Public Incentive Mechanism, Access to Credit, Household Current Well-being, and Expectation on Future Prosperity in Togo

International Journal of Economics and Management Studies
© 2021 by SSRG - IJEMS Journal
Volume 8 Issue 11
Year of Publication : 2021
Authors : Koffi Sodokin
How to Cite?

Koffi Sodokin, "Public Incentive Mechanism, Access to Credit, Household Current Well-being, and Expectation on Future Prosperity in Togo," SSRG International Journal of Economics and Management Studies, vol. 8,  no. 11, pp. 7-21, 2021. Crossref,


In January 2014, the Togolese Government launched the National Fund for Inclusive Finance. The role of the Fund is to strengthen the financial and operational capacities of decentralized Financial Service Providers to permanently meet the needs of local financial products expressed by individuals and communities who do not have access to traditional financial services. This paper aims to analyze the impact of this government incentive mechanism for access to a microfinance institution on small business profits of households and well-being in Togo. The study uses data from the Harmonized Survey of Household Living Conditions conducted in 2019 by the National Institute of Statistics, Economic and Demographic Studies on 6,171 households. The paper uses the instrumental variable quantile method. The result shows that access to credit significantly improves both households’ current well-being and their expectation of future prosperity, in a complementary way, by enhancing their business profits.


Household Small Business, Hedonic financial capital; Eudemonic Financial Capital, Current Well-being; Future Prosperity; Togo.


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