Volume 2 Issue 3 | 2025 | View PDF
Paper Id:IJMSM-V2I3P108
doi: 10.71141/30485037/V2I3P108

Impact of Financial Access on Household Expenditures: A Case Study from Benin

Mussa Deme, Fatou Cisse, Emmanuel Nkansah, Sulemana Abdul-Salam, Antoine Francis Obame Nguema, Quimico Una Da Silva Evora

Citation:
Mussa Deme, Fatou Cisse, Emmanuel Nkansah, Sulemana Abdul-Salam, Antoine Francis Obame Nguema, Quimico Una Da Silva Evora, "Impact of Financial Access on Household Expenditures: A Case Study from Benin" International Journal of Multidisciplinary on Science and Management, Vol. 2, No. 3, pp. 63-74, 2025.

Abstract:
This research examines the impact of financial inclusion, specifically access to mobile money and bank services, on household welfare in Benin. Using nationally representative survey data, we discuss how financial access affects household expenditures on key sectors, including education, health, transportation, and fish and meat. Employing matching techniques, Caliper Matching, Kernel Matching, and the Inverse Probability Weighted Regression Adjustment (IPWRA) identification strategy, we identify the causal effects of financial access while addressing selection bias. The results reveal that households with access to financial services spend significantly more on education, health, and transportation, suggesting improved capacity to invest in long-term welfare and human capital. Although effects on food-related expenditures (fish and meat) are minor and generally not statistically significant, the overall findings underscore the potential of financial inclusion to enhance household well-being. Balance checks confirm the robustness of the matching process, strengthening the credibility of the estimates. The study emphasizes the importance of expanding access to financial services as a policy tool to promote inclusive economic development and enhance living standards in low-income settings, such as Benin.

Keywords: Financial inclusion, Mobile money, Bank access, Household expenditure, Matching methods, Welfare impact, Benin.

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