Financial inclusion, agricultural inputs use, and household food security evidence from Nigeria

This paper examines the effects of financial inclusion on adoption and intensity of use of agricultural inputs and household welfare indicators using data from the nationally representative Nigerian LSMS wave-3 (2015/2016) survey. For this, we constructed a financial inclusion index from four formal...

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Detalles Bibliográficos
Autores principales: Balana, Bedru, Olanrewaju, Opeyemi
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2024
Materias:
Acceso en línea:https://hdl.handle.net/10568/162588
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author Balana, Bedru
Olanrewaju, Opeyemi
author_browse Balana, Bedru
Olanrewaju, Opeyemi
author_facet Balana, Bedru
Olanrewaju, Opeyemi
author_sort Balana, Bedru
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper examines the effects of financial inclusion on adoption and intensity of use of agricultural inputs and household welfare indicators using data from the nationally representative Nigerian LSMS wave-3 (2015/2016) survey. For this, we constructed a financial inclusion index from four formal financial services access indicators (bank account, access to credit, insurance coverage, and digital transaction) using multiple correspondence analysis (MCA). We used Cragg’s two-step hurdle, instrumental variables for binary response variables, and a Generalized Method of Moments (GMM) models in the econometric analysis. Results show that households with access to formal financial services are more likely to adopt agricultural inputs and to apply these more intensively. These same households are less likely to experience severe food insecurity and are more likely to consume diverse food items. We also find that these effects are less for female farmers regardless of formal financial inclusion, suggesting that they may bear more non-financial constraints than their male counterparts. The results suggest a need for targeted interventions to increase access to formal financial services of farm households and gender-responsive interventions to address the differential constraints women farmers face.
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spelling CGSpace1625882025-12-02T21:03:13Z Financial inclusion, agricultural inputs use, and household food security evidence from Nigeria Balana, Bedru Olanrewaju, Opeyemi farm inputs financial inclusion food security households inorganic fertilizers seeds This paper examines the effects of financial inclusion on adoption and intensity of use of agricultural inputs and household welfare indicators using data from the nationally representative Nigerian LSMS wave-3 (2015/2016) survey. For this, we constructed a financial inclusion index from four formal financial services access indicators (bank account, access to credit, insurance coverage, and digital transaction) using multiple correspondence analysis (MCA). We used Cragg’s two-step hurdle, instrumental variables for binary response variables, and a Generalized Method of Moments (GMM) models in the econometric analysis. Results show that households with access to formal financial services are more likely to adopt agricultural inputs and to apply these more intensively. These same households are less likely to experience severe food insecurity and are more likely to consume diverse food items. We also find that these effects are less for female farmers regardless of formal financial inclusion, suggesting that they may bear more non-financial constraints than their male counterparts. The results suggest a need for targeted interventions to increase access to formal financial services of farm households and gender-responsive interventions to address the differential constraints women farmers face. 2024-11-21 2024-11-21T22:49:20Z 2024-11-21T22:49:20Z Working Paper https://hdl.handle.net/10568/162588 en https://hdl.handle.net/10568/152224 https://doi.org/10.2499/p15738coll2.137032 https://hdl.handle.net/10568/128028 Open Access application/pdf International Food Policy Research Institute Balana, Bedru; and Olanrewaju, Opeyemi. 2024. Financial inclusion, agricultural inputs use, and household food security evidence from Nigeria. IFPRI Discussion Paper 2293. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/162588
spellingShingle farm inputs
financial inclusion
food security
households
inorganic fertilizers
seeds
Balana, Bedru
Olanrewaju, Opeyemi
Financial inclusion, agricultural inputs use, and household food security evidence from Nigeria
title Financial inclusion, agricultural inputs use, and household food security evidence from Nigeria
title_full Financial inclusion, agricultural inputs use, and household food security evidence from Nigeria
title_fullStr Financial inclusion, agricultural inputs use, and household food security evidence from Nigeria
title_full_unstemmed Financial inclusion, agricultural inputs use, and household food security evidence from Nigeria
title_short Financial inclusion, agricultural inputs use, and household food security evidence from Nigeria
title_sort financial inclusion agricultural inputs use and household food security evidence from nigeria
topic farm inputs
financial inclusion
food security
households
inorganic fertilizers
seeds
url https://hdl.handle.net/10568/162588
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AT olanrewajuopeyemi financialinclusionagriculturalinputsuseandhouseholdfoodsecurityevidencefromnigeria