Access to Financial Services and Economic Performance of Livestock Farms: Exploring Potential Pathways

In this work, we investigate the relationship that exists between accessing financial services (FS) and the economic performances of 234 livestock farmers in Ghana's Upper West, specifically in the Lawra district. The endogenous treatment regression (ETR) is applied for our data analysis. The study's findings show that a number of factors, including market distance, education level, use of mobile phones, membership in farm-based organizations, and proximity to the closest financial institution, affect people's ability to obtain financial services. We again observed that access to financial services’ association with the farmers’ economic performance (livestock yield, net returns, and income) is positive and significant. Generally, access to FS could increase livestock farm yields, net earnings, and income. Further, regarding the potential channel estimation, we found that healthy living and adoption of climate change adaptation strategy (CAS) are substantial pathways through which access to FS boosts livestock farm yield, net returns, and income. The study’s findings signal that access to FS policies, which have the potential to enhance livestock development through many pathways, should be prioritized by the government.