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

Schindler, Kati

doi:10.1080/00220380903002905

Cited by 44 publications

(34 citation statements)

References 54 publications

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“…It also improves household power relations as both women and men are able to earn income, a major determinant of household power dynamics (Pitt et al, 2006) critical in the pursuance of sustainable welfare outcomes. With specific reference to informal credit, the negative relationship found is inconsistent with the views expressed by Schindler (2010) who in a study of informal credit as a coping strategy of market women in northern Ghana concluded that informal credit positively influence the welfare outcomes of women and their households.…”

Section: Resultscontrasting

confidence: 53%

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Estimating the effects of formal and informal credit on farm household welfare: A hierarchical competitive welfare model approach

Akudugu¹

2014

J. Dev. Agric. Econ.

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This paper uses the hierarchical competitive welfare model approach to estimate the effects of credit from formal and informal sources on welfare development of farm households in Ghana. Data used for the econometric analyses came from the Ghana Living Standards Survey Round 5 dataset. The results showed that when a farm household is given GHC100 as formal credit, its welfare expenditure would increase by about GHC6. On the other hand, GHC100 given to a farm household as informal credit reduces its welfare expenses by about GHC10. There are two possible explanations for the negativity of informal credit on household welfare expenses. The first is that most informal credit is delivered in material forms instead of cash, which therefore reduces how much borrowing households expend on those materials. The second possible explanation is that informal credit borrowers get trapped in the vicious cycle of poverty such that it reduces their capacity to expend towards the attainment of their welfare outcomes such as food security, healthcare, education and general well-being. A paradigm shift towards the integration of formal and informal financial markets of Ghana is recommended.

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Section: Resultscontrasting

confidence: 53%

“…This is because informal lenders are blamed for charging exorbitant interest payments (Schindler, 2010). That notwithstanding, the informal financial market of Ghana continues to exist with many people across the country relying on it to meet their financial needs.…”

Section: Introductionmentioning

confidence: 99%

Estimating the effects of formal and informal credit on farm household welfare: A hierarchical competitive welfare model approach

Akudugu¹

2014

J. Dev. Agric. Econ.

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“…Moreover, inefficiency and the cost of microfinance impedes women's ability to escape poverty (Schindler, 2010).…”

Section: Cultural and Institutional Issuesmentioning

confidence: 99%

Is women empowerment a zero sum game? Unintended consequences of microfinance for women’s empowerment in Ghana

Salia

Hussain

Tingbani

et al. 2017

IJEBR

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Purpose: Against the background of growing concerns that development interventions can sometimes be a zero-sum game, this paper examines the unintended consequences of microfinance for women empowerment in Ghana.Design/methodology/approach: The study employs a participatory mixed-method approach including household questionnaire surveys, focus group discussions and key informant interviews to investigate the dynamics of microfinance effects on women in communities of different vulnerability status in Ghana. Findings:The results of hierarchical regression, triadic closure and thematic analyses demonstrate that the economic benefits of microfinance for women is also directly associated with conflicts amongst spouses, girl child labour, polygyny and the neglect of perceived female-domestic responsibilities due to women's devotion to their enterprises. Originality/value:In the light of limited empirical evidence on potentially negative impacts of women empowerment interventions in Africa, this paper fills a critical gap in knowledge that will enable NGOs, policy makers and other stakeholders to design and implement more effective interventions that mitigate undesirable consequences.

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“…In Ghana, as in many other developing countries, the financial market is highly fragmented (Aryeetey et al 1997). Only 5 to 6 percent of the population are reported to have access to the commercial banking sector (Basu et al 2004 (La Ferrara 2003, Schindler 2007). To our knowledge, an investigation of the determinants of rural households' demand for formal savings, loans, and insurance has not been undertaken.…”

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confidence: 99%

Savings, Credit and Insurance: Household Demand for Formal Financial Services in Rural Ghana

2009

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This paper argues that the study of the demand for financial services in developing countries leaves out part of the story, if it looks at only one of the three elements of the so called finance trinity, i.e. savings products, loans, or insurances, as is largely done in the literature. In contrast to previous research, it is assumed that households' choice for any of these services is strongly interconnected. Therefore, the paper simultaneously estimates the determinants of household demand for savings, loans and insurances by applying a multivariate probit model on household survey data from rural Ghana. On the one hand, the estimation results confirm the common finding that poorer households are less likely to participate in the formal financial sector than better off households. On the other hand, there is empirical evidence that the usage of savings products, loans and insurances does not only depend on the socio-economic status of households, but also on various other factors, such as households' risk assessment and the past exposure to shocks. In addition, trust in the providing institution and its products appear to play a key role.Keywords: rural financial markets, financial services, Sub-Saharan Africa, Ghana JEL Codes: G20, O16, R22

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

Cited by 44 publications

References 54 publications

Estimating the effects of formal and informal credit on farm household welfare: A hierarchical competitive welfare model approach

Estimating the effects of formal and informal credit on farm household welfare: A hierarchical competitive welfare model approach

Is women empowerment a zero sum game? Unintended consequences of microfinance for women’s empowerment in Ghana

Savings, Credit and Insurance: Household Demand for Formal Financial Services in Rural Ghana

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