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Synthesis of Microfinance and Technical Efficiency: Implications for Poverty Reduction in Ghana

Author

Listed:
  • Samuel Erasmus Alnaa

    (Department of Accountancy, Bolgatanga Polytechnic, Bolgatanga, Ghana)

  • Ferdinand Ahiakpor

    (Department of Economic and Econometrics, University of Johannesburg, South Africa)

Abstract

This paper uses field survey data to assess the mechanism through which microfinance can reduce poverty among rural households in the Upper East Region of Ghana. Data was collected from 500 women engaged in agro processing of whom 250 were beneficiaries of microfinance. The results from the Ordinary Least Square estimation reveal that an increase in technical efficiency of microfinance beneficiary has a positive impact on poverty reduction. In this regard, microfinance institutions are edged to incorporate training and business advisory services as part of their service delivery so as to make their clients more technically efficient.

Suggested Citation

  • Samuel Erasmus Alnaa & Ferdinand Ahiakpor, 2015. "Synthesis of Microfinance and Technical Efficiency: Implications for Poverty Reduction in Ghana," Research in Applied Economics, Macrothink Institute, vol. 7(1), pages 13-25, March.
    • Handle: RePEc:mth:raee88:v:7:y:2015:i:1:p:13-25
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    References listed on IDEAS

    as
    1. Goyal, S.K. & Suhag, K.S., 2003. "Estimation of Technical Efficiency on Wheat Farms in Northern India - A Panel Data Analysis," 14th Congress, Perth, Western Australia, August 10-15, 2003 24305, International Farm Management Association.
    2. Akpalu, Wisdom & Alnaa, Samuel Erasmus & Aglobitse, Peter B., 2012. "Access to microfinance and intra household business decision making: Implication for efficiency of female owned enterprises in Ghana," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 513-518.
    3. Seibel, Hans Dieter, 2005. "Does History Matter? The Old and the New World of Microfinance in Europe and Asia," Working Papers 2005,10, University of Cologne, Development Research Center.
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    Cited by:

    1. Shakina Sultana Pomi, 2019. "Impact of Microcredit on Rural Poverty Alleviation in the Context of Bangladesh," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(6), pages 1-70, June.

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    More about this item

    Keywords

    Microfinance; Poverty reduction; Synthesis; Technical Efficiency;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G00 - Financial Economics - - General - - - General

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