate, money supply, inflation and manufacturing sector credit) and manufacturing output of the food, beverages and tobacco. Employing a long-run Autoregressive distributed lag model, the analysis reveals that the exchange rate insignificantly influences food, beverages and tobacco, with an appreciation leading to a substantial increase in food, beverages and tobacco output volumes. The paper revealed that money supply positively impacts food, beverages and tobacco, underscoring the importance of adequate liquidity in facilitating manufacturing activities. Conversely, the inflation rate, despite its association with higher borrowing costs, exhibits a positive relationship with food, beverages and tobacco, suggesting that an active economy may enhance manufacturing performance. On the other hand, the monetary policy rate is shown to have a negative impact on food, beverages and tobacco, indicating that tighter monetary policy can dampen manufacturing by increasing the cost of borrowing and restricting liquidity. The findings suggest that policymakers need to strike a balance between controlling inflation and fostering a manufacturing-friendly environment. Stability in the exchange rate, sufficient money supply, and accessible credit markets are recommended to support robust food, beverages and tobacco output in Nigeria.

An Analysis On The Impact Of Non-Banking Financial Companies On Financial Inclusion In Rural And Semi Urban Areas With Reference To Mahindra Finance Limited, Jp Nagar, Bangalore

The study explores the pivotal role of Non-Banking Financial Companies (NBFCs) in advancing financial inclusion in rural and semi-urban areas, with a particular focus on Mahindra Finance Limited, JP Nagar, Bangalore. By bridging the gap between formal financial institutions and underserved populations, NBFCs provide accessible and customized financial solutions, fostering economic growth and empowerment. This research examines the impact of Mahindra Finance's services, including microfinance, vehicle loans, and rural development initiatives, on improving access to credit, promoting entrepreneurship, and enhancing the quality of life in these regions. The findings underscore the significance of NBFCs in addressing financial disparities and driving inclusive growth, while also identifying challenges and areas for further improvement to maximize their contribution to financial inclusion. Key words Non-Banking Financial Companies, Financial Inclusion, Rural Areas, Semi-Urban Areas, Mahindra Finance, Microfinance, Credit Access, Entrepreneurship, Economic Growth, Inclusive Growth.

Economic Recovery Strategy: The Role of MSMEs Credit Access and Optimization of Regional Fiscal Stimulus in Islamic Economics Framework

This paper aims to analyze the determinants of economic recovery in North Sumatra using district-based panel data from 2020-2022 using the Random Effect Model. Several variables derived from the implications of fiscal and monetary policies such as MSME credit access, inflation, the effectiveness of income spending, poverty, unemployment rate, and human development index were used to analyze economic recovery as proxied by GRDP per capita. Our findings indicated that the position of MSMEs' credit and relative poverty have a significant positive effect on economic recovery in North Sumatra. Conversely, the unemployment rate and human development index have a significant negative effect on economic recovery in North Sumatra. Inflation and the effectiveness of income spending have an insignificant effect on economic recovery in North Sumatra. These findings recommend that the government and the central bank should support increased access to MSME credit in terms of regulations, the availability of bank financial institutions, and allocations. In addition, it is crucial to maintain the effectiveness and increase indirect budget allocations for social fund posts that can be integrated with Islamic Social Funds such as Zakat, Infaq, and Shadaqah to address poverty and unemployment challenges to improve the community’s quality of life and accelerate economic recovery in North Sumatra.

Empowering female entrepreneurs through access to digital microfinance services

PurposeThe concept of women’s empowerment is widely regarded as a crucial factor in facilitating the integration and involvement of women in the development process. The cornerstone of women’s empowerment is widely acknowledged to be social and political engagement coupled with economic independence. This research aims to contribute to understanding the effects of access to digital financial services by microfinance institutions (MFIs) in Indonesia on women empowerment, specifically focusing on women at the bottom of the economic pyramid. This empowerment is assessed through social, political and economic dimensions.Design/methodology/approachThis study utilizes logistic regression (LR) to examine the effect of access to microfinance digital financial services on the social, political and economic determinants of women’s empowerment. The analysis is based on the threshold theory of decision-making. The present research includes a sample of 1,644 female entrepreneurs, namely ultra-micro small and medium-sized enterprises (SMEs), actively participating in microfinance activities in Daerah Istimewa Yogyakarta, Nusa Tenggara Barat and Sulawesi Selatan.FindingsThe findings indicate a statistically significant effect between access to credit and the two variables under investigation, namely social and economic empowerment. However, no significant effect was seen between credit access and women’s empowerment. Following this, a positive effect has been identified between credit access and several aspects of women’s empowerment.Research limitations/implicationsThe research establishes a framework and substantiates that women’s empowerment relies on economic autonomy, social engagement and political involvement. MFIs have been identified as significant contributors to this process. This will assist practitioners in formulating policy and implementing interventions to promote women’s empowerment, particularly in the context of digital microfinance. The results of this study will provide valuable insights for guiding future research endeavors in this field.Originality/valueThe work exhibits originality and serves as a valuable resource for those who recognize and appreciate its significance. This report is the first study to examine the correlation between female entrepreneurs’ access to digital MFIs and women’s empowerment dimensions.

Climate Variability and Adaptation Strategies in a Pastoralist Area of the Eastern Bale Zone: The Case of Sawena District, Ethiopia

This study was conducted in Sawena district, located in the Eastern Bale Zone of Ethiopia, with the aim of analyzing climate variability and identifying adaptation strategies. Secondary data covering the period from 1984 to 2023 were utilized, along with structured and unstructured questionnaires. Primary data were gathered from 350 pastoralist households across six kebeles through a household survey. This study used the Mann–Kendall test, Sen’s slope estimator, the coefficient of variation, descriptive statistics, and a multivariate probit model to analyze climate variability and adaptation strategies. The Mann–Kendall test, Sen’s slope estimator, and coefficient of variation analysis results showed significant rainfall increases in September, October, and November, with high winter variability and an upward autumn trend. Temperature analysis revealed consistent warming, with the greatest increases in September (0.049 °C/year) and summer (0.038 °C/year), and an annual mean rise of 0.034 °C per year, indicating climate shifts affecting pastoralist and agro-pastoral livelihood strategies and water resources that lead the area toward vulnerability. The descriptive results indicated that pastoralist households have adopted various adaptation strategies: 45.1% participate in seasonal livestock migration, 26.3% rely on productive safety net programs, 19% pursue livelihood diversification, and 9.7% engage in agroforestry. Multivariate analysis indicates that education, age, credit access, livestock ownership, asset value, and media exposure influence these strategies. The findings highlight the importance of policies to enhance climate resilience through diversification, sustainable land management, and improved access to resources like credit and markets, alongside strengthened education and targeted extension services.