Asset accumulation and financial investments as anchors for food security in cocoa farming communities

Purpose This study aims to investigate the effects of asset accumulation and financial investments on food security, and the relationships among them. Design/methodology/approach The study used household dietary diversity score to measure food security. The authors obtained data from 205 households in cocoa farming communities of Ghana. To account for endogeneity and compare results, the study estimated three-stage least-squares, multinomial logistic and Poisson model with continuous endogenous covariates. Findings Food security is positively influenced by financial investments and asset ownership. Food and transportation assets have positive influences on food security. Financial investment is positively influenced by ownership of production, household comfort, transportation and information assets. Also, assets ownership is positively influenced by food security. Other confounding factors are significant in explaining food security, financial investments and asset ownership. Practical implications Financial institutions should provide financial literacy in the form of education and training for farmers on various investment approaches, risk mitigation and management, and financial planning. Originality/value Empirical evidence on the role of asset building and financial investment in food security within the specific context of smallholder cocoa communities is not articulated in previous studies.