The novel Coronavirus disease 2019 (COVID-19), which has become a global epidemic, hit Ghana on 12 March 2020 and, in less than a week, increased by over 300% with two deaths. As of 11 August 2020, Ghana had recorded over 41,000 cases with over 215 deaths. This study seeks to provide a micro-level evidence on how COVID-19 is posing a threat to some of the Sustainable Development Goals, particularly poverty in Ghana. Specifically, the study examined the effect of COVID-19 on poverty and living standards of Ghanaian households. The study further analysed which class of persons within the income distributions has been mostly hit by the pandemic. Data on 3,905 households were obtained via concurrent online survey and telephone interviews. Multiple analytical approaches were employed-Ordinary least squares, probit model and simultaneous quantile regressions. Results showed that COVID-19 had significantly increased the poverty levels of households while deteriorating living standards. The study also discovered that gender and locational heterogeneities exist regarding the impact of COVID-19 with females and rural dwellers mostly disadvantaged. However, simultaneous quantile regression result shows that in terms of overall household consumption, those in the middle and upper classes are profoundly affected compared to those in the lowest class. A ABOUT THE AUTHOR Chei Bukari is a Course Demonstrator and researcher in the School of Economics at the University of Cape Coast, Ghana. He has over five years of teaching and extensive research experience. His area of research includes poverty, inequality, finance and corruption. He has several research papers in refereed journals in these fields of interest. He has worked with several reputable organization including Ghana Statistical Service. The major contribution of this study is that COVID-19 is undermining Ghana's efforts to achieve the Sustainable Development Goals (SDGs) particularly poverty and hunger. By implication, while governments must not be complacent in their fight against COVID-19, post-COVID-19 policies will require extra-efforts if agenda 2030 (i.e., SDGs) is to be achieved.
Following the outbreak of COVID-19 and its heavy toll on the global community and humanity, a fierce debate on the pandemic and Sustainable Development Goals (SDGs) performance nexus has emerged. While the literature on this subject remains highly contested, evidence within the Ghanaian contest is sparse. Thus, we present micro-level evidence on how COVID-19 poses a threat to hunger and poverty as SDGs in Ghana. Precisely, we examined the effect of COVID-19 on households' food insecurity and poverty and further analysed gender and locational sub-samples for differential effects. Data on 3905 households were obtained via concurrent online survey and telephone interviews. The results indicate that, on several occasions, a significant number of the sampled households (57.76%) did not get enough food to eat due to the pandemic. The proportion of households that went on several times without clean water for home use and access medicines/medical treatments were 50.52% and 52.22%, respectively. About 60.72% of the sampled households affirmed that, on several times, they did not have enough income due to the pandemic. At the same time, the share of households that suffered food insecurity due to the pandemic was 69.04%. Instrumenting for COVID-19 using distance to the affected communities, we find that a standard deviation increase in COVID-19 is associated with a rise of 0.232 and 0.289 standard deviations in poverty and food insecurity, respectively. Our results are robust to alternative estimation approaches to addressing the endogeneity of COVID-19 and other sensitivity checks. We conclude that Ghana would need to develop a new spectrum of gender- and location-sensitive policies that engender social inclusion as a conduit to expediate the attainment of zero poverty and hunger. Supplementary Information The online version contains supplementary material available at 10.1007/s11205-021-02766-9.
PurposeDoes financial inclusion matter for productivity among smallholder farmers? The authors answer this question by using the sixth and seventh rounds of the Ghana Living Standard Survey to examine the extent to which financial inclusion affects productivity among smallholder farmers in Ghana.Design/methodology/approachThe study uses a pooled data of the 6th and 7th rounds of the Ghana Living Standard Survey which are national representative data. The authors model an Instrumental Variable (IV) to correct for endogeneity in financial inclusion and a dominance analysis to examine the effects of access to credit, ownership of savings account and insurance product on farmers' productivity.FindingsResults from the study indicate that financial inclusion significantly enhances productivity. Moreover, credit, savings and insurance products influence productivity at various degrees. Thus, expanding the scope of financial services (access to credit, savings and insurance) among smallholder farmers is crucial for inclusive finance and sustainable agricultural production.Practical implicationsThe findings of the study have implications for financial institutions in the design of financial products that the meet the needs of smallholder farmers.Originality/valueSeveral studies have looked at how access to credit influences agricultural productivity in Africa. However, in recent times financial inclusion has been advocated for because it goes beyond mere access to credit. This paper to the best of our knowledge is the first of its kind to examine how financial inclusion could affect agricultural productivity in Ghana.
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