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Access to Financial Services Via Rural and Community Banks and Poverty Reduction in Rural Households in Ghana

Author

Listed:
  • Michael Danquah

    (Department of Economics, University of Ghana)

  • Peter Quartey

    (Department of Economics/ISSER, University of Ghana)

  • Abdul Malik Iddrisu

    (Department of Economics, University of Ghana)

Abstract

This paper examines whether financial services provided by Rural and Community Banks to rural households in Ghana has a significant impact on the wellbeing of the households. The analysis utilizes data from the Round 6 of the Ghana Living Standard Survey (GLSS) and it employs several econometric techniques. We find that access to financial services via Rural and Community Banks exerts a positive and significant influence on the standard of living of rural households, suggesting that Rural and Community Banks can play a significant role in reducing poverty rates in rural households in Ghana.

Suggested Citation

  • Michael Danquah & Peter Quartey & Abdul Malik Iddrisu, 2017. "Access to Financial Services Via Rural and Community Banks and Poverty Reduction in Rural Households in Ghana," Journal of African Development, African Finance and Economic Association (AFEA), vol. 19(2), pages 67-76.
    • Handle: RePEc:afe:journl:v:19:y:2017:i:2:p:67-76
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    References listed on IDEAS

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    5. Peter Quartey, 2005. "Financial Sector Development, Savings Mobilization and Poverty Reduction in Ghana," WIDER Working Paper Series RP2005-71, World Institute for Development Economic Research (UNU-WIDER).
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    Citations

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    Cited by:

    1. Abdul Malik Iddrisu & Michael Danquah, 2021. "The welfare effects of financial inclusion in Ghana: An exploration based on a multidimensional measure of financial inclusion," WIDER Working Paper Series wp-2021-146, World Institute for Development Economic Research (UNU-WIDER).
    2. Simplice A. Asongu & Nicholas M. Odhiambo, 2018. "ICT, Financial Access and Gender Inclusion in the Formal Economic Sector: Evidence from Africa," The African Finance Journal, Africagrowth Institute, vol. 20(2), pages 45-65.
    3. Asongu, Simplice A. & Nnanna, Joseph & Acha-Anyi, Paul N., 2020. "Finance, inequality and inclusive education in Sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 67(C), pages 162-177.
    4. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "Finance, governance and inclusive education in Sub-Saharan Africa," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 17(8), pages 1044-1061, July.
    5. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Governance, capital flight and industrialisation in Africa," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-22, December.
    6. Asongu, Simplice & Nnanna, Joseph & Acha-Anyi, Paul, 2020. "Inclusive Education for Inclusive Economic Participation: the Financial Access Channel," MPRA Paper 103151, University Library of Munich, Germany.
    7. Asongu, Simplice A. & Folarin, Oludele E. & Biekpe, Nicholas, 2019. "The long run stability of money demand in the proposed West African monetary union," Research in International Business and Finance, Elsevier, vol. 48(C), pages 483-495.
    8. Asongu, Simplice A & Odhiambo, Nicholas M, 2023. "The role of financial inclusion in moderating the incidence of entrepreneurship on energy poverty in Ghana," Working Papers 30127, University of South Africa, Department of Economics.
    9. Simplice Asongu & Oludele Folarin & Nicholas Biekpe, 2019. "The stability of demand for money in the proposed Southern African Monetary Union," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 15(2), pages 222-244, August.
    10. Asongu, Simplice A. & Nnanna, Joseph & Acha-Anyi, Paul N., 2020. "Inequality and gender economic inclusion: The moderating role of financial access in Sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 65(C), pages 173-185.
    11. Danquah Michael & Iddrisu Abdul & Ohemeng Williams & Barimah Alfred, 2020. "Rural financial intermediation and poverty reduction in Ghana: A micro-level analysis," WIDER Working Paper Series wp2020-2, World Institute for Development Economic Research (UNU-WIDER).
    12. Dar, Shafkat Shafi & Sahu, Sohini, 2022. "The effect of language on financial inclusion," Economic Modelling, Elsevier, vol. 106(C).
    13. Koomson, Isaac & Danquah, Michael, 2021. "Financial inclusion and energy poverty: Empirical evidence from Ghana," Energy Economics, Elsevier, vol. 94(C).
    14. Simplice A. Asongu & Amarachi O. Ogbonna & Mariette C. N. Mete, 2024. "Marriage as an argument for energy poverty reduction: the moderating role of financial inclusion," Working Papers of the African Governance and Development Institute. 24/031, African Governance and Development Institute..
    15. Michael Danquah & Abdul Malik Iddrisu & Peter Quartey & Williams Ohemeng & Alfred Barimah, 2021. "Rural financial intermediation and poverty reduction in Ghana: A micro‐level analysis," Poverty & Public Policy, John Wiley & Sons, vol. 13(4), pages 316-334, December.
    16. Martinson Ankrah Twumasi & Abbas Ali Chandio & Ghulam Raza Sargani & Isaac Asare & Huaquan Zhang, 2022. "Off-Farm Employment and Agricultural Credit Fungibility Nexus in Rural Ghana," Sustainability, MDPI, vol. 14(15), pages 1-15, July.
    17. Iddrisu, Abdul Malik & Danquah, Michael, 2024. "The financial inclusion agenda: Examining the role of conventional banks in deepening access to formal credit," Economic Systems, Elsevier, vol. 48(2).
    18. Osabuohien, Evans S. & Efobi, Uchenna R. & Herrmann, Raoul T. & Gitau, Ciliaka M.W., 2019. "Female labor outcomes and large-scale agricultural land investments: Macro-micro evidencefrom Tanzania," Land Use Policy, Elsevier, vol. 82(C), pages 716-728.

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    More about this item

    Keywords

    Africa; Financial Services; Ghana; Poverty Reduction; Rural Community Banks;
    All these keywords.

    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • G2 - Financial Economics - - Financial Institutions and Services
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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