Female smallholder farmers’ preferences for digital and conventional credit attributes: evidence from Madagascar

Wahbi, Annkathrin; Sarfo, Yaw; Musshoff, Oliver

doi:10.1108/afr-01-2023-0008

Cited by 3 publications

(1 citation statement)

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“…Summarizing the main results indicate that taking up a credit and the choice of a credit source depend on farmer's risk attitude (Possner et al, 2021). The loan attributes also affect the choice to take up a formal credit (Sarfo et al, 2021(Sarfo et al, , 2023Wahbi et al, 2023) and socioeconomic characteristics such as the age and the number of dependents within the farming household matter (Jumpah et al, 2019). However, other factors that might affect the loan demand, such as the macroeconomic environment and the different phases of the crop cycles have far less been investigated.…”

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confidence: 99%

Exploring the role of interest rates, macroeconomic environment, agricultural cycle, and gender on loan demand in the agricultural sector: Evidence from Mali

Ölkers,

Mußhoff

2023

Agribusiness

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Formal credit plays an important role for the development of the agriculture sector in developing countries because many farmers are characterized as liquidity constrained. Access to credit can increase farmers' purchasing power for inputs and agricultural technology, thus raising the overall productivity. Farmers in Mali are particularly vulnerable to shocks, such as heavy precipitation events. Access to liquidity to increase the resilience of the agricultural sector is essential. Therefore, higher financing volumes are required, which make the analysis of loan demand in agriculture of interest. The purpose of this paper is to empirically investigate the role of the interest rate, the macroeconomic environment, the agricultural cycle and the gender of the farmer on the loan demand in the agricultural sector from a country in the Sahel. Unique and comprehensive loan data at the farm level, provided by a commercial Malian bank, is used for this analysis. The analysis covers the period from 2010 to 2020. Two different estimation strategies are combined. First, an ordinary least square regression is applied with the granted loan amount as the dependent variable. Second, the machine learning technique, least absolute shrinkage and selection operator, is applied to select the most relevant features to be used as explanatory variables in the estimation. The results reveal that the interest rate, the gross value added, the farmer's gender as well as the agricultural cycle have statistically significant effects on the granted loan demand in agriculture. These results are of interest to policymakers, who deal with financial inclusion as well as market failures, and agricultural financial institutions who could incorporate such information in the design of future loan products to stimulate farmers' loan demand, especially for female farmers. [EconLit Citations: G20, G21, O13, O16, Q14, Q18].

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Section: Introductionmentioning

confidence: 99%

Exploring the role of interest rates, macroeconomic environment, agricultural cycle, and gender on loan demand in the agricultural sector: Evidence from Mali

Ölkers,

Mußhoff

2023

Agribusiness

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Microcredit via digital innovation platforms: its drivers and impact on fish farms' yield and income in Nigeria

Mukaila

2024

AFR

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PurposeFish farmers in Africa often operate on small-scale culture units, primarily due to poor access to funding and low technology adoption. Digital innovation platforms seek to enhance farmers’ access to finance, production and farmers’ income. However, there is a lack of empirical evidence to support these claims. Therefore, this study investigated the factors influencing fish farmers’ access to microcredit from digital innovation platforms and the impact of this microcredit on fish farms’ yield and income in Nigeria.Design/methodology/approachA mixed-methods approach was adopted, and data were gathered from 387 fish farmers through a well-structured questionnaire and focus group discussion. The data were analyzed using probit regression and instrumental variable two-stage least squares regression.FindingsThe results revealed that ownership of smartphones, awareness of digital agricultural innovation platforms, farmers’ education, income, fish farming as a primary occupation, cooperative society and extension contacts positively influenced farmers’ access to microcredit from digital innovation platforms. The age of farmers and household size negatively influenced their access to digital microcredit. Digital microcredit positively and significantly impacted fish farms’ yield and farmers’ income.Practical implicationsDigital microcredit significantly increased fish farm yield and income. Therefore, digital innovation platforms should be encouraged and promoted through the creation of awareness about their ability to solve inadequate financing in agriculture by agricultural extension agents.Originality/valueThis study contributes to our understanding of the influencing factors for farmers accessing digital microcredit and how digital microcredit enhances farm yield and income.

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Empowering female entrepreneurs through access to digital microfinance services

Wulandari,

Hj.Kassim

2024

IJGE

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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.

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Female smallholder farmers’ preferences for digital and conventional credit attributes: evidence from Madagascar

Cited by 3 publications

References 46 publications

Exploring the role of interest rates, macroeconomic environment, agricultural cycle, and gender on loan demand in the agricultural sector: Evidence from Mali

Exploring the role of interest rates, macroeconomic environment, agricultural cycle, and gender on loan demand in the agricultural sector: Evidence from Mali

Microcredit via digital innovation platforms: its drivers and impact on fish farms' yield and income in Nigeria

Empowering female entrepreneurs through access to digital microfinance services

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