Impact of mobile money adoption on remittances and net farm income of oil palm farmers in Ghana

Abstract

Purpose This study examines the factors affecting the adoption of mobile money, its effects on remittances received by oil palm farmers and the net income of smallholder oil palm farmers in the Prestea-Huni Valley Municipal District of Ghana. Design/methodology/approach Using a multi-stage sampling technique, a total of 400 oil palm farmers in the study area were surveyed, and the data were analyzed using a Firth Penalized Logit model to determine the factors affecting the adoption of mobile money. In addition, an endogenous switching regression model was used to determine the effects of mobile money use on remittances received and the net income of oil palm farmers. Findings The study finds that the probability of adopting the use of mobile money increases with the ownership of a mobile phone, access to the network, distance to the farm, educational level of the farmer and the experience of the farmer in oil palm production, but decreases with the age of the farmer. The average treatment effects of mobile money on remittances and net farm income are positive. The study also finds a large and statistically significant potential income gain for current non-users of about GH¢750 per year, which is largest among older non-adopters and robust to alternative specifications. Research limitations/implications This study provides policy implications for the use of digital finance in agriculture in Ghana. Originality/value This study contributes to the existing body of knowledge on the use of digital finance in agriculture in Ghana and similar smallholder agricultural contexts.

The authors' abstract, as published at the source. Journal of Agribusiness in Developing and Emerging Economies, 2026 · DOI ↗