Digital financial services and livelihood diversification in rural Ghana
AbstractThe emergence of digital financial systems, especially mobile money, has significantly changed the financial services space in sub-Saharan Africa in ways that promote financial inclusion among the poor, including those in rural communities. Focusing on mobile money, which is the main avenue...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2024-12-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2024.2330434 |
| _version_ | 1797221593895665664 |
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| author | Richmond Atta-Ankomah Kwame Adjei-Mantey Akuffo Amankwah |
| author_facet | Richmond Atta-Ankomah Kwame Adjei-Mantey Akuffo Amankwah |
| author_sort | Richmond Atta-Ankomah |
| collection | DOAJ |
| description | AbstractThe emergence of digital financial systems, especially mobile money, has significantly changed the financial services space in sub-Saharan Africa in ways that promote financial inclusion among the poor, including those in rural communities. Focusing on mobile money, which is the main avenue for digital financial services for rural households in Ghana, this study investigates whether digital finance affects rural households’ livelihood diversification, using a nationally representative data on Ghana. Employing several econometric methods, including instrumental variable techniques to address potential endogeneity bias, the study finds mobile money to be positively associated with households’ choice of non-farm business as a livelihood option as well as their engagement in livestock production. However, we find a negative relationship between mobile money and diversification in crop production including the extent to which households engaged in the crop sector are able to diversify crop production. The implication is that when rural households have access to mobile money services, they produce fewer number of different crops while exploring non-farm activities and livestock production as additional livelihood options. The results underscore the need to address constraints that limit rural households’ access to digital financial tools, especially mobile money, in Ghana and in similar developing country contexts. |
| first_indexed | 2024-04-24T13:07:54Z |
| format | Article |
| id | doaj.art-ed17171b874d49a8894bc15a3a0fa39f |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-04-24T13:07:54Z |
| publishDate | 2024-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-ed17171b874d49a8894bc15a3a0fa39f2024-04-05T07:10:40ZengTaylor & Francis GroupCogent Economics & Finance2332-20392024-12-0112110.1080/23322039.2024.2330434Digital financial services and livelihood diversification in rural GhanaRichmond Atta-Ankomah0Kwame Adjei-Mantey1Akuffo Amankwah2Institute of Statistical, Social and Economic Research, University of Ghana, Legon, GhanaDepartment of Applied Economics, University of Environment and Sustainable Development, Somanya, GhanaLiving Standards Measurement Study, Development Data Group, Washington, DC, USAAbstractThe emergence of digital financial systems, especially mobile money, has significantly changed the financial services space in sub-Saharan Africa in ways that promote financial inclusion among the poor, including those in rural communities. Focusing on mobile money, which is the main avenue for digital financial services for rural households in Ghana, this study investigates whether digital finance affects rural households’ livelihood diversification, using a nationally representative data on Ghana. Employing several econometric methods, including instrumental variable techniques to address potential endogeneity bias, the study finds mobile money to be positively associated with households’ choice of non-farm business as a livelihood option as well as their engagement in livestock production. However, we find a negative relationship between mobile money and diversification in crop production including the extent to which households engaged in the crop sector are able to diversify crop production. The implication is that when rural households have access to mobile money services, they produce fewer number of different crops while exploring non-farm activities and livestock production as additional livelihood options. The results underscore the need to address constraints that limit rural households’ access to digital financial tools, especially mobile money, in Ghana and in similar developing country contexts.https://www.tandfonline.com/doi/10.1080/23322039.2024.2330434Digital financemobile moneylivelihood diversificationcropslivestocknon-farm enterprises |
| spellingShingle | Richmond Atta-Ankomah Kwame Adjei-Mantey Akuffo Amankwah Digital financial services and livelihood diversification in rural Ghana Cogent Economics & Finance Digital finance mobile money livelihood diversification crops livestock non-farm enterprises |
| title | Digital financial services and livelihood diversification in rural Ghana |
| title_full | Digital financial services and livelihood diversification in rural Ghana |
| title_fullStr | Digital financial services and livelihood diversification in rural Ghana |
| title_full_unstemmed | Digital financial services and livelihood diversification in rural Ghana |
| title_short | Digital financial services and livelihood diversification in rural Ghana |
| title_sort | digital financial services and livelihood diversification in rural ghana |
| topic | Digital finance mobile money livelihood diversification crops livestock non-farm enterprises |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2024.2330434 |
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