A Threshold Effect Analysis of Households' Ability to Maintain Economic Welfare

Rural–Urban Dichotomy in Ghana

Bibliographic Data

ID6445485
AuthorsAlhassan Abdul‐wakeel Karakara (0000-0001-7378-1678, University of Cape Coast), Evans Osabuohien (0000-0002-3258-8326, Covenant University), Simplice Anutechia Asongu (0000-0001-5227-5135, Advanced Institute of Convergence Technology)
Year2025
Volume53
Issue5
Publication date2025-09-09
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenuePolitics & Policy (JOURNAL)
Journal identifiersISSN: 1555-5623 • E-ISSN: 1747-1346
PublisherWiley (PUBLISHER • GB)
DOI10.1111/polp.70064
OpenAlexW4414213461
LanguageEN
References cited38

This study examines the ability of households to maintain economic welfare and the threshold at which it occurs. We use the Mobile Financial Service Survey (MFSS) data comprising a probability sampling of all Ghanaian households for the econometric analysis. Also, we engage two waves of the Ghana Living Standard Survey (GLSS 6 & 7) and the Demographic and Health Survey (DHS 2008 & 2014) to analyze household poverty trends. Using multinomial logistic regression and Lowess smoothing techniques, we find that poverty is a matter of the nature of residence in Ghana as rural households are poorer than their urban counterparts. Also, education negatively correlates with poverty, and household characteristics influence the poverty status of households through the household's ability to have an emergency fund, to self‐finance their typical expenditures, and to pay their bills. Other findings and policy implications are discussed

Gender, Labor, and Family Dynamics · Microfinance and Financial Inclusion · Poverty, Education, and Child Welfare

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