Abstract The study explored the nexus between financial literacy and credit decision of maize aggregators in Ghana. Multistage sampling approach was used to select 200 maize aggregators from the Bono and Bono East regions to form the sample size. A questionnaire was used to gather cross-sectional data from the sampled respondents. Descriptive and inferential analysis; mainly heteroscedasticity corrected linear regression and the Cragg double hurdle approaches were used. The study discovered that maize aggregators generally had adequate financial literacy. However, their knowledge on insurance was very low. Again, the results of the heteroskedasticity corrected linear regression model showed that education, gender, possessing savings account and mobile money (MoMo) account significantly determined maize trader’s financial literacy. Furthermore, the Cragg double hurdle analysis revealed that gender, age, education, household size, marital status, primary occupation, media, savings account, mobile money and financial literacy affected aggregators’ credit access. On the other hand, the truncated regression showed that media, financial literacy and MoMo account informed the amount borrowed by the maize aggregators. It is recommended that females and uneducated aggregators should be prioritize in financial literacy trainings.
Anang et al. (Fri,) studied this question.