About this Journal Submit a Manuscript Table of Contents
ISRN Economics
Volume 2014 (2014), Article ID 329674, 9 pages
http://dx.doi.org/10.1155/2014/329674
Research Article

Impact of Formal Financial Market Participation on Farm Size and Expenditure on Variable Farm Inputs: The Case of Maize Farmers in Ghana

1Department of Agricultural Economics, Agribusiness and Extension, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana
2Department of Agricultural Economics and Agribusiness, University of Ghana, Legon, Ghana

Received 26 August 2013; Accepted 16 September 2013; Published 12 January 2014

Academic Editors: D. Dave, M. Matsui, and M. Ransom

Copyright © 2014 Dadson Awunyo-Vitor et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

The study examined maize farmers’ participation in the formal financial market and its impact on farm size and expenditure on variable farm inputs. A multistage sampling method was used in selecting 595 maize farmers from the seven districts in Ashanti and Brong Ahafo Regions of Ghana. A structured questionnaire and interview schedule were used to elicit information from the respondents. The impact of formal financial market participation on farm size and expenditure on variable inputs was estimated using Propensity Score Matching (PSM) method. The results of the study showed that formal financial market participation has the potential to significantly increase expenditure on variable inputs by farmers and consequently use of improved technology. Therefore, formal financial market participation should be encouraged through education and promotional activities.