IDEAS home Printed from https://ideas.repec.org/p/ags/saea18/266868.html
   My bibliography  Save this paper

Determinants of the choice of a savings option: "The case of African Households"

Author

Listed:
  • Asare, Eris
  • Nakakeeto, Gertrude
  • Segarra, Eduardo

Abstract

Recent research shows that about 2.5 million people have no access to financial services worldwide. The research also shows that Africa, the home to 70 percent of the world’s least developed countries, has 80 percent of its population unbanked. These statistics are particularly disturbing as they have direct implications for economic growth. This is because, financial inclusion, including savings, has been shown to have a positive impact on economic growth and development. However, recent empirical research is limited in explaining the determinants of the choice of the savings option in Africa. By using survey data obtained from the World-Global Financial Inclusion (Global Findex) Database, 2014, we investigate how household’s characteristics affect their choice of a saving option. We use the multinomial probit model due to its ability to account for issues of independence of irrelevant alternatives (IIA). Our results indicate that there is a strong disconnect between female entrepreneurs and the formal banking sector.

Suggested Citation

  • Asare, Eris & Nakakeeto, Gertrude & Segarra, Eduardo, 2018. "Determinants of the choice of a savings option: "The case of African Households"," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266868, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea18:266868
    DOI: 10.22004/ag.econ.266868
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/266868/files/Determinants%20of%20the%20choice%20of%20a%20savings%20option%20SAEA%20Paper.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.266868?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Vivien Foster & Cecilia Briceno-Garmendia, 2010. "Africa's Infrastructure : A Time for Transformation [Infrastructures africaines]," World Bank Publications - Books, The World Bank Group, number 2692.
    2. Bruhn, Miriam & Love, Inessa, 2009. "The economic impact of banking the unbanked : evidence from Mexico," Policy Research Working Paper Series 4981, The World Bank.
    3. Thorsten Beck & Samuel Munzele Maimbo & Issa Faye & Thouraya Triki, 2011. "Financing Africa : Through the Crisis and Beyond," World Bank Publications - Books, The World Bank Group, number 2355.
    4. Martin Fishbein, 2008. "A Reasoned Action Approach to Health Promotion," Medical Decision Making, , vol. 28(6), pages 834-844, November.
    5. Mr. Emilio Sacerdoti, 2005. "Access to Bank Credit in Sub-Saharan Africa: Key Issues and Reform Strategies," IMF Working Papers 2005/166, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Franklin Allen & Elena Carletti & Robert Cull & Jun QJ Qian & Lemma Senbet & Patricio Valenzuela, 2021. "Improving Access to Banking: Evidence from Kenya [A matter of experience? Understanding the decline in group lending]," Review of Finance, European Finance Association, vol. 25(2), pages 403-447.
    2. Thorsten Beck & Robert Cull, 2013. "Banking in Africa," CSAE Working Paper Series 2013-16, Centre for the Study of African Economies, University of Oxford.
    3. Thorsten Beck & Samuel Munzele Maimbo & Issa Faye & Thouraya Triki, 2011. "Financing Africa : Through the Crisis and Beyond," World Bank Publications - Books, The World Bank Group, number 2355.
    4. Ströh de Martínez, Christiane & Feddersen, Marietta & Speicher, Anna, 2016. "Food security in sub-Saharan Africa: a fresh look on agricultural mechanisation. How adapted financial solutions can make a difference," IDOS Studies, German Institute of Development and Sustainability (IDOS), volume 91, number 91, July.
    5. Beck, Thorsten & Demirgüç-Kunt, Asli & Singer, Dorothe, 2013. "Is Small Beautiful? Financial Structure, Size and Access to Finance," World Development, Elsevier, vol. 52(C), pages 19-33.
    6. Marilyn Stringer & Tali Averbuch & Pamela Mack Brooks & Loretta Sweet Jemmott, 2012. "Response to Homeless Childbearing Women’s Health Care Learning Needs," Clinical Nursing Research, , vol. 21(2), pages 195-212, May.
    7. Panicos Demetriades & David Fielding, 2012. "Information, Institutions, And Banking Sector Development In West Africa," Economic Inquiry, Western Economic Association International, vol. 50(3), pages 739-753, July.
    8. Prina, Silvia, 2015. "Banking the poor via savings accounts: Evidence from a field experiment," Journal of Development Economics, Elsevier, vol. 115(C), pages 16-31.
    9. Farla, Kristine, 2012. "Institutions and credit," MERIT Working Papers 2012-038, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. Atanda Mustapha Saidi, 2017. "Working Paper 273 - Stock (Mis)pricing and investment dynamics in Africa," Working Paper Series 2390, African Development Bank.
    11. Torsten Ehlers, 2014. "Understanding the challenges for infrastructure finance," BIS Working Papers 454, Bank for International Settlements.
    12. Venables, Anthony & Duranton, Gilles, 2018. "Place-Based Policies for Development," CEPR Discussion Papers 12889, C.E.P.R. Discussion Papers.
    13. Jana Hönke & Ivan Cuesta-Fernandez, 2018. "Mobilising security and logistics through an African port: A controversies approach to infrastructure," Mobilities, Taylor & Francis Journals, vol. 13(2), pages 246-260, March.
    14. Lucia de Strasser, 2017. "Calling for Nexus Thinking in Africa’s Energy Planning," ESP: Energy Scenarios and Policy 263161, Fondazione Eni Enrico Mattei (FEEM).
    15. International Monetary Fund, 2005. "Cape Verde: Selected Issues and Statistical Appendix," IMF Staff Country Reports 2005/319, International Monetary Fund.
    16. Pelletier, Adeline, 2018. "Performance of foreign banks in developing countries: evidence from sub-Saharan African banking markets," LSE Research Online Documents on Economics 86368, London School of Economics and Political Science, LSE Library.
    17. Chali Nondo, 2018. "Is There a Relationship between Information and Communication Technologies Infrastructure, Electricity Consumption and Total Factor Productivity? Evidence from a Panel of African Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 8(4), pages 207-218.
    18. Shigufta Hena Uzma & Suvendu Kr. Pratihari, 2019. "Financial Modelling for Business Sustainability: A Study of Business Correspondent Model of Financial Inclusion in India," Vikalpa: The Journal for Decision Makers, , vol. 44(4), pages 211-231, December.
    19. Christian Lambert Nguena, 2019. "Working Paper 323- Mobile Financial and Banking Services Development in Africa," Working Paper Series 2449, African Development Bank.

    More about this item

    Keywords

    Agricultural Finance;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:saea18:266868. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/saeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.