Synergistic effects of remittances and off-farm work on farmers’ welfare outcomes: the role of digital finance

Purpose This study aims to examine the impact of remittances and off-farm work via the pathway of owning a mobile money account on smallholder maize farmers’ welfare outcomes in Ghana. Design/methodology/approach Using cross-sectional data from 1,431 maize farmers in southern Ghana, we employed a multinomial endogenous switching regression. A doubly robust estimator – multivalued inverse-probability-weighted regression adjustment (MIPWRA) – is used to check the robustness of the estimates, within the context of a propensity score framework. Findings Engaging in off-farm work and remittances leads to a maize yield of 1,901.11 kg/acre relative to non-adopters. We find that socio-economic and institutional factors positively influence the selection of financial sources. Ownership of a mobile money account mediates the impact of financial sources on welfare. Our findings call for farmers to harness the synergies of remittances and off-farm work as mediated through the ownership of mobile money accounts to ensure sustainable maize production. Originality/value Distinct from other studies, this article uniquely investigates the factors that influence a combination of two financial sources and its mediation via digital finance. Additionally, the article assesses the impact of adopting a combination of financial sources on maize production.