Title: Credit and demographic factors: implications for income and saving in Tanzania

Authors: Jehovaness Aikaeli; Michael O.A. Ndanshau

Addresses: School of Economics, University of Dar es Salaam, Dar es Salaam, Tanzania ' School of Economics, University of Dar es Salaam, Dar es Salaam, Tanzania

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.

Keywords: credit; income; saving; Blinder-Oaxaca.

DOI: 10.1504/AJESD.2021.114536

African Journal of Economic and Sustainable Development, 2021 Vol.8 No.2, pp.111 - 139

Received: 17 Dec 2019
Accepted: 11 Oct 2020
Published online: 26 Apr 2021 *

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