Determinants of credit constraint of artisanal fishermen in Ghana

ABSTRACT: Due to the high risk associated with fishing, access to credit becomes very difficult for fishermen. The study was conducted to investigate the determinants of credit constraint on artisanal fishermen with survey data collected from artisanal fishermen in the Western and Central Regions of Ghana. A multi-stage sampling procedure was used to select respondents for the study. Data collected were analyzed with the aid of descriptive and IV-Probit model. Most of the fishermen were in their youthful stage. From the study, while boat ownership and off-fishing activity reduce the probability being credit constrained, complex procedure, and disbursement time lag increase fishermen probability of being credit constrained. The findings of the study also indicated that there is a significant difference between constrained and unconstrained fishermen fishing activity and financial status. Therefore, fishermen in need of additional credit should be catered for to increase their production, hence, livelihood.