Credit and demographic factors: implications for income and saving in Tanzania. (4th March 2021)

• Record Type: Journal Article
• Authors: Aikaeli, Jehovaness; Ndanshau, Michael O.A.
• Is Part Of: African journal of economic and sustainable development. Volume 8:Number 2(2021)
• Page Start: 111
• Page End: 139
• Publication Date: 2021-03-04
• Subjects: credit -- income -- saving -- Blinder-Oaxaca; Sustainable development -- Africa -- Periodicals; 333.709605
• Languages: English
• ISSNs: 2046-4770

Abstract

This study seeks to establish empirical effect of access to credit and demographic factors on income and saving in urban and rural households of Tanzania. The analysis is based on Household Budget Survey. Blinder-Oaxaca decomposition technique is employed to estimate deviations of mean incomes and saving between the rural and urban households. Income in both rural and urban households is determined by education and saving, but earning is less for females than males. The study reveals that saving is positively associated with income, level of education, age and hedging against dependence. Access to credit is an important determinant of saving in rural households.