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Credit for what? Informal credit as a coping strategy of market women in northern Ghana

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  • Schindler, Kati

Abstract

This paper analyzes the use of informal credit as a coping strategy against risk by market women in the city of Tamale, Ghana. Using qualitative research techniques, the analysis reveals that intra-household structure and allocation decisions determine these market-based coping strategies. Market women invest a considerable amount of working hours in maintaining complex credit networks as a safeguard against extreme risks. As a policy implication, this research suggests to provide market women with access to formal, reliable and long-term microfinance institutions, both to improve their ability to cope with risks and to reduce the risks they face.

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  • Schindler, Kati, 2006. "Credit for what? Informal credit as a coping strategy of market women in northern Ghana," Proceedings of the German Development Economics Conference, Berlin 2006 24, Verein für Socialpolitik, Research Committee Development Economics.
    • Handle: RePEc:zbw:gdec06:4761
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    Cited by:

    1. Cull, Robert & Gan, Li & Gao, Nan & Xu, Lixin Colin, 2022. "Social capital, finance, and consumption: Evidence from a representative sample of Chinese households," Journal of Banking & Finance, Elsevier, vol. 145(C).
    2. Scheiterle, Lilli & Birner, Regina, 2021. "The Myth of the Market Queens: a Case Study of Women and Power in Ghanaian Markets," 2021 Conference, August 17-31, 2021, Virtual 315924, International Association of Agricultural Economists.
    3. Jones, Kelly & Gong, Erick, 2021. "Precautionary savings and shock-coping behaviors: Effects of promoting mobile bank savings on transactional sex in Kenya," Journal of Health Economics, Elsevier, vol. 78(C).
    4. James Heintz & Lynda Pickbourn, 2012. "The Determinants of Selection into Non-agricultural Self-employment in Ghana," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 6(2), pages 181-209, May.
    5. Godfred Boateng & Vincent Kuuire & Mengieng Ung & Jonathan Amoyaw & Frederick Armah & Isaac Luginaah, 2014. "Women’s Empowerment in the Context of Millennium Development Goal 3: A Case Study of Married Women in Ghana," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 115(1), pages 137-158, January.
    6. Mirko Bendig & Lena Giesbert & Susan Steiner, 2009. "Savings, Credit, and Insurance: Household Demand for Formal Financial Services in Rural Ghana," Global Development Institute Working Paper Series 7609, GDI, The University of Manchester.
    7. Schicks, Jessica, 2014. "Over-Indebtedness in Microfinance – An Empirical Analysis of Related Factors on the Borrower Level," World Development, Elsevier, vol. 54(C), pages 301-324.
    8. Windinkonté Séogo, 2022. "Preventing households from food insecurity in rural Burkina Faso: Does nonfarm income matter?," Agribusiness, John Wiley & Sons, Ltd., vol. 38(4), pages 1032-1047, October.
    9. Tilman Brück & Kati Schindler, 2008. "The Impact of Conflict and Fragility on Households: A Conceptual Framework with Reference to Widows," WIDER Working Paper Series RP2008-83, World Institute for Development Economic Research (UNU-WIDER).
    10. Simba, Amon & Martins Ogundana, Oyedele & Braune, Eric & Dana, Léo–Paul, 2023. "Community financing in entrepreneurship: A focus on women entrepreneurs in the developing world," Journal of Business Research, Elsevier, vol. 163(C).
    11. Ganle, John Kuumuori & Afriyie, Kwadwo & Segbefia, Alexander Yao, 2015. "Microcredit: Empowerment and Disempowerment of Rural Women in Ghana," World Development, Elsevier, vol. 66(C), pages 335-345.
    12. Kwadwo Afriyie & John Kuumuori Ganle & Alexander Yao Segbefia & Pauline Kamau & Grace Wamue-Ngare, 2020. "Contextual Factors Which Affect the Success of Microcredit Programs Among Women in Ghana," Journal of Developing Societies, , vol. 36(2), pages 229-254, June.
    13. Ha van Dung, 2014. "Short-term precaution, insurance and saving mechanisms in rural Vietnam," Working Papers CIE 82, Paderborn University, CIE Center for International Economics.
    14. Haruna Abdallah Imam & Hardy Tamimu r, 2015. "'Life beyond the Walls of my Hometown': Social Safety Networks as a Coping Strategy for Northern Migrants in Accra," Asian Journal of Social Sciences and Management Studies, Asian Online Journal Publishing Group, vol. 2(1), pages 25-43.
    15. Ahmed Tufeiru, 2014. "The Nexus of Female Capital and North–South Labor Migration in Ghana," Journal of Developing Societies, , vol. 30(1), pages 91-114, March.
    16. Natéwindé Sawadogo & Youmanli Ouoba, 2023. "COVID-19, food coping strategies and households resilience: the case of informal sector in Burkina Faso," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 15(4), pages 1041-1056, August.
    17. Evans Sumabe Batung & Kamaldeen Mohammed & Moses Mosonsieyiri Kansanga & Hanson Nyantakyi-Frimpong & Isaac Luginaah, 2023. "Credit access and perceived climate change resilience of smallholder farmers in semi-arid northern Ghana," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(1), pages 321-350, January.
    18. Salia, Samuel & Hussain, Javed & Tingbani, Ishmael & Kolade, Oluwaseun, 2017. "Is women empowerment a zero Sum game? Unintended Consequences of microfinance for Women’s empowerment in Ghana," MPRA Paper 82895, University Library of Munich, Germany, revised 23 Aug 2017.
    19. World Bank, 2011. "Tackling Poverty in Northern Ghana," World Bank Publications - Reports 2755, The World Bank Group.

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    More about this item

    Keywords

    micro-credit; informal markets; networks; coping strategies; intra-household allocation; women; Ghana;
    All these keywords.

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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