An Empirical Assessment Of The Impact Of Access To Credit On Farm Output: A Case Study Of Sefwi-Wiawso Municipality Ghana
Date
2019
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Social Economics Research
Abstract
The study examined the socio-demographic features of farmers and credit accessibility
in the Sefwi-Wiawso Municipality Ghana. It also identifies the sources and factors
influencing access to credit in the Sefwi-Wiawso Municipality. Primary data were
obtained from 1,200 households and farmers within the Sefwi-Wiawso Municipal. The
empirical analysis employed a logistic regression technique, the Tobit model, and
the Endogenous Switching Regression Model (ESRM) to explore the accessibility of credit
on productivity in the agriculture sector. The results revealed that age and gender are
statistically significant in determining access to credit from both the logit and the
endogenous regression models. The endogenous switching regression model further
reveals that educational status, land ownership, and access to knowledge on credit
significantly influence the amount of credit received by a particular farmer within the
Sefwi-Wiawso Municipality. These findings have practical implications for the
modernization of the Agriculture sector in Ghana. It is therefore important for various
stakeholders to increase financial literacy among farming communities and financial
institutions to increase credit accessibility in the Agriculture sector. It is therefore
recommended that extension services provision, diversification of agriculture
production, and easy access to credit from financial institutions in the Municipality be
established to ensure increased agriculture production.
Description
Research Article
Keywords
Socio-demographic, Productivity, Credit, Farmers, Accessibility, Modernization, Agriculture