Hi, I’m Frederick Nyanzu, an Applied Microeconomics at the University of Illinois at Urbana-Champaign. My research intersects development and environmental economics. On the development side, I investigate how technology adoption and financial literacy programs create opportunities, i.e., having access to credit, for vulnerable and poor households and the interaction that can have on household food security and welfare outcomes. Additionally, my research touches on issues related to local food systems, farmland valuations, and ecosystem service management from the local context. In particular, I am interested in how policy initiatives can support conservation efforts to improve well-being, especially for minority groups, who are often the most affected by environmental degradation. By bridging these two areas, my research aims to develop integrated solutions that not only promote economic development but also ensure sustainable resource management, ultimately contributing to more resilient and equitable communities.
JOB MARKET PAPER
Expanding digital financial services (DFS) in Sub-Saharan Africa presents significant opportunities for the region’s development, especially in enhancing financial security for poor and vulnerable individuals, many of whom rely on agriculture. However, the long-term impact of DFS on agricultural productivity depends on access to credit, financial products, and investment in agricultural inputs (such as spending on seeds, chemicals, and farmland). In this paper, I use three-wave household panel survey data, combined with geospatial information on DFS rollout in Ghana, to investigate the impact of the expansion of DFS on financial inclusion and ag-investment. I employ fixed effects model, account for spatial dependence, and use an instrumental variable (IV) approach to answer our research questions. The findings show that proximity to mobile money coverage areas boosts agricultural investment by about 30% while also increasing financial inclusion by around 15%. Additionally, I instrument financial inclusion with distance to DFS coverage and find that financial inclusion positively affects ag-investment. Other welfare benefits are also evident. I find that an effective financial inclusion environment – where people can access credit and financial products to meet timely needs – is critical for agricultural investment to create a positive feedback loop for gains in agricultural productivity. The results highlight the need to extend DFS to underserved areas where vulnerable and unbanked populations, especially farmers, are concentrated.
Keywords: Digital Financial Services, Financial Inclusion, Agricultural Investment, Sub-Saharan Africa
PUBLISHED PAPER(S)
Eliciting expert judgment to inform management of diverse oyster resources for multiple ecosystem services
Paper can be found here
Published 2020 - Journal of Environmental Management
with Daniel R. Petrolia, Just Cebrian, Ardian Harri, Jamie Amato, and William C. Walton
This study presents the most comprehensive set of ecosystem service provision estimates for diverse oyster-based resources to date. We use expert elicitation methods to derive estimates of five ecosystem services provided by oysters: oyster harvest (as indicated by oyster density), improved water quality (net nitrogen assimilation), shoreline protection (net erosion), and other fish habitat (blue crab and red drum density). Distributions are estimated for three distinct resources: on-bottom production, off-bottom farms, and non-harvested restoration/ conservation efforts, under twelve distinct scenarios according to varying environmental conditions (eutrophication, sedimentation, and salinity regimes). Our expert-derived estimates of ecosystem services provide useful comparisons across oyster resources of both expected ecosystem service delivery levels and the amount of variation in those levels. These estimates bridge an information gap regarding relative performance of diverse oyster resources along multiple dimensions and should serve as a useful guide for resource managers facing competing interests.
Regulation, outreach, and sustainability of microfinance institutions in sub‐Saharan Africa: A multilevel analysis
Paper can be found here
Published 2019 -Journal of Small Business Management
with James Atta Peprah (School of Economics, University of Cape Coast, Ghana) and Ayi Gavriel Ayayi (Department of Finance and Economics, Université du Québec à Trois Rivières, Québec, Canada)
The paper examines the effect of regulation on microfinance institutions’ (MFIs) sustainability and outreach in Sub‐Saharan Africa (SSA). Using unbalanced panel data from 2002 to 2012 for 30 countries and a multilevel estimation technique, we find that regulation helps improves the sustainability and breadth of outreach but not the depth. We also find that MFIs that accept deposits have better sustainability but tend to serve the marginal poor. Finally, regulatory quality has a positive impact on outreach and sustainability. Overall, the paper casts new light on the contribution of regulation to the dual objectives of microfinance.
WORKING PAPER(S)
Optimal Portfolio Design to Manage Oyster Resources
Paper can be found here
The State of Mississippi wants to manage its oyster resource to increase production, quality, ecological, and economic benefits. In this study, we employ modern portfolio theory (MPT) to test if there are potential gains to hold multiple oyster resources for multiple benefits to aid the state's effort in achieving its goal. Using a Delphi approach, we elicit complete sets of data on ecosystem services (on oxygen, nutrients, sedimentation, and salinity) across multiple oyster resources (traditional plantings, off-bottom farms, and restored reefs). A benefit transfer method is used later to assign money-metric value to each service estimate. The multiple service values are then aggregated into net service value. We compute the means, standard deviations, and correlations of benefits across all resources using the net service values, and generate efficient frontiers from that information. Results indicate that Mississippi could benefit from holding multiple oyster resources with attention directed towards off-bottom oyster farms.
Dietary pattern, socioeconomic status, and child health outcomes in Ghana
Paper can be found here
with Dr. Jacob Nunoo (University of Cape Coast, Ghana)
Child welfare, especially issues bordering on child health, continues to be one of the core issues of development. Over the years, appreciable progress has been made, but the levels are still not good enough. This paper investigates the effects of mothers’ socioeconomic characteristics and regional effects on the child's health. Also, the paper employs a multilevel estimation technique, a methodology that distinguishes this study from previous studies to investigate the sources of variation in child health for appropriate policy recommendations. This study revisits the issue of the determinants of child health using the 2012 Ghana version of the Multiple Indicator Cluster Survey, with a sample size of 7364, to investigate how infant diet practices impact child health in Ghana. We estimate the effect of dietary patterns, other socioeconomic characteristics, and regional effects on child anthropometric indicators using the multilevel estimation technique to control for the clustering effect. We find dietary patterns to have a positive impact on child health. In addition, we realize that mother characteristics and regional effects play a role in the child's growth. Still, mother characteristics seem to be the driving force when mother and regional effects are set at play. It is recommended that parents adhere to the appropriate diet requirement for their children to achieve better health outcomes. Also, it is imperative for policies to be geared towards parents as a first step in ensuring a better child's health. In addition, policies and programs directed to the three Northern regions of Ghana are very crucial in supporting a positive child health development for children in Ghana.
Paper can be found here
with Josephine Adarkwah (Kwame Nkrumah University of Science and Technology, Ghana)
Electricity provision in Ghana has been marred by low generation, poor supply, and frequent power outages. The situation compels firms to adopt strategies to cope with this poor public power supply for their business. To this end, this study analyzed the effect of power supply on the performance of SMEs: a comparative analysis between two regions in Ghana where Small and Medium firms are located. We utilized the World Bank 2013 Enterprise Survey on Ghana, which consists of 710 firms. We employ descriptive analysis, using chi-square and t-tests to do pattern analysis. In addition, we use an ordinary regression analysis (OLS) to test the relationship between firm performance and electricity supply while controlling for covariates. The results show that the presence of power outages, thus, the number of times power outages experienced and hours of power outages negatively affected firms’ performance (profitability). In addition, we found that power outages (power interruptions) severely affect SMEs located in the Northern part of Ghana more than SMEs located elsewhere. Therefore, the study recommends that the government implement policies and programs such as the power mix approach and renewable energy, bringing in private sector participation to enhance competition and efficiency.
WORK-IN-PROGRESS
Mobile Money and Labor Market Dynamics: Evidence from Ghana (With Kwabena Krah)
Distribution of Benefits from Conservation of Farmland and Nature
Financial Inclusion, Women Empowerment and Food Security
Sustainable Agriculture, Land Use/land Conflict and Food Security