Synergistic effects of remittances and off-farm work on farmers’ welfare outcomes: the role of digital finance
Purpose This study aims to examine the impact of remittances and off-farm work via the pathway of owning a mobile money account on smallholder maize farmers’ welfare outcomes in Ghana. Design/methodology/approach Using cross-sectional data from 1,431 maize farmers in southern Ghana, we employed a multinomial endogenous switching regression. A doubly robust estimator – multivalued inverse-probability-weighted regression adjustment (MIPWRA) – is used to check the robustness of the estimates, within the context of a propensity score framework. Findings Engaging in off-farm work and remittances leads to a maize yield of 1,901.11 kg/acre relative to non-adopters. We find that socio-economic and institutional factors positively influence the selection of financial sources. Ownership of a mobile money account mediates the impact of financial sources on welfare. Our findings call for farmers to harness the synergies of remittances and off-farm work as mediated through the ownership of mobile money accounts to ensure sustainable maize production. Originality/value Distinct from other studies, this article uniquely investigates the factors that influence a combination of two financial sources and its mediation via digital finance. Additionally, the article assesses the impact of adopting a combination of financial sources on maize production.
Authors
- Daniel Adu Ankrah (ORCID: https://orcid.org/0000-0001-9360-0854)
- Stephen Prah (ORCID: https://orcid.org/0000-0002-0482-087X)
- Bright Owusu Asante (ORCID: https://orcid.org/0000-0002-5415-6110)
Institutions
- University of Wisconsin–Extension (US)
- University of Ghana (GH)
- Kwame Nkrumah University of Science and Technology (GH)
- Corteva (United States) (US)
- Kwame Nkrumah University (ZM)
Publication Details
- Journal
- Agricultural Finance Review
- Published
- 2025-08-21
- DOI
- https://doi.org/10.1108/afr-03-2024-0057
- Primary Topic
- Microfinance and Financial Inclusion
- Type
- article
- Field-Weighted Citation Impact
- 0.00