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Determinants of Farmers’ Confidence Level in the Financial Sector of Ghana: A Case of the Ejura Sekeredumase Municipality of the Ashanti Region

Received: 2 May 2020     Accepted: 26 May 2020     Published: 17 June 2020
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Abstract

This paper adopted the PPO model to examine determinants of the confidence level of farmers on the financial institutions using 274 randomly selected farmers from Ejura Sekeredumase Municipality. About 44.9% of the farmers reported not having confidence in the financial institutions of the country, 21.9% were somehow confident in the sector, 17.5% were confident whereas only 15.7% were very confident in the sector. Male farmers were more likely to be very confident in the financial sector whilst education in years, farmers who ever lost savings or investment as well as those with current savings and/or investment all had positive outcome in the likelihood of being very confident in the financial sector. Duration of farmers with a financial institution and farmers who ever encountered challenges in a financial institution are less likely to be very confident in financial institutions in Ghana. The Central Bank should develop a different proactive educational model or approach to educate farmers on how to identify risk and other exposures that may be associated with the financial institutions operating in the rural areas in order to enable them to take decisions towards savings and investment. This will boost their confidence levels.

Published in International Journal of Agricultural Economics (Volume 5, Issue 3)
DOI 10.11648/j.ijae.20200503.13
Page(s) 71-79
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Ejura Sekeredumase Municipality, Farmers, Financial Institutions, Parallel Lines Assumptions, Partial Proportional Odds Model

References
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[3] Awoyemi, A. E.; Olajide, O. A. Assessment of the Degree of Households’ Vulnerability to Climate Variability in Nigeria BT - Handbook of Climate Change Resilience; Leal Filho, W., Ed.; Springer International Publishing: Cham, Switzerland, 2018; pp. 1–16, ISBN 978-3-319-71025-9.
[4] Abunyuwah, I., Yenibehit, N., & Ahiale, E. D. (2019). Technical Efficiency of Carrot Production in the Asante-Mampong Municipality Using Stochastic Frontier Analysis. Journal of Agriculture and Environmental Sciences, 8 (2), 14-21.
[5] Echeverría, R. G., & Beintema, N. M. (2009). Mobilizing financial resources for agricultural research in developing countries: Trends and mechanisms. Global Forum on Agricultural Research.
[6] Akuffo-Duah, B. (2011). Competition in the Banking Industry of Ghana (Dissertation; Commonwealth Executive Masters in Business Administration (CEMBA), Kwame Nkrumah University of Science and Technology).
[7] BANK OF GHANA (2019): Banking Sector Report. https://www.bog.gov.gh/banking_sect_report/banking-sector-report-september-2019/. Accessed on 10th January 2020.
[8] Oduro, R., Asiedu, M. A., & Gadzo, S. G. (2019). Impact of credit risk on corporate financial performance: Evidence from listed banks on the Ghana stock exchange. Journal of Economics and International Finance, 11 (1), 1-14.
[9] Sarpong S. (2018) Ensuring Sanity in Ghana’s Financial Sector: A Focus on Ghana’s Microfinance Institutions. In: Díaz Díaz B., Idowu S., Molyneux P. (eds) Corporate Governance in Banking and Investor Protection. CSR, Sustainability, Ethics & Governance. Springer, Cham, pp. 287-301. https://doi.org/10.1007/978-3-319-70007-6_14. Accessed on 9th June, 2019.
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[15] Mosch, Robert; Prast, Henriëtte (2010): Confidence and trust: empirical investigations for the Netherlands and the financial sector, Beiträge zur Jahrestagung desVereins für Socialpolitik 2010: Ökonomie der Familie - Session: Trusting Banks in a Financial Crisis, No. A1-V2, Verein für Socialpolitik, Frankfurt a. M. Retrieved from http://hdl.handle.net/10419/37384. Accessed on 9th June, 2019
[16] Drobot, S. (2015). Consumer Confidence and Household Deposits (Doctoral dissertation, Kyiv School of Economics).
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Cite This Article
  • APA Style

    Yenibehit Nanii, Awoyemi Abiodun Emmanuel, Akorsikumah Eli Andreaws, Akurugu Sumaila, Adongo Azure Simon, et al. (2020). Determinants of Farmers’ Confidence Level in the Financial Sector of Ghana: A Case of the Ejura Sekeredumase Municipality of the Ashanti Region. International Journal of Agricultural Economics, 5(3), 71-79. https://doi.org/10.11648/j.ijae.20200503.13

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    ACS Style

    Yenibehit Nanii; Awoyemi Abiodun Emmanuel; Akorsikumah Eli Andreaws; Akurugu Sumaila; Adongo Azure Simon, et al. Determinants of Farmers’ Confidence Level in the Financial Sector of Ghana: A Case of the Ejura Sekeredumase Municipality of the Ashanti Region. Int. J. Agric. Econ. 2020, 5(3), 71-79. doi: 10.11648/j.ijae.20200503.13

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    AMA Style

    Yenibehit Nanii, Awoyemi Abiodun Emmanuel, Akorsikumah Eli Andreaws, Akurugu Sumaila, Adongo Azure Simon, et al. Determinants of Farmers’ Confidence Level in the Financial Sector of Ghana: A Case of the Ejura Sekeredumase Municipality of the Ashanti Region. Int J Agric Econ. 2020;5(3):71-79. doi: 10.11648/j.ijae.20200503.13

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  • @article{10.11648/j.ijae.20200503.13,
      author = {Yenibehit Nanii and Awoyemi Abiodun Emmanuel and Akorsikumah Eli Andreaws and Akurugu Sumaila and Adongo Azure Simon and Adam Umar and Alhassan Abdul Fataw},
      title = {Determinants of Farmers’ Confidence Level in the Financial Sector of Ghana: A Case of the Ejura Sekeredumase Municipality of the Ashanti Region},
      journal = {International Journal of Agricultural Economics},
      volume = {5},
      number = {3},
      pages = {71-79},
      doi = {10.11648/j.ijae.20200503.13},
      url = {https://doi.org/10.11648/j.ijae.20200503.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20200503.13},
      abstract = {This paper adopted the PPO model to examine determinants of the confidence level of farmers on the financial institutions using 274 randomly selected farmers from Ejura Sekeredumase Municipality. About 44.9% of the farmers reported not having confidence in the financial institutions of the country, 21.9% were somehow confident in the sector, 17.5% were confident whereas only 15.7% were very confident in the sector. Male farmers were more likely to be very confident in the financial sector whilst education in years, farmers who ever lost savings or investment as well as those with current savings and/or investment all had positive outcome in the likelihood of being very confident in the financial sector. Duration of farmers with a financial institution and farmers who ever encountered challenges in a financial institution are less likely to be very confident in financial institutions in Ghana. The Central Bank should develop a different proactive educational model or approach to educate farmers on how to identify risk and other exposures that may be associated with the financial institutions operating in the rural areas in order to enable them to take decisions towards savings and investment. This will boost their confidence levels.},
     year = {2020}
    }
    

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  • TY  - JOUR
    T1  - Determinants of Farmers’ Confidence Level in the Financial Sector of Ghana: A Case of the Ejura Sekeredumase Municipality of the Ashanti Region
    AU  - Yenibehit Nanii
    AU  - Awoyemi Abiodun Emmanuel
    AU  - Akorsikumah Eli Andreaws
    AU  - Akurugu Sumaila
    AU  - Adongo Azure Simon
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    AU  - Alhassan Abdul Fataw
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    N1  - https://doi.org/10.11648/j.ijae.20200503.13
    DO  - 10.11648/j.ijae.20200503.13
    T2  - International Journal of Agricultural Economics
    JF  - International Journal of Agricultural Economics
    JO  - International Journal of Agricultural Economics
    SP  - 71
    EP  - 79
    PB  - Science Publishing Group
    SN  - 2575-3843
    UR  - https://doi.org/10.11648/j.ijae.20200503.13
    AB  - This paper adopted the PPO model to examine determinants of the confidence level of farmers on the financial institutions using 274 randomly selected farmers from Ejura Sekeredumase Municipality. About 44.9% of the farmers reported not having confidence in the financial institutions of the country, 21.9% were somehow confident in the sector, 17.5% were confident whereas only 15.7% were very confident in the sector. Male farmers were more likely to be very confident in the financial sector whilst education in years, farmers who ever lost savings or investment as well as those with current savings and/or investment all had positive outcome in the likelihood of being very confident in the financial sector. Duration of farmers with a financial institution and farmers who ever encountered challenges in a financial institution are less likely to be very confident in financial institutions in Ghana. The Central Bank should develop a different proactive educational model or approach to educate farmers on how to identify risk and other exposures that may be associated with the financial institutions operating in the rural areas in order to enable them to take decisions towards savings and investment. This will boost their confidence levels.
    VL  - 5
    IS  - 3
    ER  - 

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Author Information
  • Department of Agribusiness, Animal Health and Production College, Pong Tamale, Ministry of Food and Agriculture (MoFA), Pong-Tamale, Ghana

  • Department of Agricultural and Resource Economics, University for Development Studies (UDS), Nyankpala Campus, Nyankpala, Ghana

  • Department of Agricultural and Resource Economics, University for Development Studies (UDS), Nyankpala Campus, Nyankpala, Ghana

  • Department of Agricultural and Resource Economics, University for Development Studies (UDS), Nyankpala Campus, Nyankpala, Ghana

  • Department of Agricultural and Resource Economics, University for Development Studies (UDS), Nyankpala Campus, Nyankpala, Ghana

  • Department of Agricultural and Resource Economics, University for Development Studies (UDS), Nyankpala Campus, Nyankpala, Ghana

  • Department of Agricultural and Resource Economics, University for Development Studies (UDS), Nyankpala Campus, Nyankpala, Ghana

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