Options
Koomson, Isaac
- PublicationEffect of financial inclusion on out-of-pocket health expenditure: empirics from GhanaEmpirical evidence on the link between financial inclusion and out-of-pocket health expenditure remains sparse while existing studies have mainly not used a multidimensional financial inclusion index. This study examines the link between financial inclusion and out-of-pocket health expenditure in Ghana using data from the seventh round of the Ghana Living Standards Survey. To ensure robustness in findings, the standard instrumental variable (with external instruments) and Lewbel's heteroskedasticity-based instrumental variable approaches are both applied. Our findings indicate that a standard deviation increase in financial inclusion is associated with an increase in households' out-of-pocket health expenditure between 0.1367 and 1.7608 standard deviations. This finding is more pronounced for female-headed and urban-located households. Financial inclusion has a bigger association with expenses on medical products/appliances than on outpatient services. Policymakers are encouraged to design and implement programs to scale up the level of financial inclusion which has the potential of facilitating demand for health, thereby leading to better health outcomes.
- PublicationEffect of Financial Inclusion on Poverty and Vulnerability to Poverty: Evidence Using a Multidimensional Measure of Financial InclusionThis study examines the effect of financial inclusion on poverty and vulnerability to poverty of Ghanaian households. Using data extracted from the seventh round of the Ghana Living Standards Survey in 2016/17, a multiple correspondence analysis is employed to generate a financial inclusion index, and three-stage feasible least squares is used to estimate households’ vulnerability to poverty. Endogeneity associated with financial inclusion is resolved using distance to the nearest bank as an instrument in an instrumental variables probit technique. Results showed that while 23.4% of Ghanaians are considered poor, about 51% are vulnerable to poverty. We found that an increase in financial inclusion has two effects on household poverty. First, it is associated with a decline in a household’s likelihood of being poor by 27%. Second, it prevents a household’s exposure to future poverty by 28%. Female-headed households have a greater chance of experiencing a larger reduction in poverty and vulnerability to poverty through enhanced financial inclusion than do male-headed households. Furthermore, financial inclusion reduces poverty and vulnerability to poverty more in rural than in urban areas. Governments are encouraged to design or enhance policies that provide an enabling environment for the private sector to innovate and expand financial services to more distant places. Government investment in, and regulation of, the mobile money industry will be a necessary step to enhancing financial inclusion in developing countries.
- PublicationTransport poverty and obesity: The mediating roles of social capital and physical activity
We draw on 16 waves of longitudinal data to examine the relationship between transport poverty and obesity in Australia. We focus on transport poverty relating to public and private transport use, and measure obesity based on body mass index. We find that transport poverty is associated with a decline in obesity. We examine social capital and physical activity as potential mechanisms through which transport poverty transmits to obesity. Our results suggest that transport poverty is associated with higher social capital and an increase in the frequency of engagement in physical activity – both of which have obesity reducing effects. Our findings highlight the need for policies that promote social capital and physical activity as a viable way to address growing concerns around obesity.
- PublicationInformal care and financial stress: Longitudinal evidence from Australia
The number of people providing informal care has increased considerably in the last years while, at the same time, about one in four Australians have financial stress problems. This study uses rich longitudinal data from the Household, Income and Labour Dynamics in Australia (HILDA) survey to estimate the effect of informal care on financial stress. To establish causality, we exploit a fixed effect‐instrumental variable approach to address omitted variable bias and reverse causality problems. Our findings show that informal caregiving increases financial stress between 9.9 and 14.5 percentage points. This finding is robust across a battery of quasi‐ experimental methods. The effect of informal caregiving on financial stress is more pronounced among males, rural residents and those living in low socioeconomic areas. Our analyses further show that financial fragility and social isolation are important channels through which informal caregiving affects financial stress.
- PublicationFinancial inclusion and food insecurity: Examining linkages and potential pathways
Considering the worsening levels of food insecurity globally, studies exploring the link between financial inclusion and food insecurity have become imperative. This paper contributes to the literature by examining the effect of financial inclusion on food insecurity using a multidimensional index of financial inclusion and a food insecurity construct obtained from the Food Insecurity Experience Scale. Based on data extracted from the seventh round of the Ghana Living Standards Sur-vey, our preferred endogeneity-corrected results indicate that improvements in financial inclusion is associated with a reduction in food insecurity. This finding is consistent across different conceptualisations of food insecurity, alternative weighting schemes and cut-offs for the financial inclusion index and different quasi-experimental methods. Financial inclusion is mainly effective in reducing food insecurity in male-headed and rural-located households. Our findings reveal that entrepreneurship is an important pathway through which financial inclusion influences food insecurity.
- PublicationImproving productivity among smallholder farmers in Ghana: does financial inclusion matter?(Emerald Publishing Limited, 2021-07-08)
;Peprah, James Atta; ;Sebu, JoshuaChei, BukariPurpose – Does financial inclusion matter for productivity among smallholder farmers? The authors answer this question by using the sixth and seventh rounds of the Ghana Living Standard Survey to examine the extent to which financial inclusion affects productivity among smallholder farmers in Ghana. Design/methodology/approach – The study uses a pooled data of the 6th and 7th rounds of the Ghana Living Standard Survey which are national representative data. The authors model an Instrumental Variable (IV) to correct for endogeneity in financial inclusion and a dominance analysis to examine the effects of access to credit, ownership of savings account and insurance product on farmers’ productivity. Findings – Results from the study indicate that financial inclusion significantly enhances productivity. Moreover, credit, savings and insurance products influence productivity at various degrees. Thus, expanding the scope of financial services (access to credit, savings and insurance) among smallholder farmers is crucial for inclusive finance and sustainable agricultural production. Practical implications – The findings of the study have implications for financial institutions in the design of financial products that the meet the needs of smallholder farmers. Originality/value – Several studies have looked at how access to credit influences agricultural productivity in Africa. However, in recent times financial inclusion has been advocated for because it goes beyond mere access to credit. This paper to the best of our knowledge is the first of its kind to examine how financial inclusion could affect agricultural productivity in Ghana. - PublicationRelationships between Farmer Psychological Profiles and Farm Business Performance amongst Smallholder Beef and Poultry Farmers in South Africa(MDPI AG, 2023-03)
; ; ; ;Mudau, Livhuwani; Beef cattle and poultry are critically important livestock for improving household food security and alleviating poverty amongst smallholder farmers in South Africa. In this paper, our goal is to examine the relationships between farmer psychological profiles and farm business performance of commercially oriented beef cattle and poultry smallholder farmers in South Africa. We employ a multipronged interdisciplinary approach to test the theory of planned behaviour and its relationship to farm business performance. First, a behavioural science-informed survey instrument was employed to collect data from randomly selected farmer participants in two major beef and poultry projects undertaken by the authors. Second, a latent profile analysis was used to identify the psychological profiles of those farmers. Third, traditional and estimated indicators of farm business performance were obtained using descriptive and econometric-based approaches, including logistic regression and stochastic frontier analyses. The estimated farm business performance indicators were correlated with the psychological profiles of farmers. Results from the latent profile analysis showed three distinct profiles of beef and poultry farmers clearly differentiated by their ability to control and succeed in their farm business enterprises; criteria included attitude, openness to ideas, personality, perceived capabilities, self-efficacy, time orientation, and farm- and personal-related concerns. Profile 1 ('Fatalists') scored themselves negatively on their ability to control and succeed in their business enterprises. The majority of farmers were generally neutral about their ability to control and succeed in their businesses (Profile 2, 'Traditionalists'), while a relatively small group of farmers were confident of their ability to succeed (Profile 3, 'Entrepreneurs'). We found evidence of significant differences in farm business performance amongst the different profiles of farmers. As far as we can determine, this is the only study to have assessed farm business performance based on a differentiation of farmers' psychological profiles. Our results provide a framework to further investigate whether particular types of on-farm interventions and training methods can be customised for different segments of farmers based on their preferred learning styles.
- PublicationMobile money and entrepreneurship in East Africa: the mediating roles of digital savings and access to digital credit
Purpose – This study aims to examine the comparative link between mobile money (MoMo) and entrepreneurship in East Africa. Apart from analysing the data to examine locational, gender and age heterogeneities in the MoMo–entrepreneurship nexus, the authors explore the potential roles of digital savings and access to digital credit in serving as transmission channels in the link between MoMo adoption and entrepreneurship.
Design/methodology/approach – This paper uses nationally representative samples from Kenya, Tanzania and Uganda which were extracted from the fifth wave of the InterMedia Financial Inclusion Insights (FII) Program. The authors employ a suite of quasi-experimental microeconometric techniques— standard instrumental variable estimation, Lewbel two-stage least squares (2SLS) and propensity score matching.
Findings – Overall, the authors' preferred endogeneity-corrected result suggests that adopters of MoMo are 24.4 percentage points more likely to engage in entrepreneurship. This result is robust to alternative ways of conceptualising MoMo adoption and different methods used in resolving endogeneity. The association between MoMo and entrepreneurship is stronger in Kenya compared to Uganda and not significant in Tanzania. The significant positive association between MoMo and entrepreneurship is observed among women and rural residents and not for their male and urban-located counterparts. MoMo significantly enhances entrepreneurship among the youth and adults but not the elderly. Digital savings and access to digital credit serve as important channels through which FinTech adoption influences entrepreneurship.
Practical implications – The entrepreneurship-enhancing effect of MoMo adoption can be extended to discuss the possibility of employing MoMo as a policy tool to contribute to the attainment of Sustainable Development Goal (SGD) 8 which seeks to ensure full and productive employment and decent work for all. Incomes that accrue from entrepreneurial activities can also increase households' purchasing power to decrease poverty (SDG 1), reduce food insecurity (SDG 2) and provide resources needed to purchase clean and modern cooking and lighting fuels (SGD 7).
Social implications – The growing rate of unemployment and vulnerable employment in Africa has been an issue of concern to policy makers. These problems have been caused by the inability of policy makers to create adequate jobs. The study's findings show that policies geared towards enhancing the diffusion of MoMo can augment efforts being made by governments to decrease the unemployment rate in Africa through increased entrepreneurship. The employment effect of MoMo can also be realised through the emergence of digital entrepreneurship which has been identified as having the potential to transform African economies to knowledge-based economies for sustainable development.
Originality/value – This study contributes to the MoMo literature by deviating from the focus of existing studies which have emphasised more on the intermediate outcome (performance) and less on the immediate (i.e. entrepreneurship or small business venturing). This helps to highlight the entrepreneurship effect of MoMo which has evolved from a simple peer-to-peer payment system to a complex one that provides savings, credit, insurance and other products.
- PublicationToward vulnerability-responsive climate adaptation decision making: group inclusiveness as prime driver of local participation(Routledge, )
;Koomson, PaulAlthough inclusive local participation in climate adaptation is touted as the panacea to ensure that project outcomes serve the needs of the most vulnerable, there is no objective measure for group inclusiveness. This study departs from the existing psycho-affective scales and employs principal factor analysis to compute a communicative practice-based inclusiveness scale (CoP-BIS). CoP-BIS measures group inclusiveness with five indicators—ideas solicitation, acknowledgment of views, views utilization, feedback provision, and member involvement. Ordinary least squares analytical procedure is applied to estimate the association between group inclusiveness and group members' participation in decision making, based on data from a survey with 225 respondents randomly sampled from farmers' and fishers' groups in Ghana's Effutu Municipality. We found that group inclusiveness has a statistically significant positive association with all three dimensions of participation (feeling encouraged to participate, willingness to make efforts to participate, and actual participation) inadaptation decision making at the 1% alpha level when other relevant factors are controlled for. Thus, fostering group inclusiveness through inclusive communicative practices is critical in promoting diverse participation in adaptation decision making. The implications for policy and practice are discussed.
- PublicationAddressing the Burden of Education Financing in Low and Lower-Middle-Income Countries: The Role of Savings Accounts, Cash Transfers, and Other Income Sources(Springer New York LLC, 2021-12)
;Ansong, David ;Okumu, Moses ;Otchere, Frank; Sherraden, MichaelCost-sharing between governments and families remains a strategic part of many governments' post-secondary education funding policies in low-income countries. This shift to more cost-sharing raises questions about how households meet their contributions to post-secondary schooling costs. This study uses data from the World Bank's Global Financial Inclusion survey and World Development Indicators to examine how savings account ownership, cash transfers, and other forms of income shape families' decisions about education financing in 59 low and lower-middle-income countries. Results from generalized hierarchical linear modeling and logistic regression models show that individuals with savings accounts are more likely to dedicate resources to educational purposes than those without accounts. Other forms of income (cash transfers excepted) also predict an individual's likelihood of earmarking savings for education to a lesser degree. Our findings offer compelling evidence that greater access to formal savings services may provide a viable long-term strategy to help families prepare financially for their children's future education. These findings may inform future programs that promote financial inclusion and expand access to formal savings services to help individuals and families save for their children's education.