Impact of financial inclusion on household welfare in Ethiopia

Hussen, Mohammed Seid; Mohamed, Mustafe Abdi

doi:10.1186/s43093-023-00243-y

Future Business Journal

Table 1 Variable names, descriptions, and descriptive statistics for those who have access and not. Source: Author’s computation from ESS

From: Impact of financial inclusion on household welfare in Ethiopia

Variable	Description of variable	Access to finance	No access to finance	Difference
lntot	The logarithm of annual total expenditure PAE	10.02	9.396	0.624***
lnfood	The logarithm of annual expenditure on food PAE	9.662	9.18	0.482***
lneduc	The logarithm of annual expenditure on education PAE	3.706	2.748	0.958***
lnutility	The logarithms of annual expenditure on utilities PAE	6.189	3.302	2.887***
Mobile_own	1 if owns a mobile phone, 0 otherwise	0.741	0.369	0.372***
educ	Highest level of education	1.954	0.467	1.487***
iddir^a	1 if a member of iddir, 0 otherwise	0.47	0.431	0.039***
Marital	1 if married, 0 otherwise	0.683	0.705	− 0.022*
Religion	1 if Muslim, 0 otherwise	0.245	0.485	− 0.24***
Age	Age in years	39.33	44.72	− 5.39***
Ag2	The square of the age	1.731	2.251	− 520***
Gender	1 if male, 0 otherwise	0.721	0.651	0.07***
Hh_size	Household size	3.856	4.575	− 0.719***
hh_size2	Household size square	19.51	26.43	− 6.92***
Know_account	1 if the HH knows how to open a bank account, 0 otherwise	0.886	0.22	0.666***
wage_self	1 if wage or self-employed in non-agriculture, 0 otherwise	0.551	0.211	0.34***
credit_info	1 if the HH has information about credit, 0 otherwise	0.294	0.0581	0.235***
Urban	1 if the household is located in urban area, 0 otherwise	0.793	0.336	0.457***
lndis	The logarithms of the distance from where the household lives to the nearest formal financial institution	1.283	2.539	− 1.256***
bank_com	1 if there is a formal bank in the community, 0 otherwise	0.642	0.225	0.417***
educ_com	the average highest educational qualification in the community	1.647	0.724	0.923***
Observation		3040	3615

***p < 0.001; **p < 0.01; *p < 0.05
^aIddir is defined as “An association made up by a group of persons united by ties of family and friendship, by living in the same district, by jobs, or by belonging to the same ethnic group, and has an object of providing mutual aid and financial assistance in certain circumstances … In practice, the iddir is a sort of insurance program run by a community or a group to meet emergency situations.” [32]

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